ANHUI GUJING DISTILLERY COMPANY LIMITED
INTERIM REPORT 2025
August 2025Interim Report 2025
Part I Important Notes Table of Contents and Definitions
The Board of Directors (or the “Board”) the Supervisory Committee as well as the
directors supervisors and senior management of Anhui Gujing Distillery Company
Limited (hereinafter referred to as the “Company”) hereby guarantee the factuality
accuracy and completeness of the contents of this Report and its summary and shall
be jointly and severally liable for any misrepresentations misleading statements or
material omissions therein.Liang Jinhui the legal representative and Zhu Jiafeng the Deputy Chief Accountant
and Board Secretary hereby guarantee that the financial statements carried in this
Report are factual accurate and complete.All the Company’s directors have attended the Board meeting for the review of this
Report and its summary.Investors’ attention is kindly directed to the detailed description of possible risks in
the Company’s operations in “X Risks Facing the Company and Countermeasures”
under “Part III Management Discussion and Analysis”.The Company has no dividend plan either in the form of cash or stock and does not
increase the share capital by converting the reserve fund.This Report and its summary have been prepared in both Chinese and English.Should there be any discrepancies or misunderstandings between the two versions
the Chinese versions shall prevail.~ 2 ~Interim Report 2025
Table of Contents
Part I Important Notes Table of Contents and Definitions 2
Part II Corporate Information and Key Financial Information 6
Part III Management Discussion and Analysis 9
Part IV Corporate Governance and Environmental and Social Responsibility 26
Part V Significant Events 28
Part VI Share Changes and Shareholder Information 32
Part VII Bonds 37
Part VIII Financial Statements 38
Part IX Submission of Other Data 181
~ 3 ~Interim Report 2025
Documents Available for Reference
(I) Financial statements signed and sealed by the Company’s legal representative as
well as Deputy Chief Accountant and Board Secretary;
(II) All originals of the Company’s documents and announcements that have been
publicly disclosed in the Reporting Period on the media designated by the China
Securities Regulatory Commission (CSRC); and
(III) The interim report disclosed in other securities markets.~ 4 ~Interim Report 2025
Definitions
Term Definition
The “Company” “Gu Jing” or “we” Anhui Gujing Distillery Co. Ltd.Gujing Group Anhui Gujing Group Co. Ltd.Gujing Sales Bozhou Gujing Sales Co. Ltd.Yellow Crane Tower Distillery Yellow Crane Tower Distillery Co. Ltd.Mingguang Distillery Anhui Mingguang Distillery Co. Ltd.Longrui Glass Anhui Longrui Glass Co. Ltd.Intelligent Park Baijiu Production Intelligent Transformation Project
~ 5 ~Interim Report 2025
Part II Corporate Information and Key Financial Information
I Corporate Information
Gujing Distillery Gujing
Stock name Stock code 000596 200596
Distillery-B
Stock exchange for stock listing Shenzhen Stock Exchange
Company name in Chinese 安徽古井贡酒股份有限公司
Abbr. (if any) 古井
Company name in English (if any) ANHUI GUJING DISTILLERY COMPANY LIMITED
Abbr. (if any) GU JING
Legal representative Liang Jinhui
II Contact Information
Board Secretary Securities Representative
Name Zhu Jiafeng Mei Jia
Gujing Town Bozhou City Anhui Gujing Town Bozhou City Anhui
Address
Province P.R.China Province P.R.China
Tel. (0558) 5712231 (0558) 5710057
Fax (0558) 5710099 (0558) 5710099
Email address gjzqb@gujing.com.cn gjzqb@gujing.com.cn
III Other Information
1. Contact Information of the Company
Indicate by tick mark whether any change occurred to the registered address office address and their zip codes website address and
email address of the Company in the Reporting Period.□ Applicable □ Not applicable
No change occurred to the said information in the Reporting Period which can be found in the 2024 Annual Report.
2. Media for Information Disclosure and Place where this Report is Kept
Indicate by tick mark whether any change occurred to the information disclosure media and the place for keeping the Company’s
interim reports in the Reporting Period.□ Applicable □ Not applicable
~ 6 ~Interim Report 2025
The newspapers designated by the Company for information disclosure the website designated by the CSRC for disclosing the
Company’s interim reports and the place for keeping such reports did not change in the Reporting Period. The said information can
be found in the 2024 Annual Report.
3. Other Information
Indicate by tick mark whether any change occurred to other information during the Reporting Period.□ Applicable □ Not applicable
IV Key Accounting Data and Financial Indicators
Indicate by tick mark whether there is any retrospectively adjusted or restated datum in the table below.□ Applicable □ Not applicable
H1 2025 H1 2024 Change (%)
Operating revenue (RMB) 13879852202.75 13805693542.35 0.54%
Net profit attributable to the listed
3661585785.943572791595.152.49%
Company’s shareholders (RMB)
Net profit attributable to the listed
Company’s shareholders before 3626388994.00 3540540906.67 2.42%
exceptional gains and losses (RMB)
Net cash generated from/used in operating
4154552054.604009706455.493.61%
activities (RMB)
Basic earnings per share (RMB/share) 6.93 6.76 2.51%
Diluted earnings per share (RMB/share) 6.93 6.76 2.51%
Weighted average return on equity (%) 13.82% 15.75% -1.93%
30 June 2025 31 December 2024 Change (%)
Total assets (RMB) 38439181114.28 40522413702.09 -5.14%
Equity attributable to the listed Company’s
25163060079.3724657023779.192.05%
shareholders (RMB)
V Accounting Data Differences under Domestic and Overseas Accounting Standards
1. Net Profit and Equity Differences under the International Financial Reporting Standards (IFRS) and the
Chinese Accounting Standards (CAS)
□ Applicable □ Not applicable
No such differences for the Reporting Period.
2. Net Profit and Equity Differences under Overseas Accounting Standards and the CAS
□ Applicable □ Not applicable
~ 7 ~Interim Report 2025
No such differences for the Reporting Period.XI Exceptional Gains and Losses
□ Applicable □ Not applicable
Unit: RMB
Item Amount Note
Gain or loss on disposal of non-current assets (inclusive of
-660832.99
impairment allowance write-offs)
Government subsidies charged to current profit or loss (exclusive
of government subsidies consistently given in the Company’s
33124858.63
ordinary course of business at fixed quotas or amounts as per
governmental policies or standards)
Gain or loss on fair-value changes in financial assets and liabilities
held by non-financial enterprises & disposal of financial assets and
2801653.30
liabilities exclusive of effective portion of hedges that arise in the
Company’s ordinary course of business
Reversed portion of impairment allowance for receivables which
0.00
are tested individually for impairment
Non-operating income and expense other than the above 27068997.62
Less: Income tax effects 15304127.17
Non-controlling interests effects (net of tax) 11833757.45
Total 35196791.94 --
Particulars about other items that meet the definition of exceptional gain/loss:
□ Applicable □ Not applicable
No such cases for the Reporting Period.Explanation of why the Company reclassifies as recurrent an exceptional gain/loss item listed in the Explanatory Announcement No.
1 on Information Disclosure for Companies Offering Their Securities to the Public—Exceptional Gain/Loss Items:
□ Applicable □ Not applicable
No such cases for the Reporting Period.~ 8 ~Interim Report 2025
Part III Management Discussion and Analysis
I Principal Activity of the Company in the Reporting Period
(I) Principal Activity of the Company
The Company primarily produces and markets baijiu. According to the Industry Categorisation Guide for Listed Companies (Revised
in 2012) issued by the CSRC baijiu making belongs to the “liquor beverage and refined tea making industry” (C15). The
Company’s principal operations remained unchanged in the Reporting Period.(II) Status of the Industry and Position of the Company in the Industry
1. Status of the Baijiu IndustryIn the first half of 2025 the baijiu market experienced in-depth adjustment characterized by “shrinkage in output and price drophigh pressure in inventory and diversified consumption”. Industry production continued to decline. According to the National Bureau
of Statistics from January to June the cumulative production of baijiu (65% alcohol by volume in terms of product volume) by
enterprises above a designated size in China reached 1916000 kilolitres a cumulative decrease of 5.8%. The consumption structure
was undergoing accelerated transformation with the mid-to-low price segment (RMB100-300) becoming the main driver of sales.The high-end market has been significantly impacted by policy restrictions with weak demand for business banquets while
family-oriented scenarios such as weddings remained relatively stable. Performance divergence has intensified with regional liquor
companies facing significant pressure while leading companies have maintained resilience through product youthification (e.g.low-alcohol beverages and small-bottle packaging) and channel innovation (instant retail and DTC models). Leading brands have
achieved differentiated growth through structural upgrades. The industry has entered a stage of competition in inventory with
inventory reduction and value restoration becoming core issues.
2. Position of the Company in the Industry
China has a long history of baijiu. There are a large number of baijiu production enterprises in the country but the regional
distribution of baijiu consumers is particularly evident. The baijiu industry is characterized by full competition with a high degree of
marketization. The market competition is fierce and the industry adjustments are constantly deepening. In the national market the
competitive edges of the enterprises come from their brand influence product style and marketing & operation models. In a single
regional market the competitive strengths of the enterprises depend on their brand influence in the region the recognition of the
companies by regional consumers and comprehensive marketing capacity.As one of China’s traditional top eight liquor brands the Company is the first listed baijiu company with both A and B stocks. It is
located in Bozhou City Anhui Province in China the hometown of historic figures Cao and Hua Tuo as well as one of the world’s
top 10 liquor-producing areas. No changes have occurred to the main business of the Company in the Reporting Period. As the main
product of the Company the Gujing spirit originated as a “JiuYunChun Spirit” together with its making secrets being presented as a
hometown specialty by Cao a famous warlord in China’s history to Emperor Han Xiandi (name: Liu Xie) in A.D. 196 and was
continually presented to the royal house since then. With crystalline liquid rich aroma a fine flavour and a lingering aftertaste the
Gujing spirit has helped the Company win four national baijiu golden awards a golden award at the 13th SIAL Paris the title of
China’s “Geographical Indication Product” the recognition as a “Key Cultural Relics Site under the State Protection” the
recognition with a “National Intangible Cultural Heritage Protection Project” a Quality Award from the Anhui provincial
government a title of “National Quality Benchmark” among other honours.In April 2016 Gujing Distillery signed a strategic cooperation agreement with Huanghelou Liquor Co. Ltd. opening a new era of
cooperation in China's famous liquor industry. Yellow Crane Tower Baijiu is the only famous Chinese liquor in Hubei. Its unique
style is “soft mellow elegant and cool and has a long lingering fragrance”. It won the two China gold medal in baijiu appreciation in
1984 and 1989. At present Huanghelou liquor industry has three bases: Wuhan Xianning and Suizhou. Among them Huanghelou
~ 9 ~Interim Report 2025
Liquor Culture Expo Park in Wuhan base has been approved as national AAA scenic spot and Huanghelou forest wine town in
Xianning base has been approved as national AAAA scenic spot.In January 2021 Gujing Distillery and Mingguang signed a strategic cooperation agreement. The unique mung bean flavour adds to
the famous liquor family of Gu Jing. The Company had five China Well-known Trademarks—“Gu Jing” “Gujinggong” “OriginalVintage” “Yellow Crane Tower” and “Laomingguang” till then.The Company is subject to the disclosure requirements for the “food and liquor & wine production industry” in the Guideline No. 3
of the Shenzhen Stock Exchange for Self-regulation of Listed Companies—Industry-specific Information Disclosure.Brand operation
Focusing on “brand quality and morality” the Company vigorously promotes product development and quality upgrade and gives
full play to the leading role of the brand “Gujinggong Liquor”. It proactively participates in the project of China Central Television
(“CCTV”) titled Promote Chinese Brands to Strengthen China and takes advantage of platforms provided by CCTV provincial-level
satellite TV channels the Internet and new media to constantly tell the stories of the brand “Gujinggong Liquor”. Additionally the
Company uses “liquor as the medium” to display the beauty of Chinese culture and convey the values of “Be Honest Offer QualityLiquor Be Stronger and Be Helpful to the Society” to the world.The Company has been strengthening the building of access to the end market and creating new marketing forms. It has focused on
the core market exploration and comprehensively launched a range of consumer fostering activities. Through the brand
communication mode that combines online publicity and offline experience the Company has offered core consumers an opportunity
to watch and experience its liquor-making process and quality. It has organised a series of brand promotion activities as a result of
which the visibility of the brand “Gujinggong Liquor” has continuously increased.Main sales model
The Company’s key sales model is dealer model. Under the dealer model the Company will select one or more dealers for sales of a
product brand (or product sub-brand) according to the market capacity.Distribution model:
□ Applicable □ Not applicable
1. Operating performance by distribution channel and product category
Unit: RMB
YoY
YoY
YoY change
change
change in
in
By Operating revenue Cost of sales Gross profit margin in cost gross
operating
of sales profit
revenue
(%) margin
(%)
(%)
Channel
Online 572650258.28 153527839.86 73.19% 40.19% 32.91% 1.47%
Offline 13307201944.47 2640007418.68 80.16% -0.67% 1.96% -0.51%
Total 13879852202.75 2793535258.54 79.87% 0.54% 3.29% -0.54%
YoY YoY YoY
change change change
By Operating revenue Cost of sales Gross profit margin in in cost in
operating of sales gross
revenue (%) profit
~ 10 ~Interim Report 2025
(%) margin
(%)
Product series
Original Vintage 10958676506.28 1628555718.97 85.14% 1.59% 10.31% -1.17%
Gujinggong Liquor 1184068547.06 567934733.59 52.04% -4.39% 4.67% -4.15%
Yellow Crane Tower and others 1496851208.93 439822242.25 70.62% 6.68% 12.51% -1.52%
Total 13639596262.27 2636312694.81 80.67% 1.57% 9.39% -1.38%
2. Distributors
Region Ending number Increase or decrease in quantity during the reporting period
North China 1378 18
South China 655 -6
Central China 3009 -32
Overseas 20 -7
Total 5062 -27
3. Principal methods of settlement and distribution with distributors
The Company’s principal method of settlement with its distributors is on a pay-as-you-go basis and the method of distribution is
authorised distribution.
4. Top five distributors
Total sales to top five distributors (RMB) 1717724195.26
Total sales to top five distributors as % of total sales of the
12.38%
Reporting Period (%)
Total sales to related parties among top five distributors as % of
0.00
total sales of the Reporting Period (%)
The Company had no accounts receivable from the top five distributors at the end of the Reporting Period.Proportion of store sales terminal exceeds 10%
□ Applicable □ Not applicable
Online direct sales
□ Applicable □ Not applicable
The major product varieties sold online are Original Vintage Series and Gujinggong Liquor Series among others. The main online
sales platforms are Gujing Distillery platform Tmall JD.com and Suning.com.Any over 30% YoY movements in the selling price of main products contributing over 10% of current total operating revenue
□ Applicable □ Not applicable
Model and contents of purchase
The Company primarily adopts the bidding and strategic cooperation models. It also adopts the base planting model in order to
ensure the quality of some raw materials.Purchase contents
Purchase contents Purchase model Amount (RMB’0000)
1 Raw materials and fuels Strategic purchasing 65170.74
~11~51377.70
51377.70Interim Report 2025
Tendering purchasing 79210.68
2 Packaging materials Tendering purchasing 103262.72
Total 247644.14
The proportion of raw materials purchased from cooperations or farmers to total purchase amount exceeds 30%
□ Applicable □ Not applicable
Any over 30% YoY movements in prices of main purchased raw materials
□ Applicable □ Not applicable
Main production model
The Company’s existing production model is sales-based production. Specifically the Logistics Control Centre is responsible for
coordinating the implementation of production plans release of material production plans and delivery and tracking of products and
prepares balanced production plans on a quarterly basis according to the product inventory. The logistics distribution system is
coordinated according to the production schedule and inventory with a view to ensuring timely delivery of products.Commissioned production
□ Applicable □ Not applicable
Breakdown of cost of sales
H1 2025 H1 2024
Change
Item As % of total cost of As % of total cost of
Cost of sales (RMB) Cost of sales (RMB) (%)
sales sales
Direct
2225614933.0279.67%2016355219.7174.55%10.38%
materials
Direct
232060010.498.31%231283792.498.55%0.34%
labour cost
Manufacturi
118160275.494.23%107314434.523.97%10.11%
ng expenses
Fuels 60477475.81 2.16% 54989068.30 2.03% 9.98%
Total 2636312694.81 94.37% 2409942515.02 89.10% 9.39%
Output and inventory
1. Output sales volume and inventory of main products for the Reporting Period and respective YoY changes thereof
Unit: ton
YoY changes
YoY changes YoY changes
Main product Output Sales volume inventory of sales
of output of inventory
volume
Original Vintage Series 31076.01 46590.25 9262.06 1.73% 10.80% -29.59%
Gujinggong Liquor Series 16598.86 19647.04 2136.33 15.93% 9.26% 7.22%
Yellow Crane Tower Liquor
13470.9415205.282586.159.66%12.11%-12.33%
Series and other
2. Ending inventory of finished liquor and semi-product
Category Ending quantity (ton)
~ 12 ~Interim Report 2025
Finished liquor 13984.54
Semi-product 342783.07
3. Capacity of the main product
Unit: ton
Main product Designed capacity (annual) Actual capacity (H1) Capacity in progress (annual)
Finished liquor 150000 61146 65000
II Core Competitiveness Analysis
No significant changes occurred to the Company’s core competitiveness in the Reporting Period.III Analysis of Core Businesses
OverviewIndicate whether it is the same with the contents disclosed under the heading “Principal Activity of the Company in the ReportingPeriod” above.□ Yes □ No
See contents under the heading “I Principal Activity of the Company in the Reporting Period”.Year-on-year changes in key financial data:
Unit: RMB
H1 2025 H1 2024 Change (%) Main reason for change
Operating revenue 13879852202.75 13805693542.35 0.54%
Cost of sales 2793535258.54 2704664895.42 3.29%
Selling expense 3511408555.96 3611684984.17 -2.78%
Administrative expense 671417776.78 671150694.72 0.04%
Finance costs -315707816.32 -282322329.48 -11.83%
Income tax expense 1286677231.21 1328603900.45 -3.16%
Net cash generated
from/used in operating 4154552054.60 4009706455.49 3.61%
activities
Net cash generated Mainly due to increase
from/used in investing -1218716061.05 -443334911.51 -174.90% in wealth management
activities products purchased.Net cash generated
from/used in financing -3052443154.10 -2376542589.63 -28.44%
activities
Net increase in cash Mainly due to increase
-116607160.551189828954.35-109.80%
and cash equivalents in wealth management
~ 13 ~Interim Report 2025
products purchased.Material changes to the profit structure or sources of the Company in the Reporting Period:
□ Applicable □ Not applicable
No such changes in the Reporting Period.Breakdown of operating revenue:
Unit: RMB
H1 2025 H1 2024
As % of total As % of total
Change (%)
Operating revenue operating revenue Operating revenue operating revenue
(%)(%)
Total 13879852202.75 100.00% 13805693542.35 100.00% 0.54%
By operating division
Manufacturing 13879852202.75 100.00% 13805693542.35 100.00% 0.54%
By product category
Baijiu 13639596262.27 98.27% 13428363064.31 97.27% 1.57%
Hotel services 45775898.86 0.33% 41450489.64 0.30% 10.44%
Other 194480041.62 1.40% 335879988.40 2.43% -42.10%
By operating segment
North China 809341217.22 5.83% 1109250619.81 8.03% -27.04%
Central China 12297380470.09 88.60% 11869976454.15 85.98% 3.60%
South China 768186540.95 5.53% 815792256.19 5.91% -5.84%
Overseas 4943974.49 0.04% 10674212.20 0.08% -53.68%
Operating division product category or operating segment contributing over 10% of operating revenue or operating profit:
□ Applicable □ Not applicable
Unit: RMB
YoY change in YoY change in
Gross profit YoY change in
Operating revenue Cost of sales operating revenue gross profit
margin cost of sales (%)
(%) margin (%)
By operating division
Manufacturing 13879852202.75 2793535258.54 79.87% 0.54% 3.29% -0.54%
By product category
Baijiu 13639596262.27 2636312694.81 80.67% 1.57% 9.39% -1.38%
Hotel services 45775898.86 24072867.00 47.41% 10.44% 16.57% -2.77%
Other 194480041.62 133149696.73 31.54% -42.10% -51.42% 13.14%
By operating segment
North China 809341217.22 210468705.23 74.00% -27.04% -9.63% -5.01%
~ 14 ~Interim Report 2025
Central China 12297380470.09 2431350909.32 80.23% 3.60% 4.56% -0.18%
South China 768186540.95 149970516.12 80.48% -5.84% 4.21% -1.88%
Overseas 4943974.49 1745127.87 64.70% -53.68% -29.00% -12.27%
Core business data of the prior year restated according to the changed statistical calibre for the Reporting Period:
□ Applicable □ Not applicable
The Company is subject to the disclosure requirements for the “food and liquor & wine production industry” in the Guideline No. 3
of the Shenzhen Stock Exchange for Self-regulation of Listed Companies—Industry-specific Information Disclosure.Breakdown of selling expense:
Unit: RMB
Item H1 2025 H1 2024 Change (%) Reason
Employment
664068763.31675938548.40-1.76%
benefits
Travel fees 134242942.14 120981637.15 10.96%
Advertisement
715108133.20688129021.873.92%
fees
Comprehensive
1545750834.471685467666.43-8.29%
promotion costs
Service fees 391207359.74 373733873.49 4.68%
Others 61030523.10 67434236.83 -9.50%
Total 3511408555.96 3611684984.17 -2.78%
Details about advertisement
No. Main way Amount (RMB’0000)
1 TV 28818.83
2 Offline 25676.38
3 Online 17015.60
Total 71510.81
IV Analysis of Non-Core Businesses
□ Applicable □ Not applicable
V Analysis of Assets and Liabilities
1. Significant Changes in Asset Composition
Unit: RMB
30 June 2025 31 December 2024 Reason for any
Change in
As % of total As % of total significant
Amount Amount percentage (%)
assets assets change
~ 15 ~Interim Report 2025
Monetary
15576297562.0740.52%15894104466.5339.22%1.30%
assets
Accounts
72164678.130.19%69819734.990.17%0.02%
receivable
Inventories 9403858553.61 24.46% 9264220836.58 22.86% 1.60%
Investment
23624095.160.06%43893659.880.11%-0.05%
property
Long-term
equity 11926665.23 0.03% 11732641.44 0.03% 0.00%
investments
Fixed assets 8620902446.58 22.43% 7896995404.62 19.49% 2.94%
Construction
511153592.861.33%1038780764.862.56%-1.23%
in progress
Right-of-use
91489024.000.24%100293500.730.25%-0.01%
assets
Short-term
115785121.330.30%50038194.440.12%0.18%
borrowings
Contract
1428005776.793.71%3514800038.808.67%-4.96%
liabilities
Long-term
166450000.000.43%41600000.000.10%0.33%
borrowings
Lease
73315213.160.19%84453588.300.21%-0.02%
liabilities
2. Major Assets Overseas
□ Applicable □ Not applicable
3. Assets and Liabilities at Fair Value
□ Applicable □ Not applicable
Unit: RMB
Gain/loss
on Cumulative Impairment
fair-value fair-value allowance Purchased in Sold in the
Beginning Other
Item changes in changes for the the Reporting Reporting Ending amount
amount changes
the charged to Reporting Period Period
Reporting equity Period
Period
Financial assets
~ 16 ~Interim Report 2025
1.
Held-for-trading
financial assets
60184353.81528360.620.00921000000.00856184353.81125528360.62
(excluding
derivative
financial assets)
2. Investments
in other equity 69500830.82 0.00 4174434.21 0.00 0.00 73675265.03
instruments
Subtotal of
129685184.63528360.624174434.21921000000.00856184353.81199203625.65
financial assets
Total of the
129685184.63528360.624174434.21921000000.00856184353.81199203625.65
above
Financial 0.00
0.000.000.000.000.00
liabilities
Significant changes to the measurement attributes of the major assets in the Reporting Period:
□ Yes □ No
4. Restricted Asset Rights as at the Period-End
Unit: RMB
Item Ending carrying value Reason for restriction
Amount in pledge for issuing bank acceptance bills and guarantee
Monetary assets 499770028.43
letters and other security deposits etc.Intangible assets 12651590.15 Pledged for loans.Total 512421618.58 --
~ 17 ~Interim Report 2025
VI Investments Made
1. Total Investments Made
□ Applicable □ Not applicable
2. Significant Equity Investments Made in the Reporting Period
□ Applicable □ Not applicable
3. Major Non-Equity Investments Ongoing in the Reporting Period
□ Applicable □ Not applicable
Unit: RMB
Reason
for not
Accumulativ
Fixed Accumulative Estimated reaching
Way of Input amount in Capital e realised Disclosur
assets Industry actual input Progres return on the Disclosure
Item investmen the Reporting resourc revenues as e date (if
investmen involved amount as of the s investmen schedule index (if any)
t Period es of the any)
t or not period-end t and
period-end
anticipate
d income
For details
Self-o please refer to
Baijiu wned the
Production Baijiu funds 3 March Announcement
Intelligent Self-built Yes productio 566580922.86 7600184100.00 97.00% N/A N/A N/A
and 2020
Transformatio No. 2020-002 n
n Project raised on Investment
funds in the Baijiu
Production
~ 18 ~Interim Report 2025
Intelligent
Transformatio
n Project
disclosed by
the Company
on the website
of Cninfo
dated 3 March
2020.
Total -- -- -- 566580922.86 7600184100.00 -- -- N/A N/A -- -- --
4. Financial Investments
(1) Securities Investments
□ Applicable □ Not applicable
(2) Investments in Derivative Financial Instruments
1) Investments in derivative financial instruments for the purpose of hedging during the Reporting Period
□ Applicable □ Not applicable
No such cases in the Reporting Period.
2) Investments in derivative financial instruments for the purpose of speculation during the Reporting Period
□ Applicable □ Not applicable
Unit: RMB’0000
Operator Relationship Connected Type of Initial Starting date Ending date Beginning Purchased in Sold in the Impairment Ending Proportion Actual
~ 19 ~Interim Report 2025
with the transaction derivative investment investment the Reporting provision (if investment of closing gain/loss in
Company amount amount Reporting Period any) amount investment the
Period amount in Reporting
the Period
Company’s
ending net
assets
Reverse
Reverse
repurchase 16 January 6 August
Naught No repurchase of 0.00 69174.90 47939.30 0.00 21235.60 0.81% 46.16
of national 2025 2025
national debt
debt
Total -- -- 0.00 69174.90 47939.30 0.00 21235.60 0.81% 46.16
Capital source for derivative investment Company’s own funds
Lawsuits involved (if applicable) N/A
Disclosure date of board announcement approving
30 August 2013
derivative investment (if any)
Disclosure date of shareholders’ meeting announcement
N/A
approving derivative investment (if any)
Analysis of risks and control measures associated with
derivative investments held in the Reporting Period
The Company had controlled the relevant risks strictly according to the Derivatives Investment Management System.(including but not limited to market risk liquidity risk
credit risk operational risk legal risk etc.)
Changes in market prices or fair value of derivative
investments during the Reporting Period (fair value
N/A
analysis should include measurement method and
related assumptions and parameters)
Significant changes in accounting policies and specific N/A
~ 20 ~Interim Report 2025
accounting principles adopted for derivative
investments in the Reporting Period compared to
previous reporting period
5. Use of Funds Raised
□ Applicable □ Not applicable
There was no use of funds raised during the Reporting Period.VII Sale of Major Assets and Equity Interests
1. Sale of Major Assets
□ Applicable □ Not applicable
No such cases in the Reporting Period.
2. Sale of Major Equity Interests
□ Applicable □ Not applicable
VIII Main Controlled and Joint Stock Companies
□ Applicable □ Not applicable
Main subsidiaries and joint stock companies with an over 10% influence on the Company’s net profits
Unit: RMB
Relationship Main
Company
with the business Registered capital Total assets Net assets Operating revenues Operating profit Net profit
name
Company scope
~ 21 ~Interim Report 2025
Wholesales
of Baijiu
construction
Bozhou
materials
Gujing Sales Subsidiary 84864497.89 8923246140.74 2869244862.80 12910887528.55 1430503961.93 1012933193.64
feeds
Co. Ltd
assistant
materials
etc.Yellow
Crane Tower Production
Wine Subsidiary and sales of 400000000.00 2127629014.74 1187358723.36 995713140.70 171276062.83 126497411.88
Industry baijiu etc.Co. Ltd
Subsidiaries obtained or disposed in the Reporting Period:
□ Applicable □ Not applicable
Subsidiary How subsidiary was obtained or disposed Effects on overall operations and performance
Anhui Guqi Distillery Sales Co. Ltd. Incorporated with investment Optimising internal operation structure and enhancing endogenous impetus
Notes to main controlled and joint stock companies:
Not applicable.~ 22 ~Interim Report 2025
IX Structured Bodies Controlled by the Company
□ Applicable □ Not applicable
X Risks Facing the Company and Countermeasures
(I) Risks Facing the Company
1. Global trade protection has intensified. The adverse impact of changes in the external environment continues to deepen;
2. Industry differentiation has deteriorated. Slow sales price instability and weak market consumption has ushered in a new round of
adjustment.(II) Operating Measures
1. Brand Development
The Company will maintain the strategy of aiming high anchoring on a “nationwide and sub-high-end” approach take the initiative
to join hands with the mainstream media and make good use of convergence media to extend Gu Jing's presence. Additionally we
will fully utilise such platforms as short videos and livestreams to enhance our brand activity. Meanwhile the Company will leverage
on digital marketing. Specifically it will attract traffic through more products form product synergy promote the deep integration of
online and offline channels and increase product visibility. Moreover we will strengthen brand promotion enhance consumer
awareness and optimise and upgrade audience experience. The Company will establish national brand potential shape brand value in
all aspects and enhance the cultural connotation and resonance as well as experiential depth of the Gu Jing brand.
2. Marketing
The Company will maintain the strategy of aiming high anchoring on a “nationwide and sub-high-end” approach and adhere to the
implementation path of “planting flags drilling wells supporting growers and increasing volume” continue to promote the “ThreeOnes Project” and implement the guidelines of “driving sell-through reducing inventory expanding channels and stabilisingpricing”. Furthermore we will stabilise the stock market open up the incremental market tighten the channel network expand the
coverage and look for new space. We will also deepen the cooperation with distributors increase channel construction efforts and
work together to achieve a mutually beneficial and win-win situation.
3. Production Management
More efforts will be made to constantly improve the advancement and applicability of the whole chain from raw material supply to
production quality as well as the “Gu Jing Standards” of all processes so as to distil the ultimate fine baijiu and realise the
co-creation and sharing of the value of baijiu. Meanwhile the Company will accelerate the development of
“field-workshop-laboratory-market” benign interaction focus on the advantages of aroma type and production area and continuously
improve the product expression system to enhance consumer recognition and satisfaction. Moreover we will stably improve productquality and strive to build a price system that matches the quality and price. We will coordinate the in-depth operation of the “FourInstitutes and One Laboratory” and utilise the resources of cooperative universities and scientific research institutes to provide Gu
Jing with strong scientific research and cultural protection and promote the transformation of research results.
4. Digital Development
Efforts for digital development of Gu Jin will be doubled. The Company will enhance the digital management capability upgrade
digital marketing and optimise our digital production models. Furthermore we will build an intelligent platform for integrated power
management construct microgrid and realise the intelligent and lean management of the Company’s power system. Additionally we
will promote the scenario-based application of AI big model technology to further enhance the monitoring efficiency and intelligence.The Company will establish the intelligent management platform for the Gu Jing raw grain planting base to systematically control the
information of raw grain planting process and ensure that the process of raw grain planting is standardised accurate in quantity pure
in variety safe controllable trustworthy and traceable.
5. Safety and Environmental Protection
The management of all production processes will be reinforced to ensure food safety. We will deeply promote the three-year action of
~ 23 ~Interim Report 2025
production safety to address fundamental issues and tough challenges. The Company endeavour for long-term management and
ensure the realisation of the “Four Noes” goal. Moreover it will practise green and low-carbon production systematically promote
energy saving and consumption reduction and ensure that emissions meet the standards.
6. Internal Management
Institutional and mechanism barriers will be further removed to release the inner potential and vitality of the organisation and
individuals. Efforts will be made to create an “agile organisation” implement the strategy of talent cultivation deepen the “TwoPools and Two Paths” and implement the inheritance plan and the talent cultivation plan. Meanwhile the Company will establish a
talent management system of “attracting nurturing utilising and retaining” talent and promote its efficient operation. It will
optimise the organisational structure improve the management policies and propose new incentive mechanisms to stimulate the
enthusiasm and creativity of employees and continuously improve the overall efficiency of the organisation.
7. Corporate Culture Construction
The Company continues to adhere to the principle that “culture sets the stage; business takes the spotlight” by integrating the product
connotation cultural values and consumer emotions with brand stories to touch the hearts of consumers. With the value core of
“truthfulness goodness beauty and nature” the Company has created the “Three Pillars of a Healthy Corporate Ecosystem” (i.e.right people and actions fair and just management and clean and positive culture) to drive the creative transformation and innovative
development of the corporate culture and baijiu culture and empower products through culture.In the second half of 2025 the company will deeply study and implement the spirit of the Third Plenary Session of the 20th Central
Committee of the Communist Party of China. Under the strong leadership of the municipal party committee and government the
company will strengthen its confidence face difficulties head-on speak less and do more and truly work hard focusing on its main
business of "extending expanding compensating for shortcomings and empowering" "rooting down growing up cultivating
meticulously and adhering firmly".XI Formulation and Implementation of Market Cap Management Systems and Valuation
Enhancement Plans
Whether the Company has formulated a market cap management system.□ Yes □ No
Whether the Company has disclosed a valuation enhancement plan.□ Yes □ No
The Company held the Tenth Meeting of the Tenth Session of the Board of Directors on 25 April 2025 at which the Proposal on
Formulating a Market Cap Management System of the Company was considered and passed. In order to strengthen market cap
management further standardise its market cap management behaviour and effectively enhance its investment value and return to
shareholders the Company formulated the Market Cap Management Policy of Anhui Gujing Distillery Co. Ltd. in accordance with
laws regulations and normative documents such as the Company Law of the People’s Republic of China the Securities Law of the
People’s Republic of China the Several Opinions of the State Council on Strengthening Regulation Preventing Risks and Promoting
the High-Quality Development of the Capital Market and Announcement No. 14 [2024] of the China Securities Regulatory
Commission—Guidelines No. 10 for the Regulation of Listed Companies—Market Value Management as well as internal provisions
such as the Articles of Association. See the Market Cap Management Policy disclosed on the website of Cninfo by the Company for
details.XII Implementation of the Action Plan for “Dual Enhancement of Quality and Profitability”
Indicate whether the Company has disclosed its Action Plan for “Dual Enhancement of Quality and Profitability”.□ Yes □ No
In order to implement the guiding ideology of “to activate the capital market and boost investor confidence” proposed by the meetingof the Political Bureau of the CPC Central Committee and “to vigorously improve the quality and investment value of listed~ 24 ~Interim Report 2025companies and to take more effective and effective measures to stabilise the market and stabilise confidence” proposed by the
National Standing Committee combined with the Company’s development strategy operating conditions and financial conditions in
order to safeguard the interests of all shareholders of the company To enhance investor confidence and promote the long-term
healthy and sustainable development of the company the company has formulated a “quality return double improvement” action plan.For details see the “Announcement on Promoting the Double Improvement of Quality Return “Action Plan” disclosed by the
company on 7 March 2024 (Announcement Number: 2024-001).In line with the relevant regulations related to profit distribution policies such as the Company Law and the Articles of Association
and the Company’s actual situation and development needs and in order to earnestly return to shareholders the Company’s 2024
profit distribution plan is as follows: Based on the total share capital of 528600000 shares the Company will distribute a cash
dividend of RMB50 (including tax) to all shareholders for every 10 shares. The Company proposed to distribute a total cash dividend
of RMB2643000000.00 (including tax). In combination of the interim dividend plan for 2024 the Company’s total dividend for
2024 accounted for 57.49% of the net profit attributable to the listed Company’s shareholders in the consolidated statement of this
year. There were no bonus shares or conversion from the reserve fund. This year's cash dividend amounts increased year by year
fully sharing the Company’s development results with investors. Following the approval of this plan at the 2024 Annual General
Meeting of Shareholders the implementation of this plan has been completed in June 2025.~ 25 ~Interim Report 2025
Part IV Corporate Governance and Environmental and Social
Responsibility
I Change of Directors Supervisors and Senior Management
□ Applicable □ Not applicable
Name Position Type Date Reason
Personal
Wang Ruihua Independent director Resigned 15 January 2025
reason
II Profit Distribution and Increase in the Share Capital by Converting the Reserve Fund
during the Reporting Period
□ Applicable □ Not applicable
III Equity Incentive Plans Employee Stock Ownership Plans or Other Incentive Measures for
Employees
□ Applicable □ Not applicable
No such cases in the Reporting Period.IV Disclosure of Environmental Information
Indicate whether the listed company and its main subsidiaries are included in the list of enterprises that disclose environmental
information by law
□ Yes □ No
Number of enterprises included in the list of enterprises that
7
disclose environmental information by law
Query index for reports on environmental information disclosure
No. Enterprise
by law
Legal Disclosure System for Enterprise Environmental Information
Anhui Gujing Distillery Company Limited
1 (Anhui)
(Gujing plant)
https://39.145.37.16:8081/zhhb/yfplpub_html/#/home
Legal Disclosure System for Enterprise Environmental Information
Anhui Gujing Distillery Company Limited
2 (Anhui)
(Zhangji plant)
https://39.145.37.16:8081/zhhb/yfplpub_html/#/home
Anhui Gujing Distillery Company Limited Legal Disclosure System for Enterprise Environmental Information
3
(Headquarter plant) (Anhui)
~ 26 ~Interim Report 2025
https://39.145.37.16:8081/zhhb/yfplpub_html/#/home
Legal Disclosure System for Enterprise Environmental Information
4 Anhui Longrui Glass Co. Ltd. (Anhui)
https://39.145.37.16:8081/zhhb/yfplpub_html/#/home
Legal Disclosure System for Enterprise Environmental Information
5 Anhui Mingguang Distillery Co. Ltd. (Anhui)
https://39.145.37.16:8081/zhhb/yfplpub_html/#/home
Legal Disclosure System for Enterprise Environmental Information
Yellow Crane Tower Distillery (Xianning) Co.
6 (Hubei)
Ltd.http://219.140.164.18:8007/hbyfpl/frontal/index.html#/home/index
Legal Disclosure System for Enterprise Environmental Information
Yellow Crane Tower Distillery (Suizhou) Co.
7 (Hubei)
Ltd.http://219.140.164.18:8007/hbyfpl/frontal/index.html#/home/index
V Social Responsibility
During the Reporting Period the Company in strict accordance with the requirements for high-quality development of listed
companies in the new era focused on its established strategies actively responded to the expectations of society shareholders and
other stakeholders continuously improved its corporate governance structure standardised its operations attached importance to
investor relations and took the initiative to fulfil its social responsibilities in the areas of protection of the rights and interests of
suppliers customers and employees and environmental protection and sustainable development. The Company upholds the core
values of “Be Honest Offer Quality Liquor Be Stronger and Be Helpful to the Society” actively builds and develops strategic
partnerships with suppliers and customers. Also the Company focuses on communication and coordination with all relevant parties
jointly builds a platform of trust and cooperation and effectively fulfils the Company’s social responsibility to suppliers and
customers.The Company has continuously consolidated its quality management foundation and improved customer service mechanisms. Aside
from attaching great importance to green production and discharge compliance it has constantly created new green products and
implemented innovative energy-conservation and emission-reduction technologies. The Company builds dynamic teams through
talent development protects employees’ rights and interests optimises talent teams and boosts diversified development. Also it has
constantly enhanced the management of workplace safety as well as the inspection of employees’ occupational and health risks
thereby creating a diverse safe and harmonious working environment.~ 27 ~Interim Report 2025
Part V Significant Events
I Commitments of the Company’s De Facto Controller Shareholders Related Parties and
Acquirers as well as the Company Itself and Other Entities Fulfilled in the Reporting Period
or Ongoing at the Period-End
□ Applicable □ Not applicable
No such cases in the Reporting Period.II Occupation of the Company’s Capital by the Controlling Shareholder or any of Its Related
Parties for Non-Operating Purposes
□ Applicable □ Not applicable
No such cases in the Reporting Period.III Irregularities in the Provision of Guarantees
□ Applicable □ Not applicable
No such cases in the Reporting Period.IV Engagement and Disengagement of Independent Auditor
Are the interim financial statements audited
□ Yes □ No
The interim financial statements have not been audited.V Explanations Given by the Board of Directors and the Supervisory Committee Regarding
the Independent Auditor’s “Modified Opinion” on the Financial Statements of the Reporting
Period
□ Applicable □ Not applicable
VI Explanations Given by the Board of Directors Regarding the Independent Auditor’s
“Modified Opinion” on the Financial Statements of Last Year
□ Applicable □ Not applicable
VII Insolvency and Reorganisation
□ Applicable □ Not applicable
No such cases in the Reporting Period.~ 28 ~Interim Report 2025
VIII Legal Matters
Significant lawsuits and arbitrations:
□ Applicable □ Not applicable
No such cases in the Reporting Period.Other legal matters:
□ Applicable □ Not applicable
IX Punishments and Rectifications
□ Applicable □ Not applicable
X Credit Quality of the Company as well as its Controlling Shareholder and De Facto
Controller
□ Applicable □ Not applicable
XI Major Related-Party Transactions
1. Continuing Related-Party Transactions
□ Applicable □ Not applicable
No such cases in the Reporting Period.
2. Related-Party Transactions Regarding Purchase or Disposal of Assets or Equity Investments
□ Applicable □ Not applicable
No such cases in the Reporting Period.
3. Related-Party Transactions Regarding Joint Investments in Third Parties
□ Applicable □ Not applicable
No such cases in the Reporting Period.
4. Amounts Due to and from Related Parties
□ Applicable □ Not applicable
No such cases in the Reporting Period.
5. Transactions with Related Finance Companies or Finance Companies Controlled by the Company
□ Applicable □ Not applicable
The Company did not make deposits in receive loans or credit from and was not involved in any other finance business with any
related finance company finance company controlled by the Company or any other related parties.~ 29 ~Interim Report 2025
6. Transactions between Related Parties and Finance Companies Controlled by the Company
□ Applicable □ Not applicable
No related parties made deposits in received loans or credit from and were involved in any other finance business with any finance
company controlled by the Company.
7. Other Major Related-Party Transactions
□ Applicable □ Not applicable
No such cases in the Reporting Period.XII Major Contracts and Execution thereof
1. Entrustment Contracting and Leases
(1) Entrustment
□ Applicable □ Not applicable
No such cases in the Reporting Period.
(2) Contracting
□ Applicable □ Not applicable
No such cases in the Reporting Period.
(3) Leases
□ Applicable □ Not applicable
No such cases in the Reporting Period.
2. Major Guarantees
□ Applicable □ Not applicable
No such cases in the Reporting Period.
3. Cash Entrusted for Wealth Management
□ Applicable □ Not applicable
4. Other Significant Contracts
□ Applicable □ Not applicable
No such cases in the Reporting Period.~ 30 ~Interim Report 2025
XIII Other Significant Events
□ Applicable □ Not applicable
No such cases in the Reporting Period.XIV Significant Events of Subsidiaries
□ Applicable □ Not applicable
~ 31 ~Interim Report 2025
Part VI Share Changes and Shareholder Information
I Share Changes
1. Share Changes
Unit: share
Before Increase/decrease (+/-) After
Percentage New Shares as Shares as Percentage
Shares Other Subtotal Shares
(%) issues dividend dividend (%)
converted converted
I. Restricted shares
from from
1. Shares held by the state profit capital
reserves
2. Shares held by
state-owned corporations
3. Shares held by other
domestic investors
Among which: Shares held
by domestic corporations
Shares
held by domestic
individuals
4. Shares held by foreign
investors
Among which: Shares held
by foreign corporations
Shares
held by foreign individuals
II. Non-restricted shares 528600000 100.00% 528600000 100.00%
1. RMB ordinary shares 408600000 77.30% 408600000 77.30%
2. Domestically listed
12000000022.70%12000000022.70%
foreign shares
3. Overseas listed foreign
shares
4. Other
III. Total shares 528600000 100.00% 528600000 100.00%
Reasons for share changes:
~ 32 ~Interim Report 2025
□ Applicable □ Not applicable
Approval of share changes:
□ Applicable □ Not applicable
Transfer of share ownership:
□ Applicable □ Not applicable
Progress on any share repurchase:
□ Applicable □ Not applicable
Progress on reducing the repurchased shares by means of centralised bidding:
□ Applicable □ Not applicable
Effects of share changes on the basic and diluted earnings per share equity per share attributable to the Company’s ordinary
shareholders and other financial indicators of the prior year and the prior accounting period respectively:
□ Applicable □ Not applicable
Other information that the Company considers necessary or is required by the securities regulator to be disclosed:
□ Applicable □ Not applicable
2. Changes in Restricted Shares
□ Applicable □ Not applicable
II Issuance and Listing of Securities
□ Applicable □ Not applicable
III Shareholders and Their Shareholdings at the Period-End
Unit: share
Number of preferred shareholders with
Number of ordinary shareholders 59657 0
resumed voting rights (if any)
5% or greater ordinary shareholders or the top 10 ordinary shareholders
Total Shares in pledge
Restricted
ordinary Increase/decrease Non-restricted marked or frozen
Nature of Shareholding ordinary
Name of shareholder shares held in the Reporting ordinary
shareholder percentage shares
at the Period shares held
held Status Shares
period-end
ANHUI GUJING
State-owned
GROUP COMPANY 51.34% 271404022 271404022 Pledge 30000000
legal person
LIMITED
BANK OF
CHINA-CHINA
MERCHANTS
CHINA
SECURITIES
Other 2.58% 13629982 898541 13629982
BAIJIU INDEX
CLASSIFICATION
SECURITIES
INVESTMENT
FUND
CHINA
INTERNATIONAL 1.71% 9039708 104855 9039708
CAPITAL
~ 33 ~Interim Report 2025
CORPORATION
HONG KONG
SECURITIES LTD.INDUSTRIAL AND
COMMERCIAL
BANK OF CHINA
LIMITED—
INVESCO GREAT
Other 1.66% 8800000 -821200 8800000
WALL EMERGING
GROWTH HYBRID
SECURITIES
INVESTMENT
FUND
AGRICULTURAL
BANK OF CHINA
—E FUND
CONSUMPTION
Other 1.51% 7978008 7978008
SECTOR STOCK
SECURITIES
INVESTMENT
FUND
UBS (LUX)
EQUITY
Foreign
FUND—CHINA 1.35% 7122945 7122945
legal person
OPPORTUNITY
(USD)
GREENWOODS
Foreign
CHINA ALPHA 1.14% 6049760 6049760
legal person
MASTER FUND
HONG KONG
SECURITIES Foreign
0.97%5151273-11963985151273
CLEARING legal person
COMPANY LTD.
3W GLOBAL Foreign
0.77%40515284051528
FUND legal person
BANK OF
CHINA—INVESCO
GREAT WALL
DINGYI HYBRID Other 0.76% 4016841 -483159 4016841
SECURITIES
INVESTMENT
FUND (LOF)
Strategic investor or
general legal person
becoming a top-10 N/A
shareholder due to
rights issue (if any)
Among the shareholders above the Company’s controlling shareholder—Anhui Gujing Group Company
Related or Limited—is not a related party of other shareholders; nor are they parties acting in concert as defined in the
acting-in-concert Administrative Measures on Information Disclosure of Changes in Shareholding of Listed Companies. As for the
parties among the other shareholders the Company does not know whether they are related parties or whether they belong to parties
shareholders above acting in concert as defined in the Administrative Measures on Information Disclosure of Changes in Shareholding
of Listed Companies.Explain if any of the
shareholders above
was involved in
entrusting/being N/A
entrusted with voting
rights or waiving
voting rights
Special account for share
N/A
repurchases (if any) among the
~ 34 ~Interim Report 2025
top 10 shareholders
Shareholding by top 10 non-restricted shareholders (excluding refinancing shares lending and lock-up shares of senior management)
Shares by type
Name of shareholder Non-restricted shares held at the period-end
Type Shares
ANHUI GUJING GROUP
271404022 RMB-denominated ordinary share 271404022
COMPANY LIMITED
BANK OF CHINA-CHINA
MERCHANTS CHINA
SECURITIES BAIJIU INDEX
13629982 RMB-denominated ordinary share 13629982
CLASSIFICATION
SECURITIES INVESTMENT
FUND
CHINA INTERNATIONAL
CAPITAL CORPORATION
9039708 Domestically listed foreign share 9039708
HONG KONG
SECURITIES LTD.INDUSTRIAL AND
COMMERCIAL BANK OF
CHINA LIMITED—INVESCO
GREAT WALL EMERGING 8800000 RMB-denominated ordinary share 8800000
GROWTH HYBRID
SECURITIES INVESTMENT
FUND
AGRICULTURAL BANK OF
CHINA—E FUND
CONSUMPTION SECTOR 7978008 RMB-denominated ordinary share 7978008
STOCK SECURITIES
INVESTMENT FUND
UBS (LUX) EQUITY
FUND—CHINA 7122945 Domestically listed foreign share 7122945
OPPORTUNITY (USD)
GREENWOODS CHINA
6049760 Domestically listed foreign share 6049760
ALPHA MASTER FUND
HONG KONG SECURITIES
5151273 RMB-denominated ordinary share 5151273
CLEARING COMPANY LTD.
3W GLOBAL FUND 4051528 Domestically listed foreign share 4051528
BANK OF CHINA—INVESCO
GREAT WALL DINGYI
4016841 RMB-denominated ordinary share 4016841
HYBRID SECURITIES
INVESTMENT FUND (LOF)
Among the shareholders above the Company’s controlling shareholder—Anhui Gujing Group
Related or acting-in-concert
Company Limited—is not a related party of other shareholders; nor are they parties acting in concert
parties among top 10 unrestricted
as defined in the Administrative Measures on Information Disclosure of Changes in Shareholding of
shareholders as well as between
Listed Companies. As for the other shareholders the Company does not know whether they are
top 10 unrestricted shareholders
related parties or whether they belong to parties acting in concert as defined in the Administrative
and top 10 shareholders
Measures on Information Disclosure of Changes in Shareholding of Listed Companies.Top 10 ordinary shareholders
involved in securities margin N/A
trading (if any)
5% or greater shareholders top 10 shareholders and top 10 unrestricted shareholders involved in refinancing shares lending
□ Applicable □ Not applicable
Changes in top 10 shareholders and top 10 unrestricted shareholders due to refinancing shares lending/return compared with the prior
period
□ Applicable □ Not applicable
Indicate by tick mark whether any of the top 10 ordinary shareholders or the top 10 unrestricted ordinary shareholders of the
~ 35 ~Interim Report 2025
Company conducted any promissory repo during the Reporting Period.□ Yes □ No
No such cases in the Reporting Period.IV Change in Shareholdings of Directors Supervisors and Senior Management
□ Applicable □ Not applicable
No changes occurred to the shareholdings of the directors supervisors and senior management in the Reporting Period. See the 2024
Annual Report for more details.V Change of the Controlling Shareholder or the De Facto Controller
Change of the controlling shareholder in the Reporting Period
□ Applicable □ Not applicable
No such cases in the Reporting Period.Change of the de facto controller in the Reporting Period
□ Applicable □ Not applicable
No such cases in the Reporting Period.VI Information on Preference Shares
□ Applicable □ Not applicable
No preference shares in the Reporting Period.~ 36 ~Interim Report 2025
Part VII Bonds
□ Applicable □ Not applicable
~ 37 ~Interim Report 2025
Part VIII Financial Statements
I Independent Auditor’s Report
Are these interim financial statements audited by an independent auditor
□ Yes □ No
These interim financial statements have not been audited by an independent auditor.II Financial Statements
Currency unit for the financial statements and the notes thereto: RMB
1. Consolidated Balance Sheet
Prepared by Anhui Gujing Distillery Company Limited
30 June 2025
Unit: RMB
Item 30 June 2025 1 January 2025
Current assets:
Monetary assets 15576297562.07 15894104466.53
Settlement reserve
Loans to other banks and financial
institutions
Held-for-trading financial assets 125528360.62 60184353.81
Derivative financial assets
Notes receivable
Accounts receivable 72164678.13 69819734.99
Receivables financing 737338297.08 2966732807.75
Prepayments 143179563.74 278472276.28
Premiums receivable
Reinsurance receivables
Receivable reinsurance contract
reserve
Other receivables 50938157.65 86894981.69
Including: Interest receivable
Dividends receivable
Financial assets purchased under
resale agreements
Inventories 9403858553.61 9264220836.58
~ 38 ~Interim Report 2025
Including: Data resource
Contract assets
Assets held for sale
Current portion of non-current assets
Other current assets 368868677.10 191503861.97
Total current assets 26478173850.00 28811933319.60
Non-current assets:
Loans and advances to customers
Debt investments
Other debt investments
Long-term receivables
Long-term equity investments 11926665.23 11732641.44
Investments in other equity instruments 73675265.03 69500830.82
Other non-current financial assets
Investment property 23624095.16 43893659.88
Fixed assets 8620902446.58 7896995404.62
Construction in progress 511153592.86 1038780764.86
Productive living assets
Oil and gas assets
Right-of-use assets 91489024.00 100293500.73
Intangible assets 1128213173.93 1129272763.98
Including: Data resource
Development costs
Including: Data resource
Goodwill 561364385.01 561364385.01
Long-term prepaid expense 376750705.22 374605387.89
Deferred income tax assets 558043166.23 483333690.76
Other non-current assets 3864745.03 707352.50
Total non-current assets 11961007264.28 11710480382.49
Total assets 38439181114.28 40522413702.09
Current liabilities:
Short-term borrowings 115785121.33 50038194.44
Borrowings from the central bank
Loans from other banks and financial
institutions
Held-for-trading financial liabilities
Derivative financial liabilities
Notes payable 419531822.56 589364409.55
Accounts payable 2301116226.39 2942339182.13
Advances from customers
Contract liabilities 1428005776.79 3514800038.80
~ 39 ~Interim Report 2025
Financial assets sold under repurchase
agreements
Customer deposits and deposits from
other banks and financial institutions
Payables for acting trading of
securities
Payables for underwriting of securities
Employee benefits payable 1082761156.00 1121224782.28
Taxes and levies payable 1263712228.32 1163171843.49
Other payables 3356132934.98 3146672513.57
Including: Interest payable
Dividends payable
Fees and commissions payable
Reinsurance payables
Liabilities directly associated with
assets held for sale
Current portion of non-current
44646878.1789836200.57
liabilities
Other current liabilities 1489923860.57 1691188287.40
Total current liabilities 11501616005.11 14308635452.23
Non-current liabilities:
Insurance contract reserve
Long-term borrowings 166450000.00 41600000.00
Bonds payable
Including: Preference shares
Perpetual bonds
Lease liabilities 73315213.16 84453588.30
Long-term payables
Long-term employee benefits payable
Provisions
Deferred income 119116940.71 122142913.25
Deferred income tax liabilities 267917046.76 271795024.98
Other non-current liabilities
Total non-current liabilities 626799200.63 519991526.53
Total liabilities 12128415205.74 14828626978.76
Owners’ equity:
Share capital 528600000.00 528600000.00
Other equity instruments
Including: Preference shares
Perpetual bonds
Capital reserves 6229111206.22 6229111206.22
Less: Treasury stock
~ 40 ~Interim Report 2025
Other comprehensive income 6446394.50 -9604119.74
Specific reserve
Surplus reserves 269402260.27 269402260.27
General reserve
Retained earnings 18129500218.38 17639514432.44
Total equity attributable to owners of the
25163060079.3724657023779.19
Company as the parent
Non-controlling interests 1147705829.17 1036762944.14
Total owners’ equity 26310765908.54 25693786723.33
Total liabilities and owners’ equity 38439181114.28 40522413702.09
Legal representative: Liang Jinhui The Company’s chief accountant: Zhu Jiafeng
Head of the Company’s financial department: Zhu Jiafeng
2. Balance Sheet of the Company as the Parent
Unit: RMB
Item 30 June 2025 1 January 2025
Current assets:
Monetary assets 8709686608.00 7578634079.50
Held-for-trading financial assets
Derivative financial assets
Notes receivable
Accounts receivable
Accounts receivable financing 667009494.70 1692337127.64
Prepayments 130500856.56 6440878.02
Other receivables 464390649.10 505111096.18
Including: Interest receivable
Dividends receivable
Inventories 7270281583.82 7258975398.24
Including: Data resource
Contract assets
Assets held for sale
Current portion of non-current assets
Other current assets 281032942.89 132970178.96
Total current assets 17522902135.07 17174468758.54
Non-current assets:
Investments in debt obligations
Investments in other debt obligations
Long-term receivables
Long-term equity investments 1700492476.36 1648298837.80
~ 41 ~Interim Report 2025
Investments in other equity
instruments
Other non-current financial assets
Investment property 22349901.15 42562431.85
Fixed assets 6859409978.57 6079767997.96
Construction in progress 388820519.27 928920528.47
Productive living assets
Oil and gas assets
Right-of-use assets 91489024.00 100293500.73
Intangible assets 489275427.93 498603502.55
Including: Data resource
Development costs
Including: Data resource
Goodwill
Long-term prepaid expense 301304067.50 305453097.21
Deferred income tax assets
Other non-current assets
Total non-current assets 9853141394.78 9603899896.57
Total assets 27376043529.85 26778368655.11
Current liabilities:
Short-term borrowings
Held-for-trading financial liabilities
Derivative financial liabilities
Notes payable
Accounts payable 1586699005.43 2092055042.44
Advances from customers
Contract liabilities 2308724171.19 794714253.43
Employee benefits payable 314438194.31 325195369.96
Taxes payable 752694452.99 735214837.75
Other payables 1039759642.89 882504197.38
Including: Interest payable
Dividends payable
Liabilities directly associated with
assets held for sale
Current portion of non-current
15149540.6713346230.73
liabilities
Other current liabilities 300834682.22 125309809.42
Total current liabilities 6318299689.70 4968339741.11
Non-current liabilities:
Long-term borrowings
Bonds payable
~ 42 ~Interim Report 2025
Including: Preferred shares
Perpetual bonds
Lease liabilities 73315213.16 84453588.30
Long-term payables
Long-term employee benefits payable
Provisions
Deferred income 56981308.95 59582910.44
Deferred income tax liabilities 51221196.45 49348636.55
Other non-current liabilities
Total non-current liabilities 181517718.56 193385135.29
Total liabilities 6499817408.26 5161724876.40
Owners’ equity:
Share capital 528600000.00 528600000.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserves 6176504182.20 6176504182.20
Less: Treasury stock
Other comprehensive income -2163266.62 -7249242.08
Specific reserve
Surplus reserves 264300000.00 264300000.00
Retained earnings 13908985206.01 14654488838.59
Total owners’ equity 20876226121.59 21616643778.71
Total liabilities and owners’ equity 27376043529.85 26778368655.11
3. Consolidated Income Statement
Unit: RMB
Item H1 2025 H1 2024
1. Revenue 13879852202.75 13805693542.35
Including: Operating revenue 13879852202.75 13805693542.35
Interest income
Insurance premium income
Handling charge and
commission income
2. Costs and expenses 8876949244.49 8832090887.25
Including: Cost of sales 2793535258.54 2704664895.42
Interest expense
Handling charge and
commission expense
Surrenders
Net insurance claims paid
~ 43 ~Interim Report 2025
Net amount provided as
insurance contract reserve
Expenditure on policy
dividends
Reinsurance premium
expense
Taxes and surcharges 2175977722.16 2093680344.08
Selling expense 3511408555.96 3611684984.17
Administrative expense 671417776.78 671150694.72
R&D expense 40317747.37 33232298.34
Finance costs -315707816.32 -282322329.48
Including: Interest
5553600.243445346.57
expense
Interest
324132039.22298352344.67
income
Add: Other income 50136522.40 26746914.82
Return on investment (“-” for loss) -17291463.64 -25111476.37
Including: Share of profit or loss
194023.7970235.73
of joint ventures and associates
Income from the
derecognition of financial assets at
amortised cost (“-” for loss)
Exchange gain (“-” for loss)
Net gain on exposure hedges (“-”
for loss)
Gain on changes in fair value (“-”
528360.620.00
for loss)
Credit impairment loss (“-” for
579017.0257444.88
loss)
Asset impairment loss (“-” for
954415.896603562.17
loss)
Asset disposal income (“-” for
37146.67115019.47
loss)
3. Operating profit (“-” for loss) 5037846957.22 4982014120.07
Add: Non-operating income 28399359.59 32302009.99
2028341.636795915.82
Less: Non-operating expense
5007520214.24
4. Profit before tax (“-” for loss) 5064217975.18
Less: Income tax expense 1286677231.21 1328603900.45
5. Net profit (“-” for net loss) 3777540743.97 3678916313.79
~ 44 ~Interim Report 2025
5.1 By operating continuity
5.1.1 Net profit from continuing
3777540743.973678916313.79
operations (“-” for net loss)
5.1.2 Net profit from discontinued
operations (“-” for net loss)
5.2 By ownership
5.2.1 Net profit attributable to
shareholders of the Company as the 3661585785.94 3572791595.15
parent (“-” for net loss)
5.2.2 Net profit attributable to
115954958.03106124718.64
non-controlling interests (“-” for net loss)
6. Other comprehensive income net of
17285058.302500944.33
tax
Attributable to owners of the
16050514.24776913.79
Company as the parent
6.1 Items that will not be
1878495.392562288.68
reclassified to profit or loss
6.1.1 Changes caused by
remeasurements on defined benefit
schemes
6.1.2 Other comprehensive
income that will not be reclassified to
profit or loss under the equity method
6.1.3 Changes in the fair value of
1878495.392562288.68
investments in other equity instruments
6.1.4 Changes in the fair value
arising from changes in own credit risk
6.1.5 Other
6.2 Items that will be reclassified to
14172018.85-1785374.89
profit or loss
6.2.1 Other comprehensive
income that will be reclassified to profit
or loss under the equity method
6.2.2 Changes in the fair value of
investments in other debt obligations
6.2.3 Other comprehensive
income arising from the reclassification 14172018.85 -1785374.89
of financial assets
6.2.4 Credit impairment
allowance for investments in other debt
obligations
6.2.5 Reserve for cash flow
hedges
~ 45 ~Interim Report 2025
6.2.6 Differences arising from the
translation of foreign
currency-denominated financial
statements
6.2.7 Other
Attributable to non-controlling
1234544.061724030.54
interests
7. Total comprehensive income 3794825802.27 3681417258.12
Attributable to owners of the
3677636300.183573568508.94
Company as the parent
Attributable to non-controlling
117189502.09107848749.18
interests
8. Earnings per share
8.1 Basic earnings per share 6.93 6.76
8.2 Diluted earnings per share 6.93 6.76
Legal representative: Liang Jinhui The Company’s chief accountant: Zhu Jiafeng
Head of the Company’s financial department: Zhu Jiafeng
4. Income Statement of the Company as the Parent
Unit: RMB
Item H1 2025 H1 2024
1. Operating revenue 8145509078.76 7384017491.41
Less: Cost of sales 2663998964.46 2445598078.60
Taxes and surcharges 1987809121.67 1772751072.05
Selling expense 19234473.34 21459835.72
Administrative expense 409334828.58 419472201.59
R&D expense 14651229.03 13929592.90
Finance costs -67812658.15 -97004971.38
Including: Interest expense 2009637.65 3595408.74
Interest income 72175217.81 112271255.06
Add: Other income 9816414.10 6966116.88
Return on investment (“-” for
17259846.39-26308146.40
loss)
Including: Share of profit or loss
193638.5668099.43
of joint ventures and associates
Income from the derecognition
of financial assets at amortised cost (“-”
for loss)
Net gain on exposure hedges (“-”
~ 46 ~Interim Report 2025
for loss)
Gain on changes in fair value (“-”
for loss)
Credit impairment loss (“-” for
704942.28-10278.59
loss)
Asset impairment loss (“-” for
3810447.095706685.56
loss)
Asset disposal income (“-” for
loss)
2. Operating profit (“-” for loss) 3149884769.69 2794166059.38
Add: Non-operating income 20905592.33 15441836.27
Less: Non-operating expense 1210216.12 4287382.39
3. Profit before tax (“-” for loss) 3169580145.90 2805320513.26
Less: Income tax expense 743483778.48 759833061.15
4. Net profit (“-” for net loss) 2426096367.42 2045487452.11
4.1 Net profit from continuing
2426096367.422045487452.11
operations (“-” for net loss)
4.2 Net profit from discontinued
operations (“-” for net loss)
5. Other comprehensive income net of
5085975.46-2108016.70
tax
5.1 Items that will not be reclassified
to profit or loss
5.1.1 Changes caused by
remeasurements on defined benefit
schemes
5.1.2 Other comprehensive income
that will not be reclassified to profit or
loss under the equity method
5.1.3 Changes in the fair value of
investments in other equity instruments
5.1.4 Changes in the fair value
arising from changes in own credit risk
5.1.5 Other
5.2 Items that will be reclassified to
5085975.46-2108016.70
profit or loss
5.2.1 Other comprehensive income
that will be reclassified to profit or loss
under the equity method
5.2.2 Changes in the fair value of
investments in other debt obligations
5.2.3 Other comprehensive income 5085975.46 -2108016.70
~ 47 ~Interim Report 2025
arising from the reclassification of
financial assets
5.2.4 Credit impairment allowance
for investments in other debt obligations
5.2.5 Reserve for cash flow hedges
5.2.6 Differences arising from the
translation of foreign
currency-denominated financial
statements
5.2.7 Other
6. Total comprehensive income 2431182342.88 2043379435.41
7. Earnings per share
7.1 Basic earnings per share 4.59 3.87
7.2 Diluted earnings per share 4.59 3.87
5. Consolidated Cash Flow Statement
Unit: RMB
Item H1 2025 H1 2024
1. Cash flows from operating activities:
Proceeds from sale of commodities
15211152103.8814245568250.46
and rendering of services
Net increase in customer deposits and
interbank deposits
Net increase in borrowings from the
central bank
Net increase in loans from other
financial institutions
Premiums received on original
insurance contracts
Net proceeds from reinsurance
Net increase in deposits and
investments of policy holders
Interest handling charges and
commissions received
Net increase in interbank loans
obtained
Net increase in proceeds from
repurchase transactions
Net proceeds from acting trading of
securities
Tax rebates 2632282.72 23333556.85
~ 48 ~Interim Report 2025
Cash generated from other operating
846829734.881818735111.85
activities
Subtotal of cash generated from
16060614121.4816087636919.16
operating activities
Payments for commodities and
2473268445.213170264475.64
services
Net increase in loans and advances to
customers
Net increase in deposits in the central
bank and in interbank loans granted
Payments for claims on original
insurance contracts
Net increase in interbank loans granted
Interest handling charges and
commissions paid
Policy dividends paid
Cash paid to and for employees 2196285230.62 2060510062.01
Taxes paid 5170737863.61 4887229011.01
Cash used in other operating activities 2065770527.44 1959926915.01
Subtotal of cash used in operating
11906062066.8812077930463.67
activities
Net cash generated from/used in
4154552054.604009706455.49
operating activities
2. Cash flows from investing activities:
Proceeds from disinvestment 1335393000.00 725199000.00
Return on investment 2302680.87 22301834.45
Net proceeds from the disposal of
fixed assets intangible assets and other 3558.00 49020.00
long-lived assets
Net proceeds from the disposal of
subsidiaries and other business units
Cash generated from other investing
activities
Subtotal of cash generated from
1337699238.87747549854.45
investing activities
Payments for the acquisition of fixed
assets intangible assets and other 943666299.92 1190884765.96
long-lived assets
Payments for investments 1612749000.00 0.00
Net increase in pledged loans granted
Net payments for the acquisition of
subsidiaries and other business units
Cash used in other investing activities
~ 49 ~Interim Report 2025
Subtotal of cash used in investing
2556415299.921190884765.96
activities
Net cash generated from/used in
-1218716061.05-443334911.51
investing activities
3. Cash flows from financing activities:
Capital contributions received 18000000.00 14000000.00
Including: Capital contributions by
18000000.0014000000.00
non-controlling interests to subsidiaries
Borrowings raised 230200000.00 90000100.00
Cash generated from other financing
activities
Subtotal of cash generated from
248200000.00104000100.00
financing activities
Repayment of borrowings 86690000.00 91590000.00
Interest and dividends paid 3202120302.70 2381442940.92
Including: Dividends paid by
24246617.060.00
subsidiaries to non-controlling interests
Cash used in other financing activities 11832851.40 7509748.71
Subtotal of cash used in financing
3300643154.102480542689.63
activities
Net cash generated from/used in
-3052443154.10-2376542589.63
financing activities
4. Effect of foreign exchange rates
changes on cash and cash equivalents
5. Net increase in cash and cash
-116607160.551189828954.35
equivalents
Add: Cash and cash equivalents
15193134694.1914676167417.36
beginning of the period
6. Cash and cash equivalents end of the
15076527533.6415865996371.71
period
6. Cash Flow Statement of the Company as the Parent
Unit: RMB
Item H1 2025 H1 2024
1. Cash flows from operating activities:
Proceeds from sale of commodities
17601027626.8415817677216.11
and rendering of services
Tax rebates
Cash generated from other operating
922856861.57732824253.24
activities
Subtotal of cash generated from
18523884488.4116550501469.35
operating activities
~ 50 ~Interim Report 2025
Payments for commodities and
2030287590.751871024800.58
services
Cash paid to and for employees 721681300.58 696968743.97
Taxes paid 3424241358.45 3138757389.98
Cash used in other operating activities 7025981610.03 8602551118.12
Subtotal of cash used in operating
13202191859.8114309302052.65
activities
Net cash generated from/used in
5321692628.602241199416.70
operating activities
2. Cash flows from investing activities:
Proceeds from disinvestment 543296000.00 710199000.00
Return on investment 62106882.46 152089852.07
Net proceeds from the disposal of
fixed assets intangible assets and other 571340.27 45000.00
long-lived assets
Net proceeds from the disposal of
subsidiaries and other business units
Cash generated from other investing
activities
Subtotal of cash generated from
605974222.73862333852.07
investing activities
Payments for the acquisition of fixed
assets intangible assets and other 857181157.31 1078518200.30
long-lived assets
Payments for investments 752609000.00 21000000.00
Net payments for the acquisition of
subsidiaries and other business units
Cash used in other investing activities
Subtotal of cash used in investing
1609790157.311099518200.30
activities
Net cash generated from/used in
-1003815934.58-237184348.23
investing activities
3. Cash flows from financing activities:
Capital contributions received
Borrowings raised
Cash generated from other financing
activities
Subtotal of cash generated from
financing activities
Repayment of borrowings
Interest and dividends paid 3174991314.12 2379872355.31
Cash used in other financing activities 11832851.40 7509748.71
~ 51 ~Interim Report 2025
Subtotal of cash used in financing
3186824165.522387382104.02
activities
Net cash generated from/used in
-3186824165.52-2387382104.02
financing activities
4. Effect of foreign exchange rates
changes on cash and cash equivalents
5. Net increase in cash and cash
1131052528.50-383367035.55
equivalents
Add: Cash and cash equivalents
7578634079.507430906530.24
beginning of the period
6. Cash and cash equivalents end of the
8709686608.007047539494.69
period
~ 52 ~Interim Report 2025
7. Consolidated Statements of Changes in Owners’ Equity
Amount in H1 2025
Unit: RMB
H1 2025
Equity attributable to owners of the Company as the parent
Item
Other equity instruments Less: Other Non-controlling Total owners’
Specific Surplus General
Share capital Capital reserves Treasury comprehensive Retained earnings Other Subtotal interests equity Preferred Perpetual
Other reserve reserves reserve
shares bonds stock income
1. Balance as at
the end of the
528600000.006229111206.22-9604119.74269402260.2717639514432.4424657023779.191036762944.1425693786723.33
period of prior
year
Add:
Adjustment for
change in
accounting
policy
Adjustment for
correction of
previous error
Other
adjustments
2. Balance as at
the beginning
of the 528600000.00 6229111206.22 -9604119.74 269402260.27 17639514432.44 24657023779.19 1036762944.14 25693786723.33
Reporting
Period
3. Increase/
decrease in the
16050514.24489985785.94506036300.18110942885.03616979185.21
period (“-” for
decrease)
3.1 Total
comprehensive 16050514.24 3661585785.94 3677636300.18 117189502.09 3794825802.27
income
3.2 Capital
increased and
18000000.0018000000.00
reduced by
owners
3.2.1
Ordinary shares
18000000.0018000000.00
increased by
owners
3.2.2
Capital
increased by
~ 53 ~Interim Report 2025
holders of other
equity
instruments
3.2.3
Share-based
payments
included in
owners’ equity
3.2.4
Other
3.3 Profit
-3171600000.00-3171600000.00-24246617.06-3195846617.06
distribution
3.3.1
Appropriation
to surplus
reserves
3.3.2
Appropriation
to general
reserve
3.3.3
Appropriation
-3171600000.00-3171600000.00-24246617.06-3195846617.06
to owners (or
shareholders)
3.3.4
Other
3.4 Transfers
within owners’
equity
3.4.1
Increase in
capital (or
share capital)
from capital
reserves
3.4.2
Increase in
capital (or
share capital)
from surplus
reserves
3.4.3 Loss
offset by
surplus
reserves
3.4.4
Changes in
defined benefit
schemes
transferred to
retained
earnings
~ 54 ~Interim Report 2025
3.4.5
Other
comprehensive
income
transferred to
retained
earnings
3.4.6
Other
3.5 Specific
reserve
3.5.1
Increase in the
period
3.5.2 Used
in the period
3.6 Other
4. Balance as at
the end of the
528600000.006229111206.226446394.50269402260.2718129500218.3825163060079.371147705829.1726310765908.54
Reporting
Period
Amount in H1 2024
Unit: RMB
H1 2024
Equity attributable to owners of the Company as the parent
Item
Other equity instruments Less: Other Non-controlling
Specific Surplus General Total owners’ equity
Share capital Preferred Perpetual Capital reserves Treasury comprehensive Retained earnings Other Subtotal
interests
Other reserve reserves reserve
shares bonds stock income
1. Balance as
at the end of
528600000.006224747667.101596322.73269402260.2714500963359.3421525309609.44888963352.6422414272962.08
the period of
prior year
Add:
Adjustment
for change in
accounting
policy
Adjustment
for correction
of previous
error
Other
adjustments
2. Balance as
at the
beginning of 528600000.00 6224747667.10 1596322.73 269402260.27 14500963359.34 21525309609.44 888963352.64 22414272962.08
the Reporting
Period
~ 55 ~Interim Report 2025
3. Increase/
decrease in the
776913.791194091595.151194868508.94121688579.241316557088.18
period (“-” for
decrease)
3.1 Total
comprehensive 776913.79 3572791595.15 3573568508.94 107848749.18 3681417258.12
income
3.2 Capital
increased and
14000000.0014000000.00
reduced by
owners
3.2.1
Ordinary
shares 14000000.00 14000000.00
increased by
owners
3.2.2
Capital
increased by
holders of
other equity
instruments
3.2.3
Share-based
payments
included in
owners’ equity
3.2.4
Other
3.3 Profit
-2378700000.00-2378700000.00-160169.94-2378860169.94
distribution
3.3.1
Appropriation
to surplus
reserves
3.3.2
Appropriation
to general
reserve
3.3.3
Appropriation
-2378700000.00-2378700000.00-160169.94-2378860169.94
to owners (or
shareholders)
3.3.4
Other
3.4
Transfers
within owners’
equity
3.4.1
Increase in
capital (or
~ 56 ~Interim Report 2025
share capital)
from capital
reserves
3.4.2
Increase in
capital (or
share capital)
from surplus
reserves
3.4.3
Loss offset by
surplus
reserves
3.4.4
Changes in
defined benefit
schemes
transferred to
retained
earnings
3.4.5
Other
comprehensive
income
transferred to
retained
earnings
3.4.6
Other
3.5 Specific
reserve
3.5.1
Increase in the
period
3.5.2
Used in the
period
3.6 Other
4. Balance as
at the end of
528600000.006224747667.102373236.52269402260.2715695054954.4922720178118.381010651931.8823730830050.26
the Reporting
Period
8. Statements of Changes in Owners’ Equity of the Company as the Parent
Amount in H1 2025
Unit: RMB
~ 57 ~Interim Report 2025
H1 2025
Item Other equity instruments Less: Other Specific Surplus
Share capital Preferred Perpetual Capital reserves Treasury comprehensive Retained earnings Other Total owners’ equity
Other reserve reserves
shares bonds stock income
1. Balance as at
the end of the
528600000.006176504182.20-7249242.08264300000.0014654488838.5921616643778.71
period of prior
year
Add:
Adjustment for
change in
accounting
policy
Adjustment
for correction
of previous
error
Other
adjustments
2. Balance as at
the beginning
of the 528600000.00 6176504182.20 -7249242.08 264300000.00 14654488838.59 21616643778.71
Reporting
Period
3. Increase/
decrease in the
5085975.46-745503632.58-740417657.12
period (“-” for
decrease)
3.1 Total
2431182342.88
comprehensive 5085975.46 2426096367.42
income
3.2 Capital
increased and
reduced by
owners
3.2.1
Ordinary
shares
increased by
owners
3.2.2
Capital
increased by
~ 58 ~Interim Report 2025
holders of other
equity
instruments
3.2.3
Share-based
payments
included in
owners’ equity
3.2.4
Other
3.3 Profit
-3171600000.00-3171600000.00
distribution
3.3.1
Appropriation
to surplus
reserves
3.3.2
Appropriation
-3171600000.00-3171600000.00
to owners (or
shareholders)
3.3.3
Other
3.4 Transfers
within owners’
equity
3.4.1
Increase in
capital (or
share capital)
from capital
reserves
3.4.2
Increase in
capital (or
share capital)
from surplus
reserves
3.4.3 Loss
offset by
surplus
reserves
3.4.4
Changes in
defined benefit
~ 59 ~Interim Report 2025
schemes
transferred to
retained
earnings
3.4.5
Other
comprehensive
income
transferred to
retained
earnings
3.4.6
Other
3.5 Specific
reserve
3.5.1
Increase in the
period
3.5.2 Used
in the period
3.6 Other
4. Balance as at
the end of the
528600000.006176504182.20-2163266.62264300000.0013908985206.0120876226121.59
Reporting
Period
Amount in H1 2024
Unit: RMB
H1 2024
Item Other equity instruments Less: Other Specific
Share capital Preferred Perpetual Capital reserves Treasury comprehensive Surplus reserves Retained earnings Other Total owners’ equity
Other reserve
shares bonds stock income
1. Balance as
at the end of
528600000.006176504182.20-1993312.09264300000.0010783802188.7817751213058.89
the period of
prior year
Add:
Adjustment
for change in
accounting
~ 60 ~Interim Report 2025
policy
Adjustment
for correction
of previous
error
Other
adjustments
2. Balance as
at the
beginning of 528600000.00 6176504182.20 -1993312.09 264300000.00 10783802188.78 17751213058.89
the Reporting
Period
3. Increase/
decrease in the
-2108016.70-333212547.89-335320564.59
period (“-” for
decrease)
3.1 Total
comprehensive -2108016.70 2045487452.11 2043379435.41
income
3.2 Capital
increased and
reduced by
owners
3.2.1
Ordinary
shares
increased by
owners
3.2.2
Capital
increased by
holders of
other equity
instruments
3.2.3
Share-based
payments
included in
owners’ equity
3.2.4
Other
3.3 Profit
-2378700000.00-2378700000.00
distribution
~ 61 ~Interim Report 2025
3.3.1
Appropriation
to surplus
reserves
3.3.2
Appropriation
-2378700000.00-2378700000.00
to owners (or
shareholders)
3.3.3
Other
3.4
Transfers
within owners’
equity
3.4.1
Increase in
capital (or
share capital)
from capital
reserves
3.4.2
Increase in
capital (or
share capital)
from surplus
reserves
3.4.3
Loss offset by
surplus
reserves
3.4.4
Changes in
defined benefit
schemes
transferred to
retained
earnings
3.4.5
Other
comprehensive
income
transferred to
retained
earnings
~ 62 ~Interim Report 2025
3.4.6
Other
3.5 Specific
reserve
3.5.1
Increase in the
period
3.5.2
Used in the
period
3.6 Other
4. Balance as
at the end of
528600000.006176504182.20-4101328.79264300000.0010450589640.8917415892494.30
the Reporting
Period
~ 63 ~Interim Report 2025
Anhui Gujing Distillery Company Limited
Notes to Financial Statements for H1 2025
(Currency Unit is RMB Unless Otherwise Stated)
I Basic Information about the Company
The Anhui State-owned Asset Management Bureau approved through WanGuoZiGongZi (1996)
No. 053 the incorporation of Anhui Gujing Distillery Company Limited (the Company and GJ
Distillery) by Anhui Gujing Group Company Limited (GJ Group) as the sole founder by the
operating assets of Anhui Bozhou Gujing Distillery Factory (GJ Distillery Factory) which is the
core operating unit of GJ Group. The incorporation was further approved by the Anhui People’s
Government through WanZhengMi (1996) 42 on 5 March 1996. The incorporation General
Meeting was held on 28 May 1996 and the incorporation was registered with the Anhui
Administration Bureau for Commerce and Industry on 30 May 1996 with the registered address at
Bozhou Anhui the People’s Republic of China (the PRC). At incorporation the Company’s total
number of shares stood at 155 million with a valuation of RMB377.17 million which was the fair
value of the operating assets of GJ Distillery Factory upon appraisal.The Company initiated public offering of 60 million domestic listed shares held by foreign
investors (known as “B share(s)”) in June 1996 and 20 million domestic listed RMB ordinary shares
(known as “A share(s)”) in September 1996. The par value of both the B share and A share is
RMB1.00 per share. The B shares and A shares issued were listed on the Shenzhen Stock
Exchange.As of the public listing the Company has 235 million shares in total with the share capital at
RMB235 million. The Company’s at public listing comprised 155 million state-owned shares 60
million B shares and 20 million A shares. Each of the Company’s shares has a par value at
RMB1.00 per share.In accordance with the resolution of the General Meeting held on 29 May 2006 the Company
exercised the share reorganisation plan in June 2006. Immediately after the implementation of the
share reorganisation plan the Company had in total 235 million shares comprising 147 million
shares with restriction of disposal (equal to 62.55% of total shares) and 88 million free-floating
shares (equal to 37.45% of total shares).Upon the Company’s publication of the Notice of Lifting Restriction of Shares on 27 June 2007 the
restriction on disposal on 11.75 million shares was lifted on 29 June 2007. Immediately after the
lifting the Company had in total 235 million shares comprising 135.25 million shares with
restriction of disposal (equal to 57.55% of total shares) and 99.75 million free-floating shares (equal
~ 64 ~Interim Report 2025
to 42.45% of total shares).Upon the Company’s publication of the Notice of Lifting Restriction of Shares on 17 July 2008 the
restriction on disposal on 11.75 million shares was lifted on 18 July 2008. Immediately after the
lifting the Company had in total 235 million shares comprising 123.5 million shares with
restriction of disposal (equal to 52.55% of total shares) and 111.5 million free-floating shares (equal
to 47.45% of total shares).Upon the Company’s publication of the Notice of Lifting Restriction of Shares on 24 July 2009 the
restriction on disposal on 123.5 million shares was lifted on 29 July 2009. Immediately after the
lifting the Company had in total 235 million shares comprising 235 million free-floating shares
(equal to 100% of total shares).Upon approval by the China Securities Regulatory Commission (CSRC) through ZhengJianXuKe
[2011] 943 the Company issued on 15 July 2011 through private offering of 16.8 million A shares
with the par value at RMB1.00 to designated investors. The shares were issued at RMB75.00 per
share. Gross proceeds from this issuance was RMB1260 million and the respective net proceeds
after deduction of the cost of issuance (RMB32.5 million) was RMB1227.5 million. The
subscription for the issuance was verified by Reanda CPAs Co. Ltd. through Reanda YanZi [2011]
No. 1065. Immediately after this private offering the share capital of the Company increased to
RMB251.8 million.In accordance with the resolution of the Company’s 2011 General Meeting a bonus issue of 10
shares for every 10 shares held at 31 December 2011 through utilisation of capital reserves was
exercised in 2012. 251.8 bonus shares were issued in total. Immediately after the exercise of the
bonus issue the Company’s share capital increased to RMB503.6 million.Upon approval by the CSRC through ZhengJianXuKe [2021] 1422 the Company issued on 22 July
2021 through private offering of 25 million A shares with the par value at RMB1.00 to designated
investors. The shares were issued at RMB200.00 per share. Gross proceeds from this issuance was
RMB5000 million and the respective net proceeds after deduction of the cost of issuance
(RMB45.66 million) was RMB4954.34 million. The subscription for the issuance was verified by
RSM China CPAs LLP through RSM Yan [2021] No. 518Z0050. Immediately after this private
offering the share capital of the Company increased to RMB528.6 million.As of 30 June 2025 total number of the Company’s shares stood at 528.6 million. See Note 5.32 for
further details.The Company’s headquarters is located in Gujing town Bozhou City Anhui Province. Legal
representative of the company is Liang Jinhui.The Company is mainly engaged in the production and sales of baijiu which belongs to the food
~ 65 ~Interim Report 2025
manufacturing industry.These financial statements are approved on 29 August 2025 by the Company’s Board of Directors
for publication.II Basis of Preparation of the Financial Statements
1. Basis of Preparation
Based on going concern according to actually occurred transactions and events the Company
prepares its financial statements in accordance with the Accounting Standards for Business
Enterprises – Basic standards and concrete accounting standards Accounting Standards for
Business Enterprises – Application Guidelines Accounting Standards for Business Enterprises –Interpretations and other relevant provisions (collectively known as “Accounting Standards forBusiness Enterprises issued by Ministry of Finance of PRC”). In addition the Company discloses
the relevant financial information in accordance with Rules No.15 for the Information Disclosure
and Reporting of Companies Offering Securities to the Public - General Requirements for Financial
Reporting (2023 Revision) issued by CSRC.
2. Going Concern
The Company has assessed its ability to continually operate for the next 12 months from the end of
the reporting period and no any matters that may result in doubt on its ability as a going concern
were noted. Therefore it is reasonable for the Company to prepare financial statements on the going
concern basis.III Significant Accounting Policies and Accounting Estimates
The following significant accounting policies and accounting estimates of the Company are
formulated in accordance with the Accounting Standards for Business Enterprises. Businesses not
mentioned are complied with relevant accounting policies of the Accounting Standards for Business
Enterprises.
1. Statement of Compliance with the Accounting Standards for Business Enterprises
The Company prepares its financial statements in accordance with the requirements of the
Accounting Standards for Business Enterprises truly and completely reflecting the Company’s
financial position as at 30 June 2025 and its operating results changes in shareholders’ equity cash
flows and other related information for the year then ended.~ 66 ~Interim Report 2025
2. Accounting Period
The accounting year of the Company is from 1 January to 31 December in calendar year.
3. Operating Cycle
The normal operating cycle of the Company is one year.
4. Functional Currency
The Company takes Renminbi Yuan (“RMB”) as the functional currency. The Company’s overseas
subsidiaries choose the currency of the primary economic environment in which the subsidiaries
operate as the functional currency.
5. Determining Factor and Basis of Selection of Materiality
Item Factor and basis of materiality
Significant write-off of other receivables Amount greater than RMB5 million
Significant individual provision for bad debt of accounts
Amount greater than RMB5 million
receivable
Significant other payables with aging of over one year More than 0.03% of the total assets
Significant accounts payable with aging of over one year More than 0.03% of the total assets
Total assets operating income and net profit account for more
Significant non-wholly owned subsidiaries than5% of the corresponding items in the consolidated financial
statements
Significant goodwill Individual amount more than RMB50 million
Significant construction in progress Individual amount more than RMB20 million
6. Accounting Treatment of Business Combinations under and not under Common Control
(1) Business combinations under common control
The assets and liabilities that the Company obtains in a business combination under common
control shall be measured at their carrying amount of the acquired entity at the combination date. If
the accounting policy adopted by the acquired entity is different from that adopted by the acquiring
entity the acquiring entity shall according to accounting policy it adopts adjust the relevant items
in the financial statements of the acquired party based on the principal of materiality. As for the
difference between the carrying amount of the net assets obtained by the acquiring entity and the
carrying amount of the consideration paid by it the capital reserve (capital premium or share
premium) shall be adjusted. If the capital reserve (capital premium or share premium) is not
sufficient to absorb the difference any excess shall be adjusted against retained earnings.For the accounting treatment of business combination under common control by step acquisitions
please refer to Note 3.7 (6).~ 67 ~Interim Report 2025
(2) Business combinations not under common control
The assets and liabilities that the Company obtains in a business combination not under common
control shall be measured at their fair value at the acquisition date. If the accounting policy adopted
by the acquired entity is different from that adopted by the acquiring entity the acquiring entity
shall according to accounting policy it adopts adjust the relevant items in the financial statements
of the acquired entity based on the principal of materiality. The acquiring entity shall recognise the
positive balance between the combination costs and the fair value of the identifiable net assets it
obtains from the acquired entity as goodwill. The acquiring entity shall pursuant to the following
provisions treat the negative balance between the combination costs and the fair value of the
identifiable net assets it obtains from the acquired entity:
(i) It shall review the measurement of the fair values of the identifiable assets liabilities and
contingent liabilities it obtains from the acquired entity as well as the combination costs;
(ii) If after the review the combination costs are still less than the fair value of the identifiable net
assets it obtains from the acquired entity the balance shall be recognised in profit or loss of the
reporting period.For the accounting treatment of business combination under the same control by step acquisitions
please refer to Note 3.7 (6).
(3) Treatment of business combination related costs
The intermediary costs such as audit legal services and valuation consulting and other related
management costs that are directly attributable to the business combination shall be charged in
profit or loss in the period in which they are incurred. The costs to issue equity or debt securities for
the consideration of business combination shall be recorded as a part of the value of the respect
equity or debt securities upon initial recognition.
7. Judgment of Control and Method of Preparing the Consolidated Financial Statements
(1) Judgment of control and consolidation decision
Control exists when the Company has power over the investee exposure or rights to variable
returns from its involvement with the investee and the ability to use its power over the investee to
affect the amount of the returns. The definition of control contains there elements: - power over the
investee; exposure or rights to variable returns from the Company’s involvement with the investee;
and the ability to use its power over the investee to affect the amount of the investor’s returns. The
Company controls an investee if and only if the Company has all the above three elements.The scope of consolidated financial statements shall be determined on the basis of control. It not
only includes subsidiaries determined based on voting rights (or similar) or together with other
arrangement but also structured entities under one or more contractual arrangements.~ 68 ~Interim Report 2025
Subsidiaries are the entities that controlled by the Company (including enterprise a divisible part of
the investee and structured entity controlled by the enterprise). A structured entity (sometimes
called a Special Purpose Entity) is an entity that has been designed so that voting or similar rights
are not the dominant factor in deciding who controls the entity.
(2) Special requirement as the parent company is an investment entity
If the parent company is an investment entity it should measure its investments in particular
subsidiaries as financial assets at fair value through profit or loss instead of consolidating those
subsidiaries in its consolidated and separate financial statements. However as an exception to this
requirement if a subsidiary provides investment-related services or activities to the investment
entity it should be consolidated.The parent company is defined as investment entity when meets following conditions:
(i) Obtains funds from one or more investors for the purpose of providing those investors with
investment management services;
(ii) Commits to its investors that its business purpose is to invest funds solely for returns from
capital appreciation investment income or both; and
(iii) Measures and evaluates the performance of substantially all of its investments on a fair value
basis.If the parent company becomes an investment entity it shall cease to consolidate its subsidiaries at
the date of the change in status except for any subsidiary which provides investment-related
services or activities to the investment entity shall be continued to be consolidated. The
deconsolidation of subsidiaries is accounted for as though the investment entity partially disposed
subsidiaries without loss of control.When the parent company previously classified as an investment entity ceases to be an investment
entity subsidiary that was previously measured at fair value through profit or loss shall be included
in the scope of consolidated financial statements at the date of the change in status. The fair value of
the subsidiary at the date of change represents the transferred deemed consideration in accordance
with the accounting for business combination not under common control.
(3) Method of preparing the consolidated financial statements
The consolidated financial statements shall be prepared by the Company based on the financial
statements of the Company and its subsidiaries and using other related information.When preparing consolidated financial statements the Company shall consider the entire group as
an accounting entity adopt uniform accounting policies and apply the requirements of Accounting
Standard for Business Enterprises related to recognition measurement and presentation. The
consolidated financial statements shall reflect the overall financial position operating results and
cash flows of the group.~ 69 ~Interim Report 2025
(i) Like items of assets liabilities equity income expenses and cash flows of the parent are
combined with those of the subsidiaries.(ii) The carrying amount of the parent’s investment in each subsidiary is eliminated (off-set) against
the parent’s portion of equity of each subsidiary.(iii) Eliminate the impact of intragroup transactions between the Company and the subsidiaries or
between subsidiaries and when intragroup transactions indicate an impairment of related assets the
losses shall be recognised in full.(iv) Make adjustments to special transactions from the perspective of the group.
(4) Method of preparation of the consolidated financial statements when subsidiaries are
acquired or disposed in the reporting period
(i) Acquisition of subsidiaries or business
A. Subsidiaries or business acquired through business combination under common control
(a) When preparing consolidated statements of financial position the opening balance of the
consolidated balance sheet shall be adjusted. Related items of comparative financial statements
shall be adjusted as well deeming that the combined entity has always existed ever since the
ultimate controlling party began to control.(b) Incomes expenses and profits of the subsidiary incurred from the beginning of the reporting
period to the end of the reporting period shall be included into the consolidated statement of profit
or loss. Related items of comparative financial statements shall be adjusted as well deeming that
the combined entity has always existed ever since the ultimate controlling party began to control.(c) Cash flows from the beginning of the reporting period to the end of the reporting period shall be
included into the consolidated statement of cash flows. Related items of comparative financial
statements shall be adjusted as well deeming that the combined entity has always existed ever since
the ultimate controlling party began to control.B. Subsidiaries or business acquired through business combination not under common control
(a) When preparing the consolidated statements of financial position the opening balance of the
consolidated statements of financial position shall not be adjusted.(b) Incomes expenses and profits of the subsidiary incurred from the acquisition date to the end of
the reporting period shall be included into the consolidated statement of profit or loss.(c) Cash flows from the acquisition date to the end of the reporting period shall be included into the
consolidated statement of cash flows.(ii) Disposal of subsidiaries or business
A. When preparing the consolidated statements of financial position the opening balance of the
~ 70 ~Interim Report 2025
consolidated statements of financial position shall not be adjusted.B. Incomes expenses and profits incurred from the beginning of the subsidiary to the disposal date
shall be included into the consolidated statement of profit or loss.C. Cash flows from the beginning of the subsidiary to the disposal date shall be included into the
consolidated statement of cash flows.
(5) Special consideration in consolidation elimination
(i) Long-term equity investment held by the subsidiaries to the Company shall be recognised astreasury stock of the Company which is offset with the owner’s equity represented as “treasurystock” under “owner’s equity” in the consolidated statement of financial position.Long-term equity investment held by subsidiaries between each other is accounted for taking
long-term equity investment held by the Company to its subsidiaries as reference. That is the
long-term equity investment is eliminated (off-set) against the portion of the corresponding
subsidiary’s equity.(ii) Due to not belonging to paid-in capital (or share capital) and capital reserve and being different
from retained earnings and undistributed profit “Specific reserves” and “General risk provision”
shall be recovered based on the proportion attributable to owners of the parent company after
long-term equity investment to the subsidiaries is eliminated with the subsidiaries’ equity.(iii) If temporary timing difference between the book value of the assets and liabilities in the
consolidated statement of financial position and their tax basis is generated as a result of elimination
of unrealised inter-company transaction profit or loss deferred tax assets of deferred tax liabilities
shall be recognised and income tax expense in the consolidated statement of profit or loss shall be
adjusted simultaneously excluding deferred taxes related to transactions or events directly
recognised in owner’s equity or business combination.(iv) Unrealised inter-company transactions profit or loss generated from the Company selling assetsto its subsidiaries shall be eliminated against “net profit attributed to the owners of the parentcompany” in full. Unrealised inter-company transactions profit or loss generated from thesubsidiaries selling assets to the Company shall be eliminated between “net profit attributed to theowners of the parent company” and “non-controlling interests” pursuant to the proportion of the
Company in the related subsidiaries. Unrealised inter-company transactions profit or loss generatedfrom the assets sales between the subsidiaries shall be eliminated between “net profit attributed tothe owners of the parent company” and “non-controlling interests” pursuant to the proportion of the
Company in the selling subsidiaries.(v) If loss attributed to the minority shareholders of a subsidiary in current period is more than the
proportion of non-controlling interest in this subsidiary at the beginning of the period
non-controlling interest is still to be written down.~ 71 ~Interim Report 2025
(6) Accounting for special transactions
(i) Purchasing of non-controlling interests
Where the Company purchases non-controlling interests of its subsidiary in the separate financial
statements of the Company the cost of the long-term equity investment obtained in purchasing
non-controlling interests is measured at the fair value of the consideration paid. In the consolidated
financial statements difference between the cost of the long-term equity investment newly obtained
in purchasing non-controlling interests and share of the subsidiary’s net assets from the acquisition
date or combination date continuingly calculated pursuant to the newly acquired shareholding
proportion shall be adjusted into capital reserve (capital premium or share premium). If capital
reserve is not enough to be offset surplus reserve and undistributed profit shall be offset in turn.(ii) Gaining control over the subsidiary in stages through multiple transactions
A. Business combination under common control in stages through multiple transactions
On the combination date in the separate financial statement initial cost of the long-term equity
investment is determined according to the share of carrying amount of the acquiree’s net assets in
the ultimate controlling entity’s consolidated financial statements after combination. The difference
between the initial cost of the long-term equity investment and the carrying amount of the long
-term investment held prior of control plus book value of additional consideration paid at
acquisition date is adjusted into capital reserve (capital premium or share premium). If the capital
reserve is not enough to absorb the difference any excess shall be adjusted against surplus reserve
and undistributed profit in turn.In the consolidated financial statements the assets and liabilities acquired during the combination
should be recognised at their carrying amount in the ultimate controlling entity’s consolidated
financial statements on the combination date unless any adjustment is resulted from the differences
in accounting policies and accounting periods. The difference between the carrying amount of the
investment held prior of control plus book value of additional consideration paid on the acquisition
date and the net assets acquired through the combination is adjusted into capital reserve (capital
premium or share premium). If the capital reserve is not enough to absorb the difference any excess
shall be adjusted against retained earnings.If the acquiring entity holds equity investment in the acquired entity prior to the combination date
related profit or loss other comprehensive income and other changes in equity which have been
recognised during the period from the later of the date of the Company obtaining original equity
interest and the date of both the acquirer and the acquiree under common control of the same
ultimate controlling party to the combination date should be offset against the opening balance of
retained earnings or current profit and loss at the comparative financial statements period
respectively.~ 72 ~Interim Report 2025
B. Business combination not under common control in stages through multiple transactions
On the consolidation date in the separate financial statements the initial cost of long-term equity
investment is determined according to the carrying amount of the original long-term investment
plus the cost of new investment.In the consolidated financial statements the equity interest of the acquired entity held prior to the
acquisition date shall be re-measured at its fair value on the acquisition date. For the financial assets
designated to be measured at fair value through other comprehensive income among the acquiree’s
equity held prior to the acquisition date the difference between the fair value and the book value
shall be recognised as retained earnings. The cumulative changes in fair value of the equity which
is recognised as other comprehensive income shall be transferred out to retained earnings. For the
financial assets measured at fair value through current profit and loss among the acquiree’s equity
held prior to the acquisition date or long-term equity investment under the equity method the
difference between the fair value of the equity interest and its book value is recognised as
investment income of the current period. In case of changes in the acquiree’s equity held prior to the
acquisition date that involves other comprehensive income under the equity method and other
owner’s equity under the equity method excluding net profit and loss other comprehensive income
and profit distribution the relevant other comprehensive income shall go through accounting
treatment on the acquisition date on the same basis as the relevant assets or liabilities directly
treated by investors; changes in the relevant other owner’s equity shall be converted into the
investment income of the current period on the acquisition date.(iii) Disposal of investment in subsidiaries without a loss of control
For partial disposal of the long-term equity investment in the subsidiaries without a loss of control
when the Company prepares consolidated financial statements difference between consideration
received from the disposal and the corresponding share of subsidiary’s net assets cumulatively
calculated from the acquisition date or combination date shall be adjusted into capital reserve
(capital premium or share premium). If the capital reserve is not enough to absorb the difference
any excess shall be offset against retained earnings.(iv) Disposal of investment in subsidiaries with a loss of control
A. Disposal through one transaction
If the Company loses control in an investee through partial disposal of the equity investment when
the consolidated financial statements are prepared the retained equity interest should be
re-measured at fair value at the date of loss of control. The difference between i) the fair value of
consideration received from the disposal plus non-controlling interest retained; ii) share of the
former subsidiary’s net assets cumulatively calculated from the acquisition date plus goodwill or
combination date according to the original proportion of equity interest shall be recognised in
~ 73 ~Interim Report 2025
current investment income when control is lost.Moreover other comprehensive income related to the equity investment in the former subsidiary
shall go through accounting treatment on the same basis as the direct treatment of relevant assets or
liabilities in the former subsidiary when control is lost. Other changes in owner’s equity under the
equity method related to the former subsidiary shall be transferred into current profit and loss when
control is lost.B. Disposal in stagesIn the consolidated financial statements whether the transactions should be accounted for as “asingle transaction” needs to be decided firstly.If the disposal in stages should not be classified as “a single transaction” in the separate financial
statements for transactions prior of the date of loss of control carrying amount of each disposal of
long-term equity investment need to be recognised and the difference between consideration
received and the carrying amount of long-term equity investment corresponding to the equity
interest disposed should be recognised in current investment income; in the consolidated financialstatements the disposal transaction should be accounted for according to related policy in “Disposalof long-term equity investment in subsidiaries without a loss of control”.If the disposal in stages should be classified as “a single transaction” these transactions should be
accounted for as a single transaction of disposal of subsidiary resulting in loss of control. In the
separate financial statements for each transaction prior of the date of loss of control difference
between consideration received and the carrying amount of long-term equity investment
corresponding to the equity interest disposed should be recognised as other comprehensive income
firstly and transferred to profit or loss as a whole when control is lost; in the consolidated financial
statements for each transaction prior of the date of loss of control difference between consideration
received and proportion of the subsidiary’s net assets corresponding to the equity interest disposed
should be recognised in profit or loss as a whole when control is lost.In considering of the terms and conditions of the transactions as well as their economic impact the
presence of one or more of the following indicators may lead to account for multiple transactions as
a single transaction:
(a) The transactions are entered into simultaneously or in contemplation of one another.(b) The transactions form a single transaction designed to achieve an overall commercial effect.(c) The occurrence of one transaction depends on the occurrence of at least one other transaction.(d) One transaction when considered on its own merits does not make economic sense but when considered
together with the other transaction or transactions would be considered economically justifiable.(v) Diluting equity share of parent company in its subsidiaries due to additional capital injection by
~ 74 ~Interim Report 2025
the subsidiaries’ minority shareholders.Other shareholders (minority shareholders) of the subsidiaries inject additional capital in the
subsidiaries which resulted in the dilution of equity interest of parent company in these subsidiaries.In the consolidated financial statements difference between share of the corresponding subsidiaries’
net assets calculated based on the parent’s equity interest before and after the capital injection shall
be adjusted into capital reserve (capital premium or share premium). If the capital reserve is not
enough to absorb the difference any excess shall be adjusted against retained earnings.
8. Classification of Joint Arrangements and Accounting for Joint Operation
A joint arrangement is an arrangement of which two or more parties have joint control. Joint
arrangement of the Company is classified as either a joint operation or a joint venture.
(1) Joint operation
A joint operation is a joint arrangement whereby the parties that have joint control of the
arrangement have rights to the assets and obligations for the liabilities relating to the arrangement.The Company shall recognise the following items in relation to shared interest in a joint operation
and account for them in accordance with relevant accounting standards of the Accounting Standards
for Business Enterprises:
(i) its assets including its share of any assets held jointly;
(ii) its liabilities including its share of any liabilities incurred jointly;
(iii) its revenue from the sale of its share of the output arising from the joint operation;
(iv) its share of the revenue from the sale of the output by the joint operation; and
(v) its expenses including its share of any expenses incurred jointly.
(2) Joint venture
A joint venture is a joint arrangement whereby the parties that have joint control of the arrangement
have rights to the net assets of the arrangement.The Company accounts for its investment in the joint venture by applying the equity method of
long-term equity investment.
9. Cash and Cash Equivalents
Cash comprises cash on hand and deposits that can be readily withdrawn on demand. Cash
equivalents include short-term (generally within three months of maturity at acquisition) highly
liquid investments that are readily convertible into known amounts of cash and which are subject to
an insignificant risk of changes in value.~ 75 ~Interim Report 2025
10. Financial Instruments
Financial instrument is any contract which gives rise to both a financial asset of one entity and a
financial liability or equity instrument of another entity.
(1) Recognition and derecognition of financial instrument
A financial asset or a financial liability should be recognised in the statement of financial position
when and only when an entity becomes party to the contractual provisions of the instrument.A financial asset can only be derecognised when meets one of the following conditions:
(i) The rights to the contractual cash flows from a financial asset expire
(ii) The financial asset has been transferred and meets one of the following derecognition
conditions:
Financial liabilities (or part thereof) are derecognised only when the liability is extinguished—i.e.when the obligation specified in the contract is discharged or cancelled or expires. An exchange of
the Company (borrower) and lender of debt instruments that carry significantly different terms or a
substantial modification of the terms of an existing liability are both accounted for as an
extinguishment of the original financial liability and the recognition of a new financial liability.Purchase or sale of financial assets in a regular-way shall be recognised and derecognised using
trade date accounting. A regular-way purchase or sale of financial assets is a transaction under a
contract whose terms require delivery of the asset within the time frame established generally by
regulations or convention in the market place concerned. Trade date is the date at which the entity
commits itself to purchase or sell an asset.
(2) Classification and measurement of financial assets
At initial recognition the Company classified its financial asset based on both the business model
for managing the financial asset and the contractual cash flow characteristics of the financial asset:
financial asset at amortised cost financial asset at fair value through profit or loss (FVTPL) and
financial asset at fair value through other comprehensive income (FVTOCI). Reclassification of
financial assets is permitted if and only if the objective of the entity’s business model for
managing those financial assets changes. In this circumstance all affected financial assets shall be
reclassified on the first day of the first reporting period after the changes in business model;
otherwise the financial assets cannot be reclassified after initial recognition.Financial assets shall be measured at initial recognition at fair value. For financial assets measured
at FVTPL transaction costs are recognised in current profit or loss. For financial assets not
measured at FVTPL transaction costs should be included in the initial measurement. Notes
receivable or accounts receivable that arise from sales of goods or rendering of services are initially
measured at the transaction price defined in the accounting standard of revenue where the
~ 76 ~Interim Report 2025
transaction does not include a significant financing component.Subsequent measurement of financial assets will be based on their categories:
(i)Financial asset at amortised cost
The financial asset at amortised cost category of classification applies when both the following
conditions are met: the financial asset is held within the business model whose objective is to hold
financial assets in order to collect contractual cash flows and the contractual term of the financial
asset gives rise on specified dates to cash flows that are solely payment of principal and interest on
the principal amount outstanding. These financial assets are subsequently measured at amortised
cost by adopting the effective interest rate method. Any gain or loss arising from derecognition
according to the amortisation under effective interest rate method or impairment are recognised in
current profit or loss.(ii)Financial asset at fair value through other comprehensive income (FVTOCI)
The financial asset at FVTOCI category of classification applies when both the following
conditions are met: the financial asset is held within the business model whose objective is achieved
by both collecting contractual cash flows and selling financial assets and the contractual term of the
financial asset gives rise on specified dates to cash flows that are solely payment of principle and
interest on the principal amount outstanding. All changes in fair value are recognised in other
comprehensive income except for gain or loss arising from impairment or exchange differences
which should be recognised in current profit or loss. At derecognition cumulative gain or loss
previously recognised under OCI is reclassified to current profit or loss. However interest income
calculated based on the effective interest rate is included in current profit or loss.The Company make an irrevocable decision to designate part of non-trading equity instrument
investments as measured through FVTOCI. All changes in fair value are recognised in other
comprehensive income except for dividend income recognised in current profit or loss. At
derecognition cumulative gain or loss are reclassified to retained earnings.(iii)Financial asset at fair value through profit or loss (FVTPL)
Financial asset except for above mentioned financial asset at amortised cost or financial asset at fair
value through other comprehensive income (FVTOCI) should be classified as financial asset at fair
value through profit or loss (FVTPL). These financial assets should be subsequently measured at
fair value. All the changes in fair value are included in current profit or loss.
(3) Classification and measurement of financial liabilities
The Company classified the financial liabilities as financial liabilities at fair value through profit or
loss (FVTPL) loan commitments at a below-market interest rate and financial guarantee contracts
and financial asset at amortised cost.Subsequent measurement of financial assets will be based on the classification:
~ 77 ~Interim Report 2025
(i) Financial liabilities at fair value through profit or loss (FVTPL)
Held-for-trading financial liabilities (including derivatives that are financial liabilities) and financial
liabilities designated at FVTPL are classified as financial liabilities at FVTP. After initial
recognition any gain or loss (including interest expense) are recognised in current profit or loss
except for those hedge accounting is applied. For financial liability that is designated as at FVTPL
changes in the fair value of the financial liability that is attributable to changes in the own credit risk
of the issuer shall be presented in other comprehensive income. At derecognition cumulative gain
or loss previously recognised under OCI is reclassified to retained earnings.(ii) Loan commitments and financial guarantee contracts
Loan commitment is a commitment by the Company to provide a loan to customer under specified
contract terms. The provision of impairment losses of loan commitments shall be recognised based
on expected credit losses model.Financial guarantee contract is a contract that requires the Company to make specified payments to
reimburse the holder for a loss it incurs because a specified debtor fails to make payment when due
in accordance with the original or modified terms of a debt instrument. Financial guarantee
contracts liability shall be subsequently measured at the higher of: The amount of the loss
allowance recognised according to the impairment principles of financial instruments; and the
amount initially recognised less the cumulative amount of income recognised in accordance with
the revenue principles.(iii) Financial liabilities at amortised cost
After initial recognition the Company measured other financial liabilities at amortised cost using
the effective interest method.Except for special situation financial liabilities and equity instrument should be classified in
accordance with the following principles:
(i) If the Company has no unconditional right to avoid delivering cash or another financial
instrument to fulfil a contractual obligation this contractual obligation meet the definition of
financial liabilities. Some financial instruments do not comprise terms and conditions related to
obligations of delivering cash or another financial instrument explicitly they may include
contractual obligation indirectly through other terms and conditions.(ii) If a financial instrument must or may be settled in the Company’s own equity instruments it
should be considered that the Company’s own equity instruments are alternatives of cash or another
financial instrument or to entitle the holder of the equity instruments to sharing the remaining rights
over the net assets of the issuer. If the former is the case the instrument is a liability of the issuer;
otherwise it is an equity instrument of the issuer. Under some circumstances it is regulated in the
contract that the financial instrument must or may be settled in the Company’s own equity
~ 78 ~Interim Report 2025
instruments where amount of contractual rights and obligations are calculated by multiplying the
number of the equity instruments to be available or delivered by its fair value upon settlement. Such
contracts shall be classified as financial liabilities regardless that the amount of contractual rights
and liabilities is fixed or fluctuate totally or partially with variables other than market price of the
entity’s own equity instruments (such as interest rate price of some kind of goods or some kind of
financial instrument).
(4) Derivatives and embedded derivatives
At initial recognition derivatives shall be measured at fair value at the date of derivative contracts
are signed and subsequently measured at fair value. The derivative with a positive fair value shall be
recognised as an asset and with a negative fair value shall be recognised as a liability.Gains or losses arising from the changes in fair value of derivatives shall be recognised directly into
current profit or loss except for the effective portion of cash flow hedges which shall be recognised
in other comprehensive income and reclassified into current profit or loss when the hedged items
affect profit or loss.An embedded derivative is a component of a hybrid contract with a financial asset as a host the
Company shall apply the requirements of financial asset classification to the entire hybrid contract.If a host that is not a financial asset and the hybrid contract is not measured at fair value with
changes in fair value recognised in profit or loss and the economic characteristics and risks of the
embedded derivative are not closely related to the economic characteristics and risks of the host
and a separate instrument with the same terms as the embedded derivative would meet the
definition of a derivative the embedded derivative shall be separated from the hybrid instrument
and accounted for as a separate derivative instrument. If the Company is unable to measure the fair
value of the embedded derivative at the acquisition date or subsequently at the balance sheet date
the entire hybrid contract is designated as financial assets or financial liabilities at fair value through
profit or loss.
(5) Impairment of financial instrument
The Company shall recognise a loss allowance based on expected credit losses on a financial asset
that is measured at amortised cost a debt investment at fair value through other comprehensive
income a contract asset a lease receivable a loan commitment and a financial guarantee contract.(i) Measurement of expected credit losses
Expected credit losses are the weighted average of credit losses of the financial instruments with the
respective risks of a default occurring as the weights. Credit loss is the difference between all
contractual cash flows that are due to the Company in accordance with the contract and all the cash
flows that the Company expects to receive (i.e. all cash shortfalls) discounted at the original
effective interest rate or credit- adjusted effective interest rate for purchased or originated
credit-impaired financial assets.~ 79 ~Interim Report 2025
Lifetime expected credit losses are the expected credit losses that result from all possible default
events over the expected life of a financial instrument.
12-month expected credit losses are the portion of lifetime expected credit losses that represent the
expected credit losses that result from default events on a financial instrument that are possible
within the 12 months after the reporting date (or the expected lifetime if the expected life of a
financial instrument is less than 12 months).At each reporting date the Company classifies financial instruments into three stages and makes
provisions for expected credit losses accordingly. A financial instrument of which the credit risk has
not significantly increased since initial recognition is at stage 1. The Company shall measure the
loss allowance for that financial instrument at an amount equal to 12-month expected credit losses.A financial instrument with a significant increase in credit risk since initial recognition but is not
considered to be credit-impaired is at stage 2. The Company shall measure the loss allowance for
that financial instrument at an amount equal to the lifetime expected credit losses. A financial
instrument is considered to be credit-impaired as at the end of the reporting period is at stage 3. The
Company shall measure the loss allowance for that financial instrument at an amount equal to the
lifetime expected credit losses.The Company may assume that the credit risk on a financial instrument has not increased
significantly since initial recognition if the financial instrument is determined to have low credit risk
at the reporting date and measure the loss allowance for that financial instrument at an amount equal
to 12-month expected credit losses.For financial instrument at stage 1 stage 2 and those have low credit risk the interest revenue shall
be calculated by applying the effective interest rate to the gross carrying amount of a financial asset
(i.e. impairment loss not been deducted). For financial instrument at stage 3 interest revenue shall
be calculated by applying the effective interest rate to the amortised cost after deducting of
impairment loss.For notes receivable accounts receivable and accounts receivable financing no matter it contains a
significant financing component or not the Company shall measure the loss allowance at an amount
equal to the lifetime expected credit losses.A. Receivables/Contract assets
For the notes receivable accounts receivable other receivables accounts receivable financing and
long-term receivables which are demonstrated to be impaired by any objective evidence or
applicable for individual assessment the Company shall individually assess for impairment and
recognise the loss allowance for expected credit losses. If the Company determines that no objective
evidence of impairment exists for notes receivable accounts receivable other receivables accounts
receivable financing and long-term receivables or the expected credit loss of a single financial asset
cannot be assessed at reasonable cost such notes receivable accounts receivable other receivables
~ 80 ~Interim Report 2025
accounts receivable financing and long-term receivables shall be divided into several groups with
similar credit risk characteristics and collectively calculated the expected credit loss. The
determination basis of groups is as following:
Determination basis of notes receivable is as following:
Group 1: Commercial acceptance bills
Group 2: Bank acceptance bills
For each group the Company calculates expected credit losses through default exposure and the
lifetime expected credit losses rate taking reference to historical experience for credit losses and
considering current condition and expectation for the future economic situation.Determination basis of accounts receivable is as following:
Group 1: Related parties within the scope of consolidation
Group 2: Receivables due from third parties
For each group the Company calculates expected credit losses through preparing an aging analysis
schedule with the lifetime expected credit losses rate taking reference to historical experience for
credit losses and considering current condition and expectation for the future economic situation.Determination basis of other receivables is as following:
Group 1: Related parties within the scope of consolidation
Group 2: Receivables due from third parties
For each group the Company calculates expected credit losses through default exposure and the
12-months or lifetime expected credit losses rate taking reference to historical experience for credit
losses and considering current condition and expectation for the future economic situation.Determination basis of accounts receivable financing is as following:
Group 1: Commercial acceptance bills
Group 2: Bank acceptance bills
For each group the Company calculates expected credit losses through default exposure and the
lifetime expected credit losses rate taking reference to historical experience for credit losses and
considering current condition and expectation for the future economic situation.Determination basis of contract assets is as following:
Group 1: Project construction
Group 2: Undue warranty
For each group the Company calculates expected credit losses through default exposure and the
lifetime expected credit losses rate taking reference to historical experience for credit losses and
~ 81 ~Interim Report 2025
considering current condition and expectation for the future economic situation.Determination basis of long-term receivables financing is as following:
Group 1: Project receivables Lease receivables
Group 2: Others
For group 1 the Company calculates expected credit losses through default exposure and the
lifetime expected credit losses rate taking reference to historical experience for credit losses and
considering current condition and expectation for the future economic situation.For group 2 the Company calculates expected credit losses through default exposure and the
12-months or lifetime expected credit losses rate taking reference to historical experience for credit
losses and considering current condition and expectation for the future economic situation.The Company’s aging calculation method of credit risk characteristic combination based on aging is
as follows:
Aging Accounts receivable provision ratio Other receivables provision ratio
Within 6 months 1% 1%
7 months to 1 years 5% 5%
1-2 years 10% 10%
2-3 years 50% 50%
Over 3 years 100% 100%
B. Debt investment and other debt investment
For debt investment and other debt investment the Company shall calculate the expected credit loss
through the default exposure and the 12-month or lifetime expected credit loss rate based on the
nature of the investment counterparty and the type of risk exposure.(ii) Low credit risk
If the financial instrument has a low risk of default the borrower has a strong capacity to meet its
contractual cash flow obligations in the near term and adverse changes in economic and business
conditions in the longer term may but will not necessarily reduce the ability of the borrower to
fulfil its contractual cash flow obligations.(iii) Significant increase in credit risk
The Company shall assess whether the credit risk on a financial instrument has increased
significantly since initial recognition using the change in the risk of a default occurring over the
expected life of the financial instrument through the comparison of the risk of a default occurring
on the financial instrument as at the reporting date with the risk of a default occurring on the
financial instrument as at the date of initial recognition.~ 82 ~Interim Report 2025
To make that assessment the Company shall consider reasonable and supportable information that
is available without undue cost or effort and that is indicative of significant increases in credit risk
since initial recognition including forward-looking information. The information considered by the
Company are as following:
A. Significant changes in internal price indicators of credit risk as a result of a change in credit risk since
inception
B. Existing or forecast adverse change in the business financial or economic conditions of the borrower that
results in a significant change in the borrower’s ability to meet its debt obligations;
C. An actual or expected significant change in the operating results of the borrower; An actual or expected
significant adverse change in the regulatory economic or technological environment of the borrower;
D. Significant changes in the value of the collateral supporting the obligation or in the quality of third-party
guarantees or credit enhancements which are expected to reduce the borrower’s economic incentive to make
scheduled contractual payments or to otherwise influence the probability of a default occurring;
E. Significant change that are expected to reduce the borrower’s economic incentive to make scheduled
contractual payments;
F. Expected changes in the loan documentation including an expected breach of contract that may lead to
covenant waivers or amendments interest payment holidays interest rate step-ups requiring additional
collateral or guarantees or other changes to the contractual framework of the instrument;
G. Significant changes in the expected performance and behaviour of the borrower;
H. Contractual payments are more than 30 days past due.Depending on the nature of the financial instruments the Company shall assess whether the credit
risk has increased significantly since initial recognition on an individual financial instrument or a
group of financial instruments. When assessed based on a group of financial instruments the
Company can group financial instruments on the basis of shared credit risk characteristics for
example past due information and credit risk rating.Generally the Company shall determine the credit risk on a financial asset has increased
significantly since initial recognition when contractual payments are more than 30 days past due.The Company can only rebut this presumption if the Company has reasonable and supportable
information that is available without undue cost or effort that demonstrates that the credit risk has
not increased significantly since initial recognition even though the contractual payments are more
than 30 days past due.(iv) Credit-impaired financial asset
The Company shall assess at each reporting date whether the credit impairment has occurred for
~ 83 ~Interim Report 2025
financial asset at amortised cost and debt investment at fair value through other comprehensive
income. A financial asset is credit-impaired when one or more events that have a detrimental impact
on the estimated future cash flows of that financial asset have occurred. Evidences that a financial
asset is credit-impaired include observable data about the following events:
Significant financial difficulty of the issuer or the borrower; a breach of contract such as a default
or past due event; the lender(s) of the borrower for economic or contractual reasons relating to the
borrower’s financial difficulty having granted to the borrower a concession(s) that the lender(s)
would not otherwise consider; it is becoming probable that the borrower will enter bankruptcy or
other financial reorganisation; the disappearance of an active market for that financial asset because
of financial difficulties; the purchase or origination of a financial asset at a deep discount that
reflects the incurred credit losses.(v) Presentation of impairment of expected credit loss
In order to reflect the changes of credit risk of financial instrument since initial recognition the
Company shall at each reporting date remeasure the expected credit loss and recognise in profit or
loss as an impairment gain or loss the amount of expected credit losses addition (or reversal). For
financial asset at amortised cost the loss allowance shall reduce the carrying amount of the financial
asset in the statement of financial position; for debt investment at fair value through other
comprehensive income the loss allowance shall be recognised in other comprehensive income and
shall not reduce the carrying amount of the financial asset in the statement of financial position.(vi) Write-off
The Company shall directly reduce the gross carrying amount of a financial asset when the
Company has no reasonable expectations of recovering the contractual cash flow of a financial asset
in its entirety or a portion thereof. Such write-off constitutes a derecognition of the financial asset.This circumstance usually occurs when the Company determines that the debtor has no assets or
sources of income that could generate sufficient cash flow to repay the write-off amount.Recovery of financial asset written off shall be recognised in profit or loss as reversal of impairment
loss.
(6) Transfer of financial assets
Transfer of financial assets refers to following two situations:
A. Transfers the contractual rights to receive the cash flows of the financial asset;
B. Transfers the entire or a part of a financial asset and retains the contractual rights to receive the cash flows of
the financial asset but assumes a contractual obligation to pay the cash flows to one or more recipients.(i) Derecognition of transferred assets
If the Company transfers substantially all the risks and rewards of ownership of the financial asset
~ 84 ~Interim Report 2025
or neither transfers nor retains substantially all the risks and rewards of ownership of the financial
asset but has not retained control of the financial asset the financial asset shall be derecognised.Whether the Company has retained control of the transferred asset depends on the transferee’s
ability to sell the asset. If the transferee has the practical ability to sell the asset in its entirety to an
unrelated third party and is able to exercise that ability unilaterally and without needing to impose
additional restrictions on the transfer the Company has not retained control.The Company judges whether the transfer of financial asset qualifies for derecognition based on the
substance of the transfer.If the transfer of financial asset qualifies for derecognition in its entirety the difference between the
following shall be recognised in profit or loss:
A. The carrying amount of transferred financial asset;
B. The sum of consideration received and the part derecognised of the cumulative changes in fair value
previously recognised in other comprehensive income (The financial assets involved in the transfer are
classified as financial assets at fair value through other comprehensive income in accordance with Article 18
of the Accounting Standards for Business Enterprises - Recognition and Measurement of Financial
Instruments).If the transferred asset is a part of a larger financial asset and the part transferred qualifies for
derecognition the previous carrying amount of the larger financial asset shall be allocated between
the part that continues to be recognised (For this purpose a retained servicing asset shall be treated
as a part that continues to be recognised) and the part that is derecognised based on the relative fair
values of those parts on the date of the transfer. The difference between following two amounts shall
be recognised in profit or loss:
A. The carrying amount (measured at the date of derecognition) allocated to the part derecognised;
B. The sum of the consideration received for the part derecognised and part derecognised of the cumulative
changes in fair value previously recognised in other comprehensive income (The financial assets involved in
the transfer are classified as financial assets at fair value through other comprehensive income in accordance
with Article 18 of the Accounting Standards for Business Enterprises - Recognition and Measurement of
Financial Instruments).(ii) Continuing involvement in transferred assets
If the Company neither transfers nor retains substantially all the risks and rewards of ownership of a
transferred asset and retains control of the transferred asset the Company shall continue to
recognise the transferred asset to the extent of its continuing involvement and also recognise an
associated liability.The extent of the Company’s continuing involvement in the transferred asset is the extent to which
~ 85 ~Interim Report 2025
it is exposed to changes in the value of the transferred asset
(iii) Continue to recognise the transferred assets
If the Company retains substantially all the risks and rewards of ownership of the transferred
financial asset the Company shall continue to recognise the transferred asset in its entirety and the
consideration received shall be recognised as a financial liability.The financial asset and the associated financial liability shall not be offset. In subsequent
accounting period the Company shall continuously recognise any income (gain) arising from the
transferred asset and any expense (loss) incurred on the associated liability.
(7) Offsetting financial assets and financial liabilities
Financial assets and financial liabilities shall be presented separately in the statement of financial
position and shall not be offset. When meets the following conditions financial assets and financial
liabilities shall be offset and the net amount presented in the statement of financial position:
The Company currently has a legally enforceable right to set off the recognised amounts; The
Company intends either to settle on a net basis or to realise the asset and settle the liability
simultaneously.In accounting for a transfer of a financial asset that does not qualify for derecognition the Company
shall not offset the transferred asset and the associated liability.
(8) Determination of fair value of financial instruments
Determination of fair value of financial assets and financial liabilities please refer to Note 3.11.
11. Fair Value Measurement
Fair value refers to the price that would be received to sell an asset or paid to transfer a liability in
an orderly transaction between market participants at the measurement date.The Company determines fair value of the related assets and liabilities based on market value in the
principal market or in the absence of a principal market in the most advantageous market price for
the related asset or liability. The fair value of an asset or a liability is measured using the
assumptions that market participants would use when pricing the asset or liability assuming that
market participants act in their economic best interest.The principal market is the market in which transactions for an asset or liability take place with the
greatest volume and frequency. The most advantageous market is the market which maximises the
value that could be received from selling the asset and minimises the value which is needed to be
paid in order to transfer a liability considering the effect of transport costs and transaction costs
both.If the active market of the financial asset or financial liability exists the Company shall measure the
~ 86 ~Interim Report 2025
fair value using the quoted price in the active market. If the active market of the financial
instrument is not available the Company shall measure the fair value using valuation techniques.A fair value measurement of a non-financial asset takes into account a market participant’s ability
to generate economic benefits by using the asset in its highest and best use or by selling it to another
market participant that would use the asset in its highest and best use.(i) Valuation techniques
The Company uses valuation techniques that are appropriate in the circumstances and for which
sufficient data are available to measure fair value including the market approach the income
approach and the cost approach. The Company shall use valuation techniques consistent with one or
more of those approaches to measure fair value. If multiple valuation techniques are used to
measure fair value the results shall be evaluated considering the reasonableness of the range of
values indicated by those results. A fair value measurement is the point within that range that is
most representative of fair value in the circumstances.When using the valuation technique the Company shall give the priority to relevant observable
inputs. The unobservable inputs can only be used when relevant observable inputs is not available
or practically would not be obtained. Observable inputs refer to the information which is available
from market and reflects the assumptions that market participants would use when pricing the asset
or liability. Unobservable Inputs refer to the information which is not available from market and it
has to be developed using the best information available in the circumstances from the assumptions
that market participants would use when pricing the asset or liability.(ii) Fair value hierarchy
To Company establishes a fair value hierarchy that categorises into three levels the inputs to
valuation techniques used to measure fair value. The fair value hierarchy gives the highest priority
to Level 1 inputs and second to the Level 2 inputs and the lowest priority to Level 3 inputs. Level 1
inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the
entity can access at the measurement date. Level 2 inputs are inputs other than quoted prices
included within Level 1 that are observable for the asset or liability either directly or indirectly.Level 3 inputs are unobservable inputs for the asset or liability.
12. Inventories
(1) Classification of inventories
Inventories are finished goods or products held for sale in the ordinary course of business in the
process of production for such sale or in the form of materials or supplies to be consumed in the
production process or in the rendering of services including raw materials work in progress
semi-finished goods finished goods goods in stock turnover material etc.~ 87 ~Interim Report 2025
(2) Measurement method of cost of inventories sold or used
Inventories are measured at actual cost at recognition. The actual cost of an item of inventories
comprises the purchase cost cost of processing and other costs. The cost of inventories used or sold
is determined on the weighted average basis.
(3) Inventory system
The perpetual inventory system is adopted. The inventories should be counted at least once a year
and surplus or losses of inventory stocktaking shall be included in current profit and loss.
(4) Recognition criteria and provision for impairment of inventory
Inventories are stated at the lower of cost and net realizable value. The excess of cost over net
realizable value of the inventories is recognised as provision for impairment of inventory and
recognised in current profit or loss.Net realizable value of the inventory should be determined on the basis of reliable evidence
obtained and factors such as purpose of holding the inventory and impact of post balance sheet
event shall be considered.(i) In normal operation process finished goods products and materials for direct sale their net
realizable values are determined at estimated selling prices less estimated selling expenses and
relevant taxes and surcharges; 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 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. Net realizable value of
materials held for sale shall be measured based on market price.(ii) For materials in stock need to be processed in the ordinary course of production and business
net realisable value is determined at the estimated selling price less the estimated costs of
completion the estimated selling expenses and relevant taxes. If the net realisable value of the
finished products produced by such materials is higher than the cost the materials shall be
measured at cost; if a decline in the price of materials indicates that the cost of the finished products
exceeds its net realisable value the materials are measured at net realisable value and differences
shall be recognised at the provision for impairment.(iii) Provisions for inventory impairment are generally determined on an individual basis. For
inventories with large quantity and low unit price the provisions for inventory impairment are
determined on group basis.(iv) If any factor rendering write-downs of the inventories has been eliminated at the reporting date
the amounts written down are recovered and reversed to the extent of the inventory impairment
which has been provided for. The reversal shall be included in profit or loss.~ 88 ~Interim Report 2025
(5) Amortisation method of low-value consumables
(i) Low-value consumables: One-off writing off method is adopted.(ii) Package material: One-off writing off method is adopted.
13. Contract Assets and Contract Liabilities
The Company shall present contract assets or contract liabilities in the statement of financial
position depending on the relationship between the Company’s satisfying a performance obligation
and the customer’s payment. A contract asset shall be presented if the Company has the right to
consideration in exchange for goods or services that the Company has transferred to a customer
when that right is conditioned on something other than the passage of time. A contract liability shall
be presented if the Company has the obligation to transfer goods or services to a customer for which
the Company has received consideration (or the amount is due) from the customer.Method of determination and accounting for expected credit loss for contract assets please refer to
Note 3.10.Contract assets and contract liabilities shall be presented separately in the statement of financial
position. The contract asset and contract liability for the same contract shall be presented on a net
basis. A net balance shall be listed in the item of “Contract assets” or “Other non-current assets”
according to its liquidity; a credit balance shall be listed in the item of “Contract liabilities” or
“Other non-current liabilities” according to its liquidity. Contract assets and contract liabilities for
different contracts cannot be offset.
14. Contract Costs
Contract costs include costs to fulfil a contract and the costs to obtain a contract.The Company shall recognise an asset from the costs incurred to fulfil a contract only if those costs
meet all of the following criteria:
(i) The costs relate directly to a contract or to an anticipated contract including: direct labour direct
materials manufacturing costs (or similar costs) costs that are explicitly chargeable to the customer
under the contract and other costs that are incurred only because an entity entered into the contract;
(ii) The costs enhance resources of the Company that will be used in satisfying performance
obligations in the future; and
(iii) The costs are expected to be recovered.The incremental costs of obtaining a contract shall be recognised as an asset if the Company expects
to recover them.~ 89 ~Interim Report 2025
An asset related to contract costs shall be amortised on a systematic basis that is consistent with the
revenue recognition of the goods or services to which the asset relates. The Company recognises the
contract acquisition costs as an expense when incurred if the amortisation period of the asset that
the Company otherwise would have recognised is one year or less.The Company shall accrue the provision for impairment recognise an impairment loss in profit or
loss to the extent that the carrying amount of an asset related to the contract cost exceeds the
difference of below two items and further consider whether the estimated liability related to the
onerous contract needs to be accrued:
(i) The remaining amount of consideration that the Company expects to receive in exchange for the
goods or services to which the asset relates; less
(ii) The costs that relate directly to providing those goods or services and that have not been
recognised as expenses.The Company shall recognise in profit or loss a reversal of some or all of an impairment loss
previously recognised when the impairment conditions no longer exist or have improved. The
increased carrying amount of the asset shall not exceed the amount that would have been
determined (net of amortisation) if no impairment loss had been recognised previously.Providing that the costs to fulfil a contract satisfy the requirement to be recognised as an asset the
Company shall present them in the account “Inventory” if the contract has an original expectedduration of one year (or a normal operating cycle) or less or in the account “Other non-currentassets” if the contract has an original expected duration of more than one year (or a normal
operating cycle).Providing that the costs to obtain a contract satisfy the requirement to be recognised as an asset the
Company shall present them in the account “Other current asset” if the contract has an originalexpected duration of one year (or a normal operating cycle) or less or in the account “Othernon-current assets” if the contract has an original expected duration of more than one year (or a
normal operating cycle).
15. Long-term Equity Investments
Long-term equity investments refer to equity investments where an investor has control of or
significant influence over an investee as well as equity investments in joint ventures. Associates of
the Company are those entities over which the Company has significant influence.
(1) Determination basis of joint control or significant influence over the investee
Joint control is the relevant agreed sharing of control over an arrangement and the arranged
relevant activity must be decided under unanimous consent of the parties sharing control. In
assessing whether the Company has joint control of an arrangement the Company shall assess first
~ 90 ~Interim Report 2025
whether all the parties or a group of the parties control the arrangement. When all the parties or a
group of the parties considered collectively are able to direct the activities of the arrangement the
parties control the arrangement collectively. Then the Company shall assess whether decisions
about the relevant activities require the unanimous consent of the parties that collectively control
the arrangement. If two or more groups of the parties could control the arrangement collectively it
shall not be assessed as have joint control of the arrangement. When assessing the joint control the
protective rights are not considered.Significant influence is the power to participate in the financial and operating policy decisions of
the investee but is not control or joint control of those policies. In determination of significant
influence over an investee the Company should consider not only the existing voting rights directly
or indirectly held but also the effect of potential voting rights held by the Company and other
entities that could be currently exercised or converted including the effect of share warrants share
options and convertible corporate bonds that issued by the investee and could be converted in
current period.If the Company holds directly or indirectly 20% or more but less than 50% of the voting power of
the investee it is presumed that the Company has significant influence of the investee unless it can
be clearly demonstrated that in such circumstance the Company cannot participate in the
decision-making in the production and operating of the investee.
(2) Determination of initial investment cost
(i) Long-term equity investments generated in business combinations
(A) For a business combination involving enterprises under common control if the Company
makes payment in cash transfers non-cash assets or bears liabilities as the consideration for the
business combination the share of carrying amount of the owners’ equity of the acquiree in the
consolidated financial statements of the ultimate controlling party is recognised as the initial cost of
the long-term equity investment on the combination date. The difference between the initial
investment cost and the carrying amount of cash paid non-cash assets transferred and liabilities
assumed shall be adjusted against the capital reserve; if capital reserve is not enough to be offset
undistributed profit shall be offset in turn.
(B) For a business combination involving enterprises under common control if the Company issues
equity securities as the consideration for the business combination the share of carrying amount of
the owners’ equity of the acquiree in the consolidated financial statements of the ultimate
controlling party is recognised as the initial cost of the long-term equity investment on the
combination date. The total par value of the shares issued is recognised as the share capital. The
difference between the initial investment cost and the carrying amount of the total par value of the
shares issued shall be adjusted against the capital reserve; if capital reserve is not enough to be
offset undistributed profit shall be offset in turn.~ 91 ~Interim Report 2025
(C) For business combination not under common control the assets paid liabilities incurred or
assumed and the fair value of equity securities issued to obtain the control of the acquiree at the
acquisition date shall be determined as the cost of the business combination and recognised as the
initial cost of the long-term equity investment. The audit legal valuation and advisory fees other
intermediary fees and other relevant general administrative costs incurred for the business
combination shall be recognised in profit or loss as incurred.(ii) Long-term equity investments acquired not through the business combination the investment
cost shall be determined based on the following requirements:
(A) For long-term equity investments acquired by payments in cash the initial cost is the actually
paid purchase cost including the expenses taxes and other necessary expenditures directly related
to the acquisition of long-term equity investments;
(B) For long-term equity investments acquired through issuance of equity securities the initial cost
is the fair value of the issued equity securities;
(C) For the long-term equity investments obtained through exchange of non-monetary assets if the
exchange has commercial substance and the fair values of assets traded out and traded in can be
measured reliably the initial cost of long-term equity investment traded in with non-monetary
assets are determined based on the fair values of the assets traded out together with relevant taxes.Difference between fair value and book value of the assets traded out is recorded in current profit or
loss. If the exchange of non-monetary assets does not meet the above criterion the book value of
the assets traded out and relevant taxes are recognised as the initial investment cost;
(D) For long-term equity investment acquired through debt restructuring the initial cost is
determined based on the fair value of the equity obtained and the difference between initial
investment cost and carrying amount of debts shall be recorded in current profit or loss.
(3) Subsequent measurement and recognition of profit or loss
Long-term equity investment to an entity over which the Company has ability of control shall be
accounted for at cost method. Long-term equity investment to a joint venture or an associate shall
be accounted for at equity method.(i) Cost method
For Long-term equity investment at cost method cost of the long-term equity investment shall be
adjusted when additional amount is invested or a part of it is withdrawn. The Company recognises
its share of cash dividends or profits which have been declared to distribute by the investee as
current investment income.(ii) Equity method
If the initial cost of the investment is in excess of the share of the fair value of the net identifiable
assets in the investee at the date of investment the difference shall not be adjusted to the initial cost
~ 92 ~Interim Report 2025
of long-term equity investment; if the initial cost of the investment is in short of the share of the fair
value of the net identifiable assets in the investee at the date investment the difference shall be
included in the current profit or loss and the initial cost of the long-term equity investment shall be
adjusted accordingly.The Company recognises the share of the investee’s net profits or losses as well as its share of the
investee’s other comprehensive income as investment income or losses and other comprehensive
income respectively and adjusts the carrying amount of the investment accordingly. The carrying
amount of the investment shall be reduced by the share of any profit or cash dividends declared to
distribute by the investee. The investor’s share of the investee’s owners’ equity changes other than
those arising from the investee’s net profit or loss other comprehensive income or profit
distribution shall be recognised in the investor’s equity and the carrying amount of the long-term
equity investment shall be adjusted accordingly. The Company recognises its share of the investee’s
net profits or losses after making appropriate adjustments of investee’s net profit based on the fair
values of the investee’s identifiable net assets at the investment date. If the accounting policy and
accounting period adopted by the investee is not in consistency with the Company the financial
statements of the investee shall be adjusted according to the Company’s accounting policies and
accounting period based on which investment income or loss and other comprehensive income
etc. shall be adjusted. The unrealised profits or losses resulting from inter-company transactions
between the company and its associate or joint venture are eliminated in proportion to the
Company’s equity interest in the investee based on which investment income or losses shall be
recognised. Any losses resulting from inter-company transactions between the investor and the
investee which belong to asset impairment shall be recognised in full.Where the Company obtains the power of joint control or significant influence but not control over
the investee due to additional investment or other reason the relevant long-term equity investment
shall be accounted for by using the equity method initial cost of which shall be the fair value of the
original investment plus the additional investment. Where the original investment is classified as
other equity investment difference between its fair value and the carrying value in addition to the
cumulative changes in fair value previously recorded in other comprehensive income shall be
recognised into retained earnings of the period of using equity method.If the Company loses the joint control or significant influence of the investee for some reasons such
as disposal of equity investment the retained interest shall be measured at fair value and the
difference between the carrying amount and the fair value at the date of loss the joint control or
significant influence shall be recognised in profit or loss. When the Company discontinues the use
of the equity method the Company shall account for all amounts previously recognised in other
comprehensive income under equity method in relation to that investment on the same basis as
would have been required if the investee had directly disposed of the related assets or liabilities.
(4) Equity investment classified as held for sale
~ 93 ~Interim Report 2025
Any retained interest in the equity investment not classified as held for sale shall be accounted for
using equity method.When an equity investment in an associate or a joint venture previously classified as held for sale
no longer meets the criteria to be so classified it shall be accounted for using the equity method
retrospectively as from the date of its classification as held for sale. Financial statements for the
periods since classification as held for sale shall be amended accordingly.
(5) Impairment testing and provision for impairment loss
For investment in subsidiaries associates or a joint ventures provision for impairment loss please
refer to Note 3.22.
16. Investment Properties
(1) Classification of investment properties
Investment properties are properties to earn rentals or for capital appreciation or both including:
(i) Land use right leased out
(ii) Land held for transfer upon appreciation
(iii) Buildings leased out
(2) The measurement model of investment property
The Company adopts the cost model for subsequent measurement of investment properties. For
provision for impairment please refer to Note 3.22.The Company calculates the depreciation or amortisation based on the net amount of investment
property cost less the accumulated impairment and the net residual value using straight-line method.The estimated useful life and annual depreciation rates which are determined according to the
categories estimated economic useful lives and estimated net residual rates are listed as followings:
Estimated useful life
Category Residual rates (%) Annual depreciation rates (%)
(year)
Buildings and constructions 10.00-30.00 3.00-5.00 3.17-9.70
Land use right 40.00-50.00 0.00 2.00-2.50
17. Fixed Assets
Fixed assets refer to the tangible assets with higher unit price held for the purpose of producing
commodities rendering services renting or business management with useful lives exceeding one
year.
(1) Recognition criteria of fixed assets
Fixed assets will only be recognised at the actual cost paid when obtaining as all the following
criteria are satisfied:
~ 94 ~Interim Report 2025
(i) It is probable that the economic benefits relating to the fixed assets will flow into the Company;
(ii) The costs of the fixed assets can be measured reliably.Subsequent expenditure for fixed assets shall be recorded in cost of fixed assets if recognition
criteria of fixed assets are satisfied otherwise the expenditure shall be recorded in current profit or
loss when incurred.
(2) Depreciation methods of fixed assets
The Company begins to depreciate the fixed asset from the next month after it is available for
intended use using the straight-line-method. The estimated useful life and annual depreciation rates
which are determined according to the categories estimated economic useful lives and estimated
net residual rates of fixed assets are listed as followings:
Estimated useful life Annual depreciation
Category Depreciation method Residual rates (%)
(year) rates (%)
Buildings and
straight-line-method 8.00-35.00 3.00-5.00 2.71-12.13
constructions
Machinery equipment straight-line-method 8.00-10.00 3.00-5.00 9.50-12.13
Transportation vehicles straight-line-method 4.00 3.00 24.25
Administrative and other
straight-line-method 3.00 3.00 32.33
devices
For the fixed assets with impairment provided the impairment provision should be excluded from
the cost when calculating depreciation.At the end of reporting period the Company shall review the useful life estimated net residual
value and depreciation method of the fixed assets. Estimated useful life of the fixed assets shall be
adjusted if it is changed compared to the original estimation.
18. Construction in Progress
(1) Classification of construction in progress
(2) Recognition criteria and timing of transfer from construction in progress to fixed assets
The initial book values of the fixed assets are stated at total expenditures incurred before they are
ready for their intended use including construction costs original price of machinery equipment
other necessary expenses incurred to bring the construction in progress to get ready for its intended
use and borrowing costs of the specific loan for the construction or the proportion of the general
loan used for the constructions incurred before they are ready for their intended use. The
construction in progress shall be transferred to fixed asset when the installation or construction is
ready for the intended use. For construction in progress that has been ready for their intended use
~ 95 ~Interim Report 2025
but relevant budgets for the completion of projects have not been completed the estimated values of
project budgets prices or actual costs should be included in the costs of relevant fixed assets and
depreciation should be provided according to relevant policies of the Company when the fixed
assets are ready for intended use. After the completion of budgets needed for the completion of
projects the estimated values should be substituted by actual costs but depreciation already
provided is not adjusted.The specific criteria and timing of transfer to fixed assets for the Company’s different categories of
construction in progress items:
category The specific criteria and timing of transfer to fixed assets
(1) The main construction project and supporting projects have been substantially completed;
(2) After the construction project meets the predetermined design requirements it shall be inspected and
accepted by the survey design construction supervision and other units and inspected and accepted by
Houses and buildings the local construction authorities and other relevant units;
(3) If the construction project has reached the predetermined serviceability state but has not yet
completed the final accounts it shall be transferred to the fixed assets at the estimated value according
to the actual cost of the project from the date of reaching the predetermined serviceability state.
(1) Relevant equipment and other supporting facilities have been installed;
(2) After debugging the equipment can maintain normal and stable operation for a period of time and
Equipment to be installed the production equipment can produce qualified products stably in a period of time;
and debugged (3) The equipment management department shall conduct joint inspection with the asset use department
safety management Department emergency Department environmental Protection Department and
other departments.
19. Right-of-use Assets
At the lease commencement date a right-of-use asset is measured at cost. The cost of a right-of-use
asset comprise:
(1) The amount of the initial measurement of the lease liability;
(2) Any lease payments made at or before the commencement date less any lease incentives
received;
(3) Any initial direct costs incurred by the Group; and
(4) An estimate of costs to be incurred by the Group in dismantling and removing the underlying
asset restoring the site on which it is located or restoring the underlying asset to the condition
required by the terms and conditions of the lease unless those costs are incurred to produce
inventories.A right-of-use asset is subsequently measured at cost. If it is reasonably certain that ownership of
~ 96 ~Interim Report 2025
the lease item will transfer to the Group upon expiry of the lease the leased item is depreciated over
its useful life; if however transfer of ownership of the leased item upon expiry of the lease to the
Group cannot be reasonably expected the leased item is depreciated over the shorter of its useful
life and the lease term. Where a leased item has recorded impairment its residual value after
deducting the impairment allowance is depreciated in accordance the principle described in this
paragraph.
20. Borrowing Costs
(1) Recognition criteria and period for capitalisation of borrowing costs
The Company shall capitalise the borrowing costs that are directly attributable to the acquisition
construction or production of qualifying assets when meet the following conditions:
(i) Expenditures for the asset are being incurred;
(ii) Borrowing costs are being incurred and;
(iii) Acquisition construction or production activities that are necessary to prepare the assets for
their intended use or sale are in progress.Other borrowing cost discounts or premiums on borrowings and exchange differences on foreign
currency borrowings shall be recognised into current profit or loss when incurred.Capitalisation of borrowing costs is suspended during periods in which the acquisition construction
or production of a qualifying asset is interrupted abnormally and the interruption is for a continuous
period of more than 3 months.Capitalisation of such borrowing costs ceases when the qualifying assets being acquired
constructed or produced become ready for their intended use or sale. The expenditure incurred
subsequently shall be recognised as expenses when incurred.
(2) Capitalisation rate and measurement of capitalised amounts of borrowing costs
When funds are borrowed specifically for purchase construction or manufacturing of assets eligible
for capitalisation the Company shall determine the amount of borrowing costs eligible for
capitalisation as the actual borrowing costs incurred on that borrowing during the period less any
interest income on bank deposit or investment income on the temporary investment of those
borrowings.Where funds allocated for purchase construction or manufacturing of assets eligible for
capitalisation are part of a general borrowing the eligible amounts are determined by the
weighted-average of the cumulative capital expenditures in excess of the specific borrowing
multiplied by the general borrowing capitalisation rate. The capitalisation rate will be the weighted
average of the borrowing costs applicable to the general borrowing.~ 97 ~Interim Report 2025
21. Intangible Assets
(1) Measurement method of intangible assets
Intangible assets are recognised at actual cost at acquisition.
(2) The useful life and amortisation of intangible assets
(i) The estimated useful lives of the intangible assets with finite useful lives are as follows:
Category Estimated useful life Basis
Land use right 40-50 years Legal life
The service life is determined by reference to the period that can
Patents 10 years
bring economic benefits to the Company
The service life is determined by reference to the period that can
Software 3-5 years
bring economic benefits to the Company
The service life is determined by reference to the period that can
Trademarks 10 years
bring economic benefits to the Company
For intangible assets with finite useful life the estimated useful life and amortisation method are
reviewed annually at the end of each reporting period and adjusted when necessary. No change has
incurred in current year in the estimated useful life and amortisation method upon review.(ii) Assets of which the period to bring economic benefits to the Company are unforeseeable are regarded as
intangible assets with indefinite useful lives. The Company reassesses the useful lives of those assets at every year
end. If the useful lives of those assets are still indefinite impairment test should be performed on those assets at
the balance sheet date.(iii) Amortisation of the intangible assets
For intangible assets with finite useful lives their useful lives should be determined upon their acquisition and
systematically amortised on a straight-line basis [units of production method] over the useful life. The
amortisation amount shall be recognised into current profit or loss or the relevant asset cost according to the
beneficial items. The amount to be amortised is cost deducting residual value. For intangible assets which has
impaired the cumulative impairment provision shall be deducted as well. The residual value of an intangible asset
with a finite useful life shall be assumed to be zero unless: there is a commitment by a third party to purchase the
asset at the end of its useful life; or there is an active market for the asset and residual value can be determined by
reference to that market; and it is probable that such a market will exist at the end of the asset’s useful life.Intangible assets with indefinite useful lives shall not be amortised. The Company reassesses the useful lives of
those assets at every year end. If there is evidence to indicate that the useful lives of those assets become finite
the useful lives shall be estimated and the intangible assets shall be amortised systematically and reasonably
within the estimated useful lives.
(3) Scope of research and development expenditures
The Company classifies the expenses directly related to research and development activities as research and
development expenditures including remuneration of research and development staff direct material
depreciation cost and long-term amortised expense design fee equipment commissioning fee intangible assets
amortisation cost outsourcing research and development cost and other expenses etc.~ 98 ~Interim Report 2025
(4) Criteria of classifying expenditures on internal research and development projects into
research phase and development phase
(i) Preparation activities related to materials and other relevant aspects undertaken by the Company for the
purpose of further development shall be treated as research phase. Expenditures incurred during the research
phase of internal research and development projects shall be recognised in profit or loss when incurred.(ii) Development activities after the research phase of the Company shall be treated as development phase.
(5) Criteria for capitalisation of qualifying expenditures during the development phase
Expenditures arising from development phase on internal research and development projects shall be recognised
as intangible assets only if all of the following conditions have been met:
A. Technical feasibility of completing the intangible assets so that they will be available for use or sale;
B. Its intention to complete the intangible asset and use or sell it;
C. The method that the intangible assets generate economic benefits including the Company can demonstrate the
existence of a market for the output of the intangible assets or the intangible assets themselves or if it is to be used
internally the usefulness of the intangible assets;
D. The availability of adequate technical financial and other resources to complete the development and to use or
sell the intangible asset; and
E. Its ability to measure reliably the expenditure attributable to the intangible asset.
22. Impairment of Long-Term Assets
Impairment loss of long-term equity investment in subsidiaries associates and joint ventures investment
properties fixed assets constructions in progress and intangible assets subsequently measured at cost shall be
determined according to following method:
The Company shall assess at the end of each reporting period whether there is any indication that an asset may be
impaired. If any such indication exists the Company shall estimate the recoverable amount of the asset and test
for impairment. Irrespective of whether there is any indication of impairment the Company shall test for
impairment of goodwill acquired in a business combination intangible assets with an indefinite useful life or
intangible assets not yet available for use annually.The recoverable amounts of the long-term assets are the higher of their fair values less costs to dispose and the
present values of the estimated future cash flows of the long-term assets. The Company estimate the recoverable
amounts on an individual basis. If it is difficult to estimate the recoverable amount of the individual asset the
Company estimates the recoverable amount of the groups of assets that the individual asset belongs to.Identification of a group of asset is based on whether the cash inflows from it are largely independent of the cash
inflows from other assets or groups of assets.If and only if the recoverable amount of an asset or a group of assets is less than its carrying amount the carrying
amount of the asset shall be reduced to its recoverable amount and the provision for impairment loss shall be
recognised accordingly.For the purpose of impairment testing goodwill acquired in a business combination shall from the acquisition
date be allocated to relevant group of assets based on reasonable method; if it is difficult to allocate to relevant
group of assets good will shall be allocated to relevant combination of asset groups. The relevant group of assets
or combination of asset groups is a group of assets or combination of asset groups that is benefit from the
synergies of the business combination and is not larger than the reporting segment determined by the Company.When test for impairment if there is an indication that relevant group of assets or combination of asset groups
~ 99 ~Interim Report 2025
may be impaired impairment testing for group of assets or combination of asset groups excluding goodwill shall
be conducted first and the recoverable amount shall be then calculated and the impairment loss shall be
recognised accordingly. Then the group of assets or combination of asset groups including goodwill shall be tested
for impairment by comparing the carrying amount with its recoverable amount. If the recoverable amount is less
than the carrying amount the Company shall recognise the impairment loss.The mentioned impairment loss will not be reversed in subsequent accounting period once it had been recognised.
23. Long-term Deferred Expenses
Long-term deferred expenses are various expenses already incurred which shall be amortised over
current and subsequent periods with the amortisation period exceeding one year.
24. Employee Benefits
Employee benefits refer to all forms of consideration or compensation given by the Company in
exchange for service rendered by employees or for the termination of employment relationship.Employee benefits include short-term employee benefits post-employment benefits termination
benefits and other long-term employee benefits. Benefits provided to an employee’s spouse
children dependents family members of decreased employees or other beneficiaries are also
employee benefits.According to liquidity employee benefits are presented in the statement of financial position as
“Employee benefits payable” and “Long-term employee benefits payable”.
(1) Short-term employee benefits
(i) Employee basic salary (salary bonus allowance subsidy)
The Company recognises in the accounting period in which an employee provides service actually
occurred short-term employee benefits as a liability with a corresponding charge to current profit
except for those recognised as capital expenditure based on the requirement of accounting
standards.(ii) Employee welfare
The Company shall recognise the employee welfare based on actual amount when incurred into
current profit or loss or related capital expenditure. Employee welfare shall be measured at fair
value as it is a non-monetary benefits.(iii) Social insurance such as medical insurance work injury insurance and maternity insurance
housing funds labour union fund and employee education fund
Payments made by the Company of social insurance for employees such as medical insurance
work injury insurance and maternity insurance payments of housing funds and labour union fund
and employee education fund accrued in accordance with relevant requirements in the accounting
period in which employees provide services is calculated according to required accrual bases and
accrual ratio in determining the amount of employee benefits and the related liabilities which shall
~ 100 ~Interim Report 2025
be recognised in current profit or loss or the cost of relevant asset.(iv) Short-term paid absences
The company shall recognise the related employee benefits arising from accumulating paid
absences when the employees render service that increases their entitlement to future paid absences.The additional payable amounts shall be measured at the expected additional payments as a result of
the unused entitlement that has accumulated. The Company shall recognise relevant employee
benefit of non-accumulating paid absences when the absences actually occurred.(v)Short-term profit-sharing plan
The Company shall recognise the related employee benefits payable under a profit-sharing plan
when all of the following conditions are satisfied:
(a) The Company has a present legal or constructive obligation to make such payments as a result of past
events; and
(b) A reliable estimate of the amounts of employee benefits obligation arising from the profit- sharing plan
can be made.
(2) Post-employment benefits
(i) Defined contribution plans
The Company shall recognise in the accounting period in which an employee provides service the
contribution payable to a defined contribution plan as a liability with a corresponding charge to the
current profit or loss or the cost of a relevant asset.When contributions to a defined contribution plan are not expected to be settled wholly before
twelve months after the end of the annual reporting period in which the employees render the
related service they shall be discounted using relevant discount rate (market yields at the end of the
reporting period on high quality corporate bonds in active market or government bonds with the
currency and term which shall be consistent with the currency and estimated term of the defined
contribution obligations) to measure employee benefits payable.(ii) Defined benefit plan
A. The present value of defined benefit obligation and current service costs
Based on the expected accumulative welfare unit method the Company shall make estimates about
demographic variables and financial variables in adopting the unbiased and consistent actuarial
assumptions and measure defined benefit obligation and determine the obligation period. The
Company shall discount the obligation arising from defined benefit plan using relevant discount rate
(market yields at the end of the reporting period on high quality corporate bonds in active market or
government bonds with the currency and term which shall be consistent with the currency and
estimated term of the defined benefit obligations) in order to determine the present value of the
~ 101 ~Interim Report 2025
defined benefit obligation and the current service cost.B. The net defined benefit liability or asset
The net defined benefit liability (asset) is the deficit or surplus recognised as the present value of
the defined benefit obligation less the fair value of plan assets (if any).When the Company has a surplus in a defined benefit plan it shall measure the net defined benefit
asset at the lower of the surplus in the defined benefit plan and the asset ceiling.C. The amount recognised in the cost of asset or current profit or loss
Service cost comprises current service cost past service cost and any gain or loss on settlement.Other service cost shall be recognised in profit or loss unless accounting standards require or allow
the inclusion of current service cost within the cost of assets.Net interest on the net defined benefit liability (asset) comprising interest income on plan assets
interest cost on the defined benefit obligation and interest on the effect of the asset ceiling shall be
included in profit or loss.D. The amount recognised in other comprehensive income
Changes in the net liability or asset of the defined benefit plan resulting from the remeasurements
including:
(a) Actuarial gains and losses the changes in the present value of the defined benefit obligation resulting
from experience adjustments or the effects of changes in actuarial assumptions;
(b) Return on plan assets excluding amounts included in net interest on the net defined benefit liability or
asset;
(c) Any change in the effect of the asset ceiling excluding amounts included in net interest on the net defined
benefit liability (asset).Remeasurements of the net defined benefit liability (asset) recognised in other comprehensive
income shall not be reclassified to profit or loss in a subsequent period. However the Company
may transfer in full the portion originally recognised in other comprehensive income within equity
to undistributed profit when the original defined benefit terminates.
(3) Termination benefits
The Company providing termination benefits to employees shall recognise an employee benefits
liability for termination benefits with a corresponding charge to the profit or loss of the reporting
period at the earlier of the following dates:
(i) When the Company cannot unilaterally withdraw the offer of termination benefits because of an
employment termination plan or a curtailment proposal.~ 102 ~Interim Report 2025
(ii) When the Company recognises costs or expenses related to a restructuring that involves the
payment of termination benefits.If the termination benefits are not expected to be settled wholly before twelve months after the end
of the annual reporting period the Company shall discount the termination benefits using relevant
discount rate (market yields at the end of the reporting period on high quality corporate bonds in
active market or government bonds with the currency and term which shall be consistent with the
currency and estimated term of the defined benefit obligations) to measure the employee benefits.
(4) Other long-term employee benefits
(i) Meet the conditions of the defined contribution plan
When other long-term employee benefits provided by the Company to the employees satisfies the
conditions for classifying as a defined contribution plan all those benefits payable shall be
accounted for as employee benefits payable at their discounted value.(ii) Meet the conditions of the defined benefit plan
At the end of the reporting period the Company recognised the cost of employee benefit from other
long-term employee benefits as the following components:
A. Service costs;
B. Net interest cost for net liability or asset of other long-term employee benefits
C. Changes resulting from the remeasurements of the net liability or asset of other long-term
employee benefits
In order to simplify the accounting treatment the net amount of above items shall be recognised in
profit or loss or relevant cost of assets.
25. Lease Liabilities
At the commencement date the Group measures the lease liability at the present value of the lease
payments that are not paid at that date. The lease payments comprise:
(1) Fixed payments or in-substance fixed payments less any lease incentives receivable;
(2) Variable lease payments that depend on an index or a rate;
(3) The exercise price of a purchase option if the Group is reasonably certain to exercise that option;
(4) Payments of penalties for terminating the lease if the lease term reflects the Group exercising an
option to terminate the lease; and
(5) Amounts expected to be payable by the Group under residual value guarantees.
The lease payments shall be discounted using the interest rate implicit in the lease if that rate can
be readily determined. If that rate cannot be readily determined the lessee shall use the lessee’s
~ 103 ~Interim Report 2025
incremental borrowing rate. The excess of the lease payments over its present value is amortised
over the lease term as interest expenses using the discount rate. A variable lease payment which is
not included in the initial measurement of the lease liability is recognised in profit or loss when
incurred.
26. Provisions
(1) Recognition
A provision is recognised for an obligation associated with a contingent event when the following
conditions are satisfied:
(i) The obligation is a present obligation assumed by the entity;
(ii) It is probable that fulfilment of the obligation will result in outflows of economic benefits from
the entity;
(iii) The amount of the obligation can be reliably measured.
(2) Measurement
A provision is initially measured at the best estimate of expenses required for the performance of
relevant present obligations. The Company when determining the best estimate has had a
comprehensive consideration of risks with respect to contingencies uncertainties and the time value
of money. The carrying amount of the provision shall be reviewed at the end of every reporting
period. If conclusive evidences indicate that the carrying amount fails to be the best estimate of the
provision the carrying amount shall be adjusted based on the updated best estimate.
27. Revenue
(1) General principle
Revenue is defined as the gross inflow of economic benefits arising in the course of the ordinary
activities of the Company when those inflows result in the increases in shareholders’ equity other
than increases relating to contributions from shareholders.The Company shall recognise revenue when it satisfies a performance obligation in the contract as
the customer obtains control of a good or service. Control of a good or service refers to the ability to
direct the use of and obtain substantially all of the remaining economic benefits from the good or
service.When the contract has two or more obligation performances the Company shall allocate the
transaction price to each performance obligation in proportion to a relative stand-alone selling price
at contract inception of the promised good or service underlying each performance obligation in the
contract and recognise revenue based on the transaction price allocated to each performance
obligation.~ 104 ~Interim Report 2025
The transaction price is the amount of consideration to which the Company expects to be entitled in
exchange for transferring promised goods or services to a customer excluding amounts collected on
behalf of third parties. When determining the transaction price of the contract if the contract
includes a variable consideration the Company shall determine the best estimate of the variable
consideration based on the expected value or the most likely amount and include in the transaction
price only to the extent that it is highly probable that a significant reversal in the amount of
cumulative revenue recognised will not occur when the uncertainty associated with the variable
consideration is subsequently resolved. If the contract contains a significant financing component
the Company shall determine the transaction price at an amount that reflects the price that a
customer would have paid for the promised goods or services if the customer had paid cash for
those goods or services when (or as) they transfer to the customer. The difference between the
transaction price and the promised consideration shall be amortised using the effective interest
method within the contract period. The Company need not consider the effects of a significant
financing component if the period between when the Company transfers control of a good or
service to a customer and when the customer pays for that good or service will be one year or less.The Company satisfies a performance obligation over time if one of the following criteria is met;
otherwise a performance obligation is satisfied at a point in time:
(i) The customer simultaneously receives and consumes the benefits provided by the Company’s
performance as the Company performs;
(ii) The Company’s performance creates or enhances an asset (for example work in progress) that
the customer controls as the asset is created or enhanced;
(iii) The Company’s performance does not create an asset with an alternative use to the Company
and the Company has an enforceable right to payment for performance completed to date.For each performance obligation satisfied over time the Company shall recognise revenue over
time by measuring the progress towards complete satisfaction of that performance obligation unless
those progress cannot be reasonably measured. The Company measures the progress of a
performance obligation for the service rendered using input methods (or output methods). In some
circumstances the Company cannot be able to reasonably measure the progress of a performance
obligation but the Company expects to recover the costs incurred in satisfying the performance
obligation. In those circumstances the Company shall recognise revenue only to the extent of the
costs incurred until such time that it can reasonably measure the progress of the performance
obligation.The Company shall recognise revenue at the point in which a customer obtains control of a
promised good or service if a performance obligation is satisfied at a point in time. To determine the
point in time at which a customer obtains control of a promised good or service the Company shall
consider indicators of the transfer of control which include but are not limited to the followings:
~ 105 ~Interim Report 2025
(i) The Company has a present right to payment for the good or service – a customer is presently
obliged to pay for the good or service;
(ii) The Company has transferred legal title of an asset to a customer - the customer has legal title to
the asset;
(iii) The Company has transferred physical possession of an asset to a customer - the customer has
physical possession of the asset;
(iv) The Company has transferred the significant risks and rewards of ownership of the asset to a
customer - the customer has the significant risks and rewards of ownership of the asset;
(v) The customer has accepted the asset.(vi) Other indication that the customer has obtained control over the asset.
(2) Specific method
Revenue recognition methods of the Company are as follows:
(i) Contract of sales of goods
According to the contract of sales of goods between the Company and the customer the Company
satisfies a performance obligation by transferring goods to the customer which is a performance
obligation satisfied at a point in time.Revenue from domestic sales of goods can only be recognised when the following conditions are
satisfied: the Company has transferred the promised goods to the customer according to the contract
and the customer has accepted the goods; the payment has been received or the receipt voucher has
been obtained and it is highly probable that the consideration will be received; the significant risks
and rewards of ownership of the asset has been transferred; legal title of the asset has been
transferred.(ii) Contract of rendering services
The customer simultaneously receives and consumes the benefits provided by the Company’s
performance as the Company performs Company satisfies a performance obligation by rendering
of services to the customer which is a performance obligation satisfied over time. For each
performance obligation satisfied over time the Company shall recognise revenue over time by
measuring the progress towards complete satisfaction of that performance obligation.The customer can’t simultaneously receive and consumes the benefits provided by the Company’s
performance as the Company performs the Company’s performance does not create an asset with
an alternative use and the Company has no enforceable right to payment for performance completed
~ 106 ~Interim Report 2025
to date at all times throughout the duration of the contract Revenue from rendering of services is a
performance obligation satisfied at a point in time. The company recognises revenue when the
company completes technical services in accordance with the contractual agreement
(iii) Revenue from usage of assets
Revenue from usage of the Group’s assets is recognised if the revenue can be reliably measured and
it is probable that the associated economic benefits will flow to the Group.Revenue from usage of assets mainly includes the income from the leasing of premises and houses.Revenue measured in accordance with the method determined by the respective contracts.
28. Government Grants
(1) Recognition of government grants
A government grant shall not be recognised until there is reasonable assurance that:
(i) The Company will comply with the conditions attaching to them; and
(ii) The grants will be received.
(2) Measurement of government grants
Monetary grants from the government shall be measured at amount received or receivable and
non-monetary grants from the government shall be measured at their fair value or at a nominal
value of RMB1.00 when reliable fair value is not available.
(3) Accounting for government grants
(i) Government grants related to assets
Government grants pertinent to assets mean the government grants that are obtained by the
Company used for purchase or construction or forming the long-term assets by other ways.Government grants pertinent to assets shall be recognised as deferred income and should be
recognised in profit or loss on a systematic basis over the useful lives of the relevant assets. Grants
measured at their nominal value shall be directly recognised in profit or loss of the period when the
grants are received. When the relevant assets are sold transferred written off or damaged before the
assets are terminated the remaining deferred income shall be transferred into profit or loss of the
period of disposing relevant assets.(ii) Government grants related to income
Government grants other than related to assets are classified as government grants related to income.Government grants related to income are accounted for in accordance with the following principles:
~ 107 ~Interim Report 2025
If the government grants related to income are used to compensate the enterprise’s relevant
expenses or losses in future periods such government grants shall be recognised as deferred income
and included into profit or loss (or write down related expenses) in the same period as the relevant
expenses or losses are recognised;
If the government grants related to income are used to compensate the enterprise’s relevant
expenses or losses incurred such government grants are directly recognised into current profit or
loss (or write down related expenses).For government grants comprised of part related to assets as well as part related to income each
part is accounted for separately; if it is difficult to identify different part the government grants are
accounted for as government grants related to income as a whole.Government grants related to daily operation activities are recognised in other income (or write
down related expenses) in accordance with the nature of the activities and government grants
irrelevant to daily operation activities are recognised in non-operating income.(iii) Loan interest subsidy
When loan interest subsidy is allocated to the bank and the bank provides a loan at lower-market
rate of interest to the Company the loan is recognised at the actual received amount and the interest
expense is calculated based on the principal of the loan and the lower-market rate of interest.When loan interest subsidy is directly allocated to the Company the subsidy shall be recognised as
offsetting the relevant borrowing cost.(iv) Repayment of the government grants
Repayment of the government grants shall be recorded by increasing the carrying amount of the
asset if the book value of the asset has been written down or reducing the balance of relevant
deferred income if deferred income balance exists any excess will be recognised into current profit
or loss; or directly recognised into current profit or loss for other circumstances.
29. Deferred Tax Assets and Deferred Tax Liabilities
Temporary differences are differences between the carrying amount of an asset or liability in the statement of
financial position and its tax base at the balance sheet date. The Company recognise and measure the effect of
taxable temporary differences and deductible temporary differences on income tax as deferred tax liabilities or
deferred tax assets using liability method. Deferred tax assets and deferred tax liabilities shall not be discounted.
(1) Recognition of deferred tax assets
Deferred tax assets should be recognised for deductible temporary differences the carryforward of
unused tax losses and the carryforward of unused tax credits to the extent that it is probable that
taxable profit will be available against which the deductible temporary differences the carryforward
~ 108 ~Interim Report 2025
of unused tax losses and the carryforward of unused tax credits can be utilised at the tax rates that
are expected to apply to the period when the asset is realised unless the deferred tax asset arises
from the initial recognition of an asset or liability in a transaction that:
A. Is not a business combination; and
B. At the time of the transaction affects neither accounting profit nor taxable profit (tax loss)
However the exemption from initial recognition of deferred tax liabilities and deferred tax assets
does not apply to a single transaction that meets both of the above conditions and results in the
initial recognition of assets and liabilities that give rise to deductible temporary differences and
deductible temporary differences in equal amounts. The Company recognises deferred tax liabilities
and deferred tax assets for deductible temporary differences and deductible temporary differences
arising from the initial recognition of assets and liabilities respectively at the time of the
transaction.The Company shall recognise a deferred tax asset for all deductible temporary differences arising
from investments in subsidiaries associates and joint ventures only to the extent that it is probable
that:
A. The temporary difference will reverse in the foreseeable future; and
B. Taxable profit will be available against which the deductible temporary difference can be
utilised.At the end of each reporting period if there is sufficient evidence that it is probable that taxable
profit will be available against which the deductible temporary difference can be utilised the
Company recognises a previously unrecognised deferred tax asset.The carrying amount of a deferred tax asset shall be reviewed at the end of each reporting period.The Company shall reduce the carrying amount of a deferred tax asset to the extent that it is no
longer probable that sufficient taxable profit will be available to allow the benefit of part or all of
that deferred tax asset to be utilised. Any such reduction shall be reversed to the extent that it
becomes probable that sufficient taxable profit will be available.
(2) Recognition of deferred tax liabilities
A deferred tax liability shall be recognised for all taxable temporary differences at the tax rate that
are expected to apply to the period when the liability is settled.(i) No deferred tax liability shall be recognised for taxable temporary differences arising from:
A. The initial recognition of goodwill; or
B. The initial recognition of an asset or liability in a transaction which: is not a business
combination; and at the time of the transaction affects neither accounting profit nor taxable profit
~ 109 ~Interim Report 2025
(tax loss)
(ii) An entity shall recognise a deferred tax liability for all taxable temporary differences associated
with investments in subsidiaries associates and joint ventures except to the extent that both of the
following conditions are satisfied:
A. The Company is able to control the timing of the reversal of the temporary difference; and
B. It is probable that the temporary difference will not reverse in the foreseeable future.
(3) Recognition of deferred tax liabilities or assets involved in special transactions or events
(i) Deferred tax liabilities or assets related to business combination
For the taxable temporary difference or deductible temporary difference arising from a business
combination not under common control a deferred tax liability or a deferred tax asset shall be
recognised and simultaneously goodwill recognised in the business combination shall be adjusted
based on relevant deferred tax expense (income).(ii) Items directly recognised in equity
Current tax and deferred tax related to items that are recognised directly in equity shall be
recognised in equity. Such items include: other comprehensive income generated from fair value
fluctuation of other debt investments; an adjustment to the opening balance of retained earnings
resulting from either a change in accounting policy that is applied retrospectively or the correction
of a prior period (significant) error; amounts arising on initial recognition of the equity component
of a compound financial instrument that contains both liability and equity component.(iii) Unused tax losses and unused tax credits
A. Unused tax losses and unused tax credits generated from daily operation of the Company itself
Deductible loss refers to the loss calculated and permitted according to the requirement of tax law
that can be offset against taxable income in future periods. The criteria for recognising deferred tax
assets arising from the carryforward of unused tax losses and tax credits are the same as the criteria
for recognising deferred tax assets arising from deductible temporary differences. The Company
recognises a deferred tax asset arising from unused tax losses or tax credits only to the extent that
there is convincing other evidence that sufficient taxable profit will be available against which the
unused tax losses or unused tax credits can be utilised by the Company. Income taxes in current
profit or loss shall be deducted as well.B. Unused tax losses and unused tax credits arising from a business combination
Under a business combination the acquiree’s deductible temporary differences which do not satisfy
the criteria at the acquisition date for recognition of deferred tax asset shall not be recognised.Within 12 months after the acquisition date if new information regarding the facts and
~ 110 ~Interim Report 2025
circumstances exists at the acquisition date and the economic benefit of the acquiree’s deductible
temporary differences at the acquisition is expected to be realised the Company shall recognise
acquired deferred tax benefits and reduce the carrying amount of any goodwill related to this
acquisition. If goodwill is reduced to zero any remaining deferred tax benefits shall be recognised
in profit or loss. All other acquired deferred tax benefits realised shall be recognised in profit or
loss.(iv) Temporary difference generated in consolidation elimination
When preparing consolidated financial statements if temporary difference between carrying value
of the assets and liabilities in the consolidated financial statements and their taxable bases is
generated from elimination of inter-company unrealised profit or loss deferred tax assets or
deferred tax liabilities shall be recognised in the consolidated financial statements and income taxes
expense in current profit or loss shall be adjusted as well except for deferred tax related to
transactions or events recognised directly in equity and business combination.(v) Share-based payment settled by equity
If tax authority permits tax deduction that relates to share-based payment during the period in
which the expenses are recognised according to the accounting standards the Company estimates
the tax base in accordance with available information at the end of the accounting period and the
temporary difference arising from it. Deferred tax shall be recognised when criteria of recognition
are satisfied. If the amount of estimated future tax deduction exceeds the amount of the cumulative
expenses related to share-based payment recognised according to the accounting standards the tax
effect of the excess amount shall be recognised directly in equity.(vi) Dividends related to financial instruments classified as equity instruments
For financial instruments classified as equity instruments in which the Company is the issuer and
the related dividend expense is deductible for corporate income tax purposes in accordance with the
relevant provisions of the tax policy the Company recognises the income tax effect related to the
dividend at the time of dividend payable recognition. The income tax effect of the dividend is
recognised in the current profit or loss in which the dividend arises from a transaction or event that
previously resulted in profit or loss. The income tax effect of the dividend is recognised in owner’s
equity in which the dividend arises from a transaction or event that previously resulted in profit or
loss.
(4) Basis for deferred income tax assets and deferred income tax liabilities presented on a net
basis
The Company shall offset deferred tax assets and deferred tax liabilities if and only if:
(i) the Company has a legally enforceable right to set off current tax assets against current tax
~ 111 ~Interim Report 2025
liabilities; and
(ii) the deferred tax assets and the deferred tax liabilities relate to income taxes levied by the same
taxation authority on either:
? the same taxable entity; or
? different taxable entities which intend either to settle current tax liabilities and assets on a net basis or to
realise the assets and settle the liabilities simultaneously in each future period in which significant
amounts of deferred tax liabilities or assets are expected to be settled or recovered.
30. Leases
(1) Identifying a lease
At inception of a contract the Company shall assess whether the contract is or contains a lease. A
contract is or contains a lease if the contract conveys the right to control the use of one or more
identified assets for a period of time in exchange for consideration. To assess whether a contract
conveys the right to control the use of an identified asset for a period of time the Company shall
assess whether throughout the period of use the customer has the right to obtain substantially all of
the economic benefits from use of the identified asset and to direct the use of the identified asset.
(2) Identifying a separate lease component
When a contract includes more than one separate lease components the Company shall separate
components of the contract and account for each lease component separately. The right to use an
underlying asset is a separate lease component if both conditions have been satisfied: (i) the lessee
can benefit from use of the underlying asset either on its own or together with other resources that
are readily available to the lessee; (ii) the underlying asset is neither highly dependent on nor
highly interrelated with the other underlying assets in the contract.
(3) The Company as a lessee
At the commencement date the Company identifies the lease that has a lease term of 12 months or
less and does not contain a purchase option as a short-term lease. A lease qualifies as a lease of a
low-value asset if the nature of the asset is such that when new the asset is typically of low value.If the Company subleases an asset or expects to sublease an asset the head lease does not qualify
as a lease of a low-value asset.For all the short-term leases or leases for which the underlying asset is of low value the Company
shall recognise the lease payments associated with those leases as cost of relevant asset or expenses
in current profit or loss on a straight-line basis over the lease term.Except for the election of simple treatment as short-term lease or lease of a low-value asset as
mentioned above at the commencement date the Company shall recognise a right-of-use asset and
~ 112 ~Interim Report 2025
a lease liability.(i) Right-of-use asset
A right-of-use asset is an asset that represents a lessee’s right to use an underlying asset for the lease
term.At the commencement date the Company shall initially measure the right-of-use asset at cost. The
cost of the right-of-use asset shall comprise:
? the amount of the initial measurement of the lease liability;
? any lease payments made at or before the commencement date less any lease incentives received;
? any initial direct costs incurred by the lessee; and
? an estimate of costs to be incurred by the lessee in dismantling and removing the underlying asset restoring
the site on which it is located or restoring the underlying asset to the condition required by the terms and
conditions of the lease. The Company recognises and measures the cost in accordance with the recognition
criteria and measurement method for estimated liabilities details please refer to Notes 3.26. Those costs
incurred to produce inventories shall be included in the cost of inventories.The right-of-use asset shall be depreciated according to the categories using straight‐line method.If it is reasonably certain that the ownership of the underlying asset shall be transferred to the lessee
by the end of the lease term the depreciation rate shall be determined based on the classification of
the right-of- use asset and estimated residual value rate from the commencement date to the end of
the useful life of the underlying asset. Otherwise the depreciation rate shall be determined based on
the classification of the right-of-use asset from the commencement date to the earlier of the end of
the useful life of the right-of-use asset or the end of the lease term.The depreciation method estimated useful life residual rates and annual depreciation rates which
are determined according to the categories of right-of-use asset are listed as followings:
Depreciation Estimated useful life Annual depreciation rates
Category Residual rates (%)
method (year) (%)
Straight—line
Buildings and constructions 3.00-10.00 0.00 10.00-33.33
method
Straight—line
Machinery equipment 3.00 0.00 33.33
method
Straight—line
Land use rights 5.00 0.00 20.00
method
(ii) Lease liability
At the commencement date the lease liability shall be measured at the present value of the lease
payments that are not paid at that date. The lease payments included in the measurement of the lease
~ 113 ~Interim Report 2025
liability comprise the following 5 items:
? fixed payments and in-substance fixed payments less any lease incentives receivable;
? variable lease payments that depend on an index or a rate;
? the exercise price of a purchase option if the lessee is reasonably certain to exercise that option;
? payments of penalties for terminating the lease if the lease term reflects the lessee exercising an option to
terminate the lease;
? amounts expected to be payable by the lessee under residual value guarantees.In order to calculate the present value of the lease payments interest rate implicit in the lease shall
be used as the discount rate. If that rate cannot be readily determined the Company shall use the
incremental borrowing rate. The difference between the lease payments and its present value shall
be recognised as unrecognised financing charges calculated bases on the discount rate of the
present value of the lease payments in each period within the lease term and recorded as interest
expense in current profit or loss. Variable lease payments not included in the measurement of lease
liabilities shall be recognised in current profit or loss when incurred.After the commencement date the Company shall remeasure the lease liability based on the revised
present value of the lease payments and adjust the carrying amount of the right-of-use asset if there
is a change in the in-substance fixed payments or change in the amounts expected to be payable
under a residual value guarantee or change in an index or a rate used to determine lease payments
or change in the assessment or exercising of an option to purchase the underlying asset or an option
to extend or terminate the lease.
(4) The Company as a lessor
At the commencement date the Company shall classify a lease as a finance lease if it transfers
substantially all the risks and rewards incidental to ownership of an underlying asset otherwise it
shall be classified as an operating lease.(i) Operating leases
The Company shall recognise lease payments from operating leases as income on a straight-line
basis (or other systematic and reasonable approaches) over the term of the relevant lease and the
initial direct costs incurred in obtaining an operating lease shall be capitalised and recognised as an
expense over the lease term on the same basis as the lease income. The Company shall recognise
the variable lease payments relating to the operating lease but not included in the measurement of
the lease receivables into current profit or loss when incurred.(ii) Finance leases
At the commencement date the Company shall recognise the lease receivables at an account equal
~ 114 ~Interim Report 2025
to the net investment in the lease (the sum of the present value of the unguaranteed residual values
and the lease payment that are not received at the commencement date discounted at the interest rate
implicit in the lease) and derecognise the asset relating to the finance lease. The Company shall
recognise interest income using the interest rate implicit in the lease over the lease term.The Company shall recognise the variable lease payments relating to the finance lease but not
included in the measurement of the net investment in the lease into current profit or loss when
incurred.
(5) Lease modifications
(i) A lease modification accounted for as a separate lease
The Company shall account for a modification to a lease as a separate lease if both: A. The
modification increases the scope of the lease by adding the right to use one or more underlying
assets; B. The consideration for the lease increases by an amount commensurate with the
stand-alone price for the increase in scope.(ii) A lease modification not accounted for as a separate lease
A. The Company as a lessee
At the effective date of the lease modification the Company shall redetermine the lease term of the
modified lease and remeasure the lease liability by discounting the revised lease payments using a
revised discount rate. The revised discount rate is determined as the interest rate implicit in the lease
for the remainder of the lease term if that rate can be readily determined or the incremental
borrowing rate at the effective date of the modification if the interest rate implicit in the lease
cannot be readily determined.The Company shall account for the remeasurement of the lease liability by:
? decreasing the carrying amount of the right-of-use asset to reflect the partial or full termination of the lease
for lease modifications that decrease the scope of the lease or shorten the lease term. The Company shall
recognise in profit or loss any gain or loss relating to the partial or full termination of the lease.? Making a corresponding adjustment to the carrying amount of the right-of-use asset for all other lease
modifications.B. The Company as a lessor
The Company 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.For a modification to a finance lease that is not accounted for as a separate lease the Company shall
account for the modification as follows:
~ 115 ~Interim Report 2025
? if the lease would have been classified as an operating lease had the modification been in effect at the
inception date the Company shall account for the lease modification as a new lease from the effective date of
the modification and measure the carrying amount of the underlying asset as the net investment in the lease
immediately before the effective date of the lease modification;
? if the lease would have been classified as a finance lease had the modification been in effect at the inception
date the Company shall account for the lease modification according to the requirements in the modification
or renegotiation of the contract.
(6) Sale and leaseback
The Company shall determine whether the transfer of an asset under the sale and leaseback
transaction is a sale of that asset according to the policies in Note 3.27.The Company as a seller (lessee)
If the transfer of the asset is not a sale the Company shall continue to recognise the transferred
asset and shall recognise a financial liability equal to the transfer proceeds. It shall account for the
financial liability according to Note 3.10. If the transfer of the asset is a sale the Company shall
measure the right-of-use asset arising from the leaseback at the proportion of the previous carrying
amount of the asset that relates to the right of use retained by the Company. Accordingly the
Company shall recognise only the amount of any gain or loss that relates to the rights transferred to
the buyer-lessor.The Company as a buyer (lessor)
If the transfer of the asset is not a sale the Company shall not recognise the transferred asset and
shall recognise a financial asset equal to the transfer proceeds. It shall account for the financial asset
according to Note 3.10. If the transfer of the asset is a sale the Company shall account for the
purchase of the asset applying applicable Accounting Standards of Business Enterprises and for the
lease applying the lessor accounting requirements.
31. Changes in Significant Accounting Policies and Accounting Estimates
(1) Changes in accounting polices
□ Applicable □ Not applicable
(2) Significant changes in accounting estimates
□ Applicable □ Not applicable
(3) Adjustments to financial statement items at the beginning of the year of the first
implementation of the new accounting standards implemented since 2025
□ Applicable □ Not applicable
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IV Taxation
1. Major Categories of Tax and Tax Rates Applicable to the Company
Categories of tax Basis of tax assessment Tax rate
Value added in the course of
Value added tax (VAT) sales of goods and rendering of 13% 9% 6%
services
Tax by quantity: RMB1.00 per kilogram or litre of distilled wine sold;
Consumption duty Taxable revenue
Tax by revenue: 20% on taxable revenue from sale of distilled wine
Urban maintenance and
Transaction tax payable 7% 5%
construction tax
Education surcharge Transaction tax payable 3%
Local education Transaction tax payable 2%
surcharge
Corporate income tax Taxable income 25%
(CIT)
The basic income tax rate of the company is 25% and the actual income tax rate of some subsidiaries is shown in
the following table:
Name of taxpayer Rate of income tax
Anhui Longrui Glass Co. Ltd 15.00%
Anhui Ruisiweier Technology Co. Ltd 15.00%
Anhui RunAnXinKe Testing Technology Co.
15.00%
Ltd.Anhui Gujing Health Technology Co. Ltd. 15.00%
Anhui Gujinggong Liquor Original Vintage
20.00%
Theme Hotel Management Co. Ltd.Anhui Guqi Distillery Sales Co. Ltd. 20.00%
Bozhou Gujing Hotel Co. Ltd. 20.00%
Anhui Jiuan Mechanical Electrical Equipment
20.00%
Co. Ltd.Anhui Jiuhao China Railway Construction
20.00%
Engineering Co. Ltd.Anhui Guge Culture Media Co. Ltd. 20.00%
Ezhou Junya Trading Co. Ltd. 20.00%
Wuhan Gulou Junhe Trading Co. Ltd. 20.00%
Wuhan Gulou Juntai Trading Co. Ltd. 20.00%
2. Tax Preference
(1) According to the Notice on Announcing the List of First Batch of High-tech Enterprises in Anhui Province for
~ 117 ~Interim Report 2025
2022 (WanKeQiMi [2022] No.482) issued by Department of Science and Technology of Anhui province the
subsidiary Ruisiweier was identified as a high-tech enterprise in 2022 therefore was given High-tech Enterprise
Certificate (Certificate Number: GR202234000476) which is valid for 3 years. According to Enterprise Income
Tax Law and other relevant regulations the company is subject to a national high-tech enterprise income tax rate
at 15% for three years from 1 January 2022 to 31 December 2024. The qualification of high-tech enterprises has
expired and is currently being re-identified. According to the Announcement of the State Administration of
Taxation on Issues concerning the Implementation of the Preferential Income Tax Policies regarding High-tech
Enterprises (Announcement of the State Administration of Taxation [2017] No. 24) the prepayment of
enterprise income tax will be made at the provisional rate of 15% in the year of expiry of the qualification of
high-tech enterprises and before re-identification.
(2) According to the Notice on Filing and Publicity for the First Batch of High-tech Enterprises Recognised by the
Certifying Body in Anhui Province for 2022 jointly issued by Department of Science and Technology of Anhui
province Department of Finance of Anhui province and Anhui Provincial Taxation Bureau of State
Administration of Taxation the subsidiary Longrui Glass was identified as a high-tech enterprise in 2022
therefore was given High-tech Enterprise Certificate (Certificate Number: GR202234004359) which is valid for 3
years. According to Enterprise Income Tax Law and other relevant regulations the company is subject to a
national high-tech enterprise income tax rate at 15% for three years from 1 January 2022 to 31 December 2024.The qualification of high-tech enterprises has expired and is currently being re-identified. According to the
Announcement of the State Administration of Taxation on Issues concerning the Implementation of the
Preferential Income Tax Policies regarding High-tech Enterprises (Announcement of the State Administration of
Taxation [2017] No. 24) the prepayment of enterprise income tax will be made at the provisional rate of 15% in
the year of expiry of the qualification of high-tech enterprises and before re-identification.
(3) According to the relevant provisions of the Measures for the Administration of the Accreditation of High-tech
Enterprises (GuoKeFaHuo [2016] No. 32) and the Guidelines for the Administration of the Certification of
High-tech Enterprises (GuoKeFaHuo [2016] No. 195) the subsidiary Anhui RunAnXinKe Testing Technology
Co. Ltd. was identified as a high-tech enterprise in 2024 therefore was given High-tech Enterprise Certificate
(Certificate Number: GR202434002657) which is valid for 3 years. According to Enterprise Income Tax Law and
other relevant regulations the company is subject to a national high-tech enterprise income tax rate at 15% for
three years from 1 January 2024 to 31 December 2026. It is currently in the process of recertification and until it
passes the recertification the corporate income tax is temporarily prepaid at a rate of 15%.
(4) According to the relevant provisions of the Measures for the Administration of the Accreditation of High-tech
Enterprises (GuoKeFaHuo [2016] No. 32) and the Guidelines for the Administration of the Certification of
High-tech Enterprises (GuoKeFaHuo [2016] No. 195) the subsidiary Anhui Gujing Health Technology Co. Ltd.(“Health Technology”) has been recognised as the second batch of high-tech enterprises in Anhui Province in
2024 and obtained the High-tech Enterprise Certificate (Certificate No.: GR202434002983) with a valid period
from 2021 to 2023. According to relevant regulations such as the Enterprise Income Tax Law the Health
Technology shall enjoy an income tax rate of 15% for national high-tech enterprises from 1 January 2024 to 31
~ 118 ~Interim Report 2025
December 2026.
(5) According to the relevant provisions of the document Announcement of the Ministry of Finance and the
General Administration of Taxation No. 12 of 2023 from 1 January 2023 to 31 December 2027 the part of the
annual taxable income of small and micro profit enterprises that does not exceed RMB3 million shall be included
in the taxable income at a reduced rate of 25%. Pay corporate income tax at a rate of 20%. Anhui Gujinggong
Liquor Original Vintage Theme Hotel Management Co. Ltd. Bozhou Gujing Hotel Co. Ltd. Anhui Guqi
Distillery Sales Co. Ltd. Ezhou Junya Trading Co. Ltd. Wuhan Gulou Junhe Trading Co. Ltd. Wuhan Gulou
Juntai Trading Co. Ltd. Anhui Guge Culture Media Co. Ltd. Anhui Jiuan Mechanical Electrical Equipment Co.Ltd. and Anhui Jiuhao China Railway Construction Engineering Co. Ltd. comply with the relevant provisions of
small low-profit enterprise income tax preferential policy.V Notes to the Consolidated Financial Statements
1. Monetary Funds
Item Ending balance Beginning balance
Cash on hand 6045.93 62770.67
Cash at bank 15523005469.03 15830320147.70
Other monetary funds 53286047.11 63721548.16
Total 15576297562.07 15894104466.53
At the end of June 2025 the bank deposits were used to pledge the bank acceptance bill of RMB450.00 million
and the other restricted funds in the bank deposits were RMB28099700. The other monetary funds as of the
statement date included margin deposits not eligible for early redemption at RMB21670300. Except for the
pre-mentioned monetary funds as of the end of June 2025 was not subject to limitation on usage such as pledging
or freezing or risk on recovery.Liquor manufacturing enterprises shall disclose whether there exists special interest arrangements such as
establishing a joint fund account with related parties
□ Applicable □ Not applicable
2. Financial Assets Held-for-trading
Item Ending balance Beginning balance
Financial assets at fair value through profit or
125528360.6260184353.81
loss
Including: bank financial products 125528360.62 60184353.81
Total 125528360.62 60184353.81
~ 119 ~Interim Report 2025
3. Accounts Receivable
(1) Disclosure by aging
Aging Ending balance Beginning balance
Within one year 68096858.73 65651524.19
Of which: 1-6 months 62946354.64 62227176.82
7-12 months 5150504.09 3424347.37
1-2 years 5179211.19 5240767.08
2-3 years 587036.15 490019.14
Over 3 years 8315515.16 7921327.52
Subtotal 82178621.23 79303637.93
Less: Bad debt provision 10013943.10 9483902.94
Total 72164678.13 69819734.99
(2) Disclosure by withdrawal method of bad debt provision
(i) Ending balance
Ending balance
Carrying amount Bad debt provision
Category
Withdrawal Carrying value
Amount Proportion (%) Amount
proportion (%)
Bad debt provision withdrawn
7792783.729.487792783.72100.000.00
separately
Bad debt provision withdrawn by
74385837.5190.522221159.382.9972164678.13
group
Of which: Group 1
Group 2 74385837.51 90.52 2221159.38 2.99 72164678.13
Total 82178621.23 100.00 10013943.10 12.19 72164678.13
(ii) Beginning balance
Beginning balance
Carrying amount Bad debt provision
Category
Withdrawal Carrying value
Amount Proportion (%) Amount
proportion (%)
Bad debt provision withdrawn
7792783.729.837792783.72100.000.00
separately
Bad debt provision withdrawn by 71510854.21 90.17 1691119.22 2.36 69819734.99
~ 120 ~Interim Report 2025
Beginning balance
Carrying amount Bad debt provision
Category
Withdrawal Carrying value
Amount Proportion (%) Amount
proportion (%)
group
Of which: Group 1
Group 2 71510854.21 90.17 1691119.22 2.36 69819734.99
Total 79303637.93 100.00 9483902.94 11.96 69819734.99
On 30 June 2025 Accounts receivable with bad debt provision withdrawn by group 2
Ending balance
Aging Withdrawal proportion
Carrying amount Bad debt provision
(%)
Within one year 68096858.73 886988.75 1.30
Of which: 1-6 months 62946354.64 629463.53 1.00
7-12 months 5150504.09 257525.22 5.00
1-2 years 5179211.19 517921.12 10.00
2-3 years 587036.15 293518.07 50.00
Over 3 years 522731.44 522731.44 100.00
Total 74385837.51 2221159.38 2.99
On 1 January 2025 Accounts receivable with bad debt provision withdrawn by group 2
Beginning balance
Aging Withdrawal proportion
Carrying amount Bad debt provision
(%)
Within one year 65651524.19 793489.14 1.21
Of which: 1-6 months 62227176.82 622271.77 1.00
7-12 months 3424347.37 171217.37 5.00
1-2 years 5240767.08 524076.71 10.00
2-3 years 490019.14 245009.57 50.00
Over 3 years 128543.80 128543.80 100.00
Total 71510854.21 1691119.22 2.36
(3) Changes of bad debt provision during the Reporting Period
Category Beginning Changes in the Reporting Period Ending balance
~ 121 ~Interim Report 2025
amount Increase from
business
Recovery or Elimination or
Withdrawal combination not
reversal write-off
under the same
control
Accounts receivable with
significant amount but bad
7792783.720.000.007792783.72
debt provision withdrawn
separately
Accounts receivable with
insignificant amount but bad
debt provision withdrawn
separately
Group 2: Bad debt provision
1691119.22590741.3060701.142221159.38
withdrawn by aging group
Total 9483902.94 590741.30 60701.14 10013943.10
(4) Accounts receivable written off during the reporting period
Not applicable.
(5) Top five ending balances by entity
Proportion of the
Provision for bad
Ending balance of balance to the total
Ending balance of Ending balance of debt of accounts
Entity name accounts receivable accounts receivable
accounts receivable contract assets receivable and
and contract assets and contract assets
contract assets
(%)
No. 1 9358707.72 9358707.72 11.39 93587.08
No. 2 7792783.72 7792783.72 9.48 7792783.72
No. 3 6472785.86 6472785.86 7.88 64727.86
No. 4 2762239.24 2762239.24 3.36 27622.39
No. 5 2698127.67 2698127.67 3.28 77024.77
Total 29084644.21 29084644.21 35.39 8055745.82
4. Accounts Receivable Financing
(1) Accounts receivable financing by category
Ending balance Beginning balance
Category Bad debt Bad debt
Carrying amount Carrying value Carrying amount Carrying value
provision provision
Bank acceptance
737338297.08737338297.082966732807.752966732807.75
bills
~ 122 ~Interim Report 2025
Ending balance Beginning balance
Category Bad debt Bad debt
Carrying amount Carrying value Carrying amount Carrying value
provision provision
Commercial
acceptance bills
Total 737338297.08 737338297.08 2966732807.75 2966732807.75
(2) Pledged notes receivable at 30 June 2025
Not applicable.
(3) Notes receivable which were discounted or endorsed but not due at 30 June 2025
Items Amount of derecognition Amount of unrecognition
Bank acceptance bills 5117895344.70 0.00
Commercial acceptance bills
Total 5117895344.70 0.00
(4) Accounts receivable financing by loss allowance provision method
Ending balance
Carrying amount Bad debt provision
Category
Withdrawal Carrying value
Amount Proportion (%) Amount
proportion (%)
Bad debt provision withdrawn
separately
Bad debt provision withdrawn by
737338297.08100.00737338297.08
group
Of which: Group 1
Group 2 737338297.08 100.00 737338297.08
Total 737338297.08 100.00 737338297.08
(Continued)
Beginning balance
Carrying amount Bad debt provision
Category
Withdrawal Carrying value
Amount Proportion (%) Amount
proportion (%)
Bad debt provision withdrawn
separately
Bad debt provision withdrawn by
2966732807.75100.002966732807.75
group
~ 123 ~Interim Report 2025
Beginning balance
Category
Carrying amount Bad debt provision Carrying value
Of which: Group 1
Group 2 2966732807.75 100.00 2966732807.75
Total 2966732807.75 100.00 2966732807.75
(5) Movement of impairment allowance
Not applicable.
(6) Notes receivable written off during the reporting period
Not applicable.
5. Prepayment
(1) Disclosure by aging
Ending balance Beginning balance
Aging
Amount Proportion (%) Amount Proportion (%)
Within one year 141225766.99 98.64 276817824.51 99.41
1 to 2 years 601374.16 0.42 1651976.53 0.59
2 to 3 years 1352422.59 0.94 2475.24
Over 3 years
Total 143179563.74 100.00 278472276.28 100.00
The balance of prepayment at the end of June 2025 decreased by 48.58% compared to the beginning of 2025
mainly due to a reduction in prepaid advertising expenses.
(2) Top five ending balances by entity
Proportion of the balance to the
Entity name Ending balance
total prepayment (%)
No. 1 9905660.48 6.92
No. 2 4716981.13 3.29
No. 3 2186469.10 1.53
No. 4 1825800.00 1.28
No. 5 1387640.70 0.97
Total 20022551.41 13.99
6. Other Receivables
~ 124 ~Interim Report 2025
(1) Listed by category
Item Ending balance Beginning balance
Interest receivable 0.00 0.00
Dividend receivable 0.00 0.00
Other receivables 50938157.65 86894981.69
Total 50938157.65 86894981.69
(2) Other Receivables
(i) Disclosure by aging
Aging Ending balance Beginning balance
Within one year 47870411.94 85852603.45
Of which: 1-6 months 46613770.01 83972284.84
7-12 months 1256641.93 1880318.61
1-2 years 3732151.59 1935988.11
2-3 years 475558.19 467455.41
Over 3 years 6637081.34 7525037.31
Subtotal 58715203.06 95781084.28
Less: Bad debt provision 7777045.41 8886102.59
Total 50938157.65 86894981.69
(ii) Disclosure by nature
Nature Ending balance Beginning balance
Deposit and guarantee 10250427.96 22576214.35
Platform promotion expenses 18353271.26 21949424.87
Rent utilities and gasoline charges 10892545.24 12656104.33
Other 19218958.60 38599340.73
Subtotal 58715203.06 95781084.28
Less: Bad debt provision 7777045.41 8886102.59
Total 50938157.65 86894981.69
(iii) Disclosure by withdrawal method of bad debt provision
A. As of 30 June 2025 bad debt provision withdrawn based on three stages model:
Stage Carrying amount Bad debt provision Carrying value
Stage 1 58715203.06 7777045.41 50938157.65
~ 125 ~Interim Report 2025
Stage 2
Stage 3
Total 58715203.06 7777045.41 50938157.65
A1. As of 30 June 2025 bad debt provision at stage 1:
12-month expected
Category Carrying amount credit losses rate Bad debt provision Carrying value
(%)
Bad debt provision withdrawn separately
Bad debt provision withdrawn by group 58715203.06 13.25 7777045.41 50938157.65
Of which: Group 1
Group 2 58715203.06 13.25 7777045.41 50938157.65
Total 58715203.06 13.25 7777045.41 50938157.65
On 30 June 2025 other receivables with bad debt provision withdrawn by group 2
Ending balance
Aging Withdrawal proportion
Carrying amount Bad debt provision
(%)
Within one year 47870411.94 528969.81 1.11
Of which: 1-6 months 46613770.01 466137.71 1.00
7-12 months 1256641.93 62832.10 5.00
1-2 years 3732151.59 373215.16 10.00
2-3 years 475558.19 237779.10 50.00
Over 3 years 6637081.34 6637081.34 100.00
Total 58715203.06 7777045.41 13.25
B. As of 1 January 2025 bad debt provision withdrawn based on three stages model:
Stage Carrying amount Bad debt provision Carrying value
Stage 1 95781084.28 8886102.59 86894981.69
Stage 2
Stage 3
Total 95781084.28 8886102.59 86894981.69
B1. On 1 January 2025 bad debt provision at stage 1:
~ 126 ~Interim Report 2025
12-month expected
Category Carrying amount credit losses rate Bad debt provision Carrying value
(%)
Bad debt provision withdrawn separately
Bad debt provision withdrawn by group 95781084.28 9.28 8886102.59 86894981.69
Of which: Group 1
Group 2 95781084.28 9.28 8886102.59 86894981.69
Total 95781084.28 9.28 8886102.59 86894981.69
On 1 January 2025 other receivables with bad debt provision withdrawn by group 2
Beginning balance
Aging Withdrawal proportion
Carrying amount Bad debt provision
(%)
Within one year 85852603.45 933738.76 1.09
Of which: 1-6 months 83972284.84 839722.83 1.00
7-12 months 1880318.61 94015.93 5.00
1-2 years 1935988.11 193598.81 10.00
2-3 years 467455.41 233727.71 50.00
Over 3 years 7525037.31 7525037.31 100.00
Total 95781084.28 8886102.59 9.28
(iv) Changes of bad debt provision during the Reporting Period
Changes in the Reporting Period
Increase from
Beginning business
Category Recovery or Elimination or Ending balance
balance
Withdrawal combination not
reversal write-off
under the same
control
Bad debt provision
withdrawn separately
Bad debt provision
8886102.59105098.241214155.427777045.41
withdrawn by group
Total 8886102.59 105098.24 1214155.42 7777045.41
~ 127 ~Interim Report 2025
(v) Top five ending balances by entity
Proportion of the
balance to the total
Entity name Nature Ending balance Aging Bad debt provision
other receivables
(%)
No. 1 Platform
Within 6
promotion 6404599.89 10.91 64046.00
months
expenses
No. 2 Platform
Within 6
promotion 4746235.89 8.08 47462.36
months
expenses
No. 3 Rent utilities and Within 6
4612657.207.8646126.57
gasoline charges months
No. 4 Within 6
Other 2666500.00 4.54 26665.00
months
Within 6
No. 5 Other 1714097.54 2.92 17140.98
months
Total -- 20144090.52 -- 34.31 201440.91
7. Inventories
(1) Category of inventories
Ending balance
Item
Carrying amount Falling price reserves Carrying value
Raw materials and package
405629495.1121901445.98383728049.13
materials
Semi-finished goods and work
8388606569.080.008388606569.08
in process
Finished goods 646793007.10 15269071.70 631523935.40
Total 9441029071.29 37170517.68 9403858553.61
(Continued)
Beginning balance
Item
Carrying amount Falling price reserves Carrying value
Raw materials and package 381830528.63 25390458.86 356440069.77
~ 128 ~Interim Report 2025
materials
Semi-finished goods and work
7473416416.090.007473416416.09
in process
Finished goods 1448501178.10 14136827.38 1434364350.72
Total 9303748122.82 39527286.24 9264220836.58
(2) Falling price reserves of inventories
Increase Decrease
Items Beginning balance Increase from Ending balance
Reversal or
Withdrawal business Others
elimination
combination
Raw materials and
25390458.86541179.514030192.3921901445.98
package materials
Finished goods 14136827.38 2510926.79 1378682.47 15269071.70
Total 39527286.24 3052106.30 5408874.86 37170517.68
8. Other Current Assets
Item Ending balance Beginning balance
Pledged treasury bond reverse repurchase 212356000.00 0.00
Interests on negotiable certificate of deposit 98577180.55 100070417.52
Deductible taxes and tax allowance 57935496.55 91433444.45
Total 368868677.10 191503861.97
9. Long-term Equity Investments
Changes in the Reporting Period
Profit and loss on Adjustment of
Investees Beginning balance Additional Reduced investments other Changes in
investments investments confirmed according comprehensive other equity
to equity law income
I. Associated enterprises
Beijing Guge Trading
5513707.07385.23
Co. Ltd.Anhui Xunfei Jiuzhi
6218934.37193638.56
Technology Co. Ltd.~ 129 ~Interim Report 2025
Changes in the Reporting Period
Profit and loss on Adjustment of
Investees Beginning balance Additional Reduced investments other Changes in
investments investments confirmed according comprehensive other equity
to equity law income
Total 11732641.44 194023.79
(Continued)
Changes in the Reporting Period
Balance of
Investees Declaration of cash Withdrawal of Ending balance impairment
dividends or impairment Other provision
distribution of profit provision
I. Associated enterprises
Beijing Guge Trading
5514092.30
Co. Ltd.Anhui Xunfei Jiuzhi
6412572.93
Technology Co. Ltd.Total 11926665.23
10. Other Equity Instrument Investment
Changes during the reporting period
Gaines Losses
Beginning recognised in recognised in
Item Additional Decrease in Ending balance
balance other other Others
investment investment
comprehensive comprehensive
income income
Anhui
Mingguang
Rural 69500830.82 4174434.21 73675265.03
Commercial
Bank Co. Ltd.Total 69500830.82 4174434.21 73675265.03
(Continued)
~ 130 ~Interim Report 2025
Amount of other
comprehensive
Dividend Reason for assigning to measure in fair
Accumulative Accumulative income
Item income value and the changes included in other
gains losses transferred to
recognised comprehensive income
retained
earnings
For management holding purposes it is
Anhui Mingguang
specified as measured at fair value and
Rural Commercial 19826567.23
changes in it are included in other
Bank Co. Ltd.comprehensive income
11. Investment Properties
(1) Investment property adopting cost measurement mode
Items Houses and buildings Land use rights Total
I. Original carrying value
1. Beginning balance 89073496.39 2644592.00 91718088.39
2. Increase during the Reporting Period
(1) Transfer from fixed assets
3. Decrease during the Reporting Period 40292751.73 0.00 40292751.73
(1) Transfer out to fixed assets 40292751.73 0.00 40292751.73
4. Ending balance 48780744.66 2644592.00 51425336.66
II. Accumulated depreciation and amortisation:
1. Beginning balance 46837883.22 986545.29 47824428.51
2. Increase during the Reporting Period 1511793.18 31369.60 1543162.78
(1) Withdrawal or amortisation 1511793.18 31369.60 1543162.78
(2) Transfer from fixed assets
3. Decrease during the Reporting Period 21566349.79 0.00 21566349.79
(1) Transfer out to fixed assets 21566349.79 0.00 21566349.79
4. Ending balance 26783326.61 1017914.89 27801241.50
III. Impairment provision
1. Beginning balance
2. Increase during the Reporting Period
3. Decrease during the Reporting Period
4. Ending balance
IV. Carrying value
1. Ending carrying value 21997418.05 1626677.11 23624095.16
~ 131 ~Interim Report 2025
Items Houses and buildings Land use rights Total
2. Beginning carrying value 42235613.17 1658046.71 43893659.88
12. Fixed Assets
(1) Listed by category
Item Ending balance Beginning balance
Fixed assets 8620902446.58 7896995404.62
Disposal of fixed assets
Total 8620902446.58 7896995404.62
(2) Fixed assets
(i) General information of fixed assets
Houses and Machinery Transportation Administrative and
Items Total
buildings equipment vehicles other devices
I. Original carrying value
1. Beginning balance 5746480245.76 3807259462.75 84475525.53 1083307609.43 10721522843.47
2. Increase during the
445559428.51573048321.561343936.5854371619.681074323306.33
Reporting Period
(1) Acquisition 0.00 9777893.27 1343936.58 24119431.74 35241261.59
(2) Transfer from
405266676.78563270428.290.0030252187.94998789293.01
construction in progress
(3) Transfer from
40292751.730.000.000.0040292751.73
investment property
3. Decrease during the
0.004701824.08617736.054677043.879996604.00
Reporting Period
(1) Disposal or scrap 0.00 4701824.08 617736.05 4677043.87 9996604.00
4. Ending balance 6192039674.27 4375605960.23 85201726.06 1133002185.24 11785849545.80
II. Accumulated depreciation
1. Beginning balance 1255736652.05 1165126891.24 69393199.88 331141490.79 2821398233.96
2. Increase during the
143866140.48155885444.594060121.4745837762.81349649469.35
Reporting Period
(1) Withdrawal 122299790.69 155885444.59 4060121.47 45837762.81 328083119.56
(2) Transfer from investment
21566349.790.000.000.0021566349.79
property
3. Decrease during the
0.004042172.76599203.984582369.759223746.49
Reporting Period
(1) Disposal or scrap 0.00 4042172.76 599203.98 4582369.75 9223746.49
4. Ending balance 1399602792.53 1316970163.07 72854117.37 372396883.85 3161823956.82
~ 132 ~Interim Report 2025
Houses and Machinery Transportation Administrative and
Items Total
buildings equipment vehicles other devices
III. Impairment provision
1. Beginning balance 2579179.35 550025.54 3129204.89
2. Increase during the
Reporting Period
(1) Withdrawal
3. Decrease during the
6062.496062.49
Reporting Period
(1) Disposal or scrap 6062.49 6062.49
4. Ending balance 2579179.35 543963.05 3123142.40
IV. Carrying value
1. Ending carrying value 4789857702.39 3058091834.11 12347608.69 760605301.39 8620902446.58
2. Beginning carrying value 4488164414.36 2641582545.97 15082325.65 752166118.64 7896995404.62
(ii) Fixed assets leasing out under operating leases
Items Carrying value
Buildings and constructions 21997418.05
Total 21997418.05
(iii) Fixed assets without certificate of title
Items Carrying value Reason
Buildings and constructions 3516517420.10 In process
Total 3516517420.10 --
(iv) At the end of the period there were no fixed assets with limited use due to mortgage.
13. Construction in Progress
(1) Listed by category
Item Ending balance Beginning balance
Construction in progress 511153592.86 1038780764.86
Project materials
Total 511153592.86 1038780764.86
(2) Construction in progress
(i) General information of construction in progress
Ending balance Beginning balance
Item Carrying Depreciation Depreciation
Carrying value Carrying amount Carrying value
amount reserve reserve
~ 133 ~Interim Report 2025
Intelligent Park project 401252552.49 401252552.49 936206415.94 936206415.94
Whisky project 24821338.07 24821338.07 33493322.27 33493322.27
Other individual project 85079702.30 85079702.30 69081026.65 69081026.65
Total 511153592.86 511153592.86 1038780764.86 1038780764.86
(ii) Changes in significant projects of construction in progress
Decrease during
Budget Increase during the Amount transferred to
Project Beginning balance the Reporting Ending balance
(RMB’0000) Reporting Period fixed asset
Period
Intelligent Park project 828965.74 936206415.94 387817408.06 917135930.34 5635341.17 401252552.49
Whisky project 15539.56 33493322.27 18128806.81 26800791.01 0.00 24821338.07
Other individual project 51992.10 69081026.65 81262543.87 54852571.66 10411296.56 85079702.30
Total 896497.40 1038780764.86 487208758.74 998789293.01 16046637.73 511153592.86
(Continued)
Interest
Cumulative Of which: Interest
Proportion of capitalisation
amount of capitalised during
Project project input to Schedule (%) during the Source of funds
interest the reporting
budgets (%) Reporting
capitalisation period
Period (%)
Self-owned
Intelligent Park project 80.67 97.00 fund and raised
fund
Self-owned
Whisky project 33.22 78.00
fund
Self-owned
Other individual project 28.92 28.92 619616.66 619616.66 2.80 fund and
borrowings
Total 619616.66 619616.66
(3) Decrease of 50.79% in the book value of construction in progress at the end of June 2025 compared to the
beginning of 2025 was mainly resulted from the conversion of construction projects in progress to fixed assets.
14. Right-of-use Assets
Items Buildings and constructions Land use rights Total
I. Original carrying value
1. Beginning balance 114202763.36 9723022.59 123925785.95
~ 134 ~Interim Report 2025
2. Increase during the Reporting
Period
3. Decrease during the
Reporting Period
4. Ending balance 114202763.36 9723022.59 123925785.95
II. Accumulated depreciation
1. Beginning balance 23065108.90 567176.32 23632285.22
2. Increase during the Reporting
7767965.831036510.908804476.73
Period
3. Decrease during the
Reporting Period
4. Ending balance 30833074.73 1603687.22 32436761.95
III. Impairment provision
1. Beginning balance
2. Increase during the Reporting
Period
3. Decrease during the
Reporting Period
4. Ending balance
IV. Carrying value
1. Ending carrying value 83369688.63 8119335.37 91489024.00
2. Beginning carrying value 91137654.46 9155846.27 100293500.73
15. Intangible Assets
(1) General information of intangible assets
Patents and
Item Land use rights Software Total
trademark
I. Original carrying value
1. Beginning balance 1156803600.78 160904632.69 254672753.56 1572380987.03
2. Increase during the Reporting
14642221.513561441.3294339.6218298002.45
Period
(1) Acquisition 14642221.51 2018779.77 94339.62 16755340.90
(2) Transfer from construction in
0.001542661.550.001542661.55
progress
3. Decrease during the Reporting
Period
~ 135 ~Interim Report 2025
Patents and
Item Land use rights Software Total
trademark
(1) Disposal or cancellation
4. Ending balance 1171445822.29 164466074.01 254767093.18 1590678989.48
II. Accumulated amortisation:
1. Beginning balance 250524049.67 119430483.26 72986817.73 442941350.66
2. Increase during the Reporting
12326289.616785495.29245807.6019357592.50
Period
(1) Withdrawal 12326289.61 6785495.29 245807.60 19357592.50
3. Decrease during the Reporting
Period
(1) Disposal or cancellation
4. Ending balance 262850339.28 126215978.55 73232625.33 462298943.16
III. Impairment provision
1. Beginning balance 166872.39 1 6 6 8 7 2 .39
2. Increase during the Reporting
Period
(1) Withdrawal
3. Decrease during the Reporting
Period
(1) Disposal or cancellation
4. Ending balance 166872.39 166872.39
IV. Carrying value
1. Ending carrying value 908595483.01 38083223.07 181534467.85 1128213173.93
2. Beginning carrying value 906279551.11 41307277.04 181685935.83 1129272763.98
(2) Intangible assets used for mortgage or pledge at 30 June 2025
Original carrying Accumulated
Item Impairment provision Carrying value Note
value amortisation
Pledged for
Land use rights 13132500.00 480909.85 12651590.15
loans
Total 13132500.00 480909.85 12651590.15
16. Goodwill
(1) Original carrying value of goodwill
~ 136 ~Interim Report 2025
Increase Decrease
Investees or matters that
Formed by
goodwill arising from Beginning balance Ending balance
business Other Disposal Other
combination
Yellow Crane Tower Distillery
478283495.29478283495.29
Co. Ltd.Anhui Mingguang Distillery Co.
60686182.0760686182.07
Ltd.Renhuai Maotai Town Zhencang
22394707.6522394707.65
Winery Industry Co. Ltd.Total 561364385.01 561364385.01
17. Long-term Deferred Expenses
Beginning Decrease
Item Increase Ending balance
balance
Amortisation Other decrease
Experience centre 789276.00 5206113.41 485460.32 5509929.09
Sewage treatment project
Outdoor auxiliary projects 21968260.07 12451.09 1447878.73 20532832.43
Pottery jar project 61602659.20 13990649.56 4090595.29 71502713.47
Theme hotel project 162703450.17 273959.08 9688915.68 153288493.57
Public lines and pipeline
networks of the Intelligent Park 98616414.14 1870010.08 5177198.42 95309225.80
project
Other individual project with
28925328.317949265.856267083.3030607510.86
insignificant amounts
Total 374605387.89 29302449.07 27157131.74 376750705.22
18. Deferred Tax Assets and Deferred Tax Liabilities
(1) Deferred tax assets before offsetting
Ending balance Beginning balance
Item Deductible temporary Deductible temporary
Deferred tax assets Deferred tax assets
differences differences
Asset impairment provision 40460532.47 9779764.50 42823363.52 10444314.97
Credit impairment provision 17790988.51 4371546.51 18370005.53 4535436.94
Unrealised intergroup profit 57351077.90 13143326.01 76363176.92 19090794.23
~ 137 ~Interim Report 2025
Ending balance Beginning balance
Item Deductible temporary Deductible temporary
Deferred tax assets Deferred tax assets
differences differences
Deferred income 119116940.71 29060320.76 122142913.25 29876832.66
Deductible losses 324364650.10 71994585.28 305845891.22 67329794.66
Carry-over of payroll payables
deductible during the next 1218851.79 182827.77 1218851.79 182827.77
period
Accrued expenses and discount 1891352212.27 472257956.49 1588898781.16 395609562.74
Change in fair value of
3371531.90841848.1122244006.885560090.43
accounts receivable financing
Lease liabilities 88464753.83 22116188.46 97799819.03 24449954.76
Differences in the depreciation
3842425.35576363.803416031.63512404.74
periods of fixed assets
Total 2547333964.83 624324727.69 2279122840.93 557592013.90
(2) Deferred tax liabilities before offsetting
Ending balance Beginning balance
Item Taxable temporary Taxable temporary
Deferred tax liabilities Deferred tax liabilities
differences differences
Difference in accelerated
depreciation of fixed 389388113.68 94236287.99 417629233.07 101296567.82
assets
Assets appreciation
arising from business
651363119.32157881942.09659325823.37159742363.83
combination not under
the same control
Changes in fair value of
528360.62132090.15184353.8146088.46
trading financial assets
Unrealised intergroup
216477560.7254119390.18223927678.2855981919.57
profit
Changes in fair value of
investments in other 19826567.23 4956641.81 15652133.02 3913033.26
equity instruments
Right-of-use assets 91489024.00 22872256.00 100293500.73 25073375.18
Total 1369072745.57 334198608.22 1417012722.28 346053348.12
(3) Net balance of deferred tax liabilities and deferred tax assets after offsetting
~ 138 ~Interim Report 2025
Net balance after Net balance after
Offset amount at the Offset amount at the
Item offsetting at the offsetting at the period-
period-end period-begin
period-end begin
Deferred tax assets -66281561.46 558043166.23 -74258323.14 483333690.76
Deferred tax liabilities -66281561.46 267917046.76 -74258323.14 271795024.98
(4) Details of unrecognised deferred tax assets
Item Ending balance Beginning balance
Deductible losses 14575439.51 16314472.33
Total 14575439.51 16314472.33
(5) Deductible losses not recognised as deferred tax assets will expire in the following periods: due in one to two
years at RMB18386.62; due in two to three years at RMB7925576.42; due in three to four years at
RMB6631476.47.
19. Other Non-current Assets
Item Ending balance Beginning balance
Prepayment for construction and machinery 3864745.03 707352.50
Total 3864745.03 707352.50
20. Short-term Borrowings
Category Ending balance Beginning balance
Credit loan 115785121.33 50038194.44
Total 115785121.33 50038194.44
21. Notes Payable
(1) Listed by nature
Category Ending balance Beginning balance
Bank acceptance bills 419531822.56 571864409.55
Commercial acceptance bills 0.00 17500000.00
Total 419531822.56 589364409.55
(2) At the end of the reporting period there is no notes payable matured but not yet paid.
22. Accounts Payable
(1) Listed by nature
Item Ending balance Beginning balance
Payables for materials 710069525.94 1148583810.63
Payments for constructions and equipment 1187107018.06 1293302536.42
~ 139 ~Interim Report 2025
Item Ending balance Beginning balance
Other 403939682.39 500452835.08
Total 2301116226.39 2942339182.13
(2) Significant accounts payable with aging of over one year
Not applicable.
23. Contract Liabilities
Item Ending balance Beginning balance
Payment for goods 1428005776.79 3514800038.80
Total 1428005776.79 3514800038.80
24. Employee Benefits Payable
(1) List of employee benefits payable
Item Beginning balance Increase Decrease Ending balance
1121063040.47 2011138809.16 2049603653.80 I. Short-term employee benefits 1082598195.83
II. Post-employment
161741.81127975461.26127974242.90162960.17
benefits-defined contribution plans
594877.48594877.48
III. Termination benefits 0.00 0.00
IV. Other benefits due within one
year
Total 1121224782.28 2139709147.90 2178172774.18 1082761156.00
(2) List of short-term employee benefits
Item Beginning balance Increase Decrease Ending balance
I. Salaries bonuses allowances and
1047489055.041722018896.331750653076.601018854874.77
subsidies
II. Employee benefits 0.00 60868604.45 60868604.45 0.00
III. Social insurance 400974.62 63707257.99 63706574.52 401658.09
Of which: Health insurance 398465.41 58950630.04 58949965.48 399129.97
Injury insurance 2509.21 4756627.95 4756609.04 2528.12
IV. Housing accumulation fund 9233417.83 72704598.24 75591171.64 6346844.43
V. Labour union funds and employee
59200690.0422478907.8329588034.6752091563.20
education funds
~ 140 ~Interim Report 2025
Item Beginning balance Increase Decrease Ending balance
VI. Enterprise annuity 4738902.94 69360544.32 69196191.92 4903255.34
Total 1121063040.47 2011138809.16 2049603653.80 1082598195.83
(3) Defined contribution plans
Item Beginning balance Increase Decrease Ending balance
1. Basic endowment
156840.56123976997.98123975816.54158022.00
insurance
2. Unemployment
4901.253998463.283998426.364938.17
insurance
Total 161741.81 127975461.26 127974242.90 162960.17
(4) Termination benefits
Item Beginning balance Increase Decrease Ending balance
Termination benefits 0.00 594877.48 594877.48 0.00
Total 0.00 594877.48 594877.48 0.00
25. Taxes Payable
Item Ending balance Beginning balance
VAT 327964889.90 284337340.10
Consumption tax 386121061.88 390378274.62
Enterprise income tax 436322852.93 353803556.51
Individual income tax 10371515.85 39693677.73
Urban maintenance and construction tax 39432163.30 35169659.48
Stamp duty 4282498.36 4231886.04
Educational surcharge 36986696.30 34333818.77
Other 22230549.80 21223630.24
Total 1263712228.32 1163171843.49
26. Other Payables
(1) Listed by category
Item Ending balance Beginning balance
Interest payable 0.00 0.00
Dividends payable 0.00 0.00
~ 141 ~Interim Report 2025
Item Ending balance Beginning balance
Other payables 3356132934.98 3146672513.57
Total 3356132934.98 3146672513.57
(2) Other payables
(i) Listed by nature
Item Ending balance Beginning balance
Security deposit and guarantee 2518939287.20 2545554135.19
Warranty 163513139.88 142353842.60
Personal housing fund paid by company 6431129.14 7439116.19
Other 667249378.76 451325419.59
Total 3356132934.98 3146672513.57
(ii) Other payables aged over one year as of the statement date are mainly security deposit and warranty not yet
matured.
27. Non-current Liabilities Due within One Year
Item Ending balance Beginning balance
Lease liabilities due within one year 15149540.67 13346230.73
Long-term borrowings due within one
29497337.5076489969.84
year
Total 44646878.17 89836200.57
28. Other Current Liabilities
Item Ending balance Beginning balance
Accrued expenses 1304679262.66 1236420776.30
Pre-mature output VAT 185244597.91 454767511.10
Total 1489923860.57 1691188287.40
29. Long-term Borrowings
Item Ending balance Beginning balance
Credit Loan 121950000.00 0.00
Pledged for loans 44500000.00 41600000.00
Total 166450000.00 41600000.00
30. Lease Liabilities
Item Ending balance Beginning balance
Lease payments 100757693.45 112025467.10
~ 142 ~Interim Report 2025
Item Ending balance Beginning balance
Less: unrecognised financial charges 12292939.62 14225648.07
Subtotal 88464753.83 97799819.03
Less: lease liabilities due within one year 15149540.67 13346230.73
Total 73315213.16 84453588.30
31. Deferred Income
Item Beginning balance Increase Decrease Ending balance Reason
Government Receiving asset-related
122142913.254507000.007532972.54119116940.71
grants grants from government
Total 122142913.25 4507000.00 7532972.54 119116940.71 --
32. Share Capital
Changes during the Reporting Period (+-)
Item Beginning balance Bonus Capitalisation Ending balance
New issues Others Subtotal
issues of reserves
The sum of
528600000.00528600000.00
shares
33. Capital Reserves
Item Beginning balance Increase Decrease Ending balance
Capital premium (share
6196258070.026196258070.02
premium)
Other capital reserves 32853136.20 32853136.20
Total 6229111206.22 6229111206.22
34. Other Comprehensive Income
Reporting Period
Less: Less:
Recorded in Recorded in
other other
Income Attributable
comprehensive comprehensive Attributable to
Beginning before Less: to owners of Ending
Item income in income in non-controlling
balance taxation in Income tax the Company balance
prior period prior period interests after
the Current expense as the parent
and transferred and transferred tax
Period after tax
to profit or to retained
loss in the earnings in the
Current Period Current Period
~ 143 ~Interim Report 2025
I. Other
comprehensive
income that may not
7043459.864174434.211043608.551878495.391252330.278921955.25
subsequently be
reclassified to profit
or loss
Of which: Changes
caused by
remeasurements on
defined benefit
schemes
Other
comprehensive
income that will not
be reclassified to
profit or loss under
the equity method
Changes in
fair value of other
7043459.864174434.211043608.551878495.391252330.278921955.25
equity instrument
investment
Changes in the
fair value arising from
changes in own credit
risk
II. Other
comprehensive
income that may
-16647579.60-3371531.90-16683916.43-841848.1114172018.85-17786.21-2475560.75
subsequently be
reclassified to profit
or loss
Of which: Other
comprehensive
income that will be
reclassified to profit
or loss under the
equity method
Changes in
the fair value of
investments in other
debt obligations
~ 144 ~Interim Report 2025
Other
comprehensive
income arising from -16647579.60 -3371531.90 - 16683916.43 -841848.11 1 4172018.85 -17786.21 - 2475560.75
the reclassification of
financial assets
Credit
impairment allowance
for investments in
other debt obligations
Reserve for cash flow
hedges
Differences
arising from
translation of foreign
currency-denominated
financial statements
Total of other
comprehensive -9604119.74 802902.31 - 16683916.43 201760.44 1 6050514.24 1234544.06 6446394.50
income
35. Surplus Reserves
Item Beginning balance Increase Decrease Ending balance
Statutory surplus reserve 269402260.27 269402260.27
Total 269402260.27 269402260.27
Note: In accordance with provisions of Company Law and Articles of Association the statutory surplus reserve
shall be withdrawn at 10% of net profits by the Company. The accumulated amount of statutory surplus reserve
can no longer be withdrawn when it is more than 50% of the Company’s registered capital.
36. Retained Earnings
Item Reporting Period Same period of last year
Beginning balance of retained earnings before adjustments 17639514432.44 14500963359.34
Total beginning balance of retained earnings before
adjustment (increase+ decrease-)
Beginning balance of retained earnings after adjustments 17639514432.44 14500963359.34
Add: Net profit attributable to owners of the Company as
3661585785.945517251073.10
the parent
Less: withdrawal of statutory surplus reserve
~ 145 ~Interim Report 2025
Item Reporting Period Same period of last year
Dividend of ordinary shares payable 3171600000.00 2378700000.00
Ending retained earnings 18129500218.38 17639514432.44
37. Operating Revenue and Cost of Sales
Reporting Period Same period of last year
Item
Operating revenue Costs of sales Operating revenue Costs of sales
Main operations 13817383143.06 2770679996.44 13749070890.99 2684505728.28
Other operations 62469059.69 22855262.10 56622651.36 20159167.14
Total 13879852202.75 2793535258.54 13805693542.35 2704664895.42
Information on operating revenue and cost of sales:
Reporting Period Same period of last year
Item
Operating revenue Costs of sales Operating revenue Costs of sales
Commodity type
Baijiu business 13639596262.27 2636312694.81 13428363064.31 2409942515.02
Others 240255940.48 157222563.73 377330478.04 294722380.40
Total 13879852202.75 2793535258.54 13805693542.35 2704664895.42
By operating segment
North China 809341217.22 210468705.23 1109250619.81 232885728.87
Central China 12297380470.09 2431350909.32 11869976454.15 2325411733.69
South China 768186540.95 149970516.12 815792256.19 143909531.02
International 4943974.49 1745127.87 10674212.20 2457901.84
Total 13879852202.75 2793535258.54 13805693542.35 2704664895.42
By distribution
channel:
Online 572650258.28 153527839.86 408477087.11 115516082.79
Offline 13307201944.47 2640007418.68 13397216455.24 2589148812.63
Total 13879852202.75 2793535258.54 13805693542.35 2704664895.42
Information on performance obligations: None
38. Taxes and Surcharges
Item Reporting Period Same period of last year
Consumption tax 1770534419.59 1725234888.54
~ 146 ~Interim Report 2025
Item Reporting Period Same period of last year
Urban maintenance and construction tax and
339775660.75314017926.17
educational surcharge
Urban land use tax 12841563.18 12164355.34
Property tax 24753853.31 17079657.91
Stamp duty 12454083.98 11546725.67
Other 15618141.35 13636790.45
Total 2175977722.16 2093680344.08
39. Selling Expense
Item Reporting Period Same period of last year
Employment benefits 664068763.31 675938548.40
Travel fees 134242942.14 120981637.15
Advertisement fees 715108133.20 688129021.87
Comprehensive promotion costs 1545750834.47 1685467666.43
Service fees 391207359.74 373733873.49
Other 61030523.10 67434236.83
Total 3511408555.96 3611684984.17
40. Administrative Expenses
Item Reporting Period Same period of last year
Employee benefits 407158260.95 443783424.86
Office fees 27761197.17 28284746.88
Maintenance expenses 20517221.46 16737356.47
Depreciation 72716531.29 48529409.50
Amortisation 27786998.85 17835580.70
Pollution discharge 11470740.16 13466130.97
Travel expenses 6597066.02 6681000.73
Water and electricity charges 6793423.13 6129646.26
Other 90616337.75 89703398.35
Total 671417776.78 671150694.72
41. Development Costs
Item Reporting Period Same period of last year
~ 147 ~Interim Report 2025
Item Reporting Period Same period of last year
Labour cost 27240880.08 23995060.27
Direct input costs 6665094.54 2031791.02
Depreciation expense 2111195.83 2058186.20
Other 4300576.92 5147260.85
Total 40317747.37 33232298.34
42. Finance Costs
Item Reporting Period Same period of last year
Interest expenses 5553600.24 3445346.57
Including: Interest expenses for lease
1932708.451575990.34
liabilities
Less: Interest income 324132039.22 298352344.67
Net interest expenses -318578438.98 -294906998.10
Net foreign exchange losses 2337376.58 11640952.86
Bank charges and others 533246.08 943715.76
Total -315707816.32 -282322329.48
43. Other Income
Same period of last
Item Reporting Period Related to assets /income
year
I. Government grants recorded to other income 42305674.84 22796192.89
Of which: Government grant related to deferred
7532972.54 3125268.62 Related to assets
income
Government grant recorded to current profit
34772702.30 19670924.27 Related to income
or loss
II. Others related to daily operation activities and
7830847.56 3950721.93 Related to income
recognised in other income
Total 50136522.40 26746914.82 --
44. Investment Income
Item Reporting Period Same period of last year
Investment income from long-term equity
194023.7970235.73
investments under equity method
Gains on disposal of long-term equity
0.000.00
investments
Gains on disposal of held-for-trading financial
1811687.481330123.81
assets
Gains from other equity instrument investment 0.00 769616.25
~ 148 ~Interim Report 2025
income during holding period
Gains from disposal of financial assets at fair
-19878125.78-27352763.75
value through other comprehensive income
Others 580950.87 71311.59
Total -17291463.64 -25111476.37
45. Gains on Changes in Fair Values
Sources Reporting Period Same period of last year
Financial assets at fair value through profit or loss 528360.62
Of which: gains on changes in fair value of derivatives
Total 528360.62
46. Credit Impairment Loss
Item Reporting Period Same period of last year
Bad debt of notes receivable 0.00 0.00
Bad debt of accounts receivable -530040.16 -208257.74
Bad debt of other receivables 1109057.18 265702.62
Total 579017.02 57444.88
47. Asset Impairment Loss
Item Reporting Period Same period of last year
I. Inventory falling price loss 954415.89 6603562.17
II. Impairment loss of fixed assets 0.00 0.00
III. Impairment loss of intangible assets 0.00 0.00
Total 954415.89 6603562.17
48. Gains on Disposal of Assets
Item Reporting Period Same period of last year
Gains/losses from disposal of fixed assets construction in
progress productive biological assets and intangible assets not 37146.67 115019.47
classified as held for sale
Of which: Fixed assets 37146.67 115019.47
Total 37146.67 115019.47
49. Non-operating Income
~ 149 ~Interim Report 2025
Recognised in current
Item Reporting Period Same period of last year non-recurring profit or
loss
Gains from damage or scrapping of
0.0041575.950.00
non-current asset
Fine and compensation 24891666.82 18024818.43 24891666.82
Sale of scrap 2859176.80 1837031.10 2859176.80
Release of payables 0.00 12171666.34 0.00
Others 648515.97 226918.17 648515.97
Total 28399359.59 32302009.99 28399359.59
50. Non-operating Expenses
Recognised in current
Item Reporting Period Same period of last year
non-recurring profit or loss
Loss from damage or scrapping of
697979.662146433.91697979.66
non-current assets
Donations 925000.00 3564000.00 925000.00
Other 405361.97 1085481.91 405361.97
Total 2028341.63 6795915.82 2028341.63
51. Income Tax Expenses
(1) Details of income tax expenses
Item Reporting Period Same period of last year
Current tax expenses 1371026535.77 1546400697.87
Deferred tax expenses -84349304.56 -217796797.42
Total 1286677231.21 1328603900.45
(2) Reconciliation of accounting profit and income tax expenses
Item Reporting Period
Profit before taxation 5064217975.18
Current income tax expense accounted at applicable tax rate of the
1266054493.80
Company as the parent
Influence of applying different tax rates by subsidiaries -10586132.43
Adjustment for prior period 28061594.62
Influence of non-taxable income -48505.95
Influence of non-deductible costs expenses and losses 11627795.45
~ 150 ~Interim Report 2025
Influence of deductible losses of unrecognised deferred income
tax at the beginning of the Reporting Period
Influence of deductible temporary difference or deductible losses
of unrecognised deferred income tax in the Reporting Period
Influence of development expense deduction -8432014.28
Tax rate adjustment to the beginning balance of deferred income
tax assets/liabilities
Income tax credits
Total 1286677231.21
52. Notes to the Statement of Cash Flows
(1) Other cash received relating to operating activities
Item Reporting Period Same period of last year
Security deposit guarantee and warranty 65670284.20 165662356.11
Government grants 38096549.86 27166798.37
Interest income 324132039.22 298352344.67
Release of restricted monetary assets 290541554.58 1290204326.83
Other 128389307.02 37349285.87
Total 846829734.88 1818735111.85
(2) Other cash payments relating to operating activities
Item Reporting Period Same period of last year
Cash paid in sales and distribution expenses and
1753917497.961281715414.95
general and administrative expense
Security deposit guarantee and warranty 65261571.87 267466177.89
Time deposits or deposits pledged for the
89341810.67292400389.87
issuance of notes payable
Others 157249646.94 118344932.30
Total 2065770527.44 1959926915.01
(3) Other cash payments relating to financing activities
Item Reporting Period Same period of last year
Rental fee 11832851.40 7509748.71
Total 11832851.40 7509748.71
Changes in liabilities arising from financing activities
Item Beginning Increase in the current period Decrease in the current period Ending balance
~ 151 ~Interim Report 2025
balance Changes in Changes in
Changes in cash Changes in cash
non-cash non-cash
Short-term
50038194.4485700000.001342563.0121295636.120.0115785121.33
Borrowings
Long-term
41600000.00144500000.002663211.481259922.2221053289.26166450000.00
Borrowings
Lease liabilities 84453588.30 0.00 1932708.45 0.00 13071083.59 73315213.16
lease liabilities due
13346230.730.0013071083.5911267773.650.0015149540.67
within one year
Long-term
Borrowings due 76489969.84 0.00 21053289.26 68045921.60 0.00 29497337.50
within one year
Total 265927983.31 230200000.00 40062855.79 101869253.59 34124372.85 400197212.66
53. Supplementary Information to the Statement of Cash Flows
(1) Supplementary information to the statement of cash flows
Supplementary information Reporting Period Same period of last year
1. Reconciliation of net profit to net cash
----
flows generated from operating activities:
Net profit 3777540743.97 3678916313.79
Add: Provisions for impairment of assets -6603562.17
-954415.89
Credit impairment provision -579017.02 -57444.88
Depreciation of fixed assets oil and gas
329626282.34214227566.25
assets and productive biological assets
8028920.19
Depreciation of right-of-use assets 8804476.73
Amortisation of intangible assets 19357592.50 22640191.99
Amortisation of long-term deferred expenses 27157131.74 10457067.79
Losses from disposal of fixed assets
intangible assets and other long-term assets -37146.67 -115019.47
(gains: negative)
Losses on scrapping of fixed assets (gains:
697979.662104857.96
negative)
Losses on changes in fair value (gains:
-528360.620.00
negative)
Finance costs (gains: negative) 5553600.24 3445346.57
~ 152 ~Interim Report 2025
Investment losses (gains: negative) -2586662.14 25111476.37
Decreases in deferred tax assets (increase:
-71450956.11-171674503.85
negative)
Increases in deferred tax liabilities (decrease:
-12898348.45-45431466.18
negative)
Decreases in inventories (increase: negative) -137280948.47 -231626040.62
Decreases in operating receivables (increase:
2598779357.38-626166581.73
negative)
Increases in operating payables (decrease:
-2587848998.50-163754993.35
negative)
Other*1 201199743.91 1290204326.83
Net cash flows from operating activities 4154552054.60 4009706455.49
2. Significant investing and financing
activities without involvement of cash
receipts and payments
Conversion of debt into capital
Current portion of convertible corporate
bonds
Fixed assets acquired under finance leases
3. Net increase/decrease of cash and cash
equivalents:
Ending balance of cash 15076527533.64 15865996371.71
Less: Beginning balance of cash 15193134694.19 14676167417.36
Add: Ending balance of cash equivalents
Less: Beginning balance of cash equivalents
Net increase in cash and cash equivalents -116607160.55 1189828954.35
*1: Mainly refer to the impacts of recovered restricted funds for operating activities of the same period of last year
and the restricted funds for operating activities paid in the current period on net cash flow generated from
operating activities of the reporting period.
(2) The components of cash and cash equivalents
Item Reporting Period Same period of last year
I. Cash 15076527533.64 15865996371.71
Including: Cash on hand 6045.93 45031.58
~ 153 ~Interim Report 2025
Item Reporting Period Same period of last year
Bank deposit on demand 15044905760.69 15835834577.80
Other monetary assets on demand 31615727.02 30116762.33
II. Cash equivalents
Of which: Bond investments maturing within three months
III. Ending balance of cash and cash equivalents 15076527533.64 15865996371.71
Of which: cash and cash equivalents with restriction to use in the
subsidies of the Company as the parent or Group
54. Assets with Restricted Ownership or Right of Use
Item Ending carrying value Reason
Pledged for opening bank acceptance
Cash and cash equivalents 499770028.43
bills L/G and other security deposit.Intangible assets 12651590.15 Pledged for loans
Total 512421618.58 --
55. Leases
(1) The Company as a lessee
Current gains and losses and cash flows related to leases
Item Reporting Period
Expenses for short-term lease under simplified method 3308362.50
Expenses for lease of low value asset (except for short-term lease) under simplified method
Interest expense of lease liabilities 1932708.45
Variable lease payments not included in lease liabilities recognised in current profit or loss
Income from subleasing the right-of-use assets
Cash outflows related to leases 22369335.40
Profit or loss in sale and leaseback transaction
(2) The Company as a lessor
Operating lease
Item Reporting Period
Lease income 4454487.68
Including: income related to variable lease payments not included in lease receivables 4454487.68
VI Research and Development Expenditures
Item Reporting Period Same period of last year
~ 154 ~Interim Report 2025
Item Reporting Period Same period of last year
Labour costs 27240880.08 23995060.27
Material costs 6665094.54 2031791.02
Depreciation costs 2111195.83 2058186.20
Others 4300576.92 5147260.85
Total 40317747.37 33232298.34
Including: Expensed R&D expenditures 40317747.37 33232298.34
Capitalised R&D expenditures 0.00 0.00
VII Changes in the Scope of Consolidation
1. Other Reasons of Changes in the Scope of ConsolidationCompared with the previous period the Company set up a new subsidiary “Anhui Guqi Distillery Sales Co.Ltd.”.VIII Interests in other Entities
1. Interests in Subsidiaries
(1) Composition of corporate group
Percentage of equity
Registered Principal
Registered Nature of interests by the Ways of
Name of subsidiary capital place of
Address business Company (%) acquisition
(RMB’0000) business
Direct Indirect
Anhui Commercial Investment
Bozhou Gujing Sales Co. Ltd. 8486.45 Anhui Bozhou 100.00
Bozhou trade establishment
Anhui Investment
Anhui Longrui Glass Co. Ltd 8871.03 Anhui Bozhou Manufacture 97.69
Bozhou establishment
Anhui Jiuan Mechanical Electrical Anhui Equipment Investment
1000.00 Anhui Bozhou 100.00
Equipment Co. Ltd. Bozhou manufacturing establishment
Anhui Jinyunlai Culture & Media Advertisement Investment
1500.00 Anhui Hefei Anhui Hefei 100.00
Co. Ltd. marketing establishment
Anhui Ruisiweier Technology Co. Anhui Technical Investment
5000.00 Anhui Bozhou 100.00
Ltd. Bozhou research establishment
Shanghai Gujing Jinhao Hotel Business
Hotel
Management Co. Ltd. 5400.00 Shanghai Shanghai 100.00 combination under
management
common control
Bozhou Gujing Hotel Co. Ltd Anhui Business
62.80 Anhui Bozhou Hotel operating 100.00
Bozhou combination under
~ 155 ~Interim Report 2025
Percentage of equity
Registered Principal
Registered Nature of interests by the Ways of
Name of subsidiary capital place of
Address business Company (%) acquisition
(RMB’0000) business
Direct Indirect
common control
Anhui Yuanqing Environmental Anhui Sewage Investment
1600.00 Anhui Bozhou 100.00
Protection Co. Ltd. Bozhou treatment establishment
Anhui Gujing Yunshang Electronic Investment
500.00 Anhui Hefei Anhui Hefei 100.00
E-commerce Co. Ltd commerce establishment
Anhui RunAnXinKe Testing Anhui Investment
1000.00 Anhui Bozhou Food testing 100.00
Technology Co. Ltd. Bozhou establishment
Anhui Jiudao Culture Media Co. Advertisement Investment
1500.00 Anhui Hefei Anhui Hefei 100.00
Ltd. marketing establishment
Anhui Gujinggong Liquor Original
Anhui Investment
Vintage Theme Hotel Management 1000.00 Anhui Bozhou Hotel operation 100.00
Bozhou establishment
Co. Ltd.Anhui Investment
Anhui Guqi Distillery Co. Ltd. 12000.00 Anhui Bozhou Manufacture 60.00
Bozhou establishment
Anhui Guqi Distillery Sales Co. Anhui Commercial Investment
500.00 Anhui Bozhou 60.00
Ltd. Bozhou trade establishment
Anhui Guge Culture Media Co. Anhui Advertisement Investment
500.00 Anhui Bozhou 100.00
Ltd. Bozhou marketing establishment
Anhui Gujing Suhuai Distillery Anhui Commercial Investment
1000.00 Anhui Suzhou 100.00
Sales Co. Ltd. Suzhou trade establishment
Business
Yellow Crane Tower Distillery Co. combination not
40000.00 Hubei Wuhan Hubei Wuhan Manufacture 51.00
under common
Ltd.control
Business
Yellow Crane Tower Distillery Hubei Hubei combination not
31000.00 Manufacture 51.00
(Xianning) Co. Ltd. Xianning Xianning under common
control
Business
Yellow Crane Tower Distillery Hubei combination not
20000.00 Hubei Suizhou Manufacture 51.00
(Suizhou) Co. Ltd. Suizhou under common
control
Business
Wuhan Tianlong Jindi Technology Commercial combination not
3000.00 Hubei Wuhan Hubei Wuhan 51.00
Development Co. Ltd trade under common
control
Xianning Junhe Sales Co. Ltd 1000.00 Hubei Hubei Commercial 51.00 Business
~ 156 ~Interim Report 2025
Percentage of equity
Registered Principal
Registered Nature of interests by the Ways of
Name of subsidiary capital place of
Address business Company (%) acquisition
(RMB’0000) business
Direct Indirect
Xianning Xianning trade combination not
under common
control
Commercial Investment
Wuhan Junya Sales Co. Ltd 100.00 Hubei Wuhan Hubei Wuhan 51.00
trade establishment
Suizhou Junhe Commercial Co. Hubei Commercial Investment
100.00 Hubei Suizhou 51.00
Ltd. Suizhou trade establishment
Huanggang Huanggang Commercial Investment
Huanggang Junya Trading Co. Ltd. 2000.00 51.00
Hubei Hubei trade establishment
Wuhan Gulou Junhe Trading Co. Commercial Investment
2000.00 Hubei Wuhan Hubei Wuhan 51.00
Ltd. trade establishment
Wuhan Gulou Juntai Trading Co. Commercial Investment
2000.00 Hubei Wuhan Hubei Wuhan 51.00
Ltd. trade establishment
Xiaogan Gulou Tiancheng Trading Hubei Hubei Commercial Investment
2000.0051.00
Co. Ltd. Xiaogan Xiaogan trade establishment
Commercial Investment
Ezhou Junya Trading Co. Ltd. 2000.00 Hubei Ezhou Hubei Ezhou 51.00
trade establishment
Commercial Investment
Wuhan Juntai Trading Co. Ltd. 2000.00 Hubei Wuhan Hubei Wuhan 51.00
trade establishment
Business
Anhui Mingguang Distillery Co. Anhui Anhui combination not
6883.00 Manufacture 60.00
Ltd. Chuzhou Mingguang under common
control
Business
Mingguang Tiancheng Ming Wine Anhui Anhui Commercial combination not
80.0060.00
Sales Co. Ltd. Chuzhou Mingguang trade under common
control
Anhui Jiuhao China Railway Anhui Investment
1100.00 Anhui Bozhou Construction 52.00
Construction Engineering Co. Ltd. Bozhou establishment
Anhui Zhenrui Construction Anhui Investment
1000.00 Anhui Bozhou Construction 52.00
Engineering Co. Ltd Bozhou establishment
Business
Renhuai Maotai Town Zhencang Renhuai Renhuai combination not
125.00 Manufacture 60.00
Winery Industry Co. Ltd. Guizhou Guizhou under common
control
Guizhou Zhencang Winery Industry Renhuai Renhuai Commercial Investment
100.0060.00
Sales Co. Ltd. Guizhou Guizhou trade establishment
~ 157 ~Interim Report 2025
Percentage of equity
Registered Principal
Registered Nature of interests by the Ways of
Name of subsidiary capital place of
Address business Company (%) acquisition
(RMB’0000) business
Direct Indirect
Anhui Gujing Health Technology Business
Co. Ltd. Anhui combination not
10768.50 Anhui Bozhou Manufacture 60.00
Bozhou under common
control
Anhui Maiqi Biotechnology Co. Business
Ltd. Anhui Technology combination not
1000.00 Anhui Bozhou 60.00
Bozhou development under common
control
Hainan Yangshengtianxia Business
Biotechnology Development Co. Hainan Hainan Commercial combination not
500.0060.00
Ltd. Lingshui Lingshui trade under common
control
(2) Significant non-wholly owned subsidiaries
Shareholding
The profit or loss Declaring dividends Balance of
proportion of
Name attributable to the distributed to non-controlling interests
non-controlling
non-controlling interests non-controlling interests at the period-end
interests
Yellow Crane Tower
49.0060810354.680.00711170992.89
Distillery Co. Ltd.
(3) Main financial information of significant non-wholly owned subsidiaries
Ending balance
Name Non-current Current Non-current
Current assets Total assets Total liabilities
assets liabilities liability
Yellow Crane
Tower Distillery 1378501712.21 1 100940199.77 2479441911.98 851795205.05 176277333.68 1028072538.73
Co. Ltd.
(Continued)
Beginning balance
Name Non-current Current Non-current
Current assets Total assets Total liabilities
assets liabilities liability
Yellow Crane Tower
1178956874.641127047720.082306004594.72789759669.36188942067.96978701737.32
Distillery Co. Ltd.
(Continued)
Name Reporting Period
~ 158 ~Interim Report 2025
Total comprehensive Cash flows from operating
Operating revenue Net profit
income activities
Yellow Crane Tower Distillery
995713140.70124102764.65124066515.85221205160.01
Co. Ltd.
(Continued)
Same period of last year
Name Total comprehensive Cash flows from
Operating revenue Net profit
income operating activities
Yellow Crane Tower Distillery
1070259791.38125343417.64125375740.27168005118.50
Co. Ltd.
2. Interests in Joint Arrangements or Associates
(1) Significant joint ventures or associates
The Company had no significant joint venture or associate.
(2) Summarised financial information about insignificant joint ventures and associates
Beginning balance/Same period of
Item Ending balance/Reporting Period
last year
Joint venture:
Total carrying amount of investments
The aggregate amount of below items calculated
based on proportion of equity interests:
—Net profit/(loss)
—Other comprehensive income
—Total comprehensive income
Associate:
Total carrying amount of investments 11926665.23 11732641.44
The aggregate amount of below items calculated
based on proportion of equity interests:
—Net profit/(loss) 194023.79 70235.73
—Other comprehensive income
—Total comprehensive income 194023.79 70235.73
IX Government Grants
1. Government Grants Recognised as Receivables
The ending balance of accounts receivable was RMB0.00.Reason for not receiving the projected amount of government grants at the projected point in time
~ 159 ~Interim Report 2025
□ Applicable □ Not applicable
2. Liability Items that Involve Government Grants
□ Applicable □ Not applicable
Items Amount
Amount
presented Increase in recognised in
recognised in
in the government non-operating Other changes Related to
Beginning other income
statement grants during income during the Ending balance assets or
balance during the
of the reporting during the reporting period income
reporting
financial period reporting
period
position period
Deferred Related to
122142913.254507000.007532972.54119116940.71
income assets
3. Government Grants Recognised in Current Profit or Loss
□ Applicable □ Not applicable
Items presented in income statement Reporting Period Same period of last year
Other income 42305674.84 22796192.89
X Risks Related to Financial Instruments
Risks related to the financial instruments of the Company arise from the recognition of various
financial assets and financial liabilities during its operation including credit risk liquidity risk and
market risk.Management of the Company is responsible for determining risk management objectives and
policies related to financial instruments. Operational management is responsible for the daily risk
management through functional departments (e.g. credit management department of the Company
reviews each credit sale). Internal audit department is responsible for the daily supervision of
implementation of the risk management policies and procedures and report their findings to the
audit committee in a timely manner.Overall risk management objective of the Company is to establish risk management policies to
minimise the risks without unduly affecting the competitiveness and resilience of the Company.
1. Credit Risk
Credit risk is the risk of one party of the financial instrument face to a financial loss because the
other party of the financial instrument fails to fulfil its obligation. The credit risk of the Company is
related to cash and equivalent notes receivable accounts receivables other receivables and
long-term receivables. Credit risk of these financial assets is derived from the counterparty’s breach
of contract. The maximum risk exposure is equal to the carrying amount of these financial
instruments.~ 160 ~Interim Report 2025
Cash and cash equivalent of the Company has lower credit risk as they are mainly deposited in
such financial institutions as commercial bank of which the Company thinks with higher reputation
and financial position. For notes receivable other receivables and long-term receivables the
Company establishes related policies to control their credit risk exposure. The Company assesses
credit capability of its customers and determines their credit terms based on their financial position
possibility of the guarantee from third party credit record and other factors (such as current market
status etc.). The Company monitors its customers’ credit record periodically and for those
customers with poor credit record the Company will take measures such as written call shortening
or cancelling their credit terms so as to ensure the overall credit risk of the Company is controllable.
(1) Determination of significant increases in credit risk
The Company assesses at each reporting date as to whether the credit risk on financial instruments
has increased significantly since initial recognition. When the Company determines whether the
credit risk has increased significantly since initial recognition it considers based on reasonable and
supportable information that is available without undue cost or effort including quantitative and
qualitative analysis of historical information external credit ratings and forward-looking
information. The Company determines the changes in the risk of a default occurring over the
expected life of the financial instrument through comparing the risk of a default occurring on the
financial instrument as at the reporting date with the risk of a default occurring on the financial
instrument as at the date of initial recognition based on individual financial instrument or a group of
financial instruments with the similar credit risk characteristics.When met one or more of the following quantitative or qualitative criteria the Company determines
that the credit risk on financial instruments has increased significantly: the quantitative criteria
applied mainly because as at the reporting date the increase in the probability of default occurring
over the lifetime is more than a certain percentage since the initial recognition; the qualitative
criteria applied if the debtor has adverse changes in business and economic conditions early
warning list of customer and etc.
(2) Definition of credit-impaired financial assets
The criteria adopted by the Company for determination of credit impairment are consistent with
internal credit risk management objectives of relevant financial instruments in considering both
quantitative and qualitative indicators.When the Company assesses whether the debtor has incurred the credit impairment the main
factors considered are as following: Significant financial difficulty of the issuer or the borrower; a
breach of contract e.g. default or past-due event; a lender having granted a concession to the
borrower for economic or contractual reasons relating to the borrower’s financial difficulty that the
lender would not otherwise consider; the probability that the borrower will enter bankruptcy or
other financial re-organisation; the disappearance of an active market for the financial asset because
~ 161 ~Interim Report 2025
of financial difficulties of the issuer or the borrower; the purchase or origination of a financial asset
at a deep discount that reflects the incurred credit losses.
(3) The parameter of expected credit loss measurement
The company measures impairment provision for different assets with the expected credit loss of
12-month or the lifetime based on whether there has been a significant increase in credit risk or
credit impairment has occurred. The key parameters for expected credit loss measurement include
default probability default loss rate and default risk exposure. The Company sets up the model of
default probability default loss rate and default risk exposure in considering the quantitative
analysis of historical statistics (such as counterparties’ ratings guarantee method and collateral type
repayment method etc.) and forward-looking information.Relevant definitions are as following:
Default probability refers to the probability of the debtor will fail to discharge the repayment
obligation over the next 12 months or the entire remaining lifetime;
Default loss rate refers to the Company’s expectation of the loss degree of default risk exposure.The default loss rate varies depending on the type of counterparty recourse method and priority
and the collateral. The default loss rate is the percentage of the risk exposure loss when default has
occurred and it is calculated over the next 12 months or the entire lifetime;
The default risk exposure refers to the amount that the company should be repaid when default has
occurred in the next 12 months or the entire lifetime. Both the assessment of significant increase in
credit risk of forward-looking information and the calculation of expected credit losses involve
forward-looking information. Through historical data analysis the Company identifies key
economic indicators that have impact on the credit risk and expected credit losses for each business.The maximum exposure to credit risk of the Company is the carrying amount of each financial asset
in the statement of financial position. The Company does not provide any other guarantees that may
expose the Company to credit risk.For the accounts receivable of the Company the amount of top 5 clients represents35.39% of the
total; for the other receivables the amount of the top five entities represents 34.31% of the total.
2. Liquidity Risk
Liquidity risk is the risk of shortage of funds when fulfilling the obligation of settlement by
delivering cash or other financial assets. The Company is responsible for the capital management of
all of its subsidiaries including short-term investment of cash surplus and dealing with forecasted
cash demand by raising loans. The Company’s policy is to monitor the demand for short-term and
long-term floating capital and whether the requirement of loan contracts is satisfied so as to ensure
to maintain adequate cash and cash equivalents.~ 162 ~Interim Report 2025
As of the end of the Reporting Period the maturities of the Company’s financial liabilities are as follows:
End balance
Item
Within 1 year 1-2 years 2-3 years Over 3 years
Short-term borrowings 117210448.43
Notes payable 419531822.56
Accounts payable 2301116226.39
Other payables 3356132934.98
Non-current liabilities due within
53106717.26
1 year
Other current liabilities
1489923860.57
Long-term borrowings 60491627.06 75330684.45 42242451.00
Lease liabilities 18239083.52 18399930.12 45552323.65
Total 7737022010.19 78730710.58 93730614.57 87794774.65
(Continued)
Opening balance
Item
Within 1 year 1-2 years 2-3 years Over 3 years
Short-term borrowings 51250000.00
Notes payable 589364409.55
Accounts payable 2942339182.13
Other payables 3146672513.57
Non-current liabilities due within
97742493.42
1 year
Other current liabilities 1691188287.40
Long-term borrowings 22231962.50 21100825.00
Lease liabilities 19162597.68 16968848.91 61492196.07
Total 8518556886.07 41394560.18 38069673.91 61492196.07
3. Market Risk
Market risk of financial instruments refers to the risk that the fair value or future cash flow of
financial instruments will fluctuate due to changes in market prices. Market risk mainly includes
foreign exchange risk and interest rate risk.
(1) Foreign currency risk
Foreign currency risk of the Company mainly arise from foreign currency assets and liabilities
denominated in currency other than the Company’s functional currency. The main business of the
Company is located in Chinese Mainland and the main business is settled in RMB. There is only a
~ 163 ~Interim Report 2025
small amount of export business which has a small proportion of income scale and impact and has
little exchange rate risk.
(2) Interest rate risk
Interest risk refers to the risk on the fair value or future cash flows of a financial instrument brought
by the change of market interest rate. Interest risk mainly arises from bank loans. As of 30 June
2025 the Company had no bank loan with a floating interest rate.
(3) Other price risk
Investments held for trading were measured at fair value. As such these investments are subject to
the risk brought by the change of security prices. The Company controls this risk to the acceptable
level by utilising multiple investment mix.XI Fair Value Disclosures
The inputs used in the fair value measurement in its entirety are to be classified in the level of the
hierarchy in which the lowest level input that is significant to the measurement is classified.Level 1: Inputs consist of unadjusted quoted prices in active markets for identical assets or
liabilities.Level 2: Inputs for the assets or liabilities (other than those included in Level 1) that are either
directly or indirectly observable.Level 3: Inputs are unobservable inputs for the assets or liabilities.
1. Assets and Liabilities Measured at Fair Value on 30 June 2025
Fair value on 30 June 2025
Item
Level 1 Level 2 Level 3 Total
I. Recurring fair value measurements
(I) Held-for-trading financial assets 125528360.62 125528360.62
1. Financial assets at fair value through
125528360.62125528360.62
profit or loss
(1) Debt instruments
(2) Bank financial products 125528360.62 125528360.62
(II) Financial assets measured at fair
value through other comprehensive 811013562.11 811013562.11
income
(1) Accounts receivable financing 737338297.08 737338297.08
~ 164 ~Interim Report 2025
Fair value on 30 June 2025
Item
Level 1 Level 2 Level 3 Total
(2) Investments in other equity
73675265.0373675265.03
instrument
Total assets measured at fair value on a
936541922.73936541922.73
recurring basis
The fair value of financial instruments traded in an active market is based on quoted market prices
at the reporting date. The fair value of financial instruments not traded in an active market is
determined by using valuation techniques. Specific valuation techniques used to value the above
financial instruments include discounted cash flow and market approach to comparable company
model. Inputs in the valuation technique include risk-free interest rates benchmark interest rates
exchange rates credit spreads liquidity premiums and discount for lack of liquidity.
2. Fair Value of Financial Assets or Financial Liabilities which are not Measured at Fair Value
The financial assets and financial liabilities of the Company measured at amortised cost mainly
include: cash and cash equivalents notes receivable accounts receivable other receivables debt
investments short-term borrowings notes payable accounts payable other payables long-term
borrowings maturing within one year long-term payables long-term borrowings and bonds
payable.XII Related Parties and Related Party Transactions
Recognition of related parties: The Company has control or joint control of or exercise significant
influence over another party; or the Company and another party are controlled or jointly controlled
by the same third party.
1. General Information of the Parent Company
Percentage of
Registered Registered capital Voting rights in the
Name of the parent Nature of the business equity interests in
address (RMB) Company (%)
the Company (%)
Anhui Gujing Group Anhui
Commercial trade 1000000000.00 51.34 51.34
Co. Ltd.Bozhou
The Company’s ultimate controller is the State-owned Asset Management Commission of the People’s
Government of Bozhou Anhui.
2. General Information of Subsidiaries
Details of the subsidiaries please refer to Notes 8.1 Interests in other Entities.
3. Joint Ventures and Associates of the Company
(1) General information of significant joint ventures and associates
~ 165 ~Interim Report 2025
Details of significant joint ventures and associates please refer to Notes 8.2 Interests in other Entities.
4. Other Related Parties of the Company
Name Relationship with the Company
Controlled by the Company’s controlling shareholder
Anhui Ruijing Shanglv (Group) Co. Ltd. (RJSL Group)
or ultimate controller
Anhui Ruijing Shanglv (Group) Co. Ltd. Hefei Gujing Holiday Inn (RJSL Controlled by the Company’s controlling shareholder
Holiday Inn) or ultimate controller
Controlled by the Company’s controlling shareholder
Bozhou Gujing Huishenglou Catering Co. Ltd.(GJ Huishenglou Catering)
or ultimate controller
Controlled by the Company’s controlling shareholder
Anhui Haochidian Catering Co. Ltd. (Haochidian Catering)
or ultimate controller
Controlled by the Company’s controlling shareholder
Anhui Ruijing Catering Co. Ltd. (Ruijing Catering)
or ultimate controller
Controlled by the Company’s controlling shareholder
Shanghai Beihai Hotel Co. Ltd. (Beihai Hotel)
or ultimate controller
Controlled by the Company’s controlling shareholder
Anhui Gujing Hotel Development Co. Ltd.(GJ Hotel Development)
or ultimate controller
Anhui Huixin Financial Investment Group Co. Ltd.(Huixin Financial Controlled by the Company’s controlling shareholder
Investment) or ultimate controller
Controlled by the Company’s controlling shareholder
Bozhou Anxin Small Loan Co. Ltd. (Anxin Small Loan)
or ultimate controller
Controlled by the Company’s controlling shareholder
Anhui Hengxin Pawnshop Co. Ltd. (Hengxin Pawnshop)
or ultimate controller
Controlled by the Company’s controlling shareholder
Anhui Ruixin Pawnshop Co. Ltd. (Ruixin Pawnshop)
or ultimate controller
Controlled by the Company’s controlling shareholder
Anhui Zhongxin Financial Leasing Co. Ltd.(Zhongxin Financial Leasing)
or ultimate controller
Controlled by the Company’s controlling shareholder
Anhui Youxin Financing Guarantee Co Ltd. (Youxin Guarantee)
or ultimate controller
Hefei Longxin Corporate Management Advisory Co. Ltd. (Longxin Controlled by the Company’s controlling shareholder
Advisory) or ultimate controller
Anhui Chuangxin Equity Investment Co. Ltd.(Chuangxin Equity Controlled by the Company’s controlling shareholder
Investment) or ultimate controller
~ 166 ~Interim Report 2025
Controlled by the Company’s controlling shareholder
Anhui Lejiu Jiayuan Travel Management Co. Ltd. (Lejiu Jiayuan)
or ultimate controller
Controlled by the Company’s controlling shareholder
Anhui Shenglong Trading Co. Ltd. (Shenglong Trading)
or ultimate controller
Controlled by the Company’s controlling shareholder
Bozhou Hotel Co. Ltd. (Bozhou Guest House)
or ultimate controller
Controlled by the Company’s controlling shareholder
Dongfang Ruijing Enterprise Investment Co. Ltd.(Dongfang Ruijing)
or ultimate controller
Controlled by the Company’s controlling shareholder
Anhui Jiuan Construction Management Advisory Co. Ltd.(Jiuan Advisory)
or ultimate controller
Dazhongyuan Jiugu Cultural Tourism Development Co. Ltd. (Dazhongyuan Controlled by the Company’s controlling shareholder
Jiugu Cultural) or ultimate controller
5. Related Party Transactions
(1) Purchases or sales of goods rendering or receiving of services
Purchases of goods receiving of services:
Reporting Same period of last
Related parties Nature of the transaction(s)
Period year
Receiving catering and 5433546.07 3528662.25
Bozhou Hotel Co. Ltd.accommodation
Receiving catering and
Bozhou Gujing Huishenglou Catering Co. Ltd. 3112747.15 2692164.50
accommodation
Receiving catering and
Anhui Gujing Hotel Development Co. Ltd. 753252.12 515749.97
accommodation
Purchases of materials and
Anhui Gujing Hotel Development Co. Ltd. 107809.29 193308.41
acceptance of labour
Anhui Vista Business Travel (Group) Co. Ltd. Purchases of materials 161459.85 0.00
Receiving catering and
Anhui Vista Business Travel (Group) Co. Ltd. 2301.89 0.00
accommodation
Receiving catering and
Hefei Gujing Holiday Hotel Co. Ltd. 53448.21 364357.70
accommodation
Purchases of materials and
Hefei Gujing Holiday Hotel Co. Ltd. 399211.93 143785.38
acceptance of labour
Anhui Youxin Financing Guarantee Co. Ltd. Accepting service 18307.43 57289.43
Anhui Jiuan Engineering Management
Advisory and assurance 3126013.80 7313584.49
Consulting Co. Ltd.Total -- 13168097.74 14808902.13
~ 167 ~Interim Report 2025
Sales of goods and rendering of services:
Nature of the
Related parties Reporting Period Same period of last year
transaction(s)
Anhui Shenglong Commercial Co. Ltd. Sales of baijiu 12110.60 220548.66
Provision of
Anhui Shenglong Trading Co. Ltd. catering and 3706.60 7675.83
accommodation
Sales of small
Anhui Shenglong Trading Co. Ltd. 28070.80 203.54
materials
Anhui Vista Business Travel (Group) Co. Ltd. Sales of baijiu 1371576.99 13539.83
Provision of
Anhui Vista Business Travel (Group) Co. Ltd. catering and 2676.58 2569.40
accommodation
Sales of small
Anhui Vista Business Travel (Group) Co. Ltd. 17734.52 2946.90
materials
Anhui Vista Business Travel (Group) Co. Ltd. Sales of small
272518.628853.98
Hefei Gujing Holiday Hotel Co. Ltd. materials
Anhui Vista Business Travel (Group) Co. Ltd.Sales of baijiu 22619.47 128123.90
Hefei Gujing Holiday Hotel Co. Ltd.Anhui Gujing Hotel Development Co. Ltd. Sales of baijiu 579136.29 492217.67
Provision of
Anhui Gujing Hotel Development Co. Ltd. 65837.28 76598.19
utilities
Provision of
Anhui Gujing Hotel Development Co. Ltd. catering and 138360.44 94339.62
accommodation
Sales of small
Anhui Gujing Hotel Development Co. Ltd. 1345.11 33747.07
materials
Provision of
Anhui Gujing Group Co. Ltd. catering and 173024.72 152324.02
accommodation
Sales of small
Anhui Gujing Group Co. Ltd. 25346.66 70556.36
materials
Sales of small
Bozhou Hotel Co. Ltd. 133618.75 75134.10
materials
Bozhou Hotel Co. Ltd. Sales of baijiu 263502.04 179690.27
Provide testing
Bozhou Hotel Co. Ltd. 707.55
services
Anhui Huixin Finance Investment Group Co. Ltd Sales of baijiu 3345.14 11867.25
Sales of small
Anhui Huixin Finance Investment Group Co. Ltd 584.07
materials
Anhui Huixin Finance Investment Group Co. Ltd Provision of 2243.40
~ 168 ~Interim Report 2025
Nature of the
Related parties Reporting Period Same period of last year
transaction(s)
catering and
accommodation
Bozhou Gujing Huishenglou Catering Co. Ltd. Sales of baijiu 37831.86 38150.44
Sales of small
Bozhou Gujing Huishenglou Catering Co. Ltd. 52341.97 10991.16
materials
Bozhou Gujing Huishenglou Catering Co. Ltd. Sales of baijiu 12849.06
Bozhou Anxin Micro Finance Co. Ltd. Sales of baijiu 8123.89 17522.12
Sales of small
Bozhou Anxin Micro Finance Co. Ltd. 8053.10
materials
Provision of
Bozhou Anxin Micro Finance Co. Ltd. 660.38
testing services
Provision of
Anhui Haochidian Catering Co. Ltd. catering and 72376.00
accommodation
Anhui Haochidian Catering Co. Ltd. Sales of baijiu 1374026.56 8522.12
Sales of small
Anhui Haochidian Catering Co. Ltd. 64589.41 21235.36
materials
3185.84
Anhui Zhongxin Finance Leasing Co. Ltd. Sales of baijiu 1274.34
Anhui Hengxin Pawn Co. Ltd. Sales of baijiu 2230.08 6371.69
Anhui Jiuan Engineering Management Consulting Co. Ltd. Sales of baijiu 6530.97 28672.56
Provision of
Anhui Jiuan Engineering Management Consulting Co. Ltd. catering and 292.45 800.00
accommodation
Shanghai Beihai Restaurant Co. Ltd. Sales of baijiu 796.46 26442.48
Provision of
Shanghai Beihai Restaurant Co. Ltd. catering and 1168.14
accommodation
Anhui Ruixin Pawn Co. Ltd. Sales of baijiu 1274.34 3185.84
Anhui Youxin Financing Guarantee Co. Ltd. Sales of baijiu 1274.34 3185.84
Sales of small
Anhui Youxin Financing Guarantee Co. Ltd. 292.03
materials
Hefei Longxin Business Management Consulting Co. Ltd Sales of baijiu 955.76 796.46
Sales of small
Hefei Longxin Business Management Consulting Co. Ltd 292.03
materials
Dongfang Vista Business Investment Development Co. Ltd. Provision of 34061.79
~ 169 ~Interim Report 2025
Nature of the
Related parties Reporting Period Same period of last year
transaction(s)
catering and
accommodation
Total -- 4689971.85 1849387.24
(2) Related-party leases
The Company as lessor:
Category of leased The lease income confirmed in The lease income confirmed in
Name of lessee
assets the Reporting Period the same period of last year
Anhui Gujing Hotel Development Co. Ltd. Houses and buildings 554733.32 546897.62
Total -- 554733.32 546897.62
The Company as lessee:
Reporting Period
Expenses for
short-term lease Variable lease
Category of Interest
Name of lessor and lease of low payments not Lease payment for Increase in
leased assets expense of
value asset included in lease current period right-of-use assets
lease liabilities
under simplified liabilities
method
Anhui Gujing Group Houses and
928357.4168960.38
Co. Ltd. buildings
Dazhongyuan Jiugu Houses
Cultural Tourism buildings 6999238.82 419452.89
Development Co. Ltd. and land
Total -- 7927596.23 488413.27
(Continued)
The same period of last year
Expenses for
short-term lease Variable lease
Category of Interest Increase in
Name of lessor and lease of low payments not Lease payment for
leased assets expense of right-of-use
value asset included in lease current period
lease liabilities assets
under simplified liabilities
method
Anhui Gujing Group Houses and
310396.560.00325916.390.000.00
Co. Ltd. buildings
Dazhongyuan Jiugu Houses
Cultural Tourism buildings 0.00 0.00 0.00 0.00 31179563.79
Development Co. Ltd. and land
~ 170 ~Interim Report 2025
The same period of last year
Expenses for
short-term lease Variable lease
Category of Interest Increase in
Name of lessor and lease of low payments not Lease payment for
leased assets expense of right-of-use
value asset included in lease current period
lease liabilities assets
under simplified liabilities
method
Total -- 310396.56 0.00 325916.39 0.00 31179563.79
6. Receivables and Payables with Related Parties
Item Related party Ending balance Beginning balance
Contract Bozhou Hotel Co. Ltd. 46201.50 16131.81
liabilities
Contract Bozhou Gujing Huishenglou Catering Co. Ltd. 5070.80
liabilities
Contract Anhui Vista Business Travel (Group) Co. Ltd. 1109624.78 1529729.09
liabilities
Contract Anhui Ruijing Shanglv (Group) Co. Ltd. Hefei Gujing
92838.23566.37
liabilities Holiday Inn (RJSL Holiday Inn)
Accounts payable Anhui Jiuan Engineering Management Consulting Co. 28603.23 172318.90
Ltd.Accounts payable Anhui Gujing Hotel Development Co. Ltd. 64366.90 15558.00
Accounts payable Bozhou Hotel Co. Ltd. 155845.44 155845.44
Anhui Ruijing Shanglv (Group) Co. Ltd. Hefei Gujing
Accounts payable 537302.65 381170.20
Holiday Inn (RJSL Holiday Inn)
Accounts payable Anhui Vista Business Travel (Group) Co. Ltd. 69414.82
Other payables Bozhou Hotel Co. Ltd. 10000.00
Other payables Anhui Vista Business Travel (Group) Co. Ltd. 305533.60 305533.60
Other payables Anhui Gujing Hotel Development Co. Ltd. 100300.00 100000.00
Other payables Anhui Jiuan Engineering Management Consulting Co. 53877.00 47877.00
Ltd.XIII Commitments and Contingencies
1. Significant Commitments
As at 30 June 2025 the Company has no significant commitments need to be disclosed.
2. Contingencies
As at 30 June 2025 the Company has no significant contingencies need to be disclosed.~ 171 ~Interim Report 2025
XIV Events after Balance Sheet Date
As at 29 August 2025 the Company had no any other post-balance sheet events that required disclosure.XV Other Significant Matters
Segment Information
The Company did not determine the operating segment in accordance with the internal organisational structure
management requirements and internal reporting system so there was no need to disclose segment information
report based on the operating segments.XVI Notes to the Main Items of the Financial Statements of the Parent Company
1. Accounts Receivable
(1) On 30 June 2025 the Company as the parent has no balance of accounts receivable.
(2) On 1 January 2025 the Company as the parent has no balance of accounts receivable.
(3) There is no change in bad debt provision for the Company as the parent during the Reporting Period.
2. Other Receivables
(1) Listed by category
Item Ending balance Beginning balance
Interest receivable
Dividends receivable
Other receivables 464390649.10 505111096.18
Total 464390649.10 505111096.18
(2) Other receivables
(i) Disclosure by aging
Aging Ending balance Beginning balance
Within one year 182886383.01 312820191.46
Of which:1-6 months 32184263.98 222819167.02
7-12 months 150702119.03 90001024.44
1-2 years 181709100.36 192491023.18
2-3 years 100020500.00 20500.00
Over 3 years 1699136.00 2408794.09
Subtotal 466315119.37 507740508.73
~ 172 ~Interim Report 2025
Aging Ending balance Beginning balance
Less: Bad debt provision 1924470.27 2629412.55
Total 464390649.10 505111096.18
(ii) Disclosure by nature
Nature Ending balance Beginning balance
Related parties within the scope of
458027435.91497697675.07
consolidation
Security deposit and guarantee 3073931.08 3763589.17
Rent utilities and gasoline charges 1603451.19 1002533.40
Other 3610301.19 5276711.09
Subtotal 466315119.37 507740508.73
Less: Bad debt provision 1924470.27 2629412.55
Total 464390649.10 505111096.18
(iii) Disclosure by withdrawal method of bad debt provision
A. As of 30 June 2025 bad debt provision withdrawn based on three stages model:
Stage Carrying amount Bad debt provision Carrying value
Stage 1 466315119.37 1924470.27 464390649.10
Stage 2
Stage 3
Total 466315119.37 1924470.27 464390649.10
A1. As of 30 June 2025 bad debt provision at stage 1:
12-month expected credit
Category Carrying amount Bad debt provision Carrying value
losses rate (%)
Bad debt provision withdrawn
separately
Bad debt provision withdrawn
466315119.370.411924470.27464390649.10
by group-
Of which: Group 1 458027435.91 0.00 0.00 458027435.91
Group 2 8287683.46 23.22 1924470.27 6363213.19
Total 466315119.37 0.41 1924470.27 464390649.10
On 30 June 2025 other receivables with bad debt provision withdrawn by group 2
~ 173 ~Interim Report 2025
Ending balance
Aging Withdrawal proportion
Carrying amount Bad debt provision
(%)
Within one year 5108947.10 69174.23 1.35
Of which:1-6 months 4656828.07 46568.28 1.00
7-12 months 452119.03 22605.95 5.00
1-2 years 1459100.36 145910.04 10.00
2-3 years 20500.00 10250.00 50.00
Over 3 years 1699136.00 1699136.00 100.00
Total 8287683.46 1924470.27 23.22
B. As of 1 January 2025 bad debt provision withdrawn based on three stages model:
Stage Carrying amount Bad debt provision Carrying value
Stage 1 507740508.73 2629412.55 505111096.18
Stage 2
Stage 3
Total 507740508.73 2629412.55 505111096.18
B1. On 1 January 2025 bad debt provision at stage 1:
12-month expected credit
Category Carrying amount Bad debt provision Carrying value
losses rate (%)
Bad debt provision withdrawn
separately
Bad debt provision withdrawn
507740508.730.522629412.55505111096.18
by group
Of which: Group 1 497697675.07 0.00 0.00 497697675.07
Group 2 10042833.66 26.18 2629412.55 7413421.11
Total 507740508.73 0.52 2629412.55 505111096.18
On 1 January 2025 other receivables with bad debt provision withdrawn by group 2
Beginning balance
Aging Withdrawal proportion
Carrying amount Bad debt provision
(%)
Within one year 6122516.39 61266.14 1.00
Of which: 1-6 months 6121491.95 61214.92 1.00
7-12 months 1024.44 51.22 5.00
~ 174 ~Interim Report 2025
Beginning balance
Aging Withdrawal proportion
Carrying amount Bad debt provision
(%)
1-2 years 1491023.18 149102.32 10.00
2-3 years 20500.00 10250.00 50.00
Over 3 years 2408794.09 2408794.09 100.00
Total 10042833.66 2629412.55 26.18
(iv) Changes of bad debt provision during the Reporting Period
Changes in the Reporting Period
Category Beginning balance Reversal or Elimination or Ending balance
Withdrawal
recovery Write-off
Bad debt provision withdrawn
separately
Bad debt provision withdrawn by
2629412.55704942.281924470.27
group
Total 2629412.55 704942.28 1924470.27
(v) On 30 June 2025 top five ending balance by entity
Proportion of
the balance to
Bad debt
No. Nature Ending balance Aging the total other
provision
receivables
(%)
Current accounts within the
No. 1 380000000.00 Within 3 years 81.49
scope of consolidation
Current accounts within the
No. 2 60000000.00 Within 3 years 12.87
scope of consolidation
Current accounts within the
No. 3 15895086.33 Within 6 months 3.41
scope of consolidation
Security deposit and
No. 4 1303136.00 Over 3 years 0.28 1303136.00
guarantee
No. 5 Other 1295642.76 Within 6 month 0.28 12956.43
Total -- 458493865.09 -- 98.33 1316092.43
3. Long-term Equity Investments
Item Ending balance Beginning balance
~ 175 ~Interim Report 2025
Depreciation Depreciation
Carrying amount Carrying value Carrying amount Carrying value
reserve reserve
Investment in
1694079903.431694079903.431642079903.431642079903.43
subsidiaries
Investment in
associated 6412572.93 6412572.93 6218934.37 6218934.37
enterprises
Total 1700492476.36 1700492476.36 1648298837.80 1648298837.80
(1) Investments in subsidiaries
Impairment
Decrease
Increase during provision Provision for
Beginning during the
Investees the Reporting Ending balance during the impairment at 30
balance Reporting
Period Reporting June 2025
Period
Period
Bozhou Gujing Sales Co.
68949286.8968949286.89
Ltd.Anhui Longrui Glass Co.
85267453.0685267453.06
Ltd.Shanghai Gujing Jinhao
Hotel Management Co. 49906854.63 49906854.63
Ltd.Bozhou Gujing Hotel Co.
648646.80648646.80
Ltd.Anhui Ruisiweier
40000000.0040000000.00
Technology Co. Ltd.Anhui Yuanqing
Environmental Protection 16000000.00 16000000.00
Co. Ltd.Anhui Gujing Yunshang
5000000.005000000.00
E-commerce Co. Ltd.Yellow Crane Tower
816000000.00816000000.00
Distillery Co. Ltd.Anhui Jinyunnlai Cultural 15000000.00 15000000.00
~ 176 ~Interim Report 2025
Impairment
Decrease
Increase during provision Provision for
Beginning during the
Investees the Reporting Ending balance during the impairment at 30
balance Reporting
Period Reporting June 2025
Period
Period
Media Co. Ltd.Anhui RunanXinke Testing
10000000.0010000000.00
Technology Co. Ltd.Anhui Jiuan Mechanical
Electrical Equipment Co. 10000000.00 10000000.00
Ltd.Anhui Mingguang
200200000.00200200000.00
Distillery Co. Ltd.Renhuai Maotai Town
Zhencang Winery Industry 224723400.00 224723400.00
Co. Ltd.Anhui Jiuhao China
Railway Construction 5720000.00 5720000.00
Engineering Co. Ltd.Anhui Gujing Health
34664262.0534664262.05
Technology Co. Ltd.Anhui Gujinggong Liquor
Original Vintage Theme
10000000.0010000000.00
Hotel Management Co.Ltd.Anhui Guqi Distillery Co.
45000000.0027000000.0072000000.00
Ltd.Anhui Guge Culture Media
5000000.005000000.00
Co. Ltd.Anhui Jiudao Culture
15000000.0015000000.00
Media Co. Ltd.Anhui Gujing Suhuai
10000000.0010000000.00
Distillery Sales Co. Ltd.Total 1642079903.43 52000000.00 1694079903.43
(2) Investment in associated enterprises
Investee Beginning Increase/decrease
~ 177 ~Interim Report 2025
balance
Adjustment of
Investment income
Additional Reduced other Changes of
recognised under
investment investment
comprehensive other equity
the equity method
income
I. Joint ventures
Anhui Xunfei Jiuzhi
6218934.37193638.56
Technology Co. Ltd.Total 6218934.37 193638.56
(Continued)
Increase/decrease
Ending balance of
Withdrawal of
Investee Cash bonus or profits Ending balance depreciation
impairment Other
announced to issue reserve
provision
I. Joint ventures
Anhui Xunfei Jiuzhi Technology
6412572.93
Co. Ltd.Total 6412572.93
4. Operating Revenue and Cost of Sales
Reporting Period Same period of last year
Item
Operating revenue Cost of sales Operating revenue Cost of sales
Main operations 8060744756.47 2614476607.07 7313486177.50 2404603519.54
Other operations 84764322.29 49522357.39 70531313.91 40994559.06
Total 8145509078.76 2663998964.46 7384017491.41 2445598078.60
Information on performance obligations: None.
5. Investment Income
Item Reporting Period Same period of last year
Investment income from long-term equity investments under cost
36369925.600.00
method
Investment income from long-term equity investments under equity
193638.5668099.43
method
Gains on disposal of financial assets at fair value through profit or
341166.671330123.81
loss
Gains on disposal of financial assets at fair value through other
-19878125.78-27719016.19
comprehensive income
~ 178 ~Interim Report 2025
Item Reporting Period Same period of last year
Other investment income 233241.34 12646.55
Total 17259846.39 -26308146.40
XVII Supplementary Materials
1. Items and Amounts of Non-recurring Profit or Loss
Item Amount Note
Gain or loss on disposal of non-current
-660832.99
assets
Government grants recognised in profit or
loss (exclusive of those that are closely
related to the Company’s normal business
operations and given in accordance with
33124858.63
defined criteria and in compliance with
government policies and have a
continuing impact on the Company’s
profit or loss)
Gain or loss on fair-value changes in
financial assets and liabilities held by a
non-financial enterprise as well as on
disposal of financial assets and liabilities 2801653.30
(exclusive of the effective portion of
hedges that is related to the Company’s
normal business operations)
Depreciation reserves returns of
0.00
receivables with separate depreciation test
Non-operating income and expense other
27068997.62
than the above
Less: Income tax effects 15304127.17
Non-controlling interests effects (net
11833757.45
of tax)
Total 35196791.94 --
Others that meets the definition of non-recurring gain/loss:
□Applicable □ Not applicable
No such cases in the Reporting Period.Explain the reasons if the Company classifies any extraordinary gain/loss item mentioned in the Explanatory
Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the
Public—Non-recurring Gains and Losses as a recurrent gain/loss item
□Applicable □ Not applicable
2. Return on Net Assets and Earnings Per Share
Profit as of Reporting Period Weighted average ROE EPS (RMB/share)
~ 179 ~Interim Report 2025
(%) EPS-basic EPS-diluted
Net profit attributable to ordinary shareholders of the
13.826.936.93
Company
Net profit attributable to ordinary shareholders of the
13.696.866.86
Company after deduction of non-recurring profit and loss
3. Differences between Accounting Data under Domestic and Overseas Accounting Standards
(1) Differences of Net Profit and Net Assets Disclosed in Financial Reports Prepared under International and
Chinese Accounting Standards
□ Applicable □ Not applicable
(2) Differences of Net profit and Net assets Disclosed in Financial Reports Prepared under Overseas and Chinese
Accounting Standards
□ Applicable □ Not applicable
(3) Explain Reasons for the Differences between Accounting Data under Domestic and Overseas Accounting
Standards; for any Adjustment Made to the Difference Existing in the Data Audited by the Foreign Auditing
Agent Such Foreign Auditing Agent’s Name Shall Be Clearly Stated
None
~ 180 ~Interim Report 2025
Part IX Submission of Other Data
I Other Significant Social Security Issues
Whether the listed company and its subsidiaries have other significant social security issues.□ Yes □ No □ Not applicable
Whether administrative penalties were imposed during the Reporting Period.□ Yes □ No □ Not applicable
II Register of Activities such as Reception of Research Communication and Interviews
during the Reporting Period
□ Applicable □ Not applicable
Main content of
Index of basic
Time of the discussion
Location Method Visitor Type Visitor information of
reception and materials
research
provided
See the Records
of Investor“Investor Investors whoRelation
Relation attended the
Online Activities
Interactive Company’s Reply to
communication Institutions and (2025-001)
20 May 2025 Platform” of online investors’
via online individuals disclosed on the
Quanjing.com performance questions
platforms website of
(https://ir.p5 briefing for
Cninfo by the
w.net) 2024
Company for
details.III. Fund Intercourse of Controlling Shareholders and Other Stakeholders of the Listed
Company
□ Applicable □ Not applicable
Chairman of the Board: (Liang Jinhui)
Anhui Gujing Distillery Company Limited
29 August 2025
~181~
沪公网安备31011802005267号
