ANHUI GUJING DISTILLERY COMPANY LIMITED
INTERIM REPORT 2026
August 2026Interim Report 2026
Part I Important Notes Table of Contents and Definitions
The Board of Directors (or the “Board”) as well as the directors and senior
management of Anhui Gujing Distillery Company Limited (hereinafter referred to as
the “Company”) hereby guarantees 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.The forward-looking statements in this Report including those concerning future
plans do not constitute substantive commitments by the Company to investors.Investors and other relevant parties should be fully aware of the associated risks and
understand the differences between plans forecasts and commitments. Investors are
advised to exercise caution with respect to investment risks.The Company has provided a detailed description of the risk factors that may
adversely affect the implementation of its future development strategies and the
achievement of its business objectives together with the proposed countermeasures
in “X Risks Facing the Company and Countermeasures” under “Part IIIManagement Discussion and Analysis” of this Report. Investors are advised to pay
close attention to the relevant information.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.~ 2 ~Interim Report 2026
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 25
Part V Significant Events 27
Part VI Share Changes and Shareholder Information 31
Part VII Bonds 36
Part VIII Financial Statements 37
~ 3 ~Interim Report 2026
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 2026
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 2026
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 2025 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
The newspapers designated by the Company for information disclosure the website designated by the CSRC for disclosing the
~ 6 ~Interim Report 2026
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 2025 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 2026 H1 2025 Change (%)
Operating revenue (RMB) 10131395927.11 13879852202.75 -27.01%
Net profit attributable to the listed
2164379928.173661585785.94-40.89%
Company’s shareholders (RMB)
Net profit attributable to the listed
Company’s shareholders before 2150029442.57 3626388994.00 -40.71%
exceptional gains and losses (RMB)
Net cash generated from/used in operating
1542535137.604154552054.60-62.87%
activities (RMB)
Basic earnings per share (RMB/share) 4.09 6.93 -40.98%
Diluted earnings per share (RMB/share) 4.09 6.93 -40.98%
Weighted average return on equity (%) 8.42% 13.82% -5.40%
June 30 2026 December 31 2025 Change (%)
Total assets (RMB) 38438419469.81 38197033001.78 0.63%
Equity attributable to the listed Company’s
24890862933.6925050216942.36-0.64%
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
No such differences for the Reporting Period.~ 7 ~Interim Report 2026
XI Exceptional Gains and Losses
□ Applicable □ Not applicable
Unit: RMB
Item Amount Note
Gain or loss on disposal of non-current assets (inclusive of
-3196292.95
impairment allowance write-offs)
Government grants recognized in profit or loss (exclusive of those
that are closely related to the Company’s normal business
operations and given in accordance with defined criteria and in 3811624.84
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 non-financial enterprises & disposal of financial assets and
4725821.88
liabilities exclusive of effective portion of hedges that arise in the
Company’s ordinary course of business
Non-operating income and expense other than the above 15330854.80
Less: Income tax effects 5089326.72
Non-controlling interests effects (net of tax) 1232196.25
Total 14350485.60 --
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 2026
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 Categorization 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 Industry
In the first half of 2026 the baijiu industry remained in a period of deep adjustment shifting from accelerated clearing to a
bottoming-out phase. Industry divergence intensified further.On the demand side baijiu consumption scenarios continued to be reshaped. Demand for business banquets and gift-giving
contracted significantly while mass-market consumption scenarios such as everyday personal consumption gatherings with friends
and relatives and family banquets accounted for a growing share. Consumer demand became concentrated in the pivotal
RMB100–300 price range and companies with core flagship products in this price range demonstrated greater resilience. Driven by
the peak Chinese New Year season personal dining and banquet scenarios gradually recovered while business scenarios remained at
a low level. Overall demand still fell short of the level recorded in the same period of the previous year.In terms of the competitive landscape the high-end baijiu segment was the first to stabilize and rebound. Sub-high-end and regional
baijiu producers generally remained under pressure. Most companies continued to report double-digit declines in operating revenue
although the declines narrowed sequentially demonstrating a tiered recovery characterized by earlier stabilization among those that
had adjusted earlier.Changes in distribution channels and pricing systems became the main theme of the industry in the first half of the year. Leading
baijiu producers generally strengthened shipment controls and a consensus was reached on prioritizing price over volume. They
proactively controlled shipments supported prices and reduced distributor inventories.Overall the baijiu industry remained in an adjustment cycle in the first half of 2026 but there were clear signs of marginal
improvement: The core base of high-end demand remained solid distributor inventories were reduced in an orderly manner pricing
systems became more market-oriented and industry concentration increased further. Companies with strong brands effective control
over distribution channels and a reasonable presence across price ranges will be the first to emerge from the cycle. In the second half
of the year the industry is expected to continue experiencing a weak recovery alongside pronounced divergence with the pace of
demand recovery and progress in inventory reduction remaining the key variables.
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
~ 9 ~Interim Report 2026
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 flavor 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 honors.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
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 flavor 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 organized 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 in change
in
By Operating revenue Cost of sales Gross profit margin operating in cost
gross
revenue of sales
profit
(%)(%)
margin
~ 10 ~Interim Report 2026
(%)
Channel
Online 658087417.84 180594321.35 72.56% 14.92% 17.63% -0.63%
Offline 9473308509.27 1812258008.37 80.87% -28.81% -31.35% 0.71%
Total 10131395927.11 1992852329.72 80.33% -27.01% -28.66% 0.46%
YoY
YoY YoY change
change in change in
By Operating revenue Cost of sales Gross profit margin operating in cost gross
revenue of sales profit
(%) (%) margin
(%)
Product series
Original Vintage 7965299212.68 1192163260.93 85.03% -27.32% -26.80% -0.11%
Gujinggong Liquor 1052154074.33 466067546.93 55.70% -11.14% -17.94% 3.66%
Yellow Crane Tower and others 979335025.25 277974790.72 71.62% -34.57% -36.80% 1.00%
Total 9996788312.26 1936205598.58 80.63% -26.71% -26.56% -0.04%
2. Distributors
Region Ending number Increase or decrease in quantity during the Reporting Period
North China 1288 -37
South China 668 12
Central China 2762 -94
Overseas 22 -6
Total 4740 -125
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
authorized distribution.
4. Top five distributors
Total sales to top five distributors (RMB) 1461349195.37
Total sales to top five distributors as % of total sales of the
14.42%
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
~ 11 ~Interim Report 2026
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 Douyin.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
Purchase model: 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)
Strategic purchasing 33055.43
1 Raw materials and fuels
Tendering purchasing 49908.95
2 Packaging materials Tendering purchasing 104498.80
Total 187463.18
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 Center 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 2026 H1 2025
Change
Item As % of total cost of As % of total cost of
Cost of sales (RMB) Cost of sales (RMB) (%)
sales sales
Direct
1533436126.6176.95%2225614933.0279.67%-31.10%
materials
Direct labor
216488831.8910.86%232060010.498.31%-6.71%
cost
Manufacturi
131360378.966.59%118160275.494.23%11.17%
ng expenses
Fuels 54920261.12 2.76% 60477475.81 2.16% -9.19%
Total 1936205598.58 97.16% 2636312694.81 94.37% -26.56%
Output and inventory
1. Output sales volume and inventory of main products for the Reporting Period and respective YoY changes thereof
Unit: ton
~ 12 ~Interim Report 2026
YoY changes
YoY changes YoY changes
Main product Output Sales volume inventory of sales
of output of inventory
volume
Original Vintage Series 33732.27 38826.65 10255.85 8.55% -16.66% 10.73%
Gujinggong Liquor Series 18246.83 19340.35 1649.35 9.93% -1.56% -22.80%
Yellow Crane Tower Liquor
9524.5111023.482863.05-29.30%-27.50%10.71%
Series and other
2. Ending inventory of finished liquor and semi-product
Category Ending quantity (ton)
Finished liquor 14768.25
Semi-product 410854.42
3. Capacity of the main product
Unit: ton
Main product Designed capacity (annual) Actual capacity (H1) Capacity in progress (annual)
Finished liquor 180000 61504 0.00
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 2026 H1 2025 Change (%) Main reason for change
Operating revenue 10131395927.11 13879852202.75 -27.01%
Cost of sales 1992852329.72 2793535258.54 -28.66%
Selling expense 3072505534.43 3511408555.96 -12.50%
Administrative expense 631017032.54 671417776.78 -6.02%
Finance costs -232980659.91 -315707816.32 26.20%
Mainly due to the
Income tax expense 753932840.70 1286677231.21 -41.40%
decrease in total profit.Net cash generated 1542535137.60 4154552054.60 -62.87% Mainly due to the
~ 13 ~Interim Report 2026
from/used in operating decrease in cash
activities received from the sale
of goods.Net cash generated
from/used in investing -1401723590.26 -1218716061.05 -15.02%
activities
Net cash generated Mainly due to the
from/used in financing -596788401.09 -3052443154.10 80.45% distribution of the 2025
activities dividend in July 2026.Mainly due to the
Net increase in cash decrease in cash
-455976853.75-116607160.55-291.04%
and cash equivalents received from the sale
of goods.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 2026 H1 2025
As % of total As % of total
Change (%)
Operating revenue operating revenue Operating revenue operating revenue
(%)(%)
Total 10131395927.11 100% 13879852202.75 100% -27.01%
By operating division
Manufacturing 10131395927.11 100% 13879852202.75 100% -27.01%
By product category
Baijiu 9996788312.26 98.67% 13639596262.27 98.27% -26.71%
Hotel services 33538337.39 0.33% 45775898.86 0.33% -26.73%
Other 101069277.46 1.00% 194480041.62 1.40% -48.03%
By operating segment
North China 398918435.26 3.94% 809341217.22 5.83% -50.71%
Central China 9125205701.57 90.07% 12297380470.09 88.60% -25.80%
South China 603328414.66 5.95% 768186540.95 5.53% -21.46%
Overseas 3943375.62 0.04% 4943974.49 0.04% -20.24%
Operating division product category or operating segment contributing over 10% of operating revenue or operating profit
□ Applicable □ Not applicable
Unit: RMB
~ 14 ~Interim Report 2026
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 10131395927.11 1992852329.72 80.33% -27.01% -28.66% 0.46%
By product category
Baijiu 9996788312.26 1936205598.58 80.63% -26.71% -26.56% -0.04%
Hotel services 33538337.39 14634661.89 56.36% -26.73% -39.21% 8.95%
Other 101069277.46 42012069.25 58.43% -48.03% -68.45% 26.89%
By operating segment
North China 398918435.26 118850703.25 70.21% -50.71% -43.53% -3.79%
Central China 9125205701.57 1755683018.30 80.76% -25.80% -27.79% 0.53%
South China 603328414.66 116714281.95 80.65% -21.46% -22.18% 0.17%
Overseas 3943375.62 1604326.22 59.32% -20.24% -8.07% -5.38%
Core business data of the prior year restated according to the changed statistical caliber 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 2026 H1 2025 Change (%) Reason
Employment
588772275.16664068763.31-11.34%
benefits
Travel fees 126095272.65 134242942.14 -6.07%
Advertisement
729372049.18715108133.201.99%
fees
Comprehensive
1198947459.251545750834.47-22.44%
promotion costs
Service fees 357789020.82 391207359.74 -8.54%
Others 71529457.37 61030523.10 17.20%
Total 3072505534.43 3511408555.96 -12.50%
Details about advertisement
No. Main way Amount (RMB’0000)
1 TV 24780.89
2 Offline 31931.19
3 Online 16225.12
~ 15 ~Interim Report 2026
Total 72937.20
IV Analysis of Non-Core Businesses
□ Applicable □ Not applicable
V Analysis of Assets and Liabilities
1. Significant Changes in Asset Composition
Unit: RMB
June 30 2026 December 31 2025 Reason for any
Change in
As % of total As % of total significant
Amount Amount percentage (%)
assets assets change
Monetary
13301559595.0134.60%14187463729.8137.14%-2.54%
assets
Accounts
39606536.910.10%53996692.680.14%-0.04%
receivable
Inventories 10795173106.25 28.08% 10739794676.82 28.12% -0.04%
Investment
15143626.210.04%16036411.820.04%0.00%
property
Long-term
equity 14318896.10 0.04% 11574463.54 0.03% 0.01%
investments
Fixed assets 8951160974.66 23.29% 9121969040.94 23.88% -0.59%
Construction
158710163.850.41%160290473.750.42%-0.01%
in progress
Right-of-use
82568459.190.21%92161801.760.24%-0.03%
assets
Short-term
129105400.430.34%184830263.450.48%-0.14%
borrowings
Contract
833610499.572.17%1519882489.703.98%-1.81%
liabilities
Long-term
234479589.940.61%260199589.940.68%-0.07%
borrowings
Lease
63585545.090.17%76138828.430.20%-0.03%
liabilities
~ 16 ~Interim Report 2026
2. Major Assets Overseas
□ Applicable □ Not applicable
3. Assets and Liabilities at Fair Value
□ Applicable □ Not applicable
Unit: RMB
Gain/Loss
Cumulative Impairment
on fair-value
fair-value allowance Purchased in Sold in the
Beginning changes in Other
Item changes for the the Reporting Reporting Ending amount
amount the changes
charged to Reporting Period Period
Reporting
equity Period
Period
Financial assets
1.Held-for-trading
financial assets
(excluding 0.00 2753738.33 0.00 0.00 700000000.00 100058395.87 602695342.46
derivative
financial assets)
2. Investments in
other equity 73526017.72 0.00 2847194.40 0.00 0.00 0.00 76373212.12
instruments
Subtotal of
73526017.722753738.332847194.400.00700000000.00100058395.87679068554.58
financial assets
Total of the above 73526017.72 2753738.33 2847194.40 0.00 700000000.00 100058395.87 679068554.58
Financial
0.000.000.000.000.000.000.00
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 1263284630.19
letters and other security deposits etc.Intangible assets 16358197.88 Pledged for loans.Total 1279642828.07 --
~ 17 ~Interim Report 2026
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
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
~ 18 ~Interim Report 2026
Proportion
of closing
Actual
Purchased in investment
Relationship Initial Beginning Sold in the Impairment Ending gain/loss in
Connected Type of the amount in
Operator with the investment Starting date Ending date investment Reporting provision (if investment the
transaction derivative Reporting the
Company amount amount Period any) amount Reporting
Period Company’s
Period
ending net
assets
Reverse
Reverse
repurchase December October 7
Naught No repurchase of 15793.00 333649.10 293926.30 55515.80 2.14% 197.21
of national 24 2025 2026
national debt
debt
Total -- -- 15793.00 333649.10 293926.30 55515.80 2.14% 197.21
Capital source for derivative investment Company’s own funds
Lawsuits involved (if applicable) N/A
Disclosure date of board announcement approving
April 28 2026
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 Securities 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
~ 19 ~Interim Report 2026
related assumptions and parameters)
Significant changes in accounting policies and specific
accounting principles adopted for derivative
N/A
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
Company Relationship Main Registered capital Total assets Net assets Operating revenues Operating profit Net profit
~ 20 ~Interim Report 2026
name with the business
Company scope
Wholesale of
baijiu
building
materials
feed raw
materials
and auxiliary
Bozhou materials;
Gujing Sales Subsidiary tourism 84864497.89 7821797542.28 2220861799.27 10174145696.70 434716729.17 332696364.37
Co. Ltd project
services
(tourism
projects
within the
Gujing
Tourist
Attraction)
Subsidiaries obtained or disposed in the Reporting Period
□ Applicable ? Not applicable
Notes to main controlled and joint stock companies
Not applicable.~ 21 ~Interim Report 2026
IX Structured Bodies Controlled by the Company
□ Applicable □ Not applicable
X Risks Facing the Company and Countermeasures
(I) Risks Facing the Company
1. Uncertainty in the external environment;
2. Industry competition has intensified entering a period of deep adjustment;
3. Consumption scenarios have changed consumer demand remains sluggish and sales turnover has further slowed.
(II) Operating Measures
1.Brand Leadership: Anchoring the “Four Transformations” Trend and Building a Lifestyle Brand
The Company will adhere to high-end leadership and deepen cooperation with mainstream media. It will keep pace with changing
consumer trends innovate consumption scenarios around lower alcohol content health individuality and youthfulness. On the
product side the Company will promote “Mild Gu 20” to target the younger customer segment rely on the “Gujing Shenli Baijiu”
series to establish a presence in the health track and use the “Han Tang Song Ming” Chinese trendy product line to advance
internationalization. On the channel side it will build the “Gujing Light Wellness Club” experiential scenario strengthen instant
retail and drive the leap from “selling products” to “leading lifestyles.”
2.Deep Marketing Cultivation: Deeply Advancing the Dual Strategy of “Nationwide Expansion + Sub-high-end”
The Company will firmly implement the strategy of “national expansion sub-high-end Gu 20+ strong foundation” and coordinate
the baijiu and “baijiu+” businesses. With the core focus of “boosting sell-through reducing inventory expanding channelsstabilizing prices” the Company will strengthen terminal execution. It will also build a three-dimensional framework of“consolidating Anhui leading the Yangtze River Delta and achieving breakthroughs in border areas and economic cultural andtourism zones” while simultaneously advancing internationalization and e-commerce deployment forming a dual-engine drive of
“stable domestic performance and overseas growth”.
3.Building a Quality Foundation: Systematically Upgrading Product Strength and Strengthening the Food Safety Defense Line
The Company will comprehensively optimize product quality taste and sensory experience creating a cost-effective product matrix.It will improve the dual mechanisms of quality accountability and market information feedback and strengthen research on quality
and safety risks and support for production technology. It will also use big data to continuously optimize processes scientifically plan
production capacity and dynamically optimize production cycles and shifts.
4.Digital-Intelligence Empowerment: Four-in-One Operations and Maintenance with AI Transformation across All Businesses
The Company will build a four-in-one collaborative innovation service digital operations and maintenance model integrating
“requirements review agile development platform operations and maintenance and intelligent services” with “proactive embracedeep application and comprehensive integration” as the strategic orientation for AI. It will promote the deep integration of AI with
business reconstruct distinctive AI application scenarios suited to the Company’s needs and comprehensively empower business
development through intelligent transformation.
5.Governance Upgrade: Three-in-One Risk Control with Deepening Talent Mechanism Reform
The Company will improve and fully cover the integrated compliance internal control and risk “three-in-one” collaborative
supervision mechanism across all businesses and the entire process and strengthen supervision auditing and disciplinary inspection
efforts in key areas. It will deepen the reform of talent systems and mechanisms build a scientific and standardized talent
development system create a strategic talent team of appropriate scale rational structure and excellent quality and ensure the
standardized transparent and efficient operation of the enterprise.
6.Safety and Environmental Protection as a Strong Foundation: Company-wide and End-to-end Control with Green and Low-Carbon
Development
The Company will build a safety management system involving all personnel the entire process and all aspects and promote the
~ 22 ~Interim Report 2026
implementation of safety responsibilities at every level. It will strengthen the food safety risk control system and achieve closed-loop
management throughout the entire process strengthen industrial host security protection and cybersecurity strictly uphold the
environmental protection baseline and promote the iterative upgrading of the development model toward green and low-carbon
development.
7.Forging the Soul with Culture: Innovative Dissemination of Baijiu Culture and Telling the Brand Story
The Company will deepen the construction of the Gujing Distillery Original Vintage Culture Research Institute cultivate younger
consumer groups and reconstruct drinking culture for the new era. It will jointly develop cultural and creative products advance
innovation in the expression of the new national trends innovate dissemination methods such as short videos and livestreaming and
vividly tell the story of Chinese baijiu.The year 2026 is Gujing’s “Year of Forging Ahead and Navigating the Cycle”. We must put down deep roots and grow upward
consolidate our foundation through meticulous efforts and respond to change with perseverance and determination. Strategically we
must remain steadfast; in quality we must pursue excellence without relenting; in the market we must press ahead vigorously to
capture new ground; and in management we must replace the old with the new and maintain our vitality. We will navigate the cycle
by forging ahead build momentum through innovation remain focused on value achieve breakthroughs despite adverse conditions
and secure the Company’s steady and healthy development.On this new journey the Company will closely unite around the CPC Central Committee with Comrade Xi Jinping at its core. Under
the leadership of the CPC Bozhou Municipal Committee and the Bozhou Municipal People’s Government the Company will act
with greater determination more pragmatic measures and more innovative thinking to seize opportunities amid industry
transformation and achieve steady and sustained progress generate greater returns for shareholders and contribute Gujing’s strength
to the high-quality development of the baijiu industry.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 April 25 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 standardize its market cap management behavior 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 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 listedcompanies and to take more effective and effective measures to stabilize the market and stabilize confidence” proposed by the
National Standing Committee combined with the Company’s development strategy operating conditions and financial conditions in
~ 23 ~Interim Report 2026
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 March 7 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 2025
profit distribution plan is as follows: Based on the total share capital of 528600000 shares the Company will distribute a cash
dividend of RMB34.00 (including tax) to all shareholders for every 10 shares. The Company proposed to distribute a total cash
dividend of RMB1797240000.00 (including tax). In combination of the interim dividend plan for 2025 the Company’s total
dividend for 2025 accounted for 65.53% of the net profit attributable to the listed Company’s shareholders in the consolidated
statement of this year representing an increase of 8.04 percentage points from 57.49% in 2024 fully sharing the Company’s
development results with investors. The Company’s 2025 profit distribution plan was approved at its 2025 Annual General Meeting
of Shareholders and implemented in July 2026.~ 24 ~Interim Report 2026
Part IV Corporate Governance and Environmental and Social
Responsibility
I Change of Directors and Senior Management
□ Applicable □ Not applicable
Name Position Type Date Reason
Election of a new
Luo Biao Independent director Elected June 26 2026
Board
Election of a new
Chen Senlin Employee director Elected June 26 2026
Board
Retired upon expiration Election of a new
Xu Zhihao Independent director June 26 2026
of term of office Board
Retired upon expiration Election of a new
Ye Changqing Director June 26 2026
of term of office Board
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
Anhui Gujing Distillery Company Limited Enterprise Environmental Information Legal Disclosure System
1 (Anhui)
(Gujing plant) https://39.145.37.16:8081/zhhb/yfplpub_html/#/home
~ 25 ~Interim Report 2026
Anhui Gujing Distillery Company Limited Enterprise Environmental Information Legal Disclosure System
2 (Anhui)
(Zhangji plant) https://39.145.37.16:8081/zhhb/yfplpub_html/#/home
Anhui Gujing Distillery Company Limited Enterprise Environmental Information Legal Disclosure System
3 (Anhui)
(Headquarter plant) https://39.145.37.16:8081/zhhb/yfplpub_html/#/home
Enterprise Environmental Information Legal Disclosure System
4 Anhui Longrui Glass Co. Ltd. (Anhui)
https://39.145.37.16:8081/zhhb/yfplpub_html/#/home
Enterprise Environmental Information Legal Disclosure System
5 Anhui Mingguang Distillery Co. Ltd. (Anhui)
https://39.145.37.16:8081/zhhb/yfplpub_html/#/home
Yellow Crane Tower Distillery (Xianning) Co. Enterprise Environmental Information Disclosure System
6 According to Law (Hubei)
Ltd. http://219.140.164.18:8007/hbyfpl/frontal/index.html#/home/index
Yellow Crane Tower Distillery (Suizhou) Co. Enterprise Environmental Information Disclosure System
7 According to Law (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 standardized 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 fulfills the Company’s social responsibility to suppliers and
customers.The Company continued to strengthen its quality management system and improve its customer service response mechanisms. While
strictly adhering to its environmental requirements for green production and ensuring that all discharges met the applicable standards
the Company further advanced the development of green products and the innovative application of energy-saving and
carbon-reduction technologies. The Company remained committed to talent-driven development and building a dynamic workforce.It effectively protected employees’ lawful rights and interests strengthened its talent pipeline and supported employees in pursuing
diverse development paths. It also continued to reinforce workplace safety management and the prevention and control of
occupational health risks endeavoring to create an open inclusive safe healthy and harmonious working environment in which
employees could progress together.~ 26 ~Interim Report 2026
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 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 Reorganization
□ Applicable □ Not applicable
No such cases in the Reporting Period.~ 27 ~Interim Report 2026
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.~ 28 ~Interim Report 2026
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.~ 29 ~Interim Report 2026
XIII Record of Research Visits Communications Interviews and Other Activities during the
Reporting Period
□ Applicable □ Not applicable
During the Reporting Period the Company did not receive any research visits or conduct any communications interviews or other
such activities.XIV Other Significant Events
□ Applicable □ Not applicable
No such cases in the Reporting Period.XV Significant Events of Subsidiaries
□ Applicable □ Not applicable
~ 30 ~Interim Report 2026
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
~ 31 ~Interim Report 2026
□ 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 centralized 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 resumed
Number of ordinary shareholders 57500 0
voting rights (if any)
5% or greater ordinary shareholders or the top 10 ordinary shareholders
Total Shares in pledge
ordinary Increase/Decrease Restricted Non-restricted marked or frozen
Name of Nature of Shareholding
shares held in the Reporting ordinary ordinary
shareholder shareholder percentage
at the Period shares held shares held Status Shares
period-end
ANHUI GUJING
GROUP State-owned
51.34% 271404022 271404022 Pledge 30000000
COMPANY legal person
LIMITED
BANK OF
CHINA-CHINA
MERCHANTS
CHINA
SECURITIES
Other 3.61% 19057628 2303161 19057628 N/A
BAIJIU INDEX
CLASSIFICATION
SECURITIES
INVESTMENT
FUND
CHINA Foreign
1.65% 8726940 -77645 8726940 N/A
INTERNATIONAL legal person
~ 32 ~Interim Report 2026
CAPITAL
CORPORATION
HONG KONG
SECURITIES
LTD.HONG KONG
SECURITIES
Foreign 6205385 N/A
CLEARING 1.17% 6205385 1291280
legal person
COMPANY
LIMITED
GREENWOODS
Foreign
CHINA ALPHA 1.14% 6049760 6049760 N/A
legal person
MASTER FUND
UBS (LUX)
EQUITY FUND -
Foreign
CHINA 1.11% 5874345 -649000 5874345 N/A
legal person
OPPORTUNITY
(USD)
CHINA
CONSTRUCTION
BANK
CORPORATION -
PENGHUA
LOFEXCHANGE
Other 1.03% 5461851 -147609 5461851 N/A
TRADED
OPEN-ENDED
INDEX
SECURITIES
INVESTMENT
FUND
AGRICULTURAL
BANK OF CHINA
- E FUND
CONSUMPTION
Other 1.02% 5411046 -1117647 5411046 N/A
SECTOR STOCK
SECURITIES
INVESTMENT
FUND
INDUSTRIAL
AND
COMMERCIAL
BANK OF CHINA
LIMITED -
INVESCO GREAT
WALL Other 0.98% 5180000 -220000 5180000 N/A
EMERGING
GROWTH
HYBRID
SECURITIES
INVESTMENT
FUND
CHINA
MERCHANTS
Foreign
SECURITIES 0.86% 4547714 1572026 4547714 N/A
legal person
(HK) CO.LIMITED
Strategic investor
or general legal
person becoming a
N/A
top-10 shareholder
due to rights issue
(if any)
Related or Among the shareholders above the Company’s controlling shareholder—Anhui Gujing Group Company
~ 33 ~Interim Report 2026
acting-in-concert Limited—is not a related party of other shareholders; nor are they parties acting in concert as defined in the
parties among the Administrative Measures on Information Disclosure of Changes in Shareholding of Listed Companies. As for
shareholders above the other shareholders the Company does not know whether they are related parties or whether they belong to
parties 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
repurchases (if any) among the N/A
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 RMB-denominated ordinary
271404022271404022
COMPANY LIMITED share
BANK OF CHINA-CHINA
MERCHANTS CHINA
SECURITIES BAIJIU INDEX RMB-denominated
1905762819057628
CLASSIFICATION ordinary share
SECURITIES INVESTMENT
FUND
CHINA INTERNATIONAL
CAPITAL CORPORATION Domestically listed foreign
87269408726940
HONG KONG share
SECURITIES LTD.HONG KONG SECURITIES
RMB-denominated ordinary
CLEARING COMPANY 6205385 6205385
share
LIMITED
GREENWOODS CHINA Domestically listed foreign
60497606049760
ALPHA MASTER FUND share
UBS (LUX) EQUITY FUND - Domestically listed foreign
58743455874345
CHINA OPPORTUNITY (USD) share
CHINA CONSTRUCTION
BANK CORPORATION -
PENGHUA LOFEXCHANGE RMB-denominated ordinary
54618515461851
TRADED OPEN-ENDED share
INDEX SECURITIES
INVESTMENT FUND
AGRICULTURAL BANK OF
CHINA —E FUND
RMB-denominated ordinary
CONSUMPTION SECTOR 5411046 5411046
share
STOCK SECURITIES
INVESTMENT FUND
INDUSTRIAL AND
COMMERCIAL BANK OF
CHINA LIMITED - INVESCO
RMB-denominated ordinary
GREAT WALL EMERGING 5180000 5180000
share
GROWTH HYBRID
SECURITIES INVESTMENT
FUND
CHINA MERCHANTS
Domestically listed foreign
SECURITIES (HK) CO. 4547714 4547714
share
LIMITED
~ 34 ~Interim Report 2026
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
parties among top 10
concert as defined in the Administrative Measures on Information Disclosure of Changes in
unrestricted shareholders as
Shareholding of Listed Companies. As for the other shareholders the Company does not know
well as between top 10
whether they are related parties or whether they belong to parties acting in concert as defined in the
unrestricted shareholders and top
Administrative Measures on Information Disclosure of Changes in Shareholding of Listed
10 shareholders
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
Company conducted any promissory repo during the Reporting Period
□ Yes □ No
No such cases in the Reporting Period.IV Change in Shareholdings of Directors and Senior Management
□ Applicable □ Not applicable
No changes occurred to the shareholdings of the directors and senior management in the Reporting Period. See the 2025 Annual
Report for more details.V Change of the Controlling Shareholder or the De Facto Controller
Where the Company has previously disclosed that its de facto controller was planning a change in control that has not yet been
completed please provide an update on its progress
□ Applicable □ Not applicable
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.~ 35 ~Interim Report 2026
Part VII Bonds
□ Applicable □ Not applicable
~ 36 ~Interim Report 2026
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
June 30 2026
Unit: RMB
Item June 30 2026 January 1 2026
Current assets:
Monetary assets 13301559595.01 14187463729.81
Settlement reserve
Loans to other banks and financial
institutions
Held-for-trading financial assets 602695342.46 0.00
Derivative financial assets
Notes receivable
Accounts receivable 39606536.91 53996692.68
Receivables financing 1127971458.45 895658760.56
Prepayments 160819979.90 115292227.12
Premiums receivable
Reinsurance receivables
Receivable reinsurance contract
reserve
Other receivables 53893174.72 45651277.81
Including: Interest receivable
Dividends receivable
Financial assets purchased under
resale agreements
~ 37 ~Interim Report 2026
Inventories 10795173106.25 10739794676.82
Including: Data resource
Contract assets
Assets held for sale
Current portion of non-current assets
Other current assets 709195293.93 392926614.98
Total current assets 26790914487.63 26430783979.78
Non-current assets:
Loans and advances to customers
Debt investments
Other debt investments
Long-term receivables
Long-term equity investments 14318896.10 11574463.54
Investments in other equity instruments 76373212.12 73526017.72
Other non-current financial assets
Investment property 15143626.21 16036411.82
Fixed assets 8951160974.66 9121969040.94
Construction in progress 158710163.85 160290473.75
Productive living assets
Oil and gas assets
Right-of-use assets 82568459.19 92161801.76
Intangible assets 1115874448.27 1133507983.04
Including: Data resource
Development costs
Including: Data resource
Goodwill 246753998.67 246753998.67
Long-term prepaid expense 404943550.38 417315747.85
Deferred income tax assets 580369453.46 487647921.96
Other non-current assets 1288199.27 5465160.95
Total non-current assets 11647504982.18 11766249022.00
Total assets 38438419469.81 38197033001.78
Current liabilities:
Short-term borrowings 129105400.43 184830263.45
Borrowings from the central bank
Loans from other banks and financial
institutions
Held-for-trading financial liabilities
~ 38 ~Interim Report 2026
Derivative financial liabilities
Notes payable 924418345.49 1472240813.01
Accounts payable 1926566202.22 2302888169.15
Advances from customers
Contract liabilities 833610499.57 1519882489.70
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 1058992999.03 1276935454.81
Taxes and levies payable 828690378.09 605968561.52
Other payables 4918070602.92 2816680849.01
Including: Interest payable
Dividends payable 1797240000.00 0.00
Fees and commissions payable
Reinsurance payables
Liabilities directly associated with
assets held for sale
Current portion of non-current
94357313.6961253882.81
liabilities
Other current liabilities 976076077.37 1043957560.69
Total current liabilities 11689887818.81 11284638044.15
Non-current liabilities:
Insurance contract reserve
Long-term borrowings 234479589.94 260199589.94
Bonds payable
Including: Preference shares
Perpetual bonds
Lease liabilities 63585545.09 76138828.43
Long-term payables
Long-term employee benefits payable
Provisions
Deferred income 155316559.89 162588721.38
Deferred income tax liabilities 303469069.11 309468453.80
Other non-current liabilities
Total non-current liabilities 756850764.03 808395593.55
~ 39 ~Interim Report 2026
Total liabilities 12446738582.84 12093033637.70
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
Other comprehensive income 8186576.25 6080513.09
Specific reserve
Surplus reserves 269402260.27 269402260.27
General reserve
Retained earnings 17855562890.95 18017022962.78
Total equity attributable to owners of the
24890862933.6925050216942.36
Company as the parent
Non-controlling interests 1100817953.28 1053782421.72
Total owners’ equity 25991680886.97 26103999364.08
Total liabilities and owners’ equity 38438419469.81 38197033001.78
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 June 30 2026 January 1 2026
Current assets:
Monetary assets 8903011335.75 7979883062.94
Held-for-trading financial assets 401536986.30 0.00
Derivative financial assets
Notes receivable
Accounts receivable
Accounts receivable financing 1190509246.30 632125262.72
Prepayments 93324222.69 4065495.42
Other receivables 497204844.52 464796849.41
Including: Interest receivable
Dividends receivable
Inventories 8332055269.64 8366144014.46
Including: Data resource
Contract assets
~ 40 ~Interim Report 2026
Assets held for sale
Current portion of non-current assets
Other current assets 600154677.98 248702382.76
Total current assets 20017796583.18 17695717067.71
Non-current assets:
Investments in debt obligations
Investments in other debt obligations
Long-term receivables
Long-term equity investments 1702884489.97 1700140064.98
Investments in other equity
instruments
Other non-current financial assets
Investment property 10200238.63 10645751.19
Fixed assets 6909256912.26 7185826793.21
Construction in progress 47019319.64 44553565.47
Productive living assets
Oil and gas assets
Right-of-use assets 74729568.76 83282060.85
Intangible assets 487112624.96 497663089.70
Including: Data resource
Development costs
Including: Data resource
Goodwill
Long-term prepaid expense 343588417.14 351903723.39
Deferred income tax assets
Other non-current assets
Total non-current assets 9574791571.36 9874015048.79
Total assets 29592588154.54 27569732116.50
Current liabilities:
Short-term borrowings
Held-for-trading financial liabilities
Derivative financial liabilities
Notes payable
Accounts payable 1213160490.51 1621073084.29
Advances from customers
Contract liabilities 2612574658.01 1578437253.01
Employee benefits payable 342773413.33 482418372.32
~ 41 ~Interim Report 2026
Taxes payable 534902190.93 423719386.37
Other payables 2854999873.18 901711126.03
Including: Interest payable
Dividends payable 1797240000.00 0.00
Liabilities directly associated with
assets held for sale
Current portion of non-current
15241859.9315522863.94
liabilities
Other current liabilities 341536624.25 214184954.21
Total current liabilities 7915189110.14 5237067040.17
Non-current liabilities:
Long-term borrowings
Bonds payable
Including: Preferred shares
Perpetual bonds
Lease liabilities 58468354.08 69519331.58
Long-term payables
Long-term employee benefits payable
Provisions
Deferred income 96372726.96 102101500.46
Deferred income tax liabilities 80024619.27 84088864.24
Other non-current liabilities
Total non-current liabilities 234865700.31 255709696.28
Total liabilities 8150054810.45 5492776736.45
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 -612861.76 -1758632.61
Specific reserve
Surplus reserves 264300000.00 264300000.00
Retained earnings 14473742023.65 15109309830.46
Total owners’ equity 21442533344.09 22076955380.05
Total liabilities and owners’ equity 29592588154.54 27569732116.50
~ 42 ~Interim Report 2026
3. Consolidated Income Statement
Unit: RMB
Item H1 2026 H1 2025
1. Revenue 10131395927.11 13879852202.75
Including: Operating revenue 10131395927.11 13879852202.75
Interest income
Insurance premium income
Handling charge and
commission income
2. Costs and expenses 7191740453.37 8876949244.49
Including: Cost of sales 1992852329.72 2793535258.54
Interest expense
Handling charge and
commission expense
Surrenders
Net insurance claims paid
Net amount provided as
insurance contract reserve
Expenditure on policy
dividends
Reinsurance premium
expense
Taxes and surcharges 1693426159.08 2175977722.16
Selling expense 3072505534.43 3511408555.96
Administrative expense 631017032.54 671417776.78
R&D expense 34920057.51 40317747.37
Finance costs -232980659.91 -315707816.32
Including: Interest
7391788.695553600.24
expense
Interest
240740851.52324132039.22
income
Add: Other income 20019519.36 50136522.40
Return on investment (“-” for loss) -11084485.12 -17291463.64
Including: Share of profit or loss
2744432.56194023.79
of joint ventures and associates
Income from the
derecognition of financial assets at
amortized cost (“-” for loss)
Exchange gain (“-” for loss)
~ 43 ~Interim Report 2026
Net gain on exposure hedges (“-”
for loss)
Gain on changes in fair value (“-”
2753738.33528360.62
for loss)
Credit impairment loss (“-” for
-271998.21579017.02
loss)
Asset impairment loss (“-” for
1330835.11954415.89
loss)
Asset disposal income (“-” for
204877.5437146.67
loss)
3. Operating profit (“-” for loss) 2952607960.75 5037846957.22
Add: Non-operating income 16975362.58 28399359.59
Less: Non-operating expense 5045678.27 2028341.63
4. Profit before tax (“-” for loss) 2964537645.06 5064217975.18
Less: Income tax expense 753932840.70 1286677231.21
5. Net profit (“-” for net loss) 2210604804.36 3777540743.97
5.1 By operating continuity
5.1.1 Net profit from continuing
2210604804.363777540743.97
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 2164379928.17 3661585785.94
parent (“-” for net loss)
5.2.2 Net profit attributable to
46224876.19115954958.03
non-controlling interests (“-” for net loss)
6. Other comprehensive income net of
2916718.5317285058.30
tax
Attributable to owners of the
2106063.1616050514.24
Company as the parent
6.1 Items that will not be
1281237.471878495.39
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
1281237.471878495.39
investments in other equity instruments
6.1.4 Changes in the fair value
~ 44 ~Interim Report 2026
arising from changes in own credit risk
6.1.5 Other
6.2 Items that will be reclassified to
824825.6914172018.85
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 824825.69 14172018.85
of financial assets
6.2.4 Credit impairment
allowance for investments in other debt
obligations
6.2.5 Reserve for cash flow
hedges
6.2.6 Differences arising from the
translation of foreign
currency-denominated financial
statements
6.2.7 Other
Attributable to non-controlling
810655.371234544.06
interests
7. Total comprehensive income 2213521522.89 3794825802.27
Attributable to owners of the
2166485991.333677636300.18
Company as the parent
Attributable to non-controlling
47035531.56117189502.09
interests
8. Earnings per share
8.1 Basic earnings per share 4.09 6.93
8.2 Diluted earnings per share 4.09 6.93
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 2026 H1 2025
1. Operating revenue 6471141336.31 8145509078.76
Less: Cost of sales 2339649340.49 2663998964.46
Taxes and surcharges 1455953620.21 1987809121.67
~ 45 ~Interim Report 2026
Selling expense 162089744.85 19234473.34
Administrative expense 405618220.87 409334828.58
R&D expense 14176456.49 14651229.03
Finance costs -125555308.03 -67812658.15
Including: Interest expense 1654068.09 2009637.65
Interest income 126741175.36 72175217.81
Add: Other income 8326033.26 9816414.10
Return on investment (“-” for
13248579.7017259846.39
loss)
Including: Share of profit or loss
2744424.99193638.56
of joint ventures and associates
Income from the derecognition
of financial assets at amortized cost (“-”
for loss)
Net gain on exposure hedges (“-”
for loss)
Gain on changes in fair value (“-”
1555078.830.00
for loss)
Credit impairment loss (“-” for
80269.23704942.28
loss)
Asset impairment loss (“-” for
3020918.443810447.09
loss)
Asset disposal income (“-” for
178672.570.00
loss)
2. Operating profit (“-” for loss) 2245618813.46 3149884769.69
Add: Non-operating income 13171437.78 20905592.33
Less: Non-operating expense 3073767.55 1210216.12
3. Profit before tax (“-” for loss) 2255716483.69 3169580145.90
Less: Income tax expense 565444290.50 743483778.48
4. Net profit (“-” for net loss) 1690272193.19 2426096367.42
4.1 Net profit from continuing
1690272193.192426096367.42
operations (“-” for net loss)
4.2 Net profit from discontinued
operations (“-” for net loss)
5. Other comprehensive income net of
1145770.855085975.46
tax
5.1 Items that will not be reclassified
to profit or loss
5.1.1 Changes caused by
remeasurements on defined benefit
~ 46 ~Interim Report 2026
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
1145770.855085975.46
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
arising from the reclassification of 1145770.85 5085975.46
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 1691417964.04 2431182342.88
7. Earnings per share
7.1 Basic earnings per share 3.20 4.59
7.2 Diluted earnings per share 3.20 4.59
5. Consolidated Cash Flow Statement
Unit: RMB
Item H1 2026 H1 2025
1. Cash flows from operating activities:
Proceeds from sale of commodities
10420559190.9615211152103.88
and rendering of services
Net increase in customer deposits and
interbank deposits
Net increase in borrowings from the
~ 47 ~Interim Report 2026
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 49390492.88 2632282.72
Cash generated from other operating
871098884.92846829734.88
activities
Subtotal of cash generated from
11341048568.7616060614121.48
operating activities
Payments for commodities and
2460816965.962473268445.21
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 2190375219.88 2196285230.62
Taxes paid 3751294928.05 5170737863.61
Cash used in other operating activities 1396026317.27 2065770527.44
Subtotal of cash used in operating
9798513431.1611906062066.88
activities
Net cash generated from/used in
1542535137.604154552054.60
operating activities
2. Cash flows from investing activities:
Proceeds from disinvestment 3039263000.00 1335393000.00
~ 48 ~Interim Report 2026
Return on investment 2836598.17 2302680.87
Net proceeds from the disposal of
fixed assets intangible assets and other 253136.00 3558.00
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
3042352734.171337699238.87
investing activities
Payments for the acquisition of fixed
assets intangible assets and other 407585324.43 943666299.92
long-lived assets
Payments for investments 4036491000.00 1612749000.00
Net increase in pledged loans granted
Net payments for the acquisition of
subsidiaries and other business units
Cash used in other investing activities
Subtotal of cash used in investing
4444076324.432556415299.92
activities
Net cash generated from/used in
-1401723590.26-1218716061.05
investing activities
3. Cash flows from financing activities:
Capital contributions received 18000000.00
Including: Capital contributions by
18000000.00
non-controlling interests to subsidiaries
Borrowings raised 99300000.00 230200000.00
Cash generated from other financing
activities
Subtotal of cash generated from
99300000.00248200000.00
financing activities
Repayment of borrowings 147350000.00 86690000.00
Interest and dividends paid 534483701.83 3202120302.70
Including: Dividends paid by
0.0024246617.06
subsidiaries to non-controlling interests
Cash used in other financing activities 14254699.26 11832851.40
Subtotal of cash used in financing
696088401.093300643154.10
activities
Net cash generated from/used in
-596788401.09-3052443154.10
financing activities
4. Effect of foreign exchange rates
changes on cash and cash equivalents
5. Net increase in cash and cash -455976853.75 -116607160.55
~ 49 ~Interim Report 2026
equivalents
Add: Cash and cash equivalents
12494251818.5715193134694.19
beginning of the period
6. Cash and cash equivalents end of the
12038274964.8215076527533.64
period
6. Cash Flow Statement of the Company as the Parent
Unit: RMB
Item H1 2026 H1 2025
1. Cash flows from operating activities:
Proceeds from sale of commodities
7056081044.6117601027626.84
and rendering of services
Tax rebates 9277774.00 0.00
Cash generated from other operating
805410268.99922856861.57
activities
Subtotal of cash generated from
7870769087.6018523884488.41
operating activities
Payments for commodities and
1198834866.402030287590.75
services
Cash paid to and for employees 829279783.91 721681300.58
Taxes paid 2665018578.34 3424241358.45
Cash used in other operating activities 602776425.87 7025981610.03
Subtotal of cash used in operating
5295909654.5213202191859.81
activities
Net cash generated from/used in
2574859433.085321692628.60
operating activities
2. Cash flows from investing activities:
Proceeds from disinvestment 2080237000.00 543296000.00
Return on investment 26742139.07 62106882.46
Net proceeds from the disposal of
fixed assets intangible assets and other 201900.00 571340.27
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
2107181039.07605974222.73
investing activities
Payments for the acquisition of fixed
assets intangible assets and other 327587248.63 857181157.31
long-lived assets
~ 50 ~Interim Report 2026
Payments for investments 2890472000.00 752609000.00
Net payments for the acquisition of
subsidiaries and other business units
Cash used in other investing activities
Subtotal of cash used in investing
3218059248.631609790157.31
activities
Net cash generated from/used in
-1110878209.56-1003815934.58
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 528130411.45 3174991314.12
Cash used in other financing activities 12722539.26 11832851.40
Subtotal of cash used in financing
540852950.713186824165.52
activities
Net cash generated from/used in
-540852950.71-3186824165.52
financing activities
4. Effect of foreign exchange rates
changes on cash and cash equivalents
5. Net increase in cash and cash
923128272.811131052528.50
equivalents
Add: Cash and cash equivalents
7979883062.947578634079.50
beginning of the period
6. Cash and cash equivalents end of the
8903011335.758709686608.00
period
~ 51 ~Interim Report 2026
7. Consolidated Statements of Changes in Owners’ Equity
Amount in H1 2026
Unit: RMB
H1 2026
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
528600000.006229111206.226080513.09269402260.2718017022962.7825050216942.361053782421.7226103999364.08
end of the prior year
Add: Adjustment for
change in accounting
policy
Adjustment for
correction of
previous error
Other adjustments
2. Balance as at the
528600000.006229111206.226080513.09269402260.2718017022962.7825050216942.361053782421.7226103999364.08
beginning of the year
3. Increase/Decrease
in the period (“-” for 2106063.16 -161460071.83 -159354008.67 47035531.56 -112318477.11
decrease)
3.1 Total
comprehensive 2106063.16 2164379928.17 2166485991.33 47035531.56 2213521522.89
income
3.2 Capital increased
and reduced by
owners
3.2.1 Ordinary shares
increased by
owners1. Ordinary
share increase by
owners
3.2.2 Capital
increased by holders
of other equity
instruments
3.2.3 Share-based
~ 52 ~Interim Report 2026
payments included in
owners’ equity
3.2.4 Other
3.3 Profit distribution -2325840000.00 -2325840000.00 -2325840000.00
3.3.1 Appropriation
to surplus reserves
3.3.2 Appropriation
to general reserve
3.3.3 Appropriation
to owners (or -2325840000.00 -2325840000.00 -2325840000.00
shareholders)
3.2.4 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
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
528600000.006229111206.228186576.25269402260.2717855562890.9524890862933.691100817953.2825991680886.97
end of the period
~ 53 ~Interim Report 2026
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 interests equity Preferred Perpetual Capital reserves Treasury comprehensive Retained earnings Other Subtotal
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
528600000.006229111206.22-9604119.74269402260.2717639514432.4424657023779.191036762944.1425693786723.33
the Reporting
Period
3.
Increase/Decrease
16050514.24489985785.94506036300.18110942885.03616979185.21
in the 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
holders of other
equity
instruments
3.2.3
Share-based
payments
included in
owners’ equity
~ 54 ~Interim Report 2026
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 to
-3171600000.00-3171600000.00-24246617.06-3195846617.06
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
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
~ 55 ~Interim Report 2026
4. Balance as at
the end of the 528600000.00 6229111206.22 6446394.50 269402260.27 18129500218.38 25163060079.37 1147705829.17 26310765908.54
Reporting Period
8. Statements of Changes in Owners’ Equity of the Company as the Parent
Amount in H1 2026
H1 2026
Other equity instruments Less: Other
Item 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
528600000.006176504182.20-1758632.61264300000.0015109309830.4622076955380.05
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
528600000.006176504182.20-1758632.61264300000.0015109309830.4622076955380.05
the Reporting
Period
3.
Increase/Decrease
1145770.85-635567806.81-634422035.96
in the period (“-”
for decrease)
3.1 Total
comprehensive 1145770.85 1690272193.19 1691417964.04
income
3.2 Capital
increased and
reduced by
owners
3.2.1 Ordinary
shares increased
by owners
3.2.2 Capital
~ 56 ~Interim Report 2026
increased by
holders of other
equity
instruments
3.2.3 Share-based
payments
included in
owners’ equity
3.2.4 Other
3.3 Profit
-2325840000.00-2325840000.00
distribution
3.3.1
Appropriation to
surplus reserves
3.3.2
Appropriation to
-2325840000.00-2325840000.00
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
~ 57 ~Interim Report 2026
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 528600000.00 6176504182.20 -612861.76 264300000.00 14473742023.65 21442533344.09
Reporting Period
Amount in H1 2025
Unit: RMB
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
528600000.006176504182.20-7249242.08264300000.0014654488838.5921616643778.71
the Reporting
Period
3.
Increase/Decrease
5085975.46-745503632.58-740417657.12
in the period (“-”
for decrease)
3.1 Total 5085975.46 2426096367.42 2431182342.88
~ 58 ~Interim Report 2026
comprehensive
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
-3171600000.00-3171600000.00
distribution
3.3.1
Appropriation to
surplus reserves
3.3.2
Appropriation to
-3171600000.00-3171600000.00
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
~ 59 ~Interim Report 2026
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 the 528600000.00 6176504182.20 -2163266.62 264300000.00 13908985206.01 20876226121.59
Reporting Period
~ 60 ~Interim Report 2026
Anhui Gujing Distillery Company Limited
Notes to Financial Statements for H1 2026
(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 March 5 1996. The incorporation General
Meeting was held on May 28 1996 and the incorporation was registered with the Anhui
Administration Bureau for Commerce and Industry on May 30 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 May 29 2006 the Company
exercised the share reorganization plan in June 2006. Immediately after the implementation of the
share reorganization 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 June 27 2007 the
restriction on disposal on 11.75 million shares was lifted on June 29 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
~ 61 ~Interim Report 2026
to 42.45% of total shares).Upon the Company’s publication of the Notice of Lifting Restriction of Shares on July 17 2008 the
restriction on disposal on 11.75 million shares was lifted on July 18 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 July 24 2009 the
restriction on disposal on 123.5 million shares was lifted on July 29 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 July 15 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 December 31 2011 through utilization 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 July 22
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 June 30 2026 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
~ 62 ~Interim Report 2026
manufacturing industry.These financial statements are approved on August 28 2026 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 EstimatesThe Company is subject to the disclosure requirements for the “food and liquor & wine productionindustry” in the Guideline No. 3 of the Shenzhen Stock Exchange for Self-regulation of Listed
Companies—Industry-specific Information Disclosure.Notes to specific accounting policies and accounting estimates: The disclosures below cover the
specific accounting policies and accounting estimates formulated by the Company based on the
characteristics of its actual production and operations.
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
~ 63 ~Interim Report 2026
financial position operating results changes in shareholders’ equity cash flows and other related
information.
2. Accounting Period
The accounting year of the Company is from January 1 to December 31 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
Net profit or net assets account for more than 5% of the
Significant non-wholly owned subsidiaries
corresponding item 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 policies or accounting periods adopted by the acquired entity before the business
combination differ from those adopted by the acquiring entity they are aligned on the basis of
materiality. Specifically the carrying amounts of the acquired entity’s assets and liabilities are
adjusted in accordance with the acquiring entity’s accounting policies and accounting periods. 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
~ 64 ~Interim Report 2026
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).
(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 policies or
accounting periods adopted by the acquired entity before the business combination differ from those
adopted by the acquiring entity they are aligned on the basis of materiality. Specifically the
carrying amounts of the acquired entity’s assets and liabilities are adjusted in accordance with the
acquiring entity’s accounting policies and accounting periods. The acquiring entity shall recognize
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 recognized 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
~ 65 ~Interim Report 2026
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.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.~ 66 ~Interim Report 2026
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.(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 recognized 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.~ 67 ~Interim Report 2026
(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
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 recognized 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 unrealized inter-company transaction profit or loss deferred tax assets of deferred tax liabilities
shall be recognized 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
recognized in owner’s equity or business combination.(iv) Unrealized 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. Unrealized 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. Unrealized 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
~ 68 ~Interim Report 2026
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.
(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 recognized 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
recognized during the period from the later of the date of the Company obtaining original equity
~ 69 ~Interim Report 2026
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.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 recognized as retained earnings. The cumulative changes in fair value of the equity which
is recognized 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 recognized 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
~ 70 ~Interim Report 2026
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 recognized in
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 recognized and the difference between consideration
received and the carrying amount of long-term equity investment corresponding to the equity
interest disposed should be recognized 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 recognized 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 recognized 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.~ 71 ~Interim Report 2026
(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
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 recognize 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.~ 72 ~Interim Report 2026
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.
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 recognized 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 derecognized 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 derecognized only when the liability is extinguished—i.e.when the obligation specified in the contract is discharged or canceled 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 recognized and derecognized 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 amortized 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;
~ 73 ~Interim Report 2026
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 recognized 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
transaction does not include a significant financing component.Subsequent measurement of financial assets will be based on their categories:
(i) Financial asset at amortized cost
The financial asset at amortized 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 amortized
cost by adopting the effective interest rate method. Any gain or loss arising from derecognition
according to the amortization under effective interest rate method or impairment are recognized 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 recognized in other
comprehensive income except for gain or loss arising from impairment or exchange differences
which should be recognized in current profit or loss. At derecognition cumulative gain or loss
previously recognized 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 recognized in other
comprehensive income except for dividend income recognized 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 amortized 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
~ 74 ~Interim Report 2026
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 amortized cost.Subsequent measurement of financial assets will be based on the classification:
(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 recognized 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 recognized 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 recognized 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 recognized according to the impairment principles of financial instruments; and the
amount initially recognized less the cumulative amount of income recognized in accordance with
the revenue principles.(iii) Financial liabilities at amortized cost
After initial recognition the Company measured other financial liabilities at amortized 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 fulfill 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.~ 75 ~Interim Report 2026
(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
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
recognized as an asset and with a negative fair value shall be recognized as a liability.Gains or losses arising from the changes in fair value of derivatives shall be recognized directly into
current profit or loss except for the effective portion of cash flow hedges which shall be recognized
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 recognized 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 recognize a loss allowance based on expected credit losses on a financial asset
that is measured at amortized 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
~ 76 ~Interim Report 2026
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.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 amortized 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
~ 77 ~Interim Report 2026
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
recognize 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 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.~ 78 ~Interim Report 2026
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
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
fulfill its contractual cash flow obligations.(iii) Significant increase in credit risk
~ 79 ~Interim Report 2026
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.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 behavior 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
~ 80 ~Interim Report 2026
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
financial asset at amortized 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 reorganization; 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 recognize in profit or
loss as an impairment gain or loss the amount of expected credit losses addition (or reversal). For
financial asset at amortized 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 recognized 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 recognized 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;
~ 81 ~Interim Report 2026
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
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 derecognized.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 recognized in profit or loss:
A. The carrying amount of transferred financial asset;
B. The sum of consideration received and the part derecognized of the cumulative changes in fair value
previously recognized 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 No.22 - 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 recognized (For this purpose a retained servicing asset shall be treated
as a part that continues to be recognized) and the part that is derecognized based on the relative fair
values of those parts on the date of the transfer. The difference between following two amounts shall
be recognized in profit or loss:
A. The carrying amount (measured at the date of derecognition) allocated to the part derecognized;
B. The sum of the consideration received for the part derecognized and part derecognized of the cumulative
changes in fair value previously recognized 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 No.22 - 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
~ 82 ~Interim Report 2026
transferred asset and retains control of the transferred asset the Company shall continue to
recognize the transferred asset to the extent of its continuing involvement and also recognize an
associated liability.The extent of the Company’s continuing involvement in the transferred asset is the extent to which
it is exposed to changes in the value of the transferred asset
(iii) Continue to recognize 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 recognize the transferred asset in its entirety and the
consideration received shall be recognized as a financial liability.The financial asset and the associated financial liability shall not be offset. In subsequent
accounting period the Company shall continuously recognize 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 recognized amounts;
The Company intends either to settle on a net basis or to realize 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 maximizes the
~ 83 ~Interim Report 2026
value that could be received from selling the asset and minimizes 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
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 categorizes 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
~ 84 ~Interim Report 2026
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.
(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 recognized as provision for impairment of inventory and
recognized 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 realizable value is determined at the estimated selling price less the estimated costs of
completion the estimated selling expenses and relevant taxes. If the net realizable 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 realizable value the materials are measured at net realizable value and differences
shall be recognized 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.~ 85 ~Interim Report 2026
(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.
(5) Amortization 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 fulfill a contract and the costs to obtain a contract.The Company shall recognize an asset from the costs incurred to fulfill 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 labor 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.~ 86 ~Interim Report 2026
The incremental costs of obtaining a contract shall be recognized as an asset if the Company
expects to recover them.An asset related to contract costs shall be amortized on a systematic basis that is consistent with the
revenue recognition of the goods or services to which the asset relates. The Company recognizes the
contract acquisition costs as an expense when incurred if the amortization period of the asset that
the Company otherwise would have recognized is one year or less.The Company shall accrue the provision for impairment recognize 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
recognized as expenses.The Company shall recognize in profit or loss a reversal of some or all of an impairment loss
previously recognized 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 amortization) if no impairment loss had been recognized previously.Providing that the costs to fulfill a contract satisfy the requirement to be recognized 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 recognized 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
~ 87 ~Interim Report 2026
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
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 recognized 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 recognized as the initial cost of the long-term equity investment on the
combination date. The total par value of the shares issued is recognized as the share capital. The
~ 88 ~Interim Report 2026
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.
(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 recognized 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 recognized 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 recognized 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 recognizes
its share of cash dividends or profits which have been declared to distribute by the investee as
current investment income.~ 89 ~Interim Report 2026
(ii) Equity method
The general accounting treatment for long-term equity investments accounted for using the equity
method is as follows:
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
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 recognizes 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 recognized in the investor’s equity and the carrying amount of the long-term
equity investment shall be adjusted accordingly. The Company recognizes 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 unrealized 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
recognized. Any losses resulting from inter-company transactions between the investor and the
investee which belong to asset impairment shall be recognized 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
recognized 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
~ 90 ~Interim Report 2026
significant influence shall be recognized in profit or loss. When the Company discontinues the use
of the equity method the Company shall account for all amounts previously recognized 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
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 amortization 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
~ 91 ~Interim Report 2026
commodities rendering services renting or business management with useful lives exceeding one
year.
(1) Recognition criteria of fixed assets
Fixed assets will only be recognized at the actual cost paid when obtaining as all the following
criteria are satisfied:
(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 3.00-20.00 3.00 4.85-32.33
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
~ 92 ~Interim Report 2026
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
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
~ 93 ~Interim Report 2026
(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
the lease item will transfer to the Group upon expiration of the lease the leased item is depreciated
over its useful life; if however transfer of ownership of the leased item upon expiration 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 capitalization of borrowing costs
The Company shall capitalize 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 recognized into current profit or loss when incurred.Capitalization 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.Capitalization 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 recognized as expenses when incurred.
(2) Capitalization rate and measurement of capitalized amounts of borrowing costs
When funds are borrowed specifically for purchase construction or manufacturing of assets eligible
for capitalization the Company shall determine the amount of borrowing costs eligible for
capitalization 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
capitalization are part of a general borrowing the eligible amounts are determined by the
~ 94 ~Interim Report 2026
weighted-average of the cumulative capital expenditures in excess of the specific borrowing
multiplied by the general borrowing capitalization rate. The capitalization rate will be the weighted
average of the borrowing costs applicable to the general borrowing.
21. Intangible Assets
(1) Measurement method of intangible assets
Intangible assets are recognized at actual cost at acquisition.
(2) The useful life and amortization 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 amortization 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 amortization 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) Amortization of the intangible assets
For intangible assets with finite useful lives their useful lives should be determined upon their acquisition and
systematically amortized on a straight-line basis [units of production method] over the useful life. The
amortization amount shall be recognized into current profit or loss or the relevant asset cost according to the
beneficial items. The amount to be amortized 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 amortized. 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 amortized systematically and reasonably
within the estimated useful lives.
(3) Scope of research and development expenditures
~ 95 ~Interim Report 2026
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 amortized expense design fee equipment commissioning fee intangible assets
amortization cost outsourcing research and development cost and other expenses etc.
(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 recognized 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 capitalization of qualifying expenditures during the development phase
Expenditures arising from development phase on internal research and development projects shall be recognized
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
recognized accordingly.For the purpose of impairment testing goodwill acquired in a business combination shall from the acquisition
~ 96 ~Interim Report 2026
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
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
recognized 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 recognize the impairment loss.The mentioned impairment loss will not be reversed in subsequent accounting period once it had been recognized.
23. Long-term Deferred Expenses
Long-term deferred expenses are various expenses already incurred which shall be amortized over
current and subsequent periods with the amortization 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 recognizes 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 recognized as capital expenditure based on the requirement of accounting
standards.(ii) Employee welfare
The Company shall recognize 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 labor union fund and employee education fund
~ 97 ~Interim Report 2026
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 labor 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
be recognized in current profit or loss or the cost of relevant asset.(iv) Short-term paid absences
The company shall recognize 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 recognize relevant employee
benefit of non-accumulating paid absences when the absences actually occurred.(v) Short-term profit-sharing plan
The Company shall recognize 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 recognize 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
~ 98 ~Interim Report 2026
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
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 recognized 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 recognized 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 recognized 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 recognized 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) recognized 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 recognized 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 recognize an employee benefits
~ 99 ~Interim Report 2026
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.(ii) When the Company recognizes 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 recognized 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 recognized 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
~ 100 ~Interim Report 2026
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
incremental borrowing rate. The excess of the lease payments over its present value is amortized
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 recognized in profit or loss when
incurred.
26. Provisions
(1) Recognition
A provision is recognized 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 fulfillment 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 recognize 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.~ 101 ~Interim Report 2026
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 recognize revenue based on the transaction price allocated to each performance
obligation.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 recognized 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 amortized 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 recognize 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 recognize revenue only to the extent of the
costs incurred until such time that it can reasonably measure the progress of the performance
~ 102 ~Interim Report 2026
obligation.The Company shall recognize 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:
(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:
Revenue from 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 recognized 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.Revenue from 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
~ 103 ~Interim Report 2026
performance obligation satisfied over time the Company shall recognize 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
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 recognizes revenue when the
company completes technical services in accordance with the contractual agreement
Revenue from usage of assets
Revenue from usage of the Group’s assets is recognized 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 recognized 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 recognized as deferred income and should be
recognized 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 recognized 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
~ 104 ~Interim Report 2026
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:
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 recognized 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 recognized;
If the government grants related to income are used to compensate the enterprise’s relevant
expenses or losses incurred such government grants are directly recognized 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 recognized 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 recognized 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 recognized 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 recognized 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 recognized into current profit
or loss; or directly recognized 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
~ 105 ~Interim Report 2026
statement of financial position and its tax base at the balance sheet date. The Company recognize
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
For deductible temporary differences deductible losses and tax credits that can be carried forward
to subsequent years the related income tax effects are calculated at the income tax rate expected to
apply during the reversal period and recognized as deferred income tax assets but only to the extent
that it is probable that the Company will obtain future taxable income against which the deductible
temporary differences deductible losses and tax credits can be utilized.The income tax effects of deductible temporary differences arising from the initial recognition of
assets or liabilities in transactions or events that have both of the following characteristics are not
recognized as deferred tax assets:
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 recognizes 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 recognize 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
utilized.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 utilized the
Company recognizes a previously unrecognized 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
~ 106 ~Interim Report 2026
that deferred tax asset to be utilized. 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 recognized 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 recognized 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
(tax loss)
(ii) An entity shall recognize 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
recognized and simultaneously goodwill recognized in the business combination shall be adjusted
based on relevant deferred tax expense (income).(ii) Items directly recognized in equity
Current tax and deferred tax related to items that are recognized directly in equity shall be
recognized 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
~ 107 ~Interim Report 2026
that can be offset against taxable income in future periods. The criteria for recognizing deferred tax
assets arising from the carryforward of unused tax losses and tax credits are the same as the criteria
for recognizing deferred tax assets arising from deductible temporary differences. The Company
recognizes 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 utilized 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 recognized.Within 12 months after the acquisition date if new information regarding the facts and
circumstances exists at the acquisition date and the economic benefit of the acquiree’s deductible
temporary differences at the acquisition is expected to be realized the Company shall recognize
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 recognized
in profit or loss. All other acquired deferred tax benefits realized shall be recognized 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 unrealized profit or loss deferred tax assets or
deferred tax liabilities shall be recognized 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 recognized 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 recognized 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 recognized 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 recognized according to the accounting standards the tax
effect of the excess amount shall be recognized 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
~ 108 ~Interim Report 2026
relevant provisions of the tax policy the Company recognizes the income tax effect related to the
dividend at the time of dividend payable recognition. The income tax effect of the dividend is
recognized 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 recognized 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 presents deferred tax assets and deferred tax liabilities on a net basis when both of the following
conditions are met:
The Company has a legally enforceable right to settle current income tax assets and current income tax liabilities
on a net basis; and
The deferred income tax assets and deferred income tax liabilities relate to income taxes levied by the same
taxation authority on either the same taxable entity or different taxable entities that intend in each future period in
which significant amounts of deferred income tax assets and deferred income tax liabilities are expected to be
reversed to settle current income tax assets and liabilities on a net basis or to realize the assets and settle the
liabilities simultaneously.
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
~ 109 ~Interim Report 2026
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 recognize 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 recognize a right-of-use asset and
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 recognizes 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
~ 110 ~Interim Report 2026
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
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
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 recognized as unrecognized 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 recognized 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.~ 111 ~Interim Report 2026
(i) Operating leases
The Company shall recognize 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 capitalized and recognized as an
expense over the lease term on the same basis as the lease income. The Company shall recognize
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 recognize the lease receivables at an account equal
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 derecognize the asset relating to the finance lease. The Company shall
recognize interest income using the interest rate implicit in the lease over the lease term.The Company shall recognize 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.~ 112 ~Interim Report 2026
The Company shall recognize 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:
? 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 recognize the transferred
asset and shall recognize 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 recognize 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 recognize the transferred asset and
shall recognize 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
~ 113 ~Interim Report 2026
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 2026
□ Applicable □ Not applicable
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 liter 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%
Huanggang Junya Trading Co. Ltd. 20.00%
~ 114 ~Interim Report 2026
Wuhan Gulou Juntai Trading Co. Ltd. 20.00%
Wuhan Juntai Trading Co. Ltd. 20.00%
Ezhou Junya Trading Co. Ltd. 20.00%
Bozhou Gujing Hotel Co. Ltd. 20.00%
Anhui Jiuan Mechanical Electrical Equipment 20.00%
Co. Ltd.Anhui Jiuhao Construction Engineering Co. Ltd. 20.00%
Anhui Gujing Light Wellness Club Supply Chain 20.00%
Management Co. Ltd.Anhui Gujinggong Liquor Original Vintage
20.00%
Theme Hotel Management Co. Ltd.Anhui Guqi Distillery Sales Co. Ltd. 20.00%
2. Tax Preference
(1) 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 Ruisiweier Technology Co. Ltd. was
identified as one of the second batch of high-tech enterprises in Anhui Province in 2025 therefore was given
High-tech Enterprise Certificate (Certificate Number: GR202534002124) 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 January 1 2025 to December 31 2027.
(2) 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 Longrui Glass Co. Ltd. was
identified as one of the first batch of high-tech enterprises in Anhui Province in 2025 therefore was given
High-tech Enterprise Certificate (Certificate Number: GR202534000671) 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 January 1 2025 to December 31 2027.
(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 January 1 2024 to December 31 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
~ 115 ~Interim Report 2026
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 recognized as a batch of high-tech enterprises in Anhui Province in 2024 and
obtained the High-tech Enterprise Certificate (Certificate No.: GR202434002983) which is valid for 3 years.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 January 1 2024 to December 31 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 January 1 2023 to December 31 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%. Huanggang Junya
Trading Co. Ltd. Wuhan Gulou Juntai Trading Co. Ltd. Wuhan Juntai Trading Co. Ltd. Ezhou Junya Trading
Co. Ltd. Bozhou Gujing Hotel Co. Ltd. Anhui Jiuan Mechanical Electrical Equipment Co. Ltd. Anhui Jiuhao
Construction Engineering Co. Ltd. Anhui Gujing Light Wellness Club Supply Chain Management Co. Ltd.Anhui Gujinggong Liquor Original Vintage Theme Hotel Management Co. Ltd. and Anhui Guqi Distillery Sales
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 109047.09 12138.91
Cash at bank 13273671086.38 14151437751.62
Other monetary funds 27779461.54 36013839.28
Total 13301559595.01 14187463729.81
At the end of June 2026 the bank deposits were used to pledge the bank acceptance bill of RMB1.24 billion and
the other restricted funds in the bank deposits were RMB9.7668 million. The other monetary funds as of the
statement date included margin deposits not eligible for early redemption at RMB13.5178 million. Except for the
pre-mentioned monetary funds as of the end of June 2026 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 602695342.46 0.00
~ 116 ~Interim Report 2026
Item Ending balance Beginning balance
loss
Including: bank financial products 602695342.46 0.00
Total 602695342.46 0.00
3. Accounts Receivable
(1) Disclosure by aging
Aging Ending balance Beginning balance
Within 1 year 38280564.31 52330202.23
Of which: 1-6 months 34501835.62 49936716.22
7-12 months 3778728.69 2393486.01
1-2 years 1820258.09 2350559.67
2-3 years 443390.18 340056.43
Over 3 years 8515467.04 8391314.57
Subtotal 49059679.62 63412132.90
Less: Bad debt provision 9453142.71 9415440.22
Total 39606536.91 53996692.68
(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
7792783.7215.887792783.72100.000.00
separately
Bad debt provision withdrawn by
41266895.9084.121660358.994.0239606536.91
group
Of which: Group 1
Group 2 41266895.90 84.12 1660358.99 4.02 39606536.91
Total 49059679.62 100.00 9453142.71 19.27 39606536.91
(ii) Beginning balance
Beginning balance
Category
Carrying amount Bad debt provision Carrying value
~ 117 ~Interim Report 2026
Withdrawal
Amount Proportion (%) Amount
proportion (%)
Bad debt provision withdrawn
7792783.7212.297792783.72100.000.00
separately
Bad debt provision withdrawn by
55619349.1887.711622656.502.9253996692.68
group
Of which: Group 1
Group 2 55619349.18 87.71 1622656.50 2.92 53996692.68
Total 63412132.90 100.00 9415440.22 14.85 53996692.68
On June 30 2026 accounts receivable with bad debt provision withdrawn by group 2
Ending balance
Aging Withdrawal proportion
Carrying amount Bad debt provision
(%)
Within 1 year 38280564.31 533954.77 1.39
Of which: 1-6 months 34501835.62 345018.35 1.00
7-12 months 3778728.69 188936.42 5.00
1-2 years 1820258.09 182025.81 10.00
2-3 years 443390.18 221695.09 50.00
Over 3 years 722683.32 722683.32 100.00
Total 41266895.90 1660358.99 4.02
On January 1 2026 accounts receivable with bad debt provision withdrawn by group 2
Beginning balance
Aging Withdrawal proportion
Carrying amount Bad debt provision
(%)
Within 1 year 52330202.23 619041.46 1.18
Of which: 1-6 months 49936716.22 499367.16 1.00
7-12 months 2393486.01 119674.30 5.00
1-2 years 2350559.67 235055.97 10.00
2-3 years 340056.43 170028.22 50.00
Over 3 years 598530.85 598530.85 100.00
Total 55619349.18 1622656.50 2.92
(3) Changes of bad debt provision during the Reporting Period
Category Beginning Changes in the Reporting Period Ending balance
~ 118 ~Interim Report 2026
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
1622656.50267820.92230118.431660358.99
withdrawn by aging group
Total 9415440.22 267820.92 230118.43 9453142.71
(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 7792783.72 7792783.72 15.88 7792783.72
No. 2 5144065.49 5144065.49 10.49 119070.24
No. 3 4464996.97 4464996.97 9.10 44649.97
No. 4 2451482.79 2451482.79 5.00 37393.36
No. 5 1994561.97 1994561.97 4.07 19945.62
Total 21847890.94 21847890.94 44.54 8013842.91
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
1127971458.451127971458.45895658760.56895658760.56
bills
~ 119 ~Interim Report 2026
Ending balance Beginning balance
Category Bad debt Bad debt
Carrying amount Carrying value Carrying amount Carrying value
provision provision
Total 1127971458.45 1127971458.45 895658760.56 895658760.56
(2) Pledged notes receivable at June 30 2026
Not applicable.
(3) Notes receivable which were discounted or endorsed but not due at June 30 2026
Items Amount of derecognition Amount of unrecognition
Bank acceptance bills 5361829976.21
Commercial acceptance bills
Total 5361829976.21
(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
1127971458.45100.001127971458.45
group
Of which: Group 1
Group 2 1127971458.45 100.00 1127971458.45
Total 1127971458.45 100.00 1127971458.45
(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
895658760.56100.00895658760.56
group
Of which: Group 1
Group 2 895658760.56 100.00 895658760.56
~ 120 ~Interim Report 2026
Beginning balance
Category
Carrying amount Bad debt provision Carrying value
Total 895658760.56 100.00 895658760.56
(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 1 year 160189436.15 99.61 115101663.42 99.83
1 to 2 years 465395.75 0.29 190563.70 0.17
2 to 3 years 165148.00 0.10 0.00 0.00
Over 3 years
Total 160819979.90 100.00 115292227.12 100.00
(2) Top five ending balances by entity
Proportion of the balance to the
Entity name Ending balance
total prepayment (%)
No. 1 20838477.14 12.96
No. 2 9396257.38 5.84
No. 3 4731560.88 2.94
No. 4 4269857.48 2.66
No. 5 1405948.45 0.87
Total 40642101.33 25.27
6. Other Receivables
(1) Listed by category
Item Ending balance Beginning balance
Interest receivable
Dividend receivable
Other receivables 53893174.72 45651277.81
~ 121 ~Interim Report 2026
Item Ending balance Beginning balance
Total 53893174.72 45651277.81
(2) Other receivables
(i) Disclosure by aging
Aging Ending balance Beginning balance
Within 1 year 52317544.94 43611222.28
Of which: 1-6 months 48865844.58 40912955.81
7-12 months 3451700.36 2698266.47
1-2 years 1193558.62 1911890.68
2-3 years 2325340.97 1726793.61
Over 3 years 6579726.00 6690071.33
Subtotal 62416170.53 53939977.90
Less: Bad debt provision 8522995.81 8288700.09
Total 53893174.72 45651277.81
(ii) Disclosure by nature
Nature Ending balance Beginning balance
Deposit and guarantee 9538062.18 8831605.18
Platform promotion expenses 2921081.14 2283469.36
Rent utilities and gasoline charges 11487981.13 14058900.80
Other 38469046.08 28766002.56
Subtotal 62416170.53 53939977.90
Less: Bad debt provision 8522995.81 8288700.09
Total 53893174.72 45651277.81
(iii) Disclosure by withdrawal method of bad debt provision
A. As of June 30 2026 bad debt provision withdrawn based on three stages model:
Stage Carrying amount Bad debt provision Carrying value
Stage 1 62416170.53 8522995.81 53893174.72
Stage 2
Stage 3
Total 62416170.53 8522995.81 53893174.72
~ 122 ~Interim Report 2026
A1. As of June 30 2026 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 62416170.53 13.66 8522995.81 53893174.72
Of which: Group 1
Group 2 62416170.53 13.66 8522995.81 53893174.72
Total 62416170.53 13.66 8522995.81 53893174.72
On June 30 2026 other receivables with bad debt provision withdrawn by group 2
Ending balance
Aging Withdrawal proportion
Carrying amount Bad debt provision
(%)
Within 1 year 52317544.94 661243.46 1.26
Of which: 1-6 months 48865844.58 488658.44 1.00
7-12 months 3451700.36 172585.02 5.00
1-2 years 1193558.62 119355.86 10.00
2-3 years 2325340.97 1162670.49 50.00
Over 3 years 6579726.00 6579726.00 100.00
Total 62416170.53 8522995.81 13.66
B. As of January 1 2026 bad debt provision withdrawn based on three stages model:
Stage Carrying amount Bad debt provision Carrying value
Stage 1 53939977.90 8288700.09 45651277.81
Stage 2
Stage 3
Total 53939977.90 8288700.09 45651277.81
B1. On January 1 2026 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
~ 123 ~Interim Report 2026
12-month expected
Category Carrying amount credit losses rate Bad debt provision Carrying value
(%)
Bad debt provision withdrawn by group 53939977.90 15.37 8288700.09 45651277.81
Of which: Group 1
Group 2 53939977.90 15.37 8288700.09 45651277.81
Total 53939977.90 15.37 8288700.09 45651277.81
On January 1 2026 other receivables with bad debt provision withdrawn by group 2
Beginning balance
Aging Withdrawal proportion
Carrying amount Bad debt provision
(%)
Within 1 year 43611222.28 544042.88 1.25
Of which: 1-6 months 40912955.81 409129.56 1.00
7-12 months 2698266.47 134913.32 5.00
1-2 years 1911890.68 191189.07 10.00
2-3 years 1726793.61 863396.81 50.00
Over 3 years 6690071.33 6690071.33 100.00
Total 53939977.90 8288700.09 15.37
(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
8288700.09513984.340.00279688.620.008522995.81
withdrawn by group
Total 8288700.09 513984.34 0.00 279688.62 0.00 8522995.81
(v) Other receivables actually written off during the Reporting Period
Not applicable.~ 124 ~Interim Report 2026
(vi) 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 Within 6
Other 23380219.00 37.46 233802.19
months
No. 2 Rent utilities and
8594775.89 Within 1 year 13.77 87266.18
gasoline charges
Security deposit
No. 3
1303136.00 Over 3 years 2.09 1303136.00
and guarantee
No. 4 Security deposit
1284295.08 2-3 years 2.06 642147.54
and guarantee
No. 5 Rent utilities and
1074295.17 Within 1 year 1.72 19091.57
gasoline charges
Total -- 35636721.14 -- 57.10 2285443.48
7. Inventories
(1) Category of inventories
Ending balance
Item
Carrying amount Falling price reserves Carrying value
Raw materials and package
192375661.0421564512.60170811148.44
materials
Semi-finished goods and work
9979550643.450.009979550643.45
in process
Finished goods 664177730.62 19366416.26 644811314.36
Total 10836104035.11 40930928.86 10795173106.25
(Continued)
Beginning balance
Item
Carrying amount Falling price reserves Carrying value
Raw materials and package
442840504.1624858443.56417982060.60
materials
Semi-finished goods and work 9347360970.25 0.00 9347360970.25
~ 125 ~Interim Report 2026
in process
Finished goods 992737057.36 18285411.39 974451645.97
Total 10782938531.77 43143854.95 10739794676.82
(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
24858443.56211223.053505154.0121564512.60
package materials
Finished goods 18285411.39 1587152.57 506147.70 19366416.26
Total 43143854.95 1798375.62 4011301.71 40930928.86
8. Other Current Assets
Item Ending balance Beginning balance
Pledged treasury bond reverse repurchase 555158000.00 157930000.00
Interests on negotiable certificate of deposit 70575201.28 127463099.31
Deductible taxes and tax allowance 83462092.65 107533515.67
Total 709195293.93 392926614.98
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
5514301.997.57
Co. Ltd.Anhui Xunfei Jiuzhi
6060161.552744424.99
Technology Co. Ltd.Total 11574463.54 2744432.56
(Continued)
Investees Changes in the Reporting Period Ending balance Balance of
~ 126 ~Interim Report 2026
impairment
Declaration of cash Withdrawal of
provision
dividends or impairment Other
distribution of profit provision
I. Associated enterprises
Beijing Guge Trading
5514309.56
Co. Ltd.Anhui Xunfei Jiuzhi
8804586.54
Technology Co. Ltd.Total 14318896.10
10. Other Equity Instrument Investment
Changes during the Reporting Period
Gaines Losses
Beginning recognized in recognized in
Item Additional Decrease in Ending balance
balance other other Others
investment investment
comprehensive comprehensive
income income
Anhui
Mingguang
Rural 73526017.72 2847194.40 76373212.12
Commercial
Bank Co. Ltd.Total 73526017.72 2847194.40 76373212.12
(Continued)
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
recognized comprehensive income
retained
earnings
For management holding purposes it is
Anhui Mingguang
specified as measured at fair value and
Rural Commercial 680404.90 22524514.32
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
~ 127 ~Interim Report 2026
Items Houses and buildings Land use rights Total
I. Original carrying value
1. Beginning balance 26782405.87 2644592.00 29426997.87
2. Increase during the Reporting Period
(1) Transfer from fixed assets
3. Decrease during the Reporting Period 540614.77 0.00 540614.77
(1) Transfer out to fixed assets 540614.77 0.00 540614.77
4. Ending balance 26241791.10 2644592.00 28886383.10
II. Accumulated depreciation and amortization:
1. Beginning balance 12341301.57 1049284.48 13390586.05
2. Increase during the Reporting Period 557667.13 31369.60 589036.73
(1) Withdrawal or amortization 557667.13 31369.60 589036.73
(2) Transfer from fixed assets
3. Decrease during the Reporting Period 236865.89 0.00 236865.89
(1) Transfer out to fixed assets 236865.89 0.00 236865.89
4. Ending balance 12662102.81 1080654.08 13742756.89
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 13579688.29 1563937.92 15143626.21
2. Beginning carrying value 14441104.30 1595307.52 16036411.82
12. Fixed Assets
(1) Listed by category
Item Ending balance Beginning balance
Fixed assets 8951160974.66 9121969040.94
Disposal of fixed assets
Total 8951160974.66 9121969040.94
(2) Fixed assets
(i) General information of fixed assets
Machinery Transportation Administrative
Items Houses and buildings Total
equipment vehicles and other devices
~ 128 ~Interim Report 2026
Machinery Transportation Administrative
Items Houses and buildings Total
equipment vehicles and other devices
I. Original carrying
value
1. Beginning balance 6485656020.40 4628961421.29 87492576.44 1443814337.03 12645924355.16
2. Increase during the
152852300.6854939174.64154394.1934171830.36242117699.87
Reporting Period
(1) Acquisition 0.00 2387790.78 154394.19 8683441.67 11225626.64
(2) Transfer from
152311685.9152551383.860.0025488388.69230351458.46
construction in progress
(3) Transfer from
investment 540614.77 0.00 0.00 0.00 540614.77
property
3. Decrease during the
0.0062809285.973024758.021845225.0167679269.00
Reporting Period
(1) Disposal or scrap 0.00 16499575.29 3024758.02 1845225.01 21369558.32
(2) Other decreases 0.00 46309710.68 0.00 0.00 46309710.68
4. Ending balance 6638508321.08 4621091309.96 84622212.61 1476140942.38 12820362786.03
II. Accumulated
depreciation
1. Beginning balance 1547864249.99 1477398862.79 70430359.03 420116706.25 3515810178.06
2. Increase during the
144818777.84188676807.043430650.8361612109.75398538345.46
Reporting Period
(1) Withdrawal 144581911.95 188676807.04 3430650.83 61612109.75 398301479.57
(2) Transfer from
236865.890.000.000.00236865.89
investment property
3. Decrease during the
0.0048912037.642929520.251340454.0753182011.96
Reporting Period
(1) Disposal or scrap 0.00 13413502.47 2929520.25 1340454.07 17683476.79
(2) Other decreases 0.00 35498535.17 0.00 0.00 35498535.17
4. Ending balance 1692683027.83 1617163632.19 70931489.61 480388361.93 3861166511.56
III. Impairment
provision
1. Beginning balance 3420602.77 4554118.75 0.00 170414.64 8145136.16
2. Increase during the
Reporting Period
(1) Withdrawal
~ 129 ~Interim Report 2026
Machinery Transportation Administrative
Items Houses and buildings Total
equipment vehicles and other devices
3. Decrease during the
0.00109836.350.000.00109836.35
Reporting Period
(1) Disposal or scrap 0.00 109836.35 0.00 0.00 109836.35
4. Ending balance 3420602.77 4444282.40 0.00 170414.64 8035299.81
IV. Carrying value
1. Ending carrying value 4942404690.48 2999483395.37 13690723.00 995582165.81 8951160974.66
2. Beginning carrying
4934371167.643147008439.7517062217.411023527216.149121969040.94
value
(ii) Fixed assets leasing out under operating leases
Items Carrying value
Buildings and constructions 13579688.29
Total 13579688.29
(iii) Fixed assets without certificate of title
Items Carrying value Reason
Buildings and constructions 3631164433.42 In process
Total 3631164433.42 --
(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 158710163.85 160290473.75
Project materials
Total 158710163.85 160290473.75
(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
Intelligent park project 46908470.58 46908470.58 49297972.30 49297972.30
Whisky project 27203664.98 27203664.98 17504569.28 17504569.28
Other individual project 84598028.29 84598028.29 93487932.17 93487932.17
Total 158710163.85 158710163.85 160290473.75 160290473.75
~ 130 ~Interim Report 2026
(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 49297972.30 115486877.11 112442390.38 5433988.45 46908470.58
Whisky project 15539.56 17504569.28 10053516.21 354420.51 0.00 27203664.98
Other individual project 54851.80 93487932.17 112775944.61 117554647.57 4111200.92 84598028.29
Total 899357.10 160290473.75 238316337.93 230351458.46 9545189.37 158710163.85
(Continued)
Interest
Cumulative Of which: Interest
Proportion of capitalization
amount of capitalized during
Project project input to Schedule (%) during the Source of funds
interest the Reporting
budgets (%) Reporting
capitalization Period
Period (%)
Self-owned
Intelligent Park project 84.94 99.00 0.00 0.00 0.00 fund and raised
fund
Self-owned
Whisky project 60.28 93.00 317135.84 303884.77 2.71 fund and
borrowings
Self-owned
Other individual project 37.60 37.60 2018480.55 732619.45 2.70 fund and
borrowings
Total 2335616.39 1036504.22
14. Right-of-use Assets
Items Buildings and constructions Land use rights Total
I. Original carrying value
1. Beginning balance 118593842.59 9723022.59 128316865.18
2. Increase during the Reporting
Period
3. Decrease during the
978998.670.00978998.67
Reporting Period
4. Ending balance 117614843.92 9723022.59 127337866.51
II. Accumulated depreciation
1. Beginning balance 33514865.30 2640198.12 36155063.42
~ 131 ~Interim Report 2026
2. Increase during the Reporting
8153714.581036510.909190225.48
Period
3. Decrease during the
575881.580.00575881.58
Reporting Period
4. Ending balance 41092698.30 3676709.02 44769407.32
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 76522145.62 6046313.57 82568459.19
2. Beginning carrying value 85078977.29 7082824.47 92161801.76
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 1171415355.78 188656299.54 254992514.88 1615064170.20
2. Increase during the Reporting
0.002470931.720.002470931.72
Period
(1) Acquisition 0.00 334935.72 0.00 334935.72
(2) Transfer from construction in
0.002135996.000.002135996.00
progress
3. Decrease during the Reporting
Period
(1) Disposal or cancelation
4. Ending balance 1171415355.78 191127231.26 254992514.88 1617535101.92
II. Accumulated amortization:
1. Beginning balance 275263139.33 132903223.58 73222951.86 481389314.77
2. Increase during the Reporting
12430934.507608951.0864580.9120104466.49
Period
(1) Withdrawal 12430934.50 7608951.08 64580.91 20104466.49
~ 132 ~Interim Report 2026
Patents and
Item Land use rights Software Total
trademark
3. Decrease during the Reporting
Period
(1) Disposal or cancelation
4. Ending balance 287694073.83 140512174.66 73287532.77 501493781.26
III. Impairment provision
1. Beginning balance 0.00 166872.39 0.00 166872.39
2. Increase during the Reporting
Period
(1) Withdrawal
3. Decrease during the Reporting
Period
(1) Disposal
4. Ending balance 0.00 166872.39 0.00 166872.39
IV. Carrying value
1. Ending carrying value 883721281.95 50448184.21 181704982.11 1115874448.27
2. Beginning carrying value 896152216.45 55586203.57 181769563.02 1133507983.04
(2) Intangible assets used for mortgage or pledge at June 30 2026
Original carrying Accumulated
Item Impairment provision Carrying value Note
value amortization
Pledged for
Land use rights 17362400.00 1004202.12 0.00 16358197.88
loans
Total 17362400.00 1004202.12 0.00 16358197.88
16. Goodwill
(1) Original carrying value of goodwill
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 22394707.65 22394707.65
~ 133 ~Interim Report 2026
Increase Decrease
Investees or matters that
Formed by
goodwill arising from Beginning balance Ending balance
business Other Disposal Other
combination
Winery Industry Co. Ltd.Total 561364385.01 561364385.01
(2) Provision for impairment of goodwill
Investees or matters that Beginning Increase Decrease
Ending balance
goodwill arising from balance Withdrawal Other Disposal Other
Yellow Crane Tower Distillery
314610386.34314610386.34
Co. Ltd.Anhui Mingguang Distillery Co.Ltd.Renhuai Maotai Town Zhencang
Winery Industry Co. Ltd.Total 314610386.34 314610386.34
17. Long-term Deferred Expenses
Beginning Decrease
Item Increase Ending balance
balance
Amortization Other decrease
Experience center 9428228.71 143790.82 674972.52 8897047.01
Outdoor auxiliary projects 19084324.85 0.00 1448507.58 17635817.27
Pottery jar project 75094540.91 4102952.22 4566479.01 74631014.12
Theme hotel project 156100186.10 0.00 9701351.62 146398834.48
Public lines and pipeline
networks of the Intelligent Park 90109716.59 5248379.86 5285555.61 90072540.84
project
Other individual project with
67498750.697447753.907638207.9367308296.66
insignificant amounts
Total 417315747.85 16942876.80 29315074.27 404943550.38
18. Deferred Tax Assets and Deferred Tax Liabilities
(1) Deferred tax assets before offsetting
Item Ending balance Beginning balance
~ 134 ~Interim Report 2026
Deductible temporary Deductible temporary
Deferred tax assets Deferred tax assets
differences differences
Asset impairment provision 49133101.06 11466438.69 51455863.50 12064909.50
Credit impairment provision 17976138.52 4404056.14 17704140.31 4354735.95
Unrealized intergroup profit 71597020.45 16905195.92 66184882.61 16238669.35
Deferred income 155316559.89 38264493.75 162588721.38 39981747.79
Deductible losses 457272998.90 106706539.46 477604563.77 110144230.44
Carry-over of payroll payables
deductible during the next 11903932.14 1785589.82 19360961.32 2904144.20
period
Accrued expenses and discount 1803304320.22 449688792.70 1428151143.51 355229599.23
Change in fair value of
2668875.02659625.033720390.75929818.04
accounts receivable financing
Lease liabilities 80920666.12 20230166.53 93721254.88 23430313.72
Differences in the depreciation
0.000.002130902.30319635.35
periods of fixed assets
Total 2650093612.32 650110898.04 2322622824.33 565597803.57
(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 532800483.08 130580295.18 570927623.31 140112080.23
assets
Assets appreciation
arising from business
635552104.72154189974.96643406829.93156022685.09
combination not under
the same control
Changes in fair value of
2695342.46673835.620.000.00
trading financial assets
Unrealized intergroup
245972658.2461493164.54253295158.6463323789.66
profit
Changes in fair value of
investments in other 22524514.32 5631128.59 19677319.92 4919329.99
equity instruments
Right-of-use assets 82568459.19 20642114.80 92161801.76 23040450.44
~ 135 ~Interim Report 2026
Ending balance Beginning balance
Item Taxable temporary Taxable temporary
Deferred tax liabilities Deferred tax liabilities
differences differences
Total 1522113562.01 373210513.69 1579468733.56 387418335.41
(3) Net balance of deferred tax liabilities and deferred tax assets after offsetting
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 -69741444.58 580369453.46 -77949881.61 487647921.96
Deferred tax liabilities -69741444.58 303469069.11 -77949881.61 309468453.80
(4) Details of unrecognized deferred tax assets
Item Ending balance Beginning balance
Deductible losses 13355707.71 14286361.99
Total 13355707.71 14286361.99
(5) Deductible losses not recognized as deferred tax assets will expire in the following periods: due in two to three
years at RMB6725159.61; due in three to four years at RMB6630548.10.
19. Other Non-current Assets
Item Ending balance Beginning balance
Prepayment for construction and machinery 1288199.27 5465160.95
Total 1288199.27 5465160.95
20. Short-term Borrowings
Category Ending balance Beginning balance
Credit loan 129105400.43 184830263.45
Total 129105400.43 184830263.45
21. Notes Payable
(1) Listed by nature
Category Ending balance Beginning balance
Bank acceptance bills 924418345.49 1472240813.01
Commercial acceptance bills
Total 924418345.49 1472240813.01
(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
~ 136 ~Interim Report 2026
Item Ending balance Beginning balance
Payables for materials 679907956.99 820539496.01
Payments for constructions and equipment 1044545556.12 1154367384.76
Other 202112689.11 327981288.38
Total 1926566202.22 2302888169.15
(2) Significant accounts payable with aging of over one year
Not applicable.
23. Contract Liabilities
Item Ending balance Beginning balance
Payment for goods 833610499.57 1519882489.70
Total 833610499.57 1519882489.70
24. Employee Benefits Payable
(1) List of employee benefits payable
Item Beginning balance Increase Decrease Ending balance
I. Short-term employee benefits 1271130114.58 1759241647.32 1977538365.56 1052833396.34
II. Post-employment
5805340.23215535348.92215181086.466159602.69
benefits-defined contribution plans
III. Termination benefits 0.00 5329604.02 5329604.02 0.00
IV. Other benefits due within one
year
Total 1276935454.81 1980106600.26 2198049056.04 1058992999.03
(2) List of short-term employee benefits
Item Beginning balance Increase Decrease Ending balance
I. Salaries bonuses allowances and
1218770718.451539329237.051753313113.161004786842.34
subsidies
II. Employee benefits 0.00 56885704.85 56885704.85 0.00
III. Social insurance 401570.56 66248638.95 66201449.56 448759.95
Of which: Health insurance 398434.95 61415497.40 61375422.84 438509.51
Injury insurance 3135.61 4833141.55 4826026.72 10250.44
IV. Housing accumulation fund 8571095.74 74503914.69 76531535.86 6543474.57
~ 137 ~Interim Report 2026
Item Beginning balance Increase Decrease Ending balance
V. Labor union funds and employee
43386729.8322274151.7824606562.1341054319.48
education funds
Total 1271130114.58 1759241647.32 1977538365.56 1052833396.34
(3) Defined contribution plans
Item Beginning balance Increase Decrease Ending balance
1. Basic endowment
156786.34130251083.84130146192.48261677.70
insurance
2. Unemployment
4899.594318445.104315167.128177.57
insurance
3 Enterprise annuity 5643654.30 80965819.98 80719726.86 5889747.42
Total 5805340.23 215535348.92 215181086.46 6159602.69
(4) Termination benefits
Item Beginning balance Increase Decrease Ending balance
Termination benefits 0.00 5329604.02 5329604.02 0.00
Total 0.00 5329604.02 5329604.02 0.00
25. Taxes Payable
Item Ending balance Beginning balance
VAT 221505683.56 195978427.07
Consumption tax 248231285.49 286358430.39
Enterprise income tax 280879613.79 35880443.94
Individual income tax 2800193.08 10891290.58
Urban maintenance and construction tax 25058654.58 26138067.76
Stamp duty 2790750.43 3028436.79
Educational surcharge 24088583.23 24980400.49
Other 23335613.93 22713064.50
Total 828690378.09 605968561.52
26. Other Payables
(1) Listed by category
Item Ending balance Beginning balance
~ 138 ~Interim Report 2026
Item Ending balance Beginning balance
Interest payable
Dividends payable 1797240000.00 0.00
Other payables 3120830602.92 2816680849.01
Total 4918070602.92 2816680849.01
(2) Other payables
(i) Listed by nature
Item Ending balance Beginning balance
Security deposit and guarantee 1760628005.75 1902947859.54
Warranty 246930041.51 196511550.86
Personal housing fund paid by company 6575266.23 6563300.45
Other 1106697289.43 710658138.16
Total 3120830602.92 2816680849.01
(ii) Other payables aged over one year as of the statement date are mainly security deposit and warranty not yet
matured.
(3) Dividends payable
Item Ending balance Beginning balance
Dividend of ordinary shares 1797240000.00 0.00
Dividends on preference shares/perpetual
0.000.00
bonds classified as equity instruments
Other 0.00 0.00
Total 1797240000.00 0.00
27. Non-current Liabilities Due within One Year
Item Ending balance Beginning balance
Lease liabilities due within one year 17335121.03 17582426.45
Long-term borrowings due within one
77022192.6643671456.36
year
Total 94357313.69 61253882.81
28. Other Current Liabilities
Item Ending balance Beginning balance
Accrued expenses 867977845.33 846698519.42
~ 139 ~Interim Report 2026
Item Ending balance Beginning balance
Pre-mature output VAT 108098232.04 197259041.27
Total 976076077.37 1043957560.69
29. Long-term Borrowings
Item Ending balance Beginning balance
Credit Loan 147000000.00 197600000.00
Pledged for loans 87479589.94 62599589.94
Total 234479589.94 260199589.94
30. Lease Liabilities
Item Ending balance Beginning balance
Lease payments 90241797.15 104845973.69
Less: unrecognized financial charges 9321131.03 11124718.81
Subtotal 80920666.12 93721254.88
Less: lease liabilities due within one year 17335121.03 17582426.45
Total 63585545.09 76138828.43
31. Deferred Income
Item Beginning balance Increase Decrease Ending balance Reason
Government Receiving asset-related
162588721.387272161.49155316559.89
grants grants from government
Total 162588721.38 7272161.49 155316559.89 --
32. Share Capital
Changes during the Reporting Period (+-)
Item Beginning balance Bonus Capitalization 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 6196258070.02 6196258070.02
premium)
Other capital reserves 32853136.20 32853136.20
Total 6229111206.22 6229111206.22
~ 140 ~Interim Report 2026
34. Other Comprehensive Income
Reporting Period
Less: Less:
Recorded in Recorded in
other other Attributable
Income
comprehensive comprehensive to owners of Attributable to
Beginning before Less: Ending
Item income in income in the non-controlling
balance taxation in Income tax balance
prior period prior period Company as interests after
the Current expense
and transferred and transferred the parent tax
Period
to profit or to retained after tax
loss in the earnings in the
Current Period Current Period
I. Other
comprehensive
income that may not
8854793.972847194.40711798.601281237.47854158.3310136031.44
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
8854793.972847194.40711798.601281237.47854158.3310136031.44
equity instrument
investment
Changes in the
fair value arising from
changes in own credit
risk
II. Other
comprehensive
income that may -2774280.88 -2668875.02 -2790572.72 -659625.03 824825.69 -43502.96 -1949455.19
subsequently be
reclassified to profit
~ 141 ~Interim Report 2026
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
Other
comprehensive
income arising from -2774280.88 -2668875.02 -2790572.72 -659625.03 824825.69 -43502.96 -1949455.19
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 6080513.09 178319.38 -2790572.72 52173.57 2106063.16 810655.37 8186576.25
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.~ 142 ~Interim Report 2026
36. Retained Earnings
Item Reporting Period Same period of last year
Beginning balance of retained earnings before adjustments 18017022962.78 17639514432.44
Total beginning balance of retained earnings before
adjustment (increase+ decrease-)
Beginning balance of retained earnings after adjustments 18017022962.78 17639514432.44
Add: Net profit attributable to owners of the Company as 2164379928.17 3549108530.34
the parent
Less: withdrawal of statutory surplus reserve
Dividend of ordinary shares payable 2325840000.00 3171600000.00
Ending retained earnings 17855562890.95 18017022962.78
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 10073146014.61 1972160645.99 13817383143.06 2770679996.44
Other operations 58249912.50 20691683.73 62469059.69 22855262.10
Total 10131395927.11 1992852329.72 13879852202.75 2793535258.54
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 9996788312.26 1936205598.58 13639596262.27 2636312694.81
Others 134607614.85 56646731.14 240255940.48 157222563.73
Total 10131395927.11 1992852329.72 13879852202.75 2793535258.54
By operating segment
North China 398918435.26 118850703.25 809341217.22 210468705.23
Central China 9125205701.57 1755683018.30 12297380470.09 2431350909.32
South China 603328414.66 116714281.95 768186540.95 149970516.12
International 3943375.62 1604326.22 4943974.49 1745127.87
Total 10131395927.11 1992852329.72 13879852202.75 2793535258.54
By distribution
channel:
Online 658087417.84 180594321.35 572650258.28 153527839.86
~ 143 ~Interim Report 2026
Offline 9473308509.27 1812258008.37 13307201944.47 2640007418.68
Total 10131395927.11 1992852329.72 13879852202.75 2793535258.54
Information on performance obligations: None
38. Taxes and Surcharges
Item Reporting Period Same period of last year
Consumption tax 1337530510.62 1770534419.59
Urban maintenance and construction tax and
291919474.90339775660.75
educational surcharge
Urban land use tax 13026452.39 12841563.18
Property tax 29118114.35 24753853.31
Stamp duty 9642316.59 12454083.98
Other 12189290.23 15618141.35
Total 1693426159.08 2175977722.16
39. Selling Expense
Item Reporting Period Same period of last year
Employment benefits 588772275.16 664068763.31
Travel fees 126095272.65 134242942.14
Advertisement fees 729372049.18 715108133.20
Comprehensive promotion costs 1198947459.25 1545750834.47
Service fees 357789020.82 391207359.74
Other 71529457.37 61030523.10
Total 3072505534.43 3511408555.96
40. Administrative Expenses
Item Reporting Period Same period of last year
Employee benefits 366774873.45 407158260.95
Office fees 16435664.56 27761197.17
Maintenance expenses 16536283.64 20517221.46
Depreciation 96383231.59 72716531.29
Amortization 32122432.43 27786998.85
Pollution discharge 8966473.30 11470740.16
Travel expenses 6678868.53 6597066.02
~ 144 ~Interim Report 2026
Water and electricity charges 5481500.53 6793423.13
Other 81637704.51 90616337.75
Total 631017032.54 671417776.78
41. Development Costs
Item Reporting Period Same period of last year
Labor cost 26823267.57 27240880.08
Direct input costs 3098417.74 6665094.54
Depreciation expense 2545000.59 2111195.83
Other 2453371.61 4300576.92
Total 34920057.51 40317747.37
42. Finance Costs
Item Reporting Period Same period of last year
Interest expenses 7391788.69 5553600.24
Including: Interest expenses for lease
1787517.991932708.45
liabilities
Less: Interest income 240740851.52 324132039.22
Net interest expenses -233349062.83 -318578438.98
Net foreign exchange losses -464436.33 2337376.58
Bank charges and others 832839.25 533246.08
Total -232980659.91 -315707816.32
43. Other Income
Same period of last
Item Reporting Period Related to assets /income
year
I. Government grants recorded to other income 13157837.67 42305674.84
Of which: Government grant related to deferred
7272161.49 7532972.54 Related to assets.
income
Government grant recorded to current profit
5885676.18 34772702.30 Related to income.
or loss
II. Others related to daily operation activities and
6861681.697830847.56
recognized in other income
Total 20019519.36 50136522.40 --
44. Investment Income
Item Reporting Period Same period of last year
Investment income from long-term equity
2744432.56194023.79
investments under equity method
~ 145 ~Interim Report 2026
Gains on disposal of long-term equity
investments
Gains on disposal of held-for-trading financial
0.001811687.48
assets
Gains from other equity instrument investment
680404.900.00
income during holding period
Gains from disposal of financial assets at fair
-16481406.13-19878125.78
value through other comprehensive income
Others 1972083.55 580950.87
Total -11084485.12 -17291463.64
45. Gains on Changes in Fair Values
Sources Reporting Period Same period of last year
Financial assets at fair value through profit or loss 2753738.33 528360.62
Of which: gains on changes in fair value of derivatives
Total 2753738.33 528360.62
46. Credit Impairment Loss
Item Reporting Period Same period of last year
Bad debt of notes receivable
Bad debt of accounts receivable -37702.49 -530040.16
Bad debt of other receivables -234295.72 1109057.18
Total -271998.21 579017.02
47. Asset Impairment Loss
Item Reporting Period Same period of last year
I. Inventory falling price loss 1330835.11 954415.89
II. Impairment loss of fixed assets
III. Impairment loss of intangible assets
IV. Impairment loss of goodwill
Total 1330835.11 954415.89
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 204877.54 37146.67
classified as held for sale
Of which: Fixed assets 204877.54 37146.67
~ 146 ~Interim Report 2026
Item Reporting Period Same period of last year
Total 204877.54 37146.67
49. Non-operating Income
Recognized in current
Item Reporting Period Same period of last year non-recurring profit or
loss
Gains from damage or scrapping of
1076.860.001076.86
non-current asset
Fine and compensation 14735402.60 24891666.82 14735402.60
Sale of scrap 1832115.25 2859176.80 1832115.25
Release of payables 11171.12 0.00 11171.12
Others 395596.75 648515.97 395596.75
Total 16975362.58 28399359.59 16975362.58
50. Non-operating Expenses
Recognized in current
Item Reporting Period Same period of last year
non-recurring profit or loss
Loss from damage or scrapping of
3402247.35697979.663402247.35
non-current assets
Donations 330086.30 925000.00 330086.30
Other 1313344.62 405361.97 1313344.62
Total 5045678.27 2028341.63 5045678.27
51. Income Tax Expenses
(1) Details of income tax expenses
Item Reporting Period Same period of last year
Current tax expenses 853635748.50 1371026535.77
Deferred tax expenses -99702907.80 -84349304.56
Total 753932840.70 1286677231.21
(2) Reconciliation of accounting profit and income tax expenses
Item Reporting Period
Profit before taxation 2964537645.06
Current income tax expense accounted at applicable tax rate of the
741134411.26
Company as the parent
Influence of applying different tax rates by subsidiaries -9750276.91
~ 147 ~Interim Report 2026
Adjustment for prior period 19933148.97
Influence of non-taxable income -856209.37
Influence of non-deductible costs expenses and losses 10727975.48
Influence of deductible losses of unrecognized deferred income
0.00
tax at the beginning of the Reporting Period
Influence of deductible temporary difference or deductible losses
0.00
of unrecognized deferred income tax in the Reporting Period
Influence of development expense deduction -7256208.73
Tax rate adjustment to the beginning balance of deferred income
0.00
tax assets/liabilities
Income tax credits 0.00
Total 753932840.70
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 86140460.36 65670284.20
Government grants 5885676.18 38096549.86
Interest income 240740851.52 324132039.22
Release of restricted monetary assets 429927281.05 290541554.58
Other 108404615.81 128389307.02
Total 871098884.92 846829734.88
(2) Other cash payments relating to operating activities
Item Reporting Period Same period of last year
Cash paid in sales and distribution expenses and
1146040590.731753917497.96
general and administrative expense
Security deposit guarantee and warranty 110894336.92 65261571.87
Time deposits or deposits pledged for the
0.0089341810.67
issuance of notes payable
Others 139091389.62 157249646.94
Total 1396026317.27 2065770527.44
(3) Other cash payments relating to financing activities
Item Reporting Period Same period of last year
Rental fee 14254699.26 11832851.40
Total 14254699.26 11832851.40
~ 148 ~Interim Report 2026
Changes in liabilities arising from financing activities
Increase in the current period Decrease in the current period
Beginning
Item Changes in Changes in Ending balance
balance Changes in cash Changes in cash
non-cash non-cash
Short-term
184830263.4530000000.001647619.0287372482.040.00129105400.43
Borrowings
Long-term
260199589.9469300000.004661544.640.0099681544.64234479589.94
Borrowings
Lease liabilities 76138828.43 0.00 1803587.78 0.00 14356871.12 63585545.09
lease liabilities due
17582426.450.0014356871.1213570341.891033834.6517335121.03
within one year
Long-term
Borrowings due 43671456.36 0.00 99681544.64 66330808.34 0.00 77022192.66
within one year
Dividends payable 0.00 0.00 1797240000.00 0.00 0.00 1797240000.00
Total 582422564.63 99300000.00 1919391167.20 167273632.27 115072250.41 2318767849.15
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 2210604804.36 3777540743.97
Add: Provisions for impairment of assets -1330835.11 -954415.89
Credit impairment provision 271998.21 -579017.02
Depreciation of fixed assets oil and gas
398890516.30329626282.34
assets and productive biological assets
Depreciation of right-of-use assets 9190225.48 8804476.73
Amortization of intangible assets 20104466.49 19357592.50
Amortization of long-term deferred expenses 29315074.27 27157131.74
Losses from disposal of fixed assets
intangible assets and other long-term assets -204877.54 -37146.67
(gains: negative)
Losses on scrapping of fixed assets (gains:
3401170.49697979.66
negative)
Losses on changes in fair value (gains: -2753738.33 -528360.62
~ 149 ~Interim Report 2026
negative)
Finance costs (gains: negative) 6927352.36 5553600.24
Investment losses (gains: negative) -5396921.01 -2586662.14
Decreases in deferred tax assets (increase:
-84783287.48-71450956.11
negative)
Increases in deferred tax liabilities (decrease:
-14919620.32-12898348.45
negative)
Decreases in inventories (increase: negative) -53165503.34 -137280948.47
Decreases in operating receivables (increase:
-271692191.812598779357.38
negative)
Increases in operating payables (decrease:
-1131850776.47-2587848998.50
negative)
Other*1 429927281.05 201199743.91
Net cash flows from operating activities 1542535137.60 4154552054.60
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 12038274964.82 15076527533.64
Less: Beginning balance of cash 12494251818.57 15193134694.19
Add: Ending balance of cash equivalents
Less: Beginning balance of cash equivalents
Net increase in cash and cash equivalents -455976853.75 -116607160.55
*1: “Other” 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 12038274964.82 15076527533.64
~ 150 ~Interim Report 2026
Item Reporting Period Same period of last year
Including: Cash on hand 109047.09 6045.93
Bank deposit on demand 12023904318.78 15044905760.69
Other monetary assets on demand 14261598.95 31615727.02
II. Cash equivalents
Of which: Bond investments maturing within three months
III. Ending balance of cash and cash equivalents 12038274964.82 15076527533.64
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 1263284630.19
bills L/G and other security deposit.Intangible assets 16358197.88 Pledged for loans.Total 1279642828.07 --
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 3831194.96
Expenses for lease of low value asset (except for short-term lease) under simplified method
Interest expense of lease liabilities 1787517.99
Variable lease payments not included in lease liabilities recognized in current profit or loss
Income from subleasing the right-of-use assets
Cash outflows related to leases 21258123.84
Profit or loss in sale and leaseback transaction
(2) The Company as a lessor
Operating lease
Item Reporting Period
Lease income 4943304.08
Including: income related to variable lease payments not included in lease receivables 4943304.08
~ 151 ~Interim Report 2026
VI Research and Development Expenditures
Item Reporting Period Same period of last year
Labor costs 26823267.57 27240880.08
Material costs 3098417.74 6665094.54
Depreciation costs 2545000.59 2111195.83
Others 2453371.61 4300576.92
Total 34920057.51 40317747.37
Including: Expensed R&D expenditures 34920057.51 40317747.37
Capitalized R&D expenditures
VII Changes in the Scope of Consolidation
1. Other Reasons of Changes in the Scope of Consolidation
Not applicable.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
Management Co. Ltd. 5400.00 Shanghai Shanghai Hotel operating 100.00 combination under
common control
Bozhou Gujing Hotel Co. Ltd Anhui Business
62.80 Anhui Bozhou Hotel operating 100.00
Bozhou combination under
~ 152 ~Interim Report 2026
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 operating 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
60000.00 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
~ 153 ~Interim Report 2026
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 Construction Anhui Investment
1100.00 Anhui Bozhou Construction 52.00
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
~ 154 ~Interim Report 2026
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 Gujing Light Wellness Club Business
Supply Chain Management Co. Anhui Commercial combination not
1000.00 Anhui Bozhou 60.00
Ltd. Bozhou trade under common
control
(2) Significant non-wholly owned subsidiaries
Not applicable.
2. Interests in Joint Arrangements or Associates
(1) Significant joint ventures or associates
The Company had no significant joint venture or associate.
(2) Summarized 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 14318896.10 11574463.54
The aggregate amount of below items calculated
based on proportion of equity interests:
—Net profit/(loss) 2744432.56 194023.79
—Other comprehensive income
—Total comprehensive income 2744432.56 194023.79
IX Government Grants
1. Government Grants Recognized as Receivables
~ 155 ~Interim Report 2026
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
□ Applicable □ Not applicable
2. Liability Items that Involve Government Grants
□ Applicable □ Not applicable
Items Amount
Amount
presented Increase in recognized in
recognized 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
162588721.387272161.49155316559.89
income assets
3. Government Grants Recognized in Current Profit or Loss
□ Applicable □ Not applicable
Items presented in income statement Reporting Period Same period of last year
Other income 13157837.67 42305674.84
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
minimize 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 fulfill 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
~ 156 ~Interim Report 2026
of contract. The maximum risk exposure is equal to the carrying amount of these financial
instruments.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 canceling 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
~ 157 ~Interim Report 2026
lender would not otherwise consider; the probability that the borrower will enter bankruptcy or
other financial re-organization; the disappearance of an active market for the financial asset because
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 represents 44.54% of the
total; for the other receivables the amount of the top five entities represents 57.10% 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
~ 158 ~Interim Report 2026
to maintain adequate cash and cash equivalents.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 130009500.00
Notes payable 924418345.49
Accounts payable 1926566202.22
Other payables 4918070602.92
Non-current liabilities due within
105443830.02
1 year
Other current liabilities 976076077.37
Long-term borrowings 108163914.81 59209371.23 82823772.91
Lease liabilities 21580268.58 12545662.42 38234314.95
Total 8980584558.02 129744183.39 71755033.65 121058087.86
Opening balance
(Continued)Item
Within 1 year 1-2 years 2-3 years Over 3 years
Short-term borrowings 186934364.01
Notes payable 1472240813.01
Accounts payable 2302888169.15
Other payables 2816680849.01
Non-current liabilities due within
73181317.74
1 year
Other current liabilities 1043957560.69
Long-term borrowings 0.00 99209174.77 119042949.22 57269625.38
Lease liabilities 0.00 21677513.09 21760268.51 44507146.01
Total 7895883073.61 120886687.86 140803217.73 101776771.39
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
small amount of export business which has a small proportion of income scale and impact and has
little exchange rate risk.~ 159 ~Interim Report 2026
(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 June 30
2026 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 utilizing 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 June 30 2026
Fair value on June 30 2026
Item
Level 1 Level 2 Level 3 Total
I. Recurring fair value measurements
(I) Held-for-trading financial assets 602695342.46 602695342.46
1. Financial assets at fair value through
602695342.46602695342.46
profit or loss
(1) Debt instruments
(2) Bank financial products 602695342.46 602695342.46
(II) Financial assets measured at fair
value through other comprehensive 1204344670.57 1204344670.57
income
(1) Accounts receivable financing 1127971458.45 1127971458.45
(2) Investments in other equity
76373212.1276373212.12
instrument
Total assets measured at fair value on a 1807040013.03 1807040013.03
~ 160 ~Interim Report 2026
Fair value on June 30 2026
Item
Level 1 Level 2 Level 3 Total
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 amortized 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
Details of significant joint ventures and associates please refer to Notes 8.2 Interests in other Entities.~ 161 ~Interim Report 2026
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
~ 162 ~Interim Report 2026
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
Dazhongyuan Jiugu Cultural Tourism Development Co. Ltd. (Dazhongyuan Controlled by the Company’s controlling shareholder
Jiugu Cultural) or ultimate controller
Anhui Jiuan Engineering Management Consulting Co. Ltd.(Jiuan Controlled by the Company’s controlling shareholder
Consulting) 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
Bozhou Hotel Co. Ltd. 3017279.78 5433546.07
accommodation
Receiving catering and
Bozhou Gujing Huishenglou Catering Co. Ltd. 2131633.36 3112747.15
accommodation
Receiving catering and
Anhui Gujing Hotel Development Co. Ltd. 451254.01 753252.12
accommodation
Purchases of materials and
Anhui Gujing Hotel Development Co. Ltd. 3211.69 107809.29
acceptance of labor
Anhui Ruijing Shanglv (Group) Co. Ltd. Purchases of materials 225459.18 161459.85
Receiving catering and
Anhui Ruijing Shanglv (Group) Co. Ltd. 0.00 2301.89
accommodation
Anhui Ruijing Shanglv (Group) Co. Ltd. Hefei Receiving catering and
1475.1953448.21
Gujing Holiday Inn accommodation
Anhui Ruijing Shanglv (Group) Co. Ltd. Hefei Purchases of materials and
298137.37399211.93
Gujing Holiday Inn acceptance of labor
Anhui Youxin Financing Guarantee Co. Ltd. Receiving services 0.00 18307.43
Anhui Jiuan Engineering Management Consulting
Advisory and assurance 1509230.65 3126013.80
Co. Ltd.Anhui Haochidian Catering Co. Ltd. (Haochidian Receiving services 2793.17 0.00
~ 163 ~Interim Report 2026
Reporting Same period of last
Related parties Nature of the transaction(s)
Period year
Catering)
Total -- 7640474.40 13168097.74
Sales of goods and rendering of services:
Nature of the Reporting Same period of last
Related parties
transaction(s) Period year
Anhui Shenglong Trading Co. Ltd. Sales of baijiu 69132.73 12110.60
Provision of
Anhui Shenglong Trading Co. Ltd. catering and 5672.64 3706.60
accommodation
Anhui Ruijing Shanglv (Group) Co. Ltd. Sales of baijiu 2368407.08 1371576.99
Provision of
Anhui Ruijing Shanglv (Group) Co. Ltd. catering and 0.00 2676.58
accommodation
Anhui Ruijing Shanglv (Group) Co. Ltd. Hefei Gujing Holiday Sales of small
1327.4315929.20
Inn materials
Anhui Ruijing Shanglv (Group) Co. Ltd. Hefei Gujing Holiday
Sales of baijiu 0.00 22619.47
Inn
Provision of
Anhui Ruijing Shanglv (Group) Co. Ltd. Hefei Gujing Holiday
catering and 794.81 0.00
Inn
accommodation
Anhui Gujing Hotel Development Co. Ltd. Sales of baijiu 1370552.20 579136.29
Provision of
Anhui Gujing Hotel Development Co. Ltd. 57127.89 65837.28
utilities
Provision of
Anhui Gujing Hotel Development Co. Ltd. catering and 0.00 138360.44
accommodation
Provision of
Anhui Gujing Group Co. Ltd. catering and 116812.27 173024.72
accommodation
Sales of small
Anhui Gujing Group Co. Ltd. 26503.87 17883.82
materials
Sales of small
Bozhou Hotel Co. Ltd. 2619.50 38300.92
materials
Bozhou Hotel Co. Ltd. Sales of baijiu 48769.90 263502.04
Anhui Huixin Finance Investment Group Co. Ltd Sales of baijiu 2707.97 3345.14
Bozhou Gujing Huishenglou Catering Co. Ltd. Sales of baijiu 8761.06 37831.86
Provision of
Bozhou Gujing Huishenglou Catering Co. Ltd. 0.00 12849.06
testing services
~ 164 ~Interim Report 2026
Nature of the Reporting Same period of last
Related parties
transaction(s) Period year
Bozhou Anxin Micro Finance Co. Ltd. Sales of baijiu 9398.23 8123.89
Provision of
Bozhou Anxin Micro Finance Co. Ltd. 0.00 660.38
testing services
Anhui Haochidian Catering Co. Ltd. Sales of baijiu 1840725.67 1374026.56
Anhui Zhongxin Finance Leasing Co. Ltd. Sales of baijiu 1274.34 1274.34
Anhui Hengxin Pawn Co. Ltd. Sales of baijiu 1592.92 2230.08
Anhui Jiuan Engineering Management Consulting Co. Ltd. Sales of baijiu 1592.92 6530.97
Provision of
Anhui Jiuan Engineering Management Consulting Co. Ltd. catering and 0.00 292.45
accommodation
Shanghai Beihai Restaurant Co. Ltd. Sales of baijiu 0.00 796.46
Sales of small
Shanghai Beihai Restaurant Co. Ltd. 0.00 1168.14
materials
Anhui Ruixin Pawn Co. Ltd. Sales of baijiu 637.16 1274.34
Anhui Youxin Financing Guarantee Co. Ltd. Sales of baijiu 1592.92 1274.34
Hefei Longxin Business Management Consulting Co. Ltd Sales of baijiu 955.76 955.76
Anhui Gujing Group Co. Ltd. Sales of materials 4334.77 7462.84
Anhui Haochidian Catering Co. Ltd. Sales of materials 35627.41 64589.41
Anhui Huixin Finance Investment Group Co. Ltd Sales of materials 2238.94 584.07
Anhui Ruijing Catering Co. Ltd. Sales of materials 16353.99 0.00
Anhui Ruijing Shanglv (Group) Co. Ltd. Hefei Gujing Holiday
Sales of materials 679626.71 256589.42
Inn
Anhui Shenglong Trading Co. Ltd. Sales of materials 13521.42 28070.80
Bozhou Hotel Co. Ltd. Sales of materials 65689.97 95317.83
Bozhou Gujing Huishenglou Catering Co. Ltd. Sales of materials 6284.11 52341.97
Anhui Gujing Hotel Development Co. Ltd. Sales of materials 0.00 1345.11
Anhui Youxin Financing Guarantee Co. Ltd. Sales of materials 0.00 292.03
Bozhou Anxin Micro Finance Co. Ltd. Sales of materials 0.00 8053.10
Hefei Longxin Business Management Consulting Co. Ltd Sales of materials 0.00 292.03
Anhui Ruijing Shanglv (Group) Co. Ltd. Sales of materials 0.00 17734.52
Total -- 6760636.59 4689971.85
(2) Related-party leases
The Company as lessor:
~ 165 ~Interim Report 2026
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 411904.76 554733.32
Total -- 411904.76 554733.32
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
740832.9753584.97
Co. Ltd. buildings
Dazhongyuan Jiugu Houses
Cultural Tourism buildings 6999238.82 315744.53
Development Co. Ltd. and land
Total -- 7740071.79 369329.50
(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
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
6. Receivables and Payables with Related Parties
Item Related party Ending balance Beginning balance
Contract Bozhou Hotel Co. Ltd. 32714.78 38236.90
liabilities
Contract Anhui Gujing Group Co. Ltd. 5383.02 0.00
liabilities
Contract Anhui Gujing Hotel Development Co. Ltd. 304821.24 0.00
liabilities
~ 166 ~Interim Report 2026
Item Related party Ending balance Beginning balance
Contract Anhui Ruijing Shanglv (Group) Co. Ltd. 222991.15 0.00
liabilities
Contract Anhui Ruijing Shanglv (Group) Co. Ltd. Hefei Gujing
5044.25102057.35
liabilities Holiday Inn
Accounts payable Anhui Jiuan Engineering Management Consulting Co. 170497.10 188322.34
Ltd.Accounts payable Anhui Gujing Hotel Development Co. Ltd. 0.00 11444.00
Accounts payable Anhui Ruijing Shanglv (Group) Co. Ltd. 93156.75 0.00
Other payables Anhui Ruijing Shanglv (Group) Co. Ltd. 300000.00 300000.00
Other payables Anhui Gujing Hotel Development Co. Ltd. 100000.00 100000.00
Other payables Anhui Jiuan Engineering Management Consulting Co. 6000.00 6000.00
Ltd.Other payables Bozhou Hotel Co. Ltd. 0.00 10000.00
XIII Commitments and Contingencies
1. Significant Commitments
As at June 30 2026 the Company has no significant commitments need to be disclosed.
2. Contingencies
As at June 30 2026 the Company has no significant contingencies need to be disclosed.XIV Events after Balance Sheet Date
As at August 28 2026 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 organizational 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 June 30 2026 the Company as the parent has no balance of accounts receivable.
(2) On January 1 2026 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.
~ 167 ~Interim Report 2026
2. Other Receivables
(1) Listed by category
Item Ending balance Beginning balance
Interest receivable
Dividends receivable
Other receivables 497204844.52 464796849.41
Total 497204844.52 464796849.41
(2) Other receivables
(i) Disclosure by aging
Aging Ending balance Beginning balance
Within 1 year 116437168.05 84117630.95
Of which:1-6 months 43790000.61 84019705.08
7-12 months 72647167.44 97925.87
1-2 years 150132070.03 260071975.05
2-3 years 166407194.16 121459100.36
Over 3 years 66693636.00 1693636.00
Subtotal 499670068.24 467342342.36
Less: Bad debt provision 2465223.72 2545492.95
Total 497204844.52 464796849.41
(ii) Disclosure by nature
Nature Ending balance Beginning balance
Related parties within the scope of 492723205.73 452998407.89
consolidation
Security deposit and guarantee 3114597.75 3047931.08
Rent utilities and gasoline charges 1323155.23 1115067.27
Other 2509109.53 10180936.12
Subtotal 499670068.24 467342342.36
Less: Bad debt provision 2465223.72 2545492.95
Total 497204844.52 464796849.41
~ 168 ~Interim Report 2026
(iii) Disclosure by withdrawal method of bad debt provision
A. As of June 30 2026 bad debt provision withdrawn based on three stages model:
Stage Carrying amount Bad debt provision Carrying value
Stage 1 499670068.24 2465223.72 497204844.52
Stage 2
Stage 3
Total 499670068.24 2465223.72 497204844.52
A1. As of June 30 2026 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
499670068.240.492465223.72497204844.52
by group-
Of which: Group 1 492723205.73 0.00 0.00 492723205.73
Group 2 6946862.51 35.49 2465223.72 4481638.79
Total 499670068.24 0.49 2465223.72 497204844.52
On June 30 2026 other receivables with bad debt provision withdrawn by group 2
Ending balance
Aging Withdrawal proportion
Carrying amount Bad debt provision
(%)
Within 1 year 3713962.32 54783.64 1.48
Of which:1-6 months 3272861.93 32728.62 1.00
7-12 months 441100.39 22055.02 5.00
1-2 years 132070.03 13207.00 10.00
2-3 years 1407194.16 703597.08 50.00
Over 3 years 1693636.00 1693636.00 100.00
Total 6946862.51 2465223.72 35.49
B. As of January 1 2026 bad debt provision withdrawn based on three stages model:
Stage Carrying amount Bad debt provision Carrying value
Stage 1 467342342.36 2545492.95 464796849.41
~ 169 ~Interim Report 2026
Stage Carrying amount Bad debt provision Carrying value
Stage 2
Stage 3
Total 467342342.36 2545492.95 464796849.41
B1. On January 1 2026 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
467342342.360.542545492.95464796849.41
by group
Of which: Group 1 452998407.89 0.00 0.00 452998407.89
Group 2 14343934.47 17.75 2545492.95 11798441.52
Total 467342342.36 0.54 2545492.95 464796849.41
On January 1 2026 other receivables with bad debt provision withdrawn by group 2
Beginning balance
Aging Withdrawal proportion
Carrying amount Bad debt provision
(%)
Within 1 year 11119223.06 115109.26 1.04
Of which: 1-6 months 11021297.19 110212.97 1.00
7-12 months 97925.87 4896.29 5.00
1-2 years 71975.05 7197.51 10.00
2-3 years 1459100.36 729550.18 50.00
Over 3 years 1693636.00 1693636.00 100.00
Total 14343934.47 2545492.95 17.75
(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 2545492.95 80269.23 2465223.72
~ 170 ~Interim Report 2026
Changes in the Reporting Period
Category Beginning balance Reversal or Elimination or Ending balance
Withdrawal
recovery Write-off
group
Total 2545492.95 80269.23 2465223.72
(v) Other receivables actually written off during the Reporting Period
Not applicable.(vi) On June 30 2026 top five ending balance by entity
Proportion of
the balance to
Bad debt
Entity Nature Ending balance Aging the total other
provision
receivables
(%)
Current accounts within the
No. 1 420000000.00 1-3 years 84.06 0.00
scope of consolidation
Current accounts within the
No. 2 72206067.05 7-12 months 14.45 0.00
scope of consolidation
Security deposit and
No. 3 1303136.00 Over 3 years 0.26 1303136.00
guarantee
Security deposit and
No. 4 1284295.08 2-3 years 0.26 642147.54
guarantee
Rent utilities and gasoline
No. 5 795610.94 Within 6 months 0.16 7956.11
charges
Total -- 495589109.07 -- 99.19 1953239.65
3. Long-term Equity Investments
Ending balance Beginning balance
Item Depreciation Depreciation
Carrying amount Carrying value Carrying amount Carrying value
reserve reserve
Investment in
1694079903.431694079903.431694079903.431694079903.43
subsidiaries
Investment in
associated 8804586.54 8804586.54 6060161.55 6060161.55
enterprises
Total 1702884489.97 1702884489.97 1700140064.98 1700140064.98
~ 171 ~Interim Report 2026
(1) Investments in subsidiaries
Impairment
Decrease
Increase during provision Provision for
Beginning during the
Investees the Reporting Ending balance during the impairment at
balance Reporting
Period Reporting June 30 2026
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
15000000.0015000000.00
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.~ 172 ~Interim Report 2026
Impairment
Decrease
Increase during provision Provision for
Beginning during the
Investees the Reporting Ending balance during the impairment at
balance Reporting
Period Reporting June 30 2026
Period
Period
Renhuai Maotai Town
Zhencang Winery Industry 224723400.00 224723400.00
Co. Ltd.Anhui Jiuhao Construction
5720000.005720000.00
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.
72000000.0072000000.00
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 1694079903.43 1694079903.43
(2) Investment in associated enterprises
Increase/Decrease
Adjustment of
Beginning Investment income
Investee Additional Reduced other Changes of
balance
recognized under
investment investment
comprehensive other equity
the equity method
income
I. Joint ventures
Anhui Xunfei Jiuzhi
6060161.552744424.99
Technology Co. Ltd.Total 6060161.55 2744424.99
(Continued)
Investee Increase/Decrease Ending balance Ending balance of
~ 173 ~Interim Report 2026
Withdrawal of depreciation
Cash bonus or profits
impairment Other reserve
announced to issue
provision
I. Joint ventures
Anhui Xunfei Jiuzhi Technology
8804586.54
Co. Ltd.Total 8804586.54
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 6393484381.60 2302571548.97
Other operations 84764322.29 49522357.39 77656954.71 37077791.52
Total 8145509078.76 2663998964.46 6471141336.31 2339649340.49
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
24991112.1036369925.60
method
Investment income from long-term equity investments under equity
2744424.99193638.56
method
Gains on disposal of financial assets at fair value through profit or
0.00341166.67
loss
Gains on disposal of financial assets at fair value through other
-16115213.95-19878125.78
comprehensive income
Other investment income 1628256.56 233241.34
Total 13248579.70 17259846.39
XVII Supplementary Materials
1. Items and Amounts of Non-recurring Profit or Loss
Item Amount Note
Gain or loss on disposal of non-current
-3196292.95
assets
Government grants recognized in profit or
loss (exclusive of those that are closely
related to the Company’s normal business 3811624.84
operations and given in accordance with
defined criteria and in compliance with
~ 174 ~Interim Report 2026
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 4725821.88
(exclusive of the effective portion of
hedges that is related to the Company’s
normal business operations)
Non-operating income and expense other
15330854.80
than the above
Less: Income tax effects 5089326.72
Non-controlling interests effects (net
1232196.25
of tax)
Total 14350485.60 --
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
Weighted average ROE EPS (RMB/share)
Profit as of Reporting Period
(%)
EPS-basic EPS-diluted
Net profit attributable to ordinary shareholders of the
8.424.094.09
Company
Net profit attributable to ordinary shareholders of the
8.374.074.07
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
~ 175 ~Interim Report 2026
(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
~176~
沪公网安备31011802005267号
