Anhui Gujing Distillery Company Limited
Annual Report 2024
April 2025Annual Report 2024
Part I Important Notes Table of Contents and Definitions
The Board of Directors (or the “Board”) the Supervisory Committee as well as the
directors supervisors and senior management of Anhui Gujing Distillery Company
Limited (hereinafter referred to as the “Company”) hereby guarantee the factuality
accuracy and completeness of the contents of this Report and its summary and shall
be jointly and severally liable for any misrepresentations misleading statements or
material omissions therein.Liang Jinhui the legal representative and Zhu Jiafeng the Deputy Chief Accountant
and Board Secretary hereby guarantee that the financial statements carried in this
Report are factual accurate and complete.All the Company’s directors have attended the Board meeting for the review of this
Report and its summary.Any plans for the future and other forward-looking statements mentioned in this
Report shall NOT be considered as absolute promises of the Company to investors.Investors among others shall be sufficiently aware of the risk and shall differentiate
between plans/forecasts and promises. Again investors are kindly reminded to pay
attention to possible investment risks.Investors’ attention is kindly directed to the detailed description of possible risks in
the Company’s operations in “XI Prospects” under “Part III Management Discussionand Analysis”.The Board has approved a final dividend plan as follows: based on the Company’s
total share capital of 528600000 shares a cash dividend of RMB50.00 (tax inclusive)
per 10 shares is to be distributed to the shareholders with no bonus issue from either
profit or capital reserves.This Report and its summary have been prepared in both Chinese and English.Should there be any discrepancies or misunderstandings between the two versions
the Chinese versions shall prevail.~ 2 ~Annual Report 2024
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 11
Part IV Corporate Governance 42
Part V Environmental and Social Responsibility 62
Part VI Significant Events 70
Part VII Share Changes and Shareholder Information 74
Part VIII Preferred Shares 82
Part IX Corporate Bonds 82
Part X Financial Statements 83
~ 3 ~Annual Report 2024
Documents Available for Reference
(I) Financial statements signed and sealed by the Company’s legal representative the
Company’s Chief Accountant and the head of the Company’s financial department
(equivalent to financial manager);
(II) The original copy of the Independent Auditor’s Report stamped by the CPA firm
as well as signed and stamped by the engagement certified public accountants;
(III) 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; and
(IV) This Report disclosed in other securities markets.~ 4 ~Annual Report 2024
Definitions
Term Definition
Anhui Gujing Distillery Company Limited inclusive of its consolidated
The “Company” “Gu Jing” or “we”
subsidiaries except where the context otherwise requires
Gujing Sales Bozhou Gujing Sales Co. Ltd.Anhui Gujing Distillery Company Limited exclusive of subsidiaries
The Company as the parent
except where the context otherwise requires
Gujing Group Anhui Gujing Group Co. Ltd.Yellow Crane Tower Yellow Crane Tower Distillery Co. Ltd.Mingguang Anhui Mingguang Distillery Co. Ltd.Longrui Glass Anhui Longrui Glass Co. Ltd.Intelligent Park The Baijiu Production Intelligent Transformation Project
~ 5 ~Annual Report 2024
Part II Corporate Information and Key Financial Information
I Corporate Information
Stock name Gujing Distillery Gujing Distillery-B Stock code 000596 200596
Changed stock name (if any)
Stock exchange for stock
Shenzhen Stock Exchange
listing
Company name in Chinese 安徽古井贡酒股份有限公司
Abbr. 古井
Company name in English (if
ANHUI GUJING DISTILLERY COMPANY LIMITED
any)
Abbr. (if any) GU JING
Legal representative Liang Jinhui
Registered address Gujing Town Bozhou City Anhui Province P.R.China
Zip code 236820
Change of registered address N/A
Office address Gujing Industrial Park Gujing Town Bozhou City Anhui Province P.R.China
Zip code 236820
Company website http://www.gujing.com
Email address gjzqb@gujing.com.cn
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 Media for Information Disclosure and Place where this Report Is Lodged
Website of the stock exchange where this Report is The Shenzhen Stock Exchange（http://www.szse.cn）
~ 6 ~Annual Report 2024
disclosed
Media and website where this Report is disclosed China Securities Journal Ta Kung Pao (HK) and http://www.cninfo.com.cn
Place where this Report is lodged The Board Secretary’s Office
IV Change to Company Registered Information
Unified social credit code 913400001519400083
Change to principal activity of the Company
No change
since going public (if any)
Every change of controlling shareholder since
No change
incorporation (if any)
V Other Information
The independent audit firm hired by the Company:
Name RSM China
Suite 901-22 to 901-26 Wai Jing Mao Building (Tower 1) No. 22 Fuchengmen Wai Street
Office address
Xicheng District Beijing China
Accountants writing signatures Zhang Liping and Han Songliang
The independent sponsor hired by the Company to exercise constant supervision over the Company in the Reporting Period:
□ Applicable □ Not applicable
Sponsor Office address Representatives Supervision period
27-28/F China World Office 2
China International Capital
No. 1 Jianguomenwai Avenue Fang Lei and Peng Zhaolian 2021.7.22-2024.12.31
Corporation Limited
Chaoyang District Beijing
The independent financial advisor hired by the Company to exercise constant supervision over the Company in the Reporting Period:
□ Applicable □ Not applicable
Financial advisor Office address Representatives Supervision period
27-28/F China World Office 2
China International Capital
No. 1 Jianguomenwai Avenue Fang Lei and Peng Zhaolian 2021.7.22-2024.12.31
Corporation Limited
Chaoyang District Beijing
VI Key Financial Information
Indicate by tick mark whether there is any retrospectively restated datum in the table below.□ Yes □ No
2024 2023 2024-over-2023 2022
~ 7 ~Annual Report 2024
change (%)
Operating revenue (RMB) 23577928065.99 20253526598.02 16.41% 16713234153.52
Net profit attributable to the listed
5517251073.104589164052.8020.22%3143144732.08
company’s shareholders (RMB)
Net profit attributable to the listed
company’s shareholders before 5457155276.12 4495219187.57 21.40% 3066543993.35
exceptional gains and losses (RMB)
Net cash generated from/used in
4727652873.854496206034.425.15%3107914579.48
operating activities (RMB)
Basic earnings per share
10.448.6820.28%5.95
(RMB/share)
Diluted earnings per share
10.448.6820.28%5.95
(RMB/share)
Weighted average return on equity
23.89%22.92%0.97%17.93%
(%)
Change of 31
December 2024 over
31 December 2024 31 December 2023 31 December 2022
31 December 2023
(%)
Total assets (RMB) 40522413702.09 35420907274.99 14.40% 29789822298.65
Equity attributable to the listed
24657023779.1921525309609.4414.55%18520757973.52
company’s shareholders (RMB)
Indicate by tick mark whether the lower of the net profit attributable to the listed company’s shareholders before and after exceptional
gains and losses was negative for the last three accounting years and the latest independent auditor’s report indicated that there was
uncertainty about the Company’s ability to continue as a going concern.□ Yes □ No
Indicate by tick mark whether the lower of the net profit attributable to the listed company’s shareholders before and after exceptional
gains and losses was negative.□ Yes □ No
VII Accounting Data Differences under China’s Accounting Standards for Business
Enterprises (CAS) and International Financial Reporting Standards (IFRS) and Foreign
Accounting Standards
1. Net Profit and Equity under CAS and IFRS
□ Applicable □ Not applicable
~ 8 ~Annual Report 2024
No difference for the Reporting Period.
2. Net Profit and Equity under CAS and Foreign Accounting Standards
□ Applicable □ Not applicable
No difference for the Reporting Period.
3. Reasons for Accounting Data Differences Above
□ Applicable □ Not applicable
VIII Key Financial Information by Quarter
Unit: RMB
Q1 Q2 Q3 Q4
Operating revenue 8286316919.20 5519376623.15 5262915448.33 4509319075.31
Net profit attributable to the listed
2065836404.821506955190.331173702231.04770757246.91
company’s shareholders
Net profit attributable to the listed
company’s shareholders before 2049854347.30 1490686559.37 1159067061.02 757547308.43
exceptional gains and losses
Net cash generated from/used in
2454021334.501555685120.991334493602.37-616547184.01
operating activities
Indicate by tick mark whether any of the quarterly financial data in the table above or their summations differs materially from what
have been disclosed in the Company’s quarterly or interim reports.□ Yes □ No
IX Exceptional Gains and Losses
□ Applicable □ Not applicable
Unit: RMB
Item 2024 2023 2022 Note
Gain or loss on disposal of non-current
assets (inclusive of impairment allowance -6996040.00 -2063270.90 -4666425.09
write-offs)
Government grants recognised in profit or
loss (exclusive of those that are closely
related to the Company’s normal business
operations and given in accordance with 47217316.71 39946354.24 46721259.52
defined criteria and in compliance with
government policies and have a continuing
impact on the Company’s profit or loss)
Gain or loss on fair-value changes in 2316575.85 51603409.95 43874800.64
~ 9 ~Annual Report 2024
financial assets and liabilities held by a
non-financial enterprise as well as on
disposal of financial assets and liabilities
(exclusive of the effective portion of hedges
that is related to the Company’s normal
business operations)
Reversed portions of impairment allowances
for receivables which are tested individually 0.00 98239.02 423337.78
for impairment
Non-operating income and expense other
52210445.2851716611.3523314293.08
than the above
Less: Income tax effects 23534161.55 34596052.57 27082435.88
Non-controlling interests effects (net of tax) 11118339.31 12760425.86 5984091.32
Total 60095796.98 93944865.23 76600738.73 --
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.~ 10 ~Annual Report 2024
Part III Management Discussion and Analysis
I Industry Overview for the Reporting Period
1. Status of the Baijiu Industry
In 2024 after a period of high-octane activity the baijiu industry entered a phase where it was attracting diminished attention. Before
the Spring Festival the demand for baijiu was strong but the overall sales slowed down thereafter. In the first half of the year the
industry as a whole saw an increase in production revenue growth improved profits significant industry differentiation dual
rationality in consumption and characteristics of the era of stock. In the second half of the year the trend of strong concentration and
strong differentiation became more evident.According to data released by the National Bureau of Statistics (“NBS”) and the China Alcoholic Drinks Association (“CADA”) in
2024 the production of large-scale baijiu enterprises nationwide was 4144700 kilolitres a decrease of 1.80% year-on-year. Sales
revenue reached RMB796384 million a year-on-year increase of 5.3% and total profit was RMB250865 million a year-on-year
increase of 7.76%.In 2025 the baijiu industry is expected to continue to differentiate in a market of stock competition. Leading enterprises will
consolidate their advantages through branding channels and innovation while small and medium-sized ones need to find survival
space in niche markets. The industry’s growth logic is shifting from “volume growth” to “price increase” while policies
consumption habits and technological changes will become 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 characterised 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 Cao and Hua Tuo as well as one of the
world’s top 10 liquor-producing areas. No changes have occurred to the main business of the Company in the Reporting Period. As
the main product of the Company the Gujing spirit originated as a “JiuYunChun Spirit” together with its making secrets being
presented as a hometown specialty by Cao Cao a famous warlord in China’s history to Emperor Han Xiandi (name: Liu Xie) in A.D.
196 and was continually presented to the royal house since then. With crystalline liquid rich aroma a fine flavour and a lingering
aftertaste the Gujing spirit has helped the Company win four national baijiu golden awards a golden award at the 13th SIAL Paris
the title of China’s “Geographical Indication Product” the recognition as a “Key Cultural Relics Site under the State Protection” the
recognition with a “National Intangible Cultural Heritage Protection Project” a Quality Award from the Anhui provincial
government a title of “National Quality Benchmark” among other honours.In April 2016 Gujing Distillery signed a strategic cooperation agreement with Huanghelou Liquor Co. Ltd. opening a new era of
cooperation in China’s famous liquor industry. Yellow Crane Tower Baijiu is the only famous Chinese liquor in Hubei. Its unique
style is “soft mellow elegant and cool and has a long lingering fragrance”. It won the two China gold medal in baijiu appreciation in
1984 and 1989. At present Huanghelou liquor industry has three bases: Wuhan Xianning and Suizhou. Among them Huanghelou
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.~ 11 ~Annual Report 2024
In January 2021 Gujing Distillery and Mingguang signed a strategic cooperation agreement. The unique mung bean flavour adds to
the famous liquor family of Gu Jing. The primary products of Mingguang Distillery include Mingguang Jianiang Mingguang Daqu
Mingguang Youye Mingguang Tequ and 53% vol Mingluye. In December 2021 the Old Mingguang Brewing Technique was
selected for the sixth batch of provincial intangible cultural heritage list.II Principal Activity of the Company in the Reporting Period
The Company is subject to the Guideline No. 14 of the Shenzhen Stock Exchange on Information Disclosure by Industry—for Listed
Companies Engaging in Food and Liquor & Wine Production.The Company primarily produces and markets baijiu. According to the Industry Categorisation Guide for Listed Companies
(Revised in 2012) issued by the CSRC baijiu making belongs to the “liquor beverage and refined tea making industry” (C15). The
Company’s principal operations remained unchanged in the Reporting Period.Main sales model
The Company’s key sales model is dealer model. Under the dealer model the Company will select one or more dealers for sales of a
product brand (or product sub-brand) according to the market capacity.Distribution model:
□ Applicable □ Not applicable
1. Operating Performance by Distribution Channel and Product Category
Unit: RMB
YoY
YoY
YoY change
change
change in
in
By Operating revenue Cost of sales Gross profit margin in cost gross
operating
of sales profit
revenue
(%) margin
(%)
(%)
Channel
Online 771686684.39 182936340.33 76.29% 5.81% -3.13% 2.18%
Offline 22806241381.60 4555118189.01 80.03% 16.81% 12.44% 0.78%
Total 23577928065.99 4738054529.34 79.90% 16.41% 11.75% 0.83%
YoY
YoY
YoY change
change
change in
in
By Operating revenue Cost of sales Gross profit margin in cost gross
operating
of sales profit
revenue
(%) margin
(%)
(%)
Product series
Original Vintage 18085853655.05 2510992291.37 86.12% 17.31% 13.47% 0.47%
Gujinggong Liquor 2240744336.42 951251966.29 57.55% 11.17% 13.11% -0.72%
Yellow Crane Tower and others 2538460722.08 713786227.33 71.88% 15.08% -0.04% 4.25%
~ 12 ~Annual Report 2024
Total 22865058713.55 4176030484.99 81.74% 16.43% 10.83% 0.93%
2. Number of Distributors by Geographical Segment
Segment Ending number Change in the Reporting Period
North China 1360 136
South China 661 68
Central China 3041 238
International 27 6
Total 5089 448
Proportion of store sales terminal exceeds 10%
□ Applicable □ Not applicable
Online direct sales
□ Applicable □ Not applicable
The major product varieties sold online are Original Vintage Series and Gujinggong Liquor Series among others. The main online
sales platforms are Gujing Distillery platform Tmall JD.com and Suning.com.Any over 30% YoY movements in the selling price of main products contributing over 10% of current total operating revenue
□ Applicable □ Not applicable
Model and contents of purchase
Model of purchase: The Company primarily adopts the bidding and strategic cooperation models. It also adopts the base planting
model in order to ensure the quality of some raw materials.Contents of purchase
Purchase contents Purchase model Amount (RMB’0000)
Strategic purchasing 122431.86
1 Raw materials
Tendering purchasing 197844.16
2 Packing materials Tendering purchasing 252476.09
Total 572752.11
The proportion of raw materials purchased from cooperations or farmers to total purchase amount exceeds 30%
□ Applicable □ Not applicable
Any over 30% YoY movements in prices of main purchased raw materials
□ Applicable □ Not applicable
Main production model
The Company’s existing production model is sales-based production. Specifically the Logistics Control Centre is responsible for
coordinating the implementation of production plans release of material production plans and delivery and tracking of products and
prepares balanced production plans on a quarterly basis according to the product inventory. The logistics distribution system is
coordinated according to the production schedule and inventory with a view to ensuring timely delivery of products.Commissioned production
□ Applicable □ Not applicable
Breakdown of cost of sales
~ 13 ~Annual Report 2024
20242023
Change
Item As % of total As % of total cost
Cost of sales (RMB) Cost of sales (RMB) (%)
cost of sales of sales
Direct
3413392362.8672.04%3053570734.5772.02%11.78%
materials
Direct labour
410226875.378.66%372085693.598.78%10.25%
cost
Manufacturing
248318564.495.24%240904845.075.68%3.08%
expenses
Fuels 104092682.27 2.20% 101496426.06 2.39% 2.56%
Total 4176030484.99 88.14% 3768057699.29 88.87% 10.83%
Output and inventory
1. Output sales volume and inventory of main products for the Reporting Period and respective YoY changes thereof
Unit: ton
YoY changes
YoY changes YoY changes
Main product Output Sales volume inventory of sales
of output of inventory
volume
Original Vintage Series 71210.81 71087.43 24776.30 12.09% 11.99% 0.50%
Gujinggong Liquor Series 31852.11 32324.21 5184.51 18.99% 8.97% -8.35%
Yellow Crane Tower Liquor
24982.5624890.004320.493.03%-1.14%2.19%
Series and other
2. Ending inventory of finished liquor and semi-product
Category Ending quantity (ton)
Finished liquor 34281.30
Semi-product (including base liquor) 293503.56
3. Capacity
Unit: ton
Main product Designed capacity Actual capacity Capacity in progress
Finished liquor 180000 128045 65000
III Core Competitiveness Analysis
No significant changes occurred to the Company’s core competitiveness in the Reporting Period.IV Analysis of Core Businesses
1. Overview
2024 is a key year for achieving the goals and tasks set out in the 14th Five-Year Plan. It is also a pivotal year in the development of
~ 14 ~Annual Report 2024
Gujing marking a significant chapter and serving as a bridge between the past and the future. The Company adheres to Xi Jinping’s
Thought on Socialism with Chinese Characteristics for a New Era as its guide fully studying and implementing the spirit of the 20th
National Congress of the Communist Party of China and the Third Plenary Session of the 20th CPC Central Committee as well as
the important speech of General Secretary Xi Jinping during his inspection of Anhui. The Company is deeply committed to the new
development philosophy fostering and expanding new productive forces. With the support and trust of all shareholders the Company
closely aligns with its strategic goals adhering to innovation-driven growth and sound management. It focuses on hard work saying
less and doing more and implementing practical actions. As a result all business indicators have seen steady growth.In 2024 the Company achieved operating revenue of RMB 23578 million a year-on-year increase of 16.41% net profit attributable
to the parent company of RMB 5517 million a year-on-year increase of 20.22% earnings per share of RMB10.44 a year-on-year
increase of 20.28%;and net cash flow from operating activities of RMB 4728 million a year-on-year increase of 5.15%.The overall operating performance of the Company in the Reporting Period:
(I) The Company strove for more influential “brands” for enhancement
The Company continues to focus on two major media platforms “CCTV” and “High-Speed Rail” and deepens its engagement with
the “Spring Festival Gala” IP. We have been a special sponsor for the CCTV Spring Festival Gala Lantern Festival Gala and local
Spring Festival Galas as well as sponsoring the Poetry Conference all of which help enhance the brand’s visibility and reputation.“Gujinggong Liquor * New Year’s Eve” as the liquor offered to celebrate China’s successful application for the intangible cultural
heritage status of the Spring Festival continually strengthens the deep connection between baijiu and the Chinese New Year. Thiseffort further enriches the cultural connotations of the Chinese New Year and promotes the brand concept of “Gujinggong Liquor *Original Vintage Made in China Fragrant Worldwide”. At the 16th “Hua Zun Cup” China liquor brand value contest the brand
value of “Gujinggong” reached a new high of RMB375756 million. Gujing’s brand influence continues to expand.(II) The Company strengthened quality management for prosperity
The Company has deepened the implementation of the large-scale quality project focusing on strengthening quality management and
strictly implementing the quality control guidelines. Through a matrix-style quality control system the Company has fully adopted
the “135 Lean Quality” management model reinforcing quality control throughout the entire process and value chain from raw
material breeding to product dispatch achieving simultaneous growth in both quantity and quality throughout the year. The
production process is strictly enforced with stringent process controls and meticulous operations at every production stage. The
automated bottling project is steadily progressing.(III) The Company pursued virtue in conduct for stability
The Company is committed to the “agriculture-first industry-last” approach increasing “order-based cultivation” and leveraging its
role as the “chain leader” in the baijiu industry to drive value co-creation across upstream and downstream enterprises. Gujinggong
Liquor * Original Vintage made its appearance at the second China International Supply Chain Expo showcasing to the world how
the baijiu industry enhances its development “value” by increasing its “green content.”
(IV) The Company focused on technological innovation to continuously improve research and development capabilitiesThe Company has partnered with prestigious universities and industry experts to coordinate the operations of the “Four Institutes andOne Laboratory” namely the China Baijiu Health Research Institute the Gujing Liquor * Original Vintage Grain Research Institute
the Gujing Liquor * Original Vintage Quality Research Institute the Gujing Liquor * Original Vintage Cultural Research Institute
and Anhui Province Key Laboratory of Intelligent Solid-state Fermentation Manufacturing. These efforts are aimed at continuously
improving the transformation and application of industry-academia-research achievements leading to fruitful scientific and
technological outcomes. One technological achievement was awarded the Second Prize for Scientific and Technological Progress by
the CADA another was recognised as internationally leading by the China National Light Industry Council after passing the
Council’s technology achievement appraisal and three academic papers were honoured with one First Prize and two Third Prizes for
Excellent Papers on Scientific and Technological Progress by the CADA respectively.(V) The Company promoted data and intelligence-driven for continuous industrial upgrading
Digital empowerment in marketing is being utilized to build a unified sales portal integrate marketing subsystems and enable
~ 15 ~Annual Report 2024
one-stop business processing. This enhances convenience and operational efficiency ensuring stable and smooth operations of the
core business and guaranteeing a worry-free peak season. The Company has strengthened its two major data foundations focusing on
real-time analysis of marketing and supply chains. It has introduced a new model of digital decision-making that shifts production
operations from experience-based to data-driven using “data” for decisions and “intelligence” for insights which enhances
management precision and operational efficiency. The Company has been advancing digital transformation and promoting the deep
integration of digital technologies with production and manufacturing with an aim to create the Gujing 5G fully linked transparent
factory forge new quality productivity of “green brewing * intelligent manufacturing” for baijiu and promote the transformation
from traditional manufacturing to digital intelligent manufacturing.(VI) The Company utilised reform and innovation to continuously deepen reforms to stimulate new vitality
The Company has advanced reforms such as the term system and contract system ensuring they are deepened and implementedeffectively. The competitive selection and evaluation mechanisms have been revitalised with the implementation of the “one postone plan” approach achieving 100% competitive recruitment for grassroots management and general staff positions. The salary
distribution and performance evaluation mechanisms have been revitalised further improving the evaluation system and
implementation rules for grassroots management personnel ensuring that evaluation results are rigidly honoured. Additionally the
mechanisms for job rotation internal exit and performance-based adjustments have been revitalised allowing for flexibility in
employee entry and exit.(VII) The Company adhered to the guidance of Party building to continuously fulfil corporate social responsibility and
demonstrate a new commitment
The Company has conscientiously studied and implemented the spirit of the Third Plenary Session of the 20th CPC Central
Committee and the important speech delivered by General Secretary Xi Jinping during his inspection of Anhui. It promoted the study
publicity and implementation of these directives at all levels of the Party organisation. The Company has carried out comprehensive
Party discipline education holding mobilisation and deployment meetings for Party discipline education special study sessions and
thematic Party lectures. In addition the Company continues to foster a harmonious and mutually beneficial corporate ecosystem
creating greater value for stakeholders.(VII) In the Reporting Period the Company was still under pressure and had deficiencies as follow
(1) The consumer demand is insufficient with a decline in household consumption;
(2) The brand’s influence still needs to be further strengthened;
(3) Internal management requires further reform and efficiency improvements and the Company’s internal growth potential needs to
be further activated.
2. Revenue and Cost Analysis
(1) Breakdown of Operating Revenue
Unit: RMB
20242023
As % of total As % of total
Change (%)
Operating revenue operating revenue Operating revenue operating revenue
(%)(%)
Total 23577928065.99 100% 20253526598.02 100% 16.41%
By operating division
Manufacturing 23577928065.99 100% 20253526598.02 100.00% 16.41%
~ 16 ~Annual Report 2024
By product category
Baijiu 22865058713.55 96.98% 19638756672.91 96.97% 16.43%
Hotel services 86256197.47 0.36% 83688162.68 0.41% 3.07%
Other 626613154.97 2.66% 531081762.43 2.62% 17.99%
By operating segment
North China 1979406985.66 8.40% 1842994377.93 9.10% 7.40%
Central China 20150945972.42 85.46% 17106718631.38 84.47% 17.80%
South China 1425975566.51 6.05% 1282816365.91 6.33% 11.16%
Overseas 21599541.40 0.09% 20997222.80 0.10% 2.87%
By sales model
Online 771686684.39 3.27% 729306974.15 3.60% 5.81%
Offline 22806241381.60 96.73% 19524219623.87 96.40% 16.81%
(2) Operating Division Product Category Operating Segment or Sales Model Contributing over 10% of
Operating Revenue or Operating Profit
□ Applicable □ Not applicable
Unit: RMB
YoY
YoY change YoY change
Gross profit change in
Operating revenue Cost of sales in operating in cost of
margin gross profit
revenue (%) sales (%)
margin (%)
By operating division
Manufacturing 23577928065.99 4738054529.34 79.90% 16.41% 11.75% 0.83%
By product category
Baijiu 22865058713.55 4176030484.99 81.74% 16.43% 10.83% 0.93%
Hotel services 86256197.47 43558686.26 49.50% 3.07% -3.48% 3.43%
Other 626613154.97 518465358.09 17.26% 17.99% 21.52% -2.40%
By operating segment
North China 1979406985.66 402020125.25 79.69% 7.40% 7.71% -0.06%
Central China 20150945972.42 4073567182.41 79.78% 17.80% 11.99% 1.04%
South China 1425975566.51 257106035.61 81.97% 11.16% 14.61% -0.54%
Overseas 21599541.40 5361186.07 75.18% 2.87% 13.87% -2.40%
By sales model
Online 771686684.39 182936340.33 76.29% 5.81% -3.13% 2.18%
Offline 22806241381.60 4555118189.01 80.03% 16.81% 12.44% 0.78%
Core business data of the prior year restated according to the changed statistical calibre for the Reporting Period:
~ 17 ~Annual Report 2024
□ Applicable □ Not applicable
(3) Whether Revenue from Physical Sales is Higher than Service Revenue
□ Yes □ No
Operating division Item Unit 2024 2023 Change (%)
Sales volume Ton 128301.64 118319.28 8.44%
Baijiu brewage Output Ton 128045.48 114545.93 11.79%
Inventory Ton 34281.30 34537.46 -0.74%
Any over 30% YoY movements in the data above and why:
□ Applicable □ Not applicable
(4) Execution Progress of Major Signed Sales and Purchase Contracts in the Reporting Period
□ Applicable □ Not applicable
(5) Breakdown of Cost of Sales
By operating division
Unit: RMB
20242023
Operating
Item As % of total cost As % of total cost Change (%)
division Cost of sales Cost of sales
of sales (%) of sales (%)
Food
Direct materials 3413392362.86 72.04% 3053570734.57 72.02% 11.78%
manufacturing
Food
Direct labour cost 410226875.37 8.66% 372085693.59 8.78% 10.25%
manufacturing
Food Manufacturing
248318564.495.24%240904845.075.68%3.08%
manufacturing expenses
Food
Fuels 104092682.27 2.20% 101496426.06 2.39% 2.56%
manufacturing
(6) Changes in the Scope of Consolidated Financial Statements for the Reporting Period
□ Yes □ No
Compared with the prior year the following subsidiaries were added to the consolidated financial statements of the Reporting Period:
Anhui Guge Cultural Media Co. Ltd. Anhui Gujing Sushuai Liquor Sales Co. Ltd. Ezhou Junya Trading Co. Ltd. and Wuhan
Juntai Trading Co. Ltd. This period also saw the liquidation of the following subsidiaries: Wuhan Yashibo Technology Co. Ltd.Hubei Xinjia Testing Technology Co. Ltd. Hubei Junlou Cultural Tourism Co. Ltd. Hubei Yellow Crane Tower Beverage Co. Ltd.Fengyang Xiaogang Village Ming Wine Distillery Co. Ltd. and Anhui Yangshengtianxia Brand Operation Co. Ltd.~ 18 ~Annual Report 2024
(7) Major Changes to the Business Scope or Product or Service Range in the Reporting Period
□ Applicable □ Not applicable
(8) Major Customers and Suppliers
Major customers:
Total sales to top five customers (RMB) 2819506670.33
Total sales to top five customers as % of total sales of the
11.96%
Reporting Period (%)
Total sales to related parties among top five customers as % of
0.00%
total sales of the Reporting Period (%)
Information about top five customers:
Sales revenue contributed for the
No. Customer As % of total sales revenue (%)
Reporting Period (RMB)
1 Distributor A 1887510122.18 8.01%
2 Distributor B 271896311.02 1.15%
3 Distributor C 254944784.83 1.08%
4 Distributor D 205425479.08 0.87%
5 Distributor E 199729973.22 0.85%
Total -- 2819506670.33 11.96%
Other information about major customers:
□ Applicable □ Not applicable
Major suppliers:
Total purchases from top five suppliers (RMB) 1164893461.63
Total purchases from top five suppliers as % of total purchases
20.34%
of the Reporting Period (%)
Total purchases from related parties among top five suppliers
0.00%
as % of total purchases of the Reporting Period (%)
Information about top five suppliers:
Purchase in the Reporting
No. Supplier As % of total purchases (%)
Period (RMB)
1 Supplier A 313905952.82 5.48%
2 Supplier B 264238828.48 4.61%
3 Supplier C 231261384.46 4.04%
4 Supplier D 223104200.13 3.90%
5 Supplier E 132383095.74 2.31%
~ 19 ~Annual Report 2024
Total -- 1164893461.63 20.34%
Other information about major suppliers:
□ Applicable □ Not applicable
In the Reporting Period revenue from trade business accounted for more than 10% of the total operating revenue:
□ Yes ? No □ Not Applicable
3. Expense
Unit: RMB
2024 2023 Change (%) Reason for any significant change
Selling expense 6181762995.50 5436773057.25 13.70%
Administrative expense 1442398926.31 1367146467.89 5.50%
The main reason is the increase in
Finance costs -348824206.45 -162244024.88 -115.00%
interest income
R&D expense 78242212.58 70947196.49 10.28%
The Company is subject to the Guideline No. 14 of the Shenzhen Stock Exchange on Information Disclosure by Industry—for Listed
Companies Engaging in Food and Liquor & Wine Production.Breakdown of selling expense:
Unit: RMB
Item 2024 2023 Change (%) Reason
Employment
1280868189.841230880423.444.06%
benefits
Travel fees 257167425.19 223518669.30 15.05%
Advertisement
1309141466.481101364892.6318.87%
fees
Comprehensive
2563283912.382089071299.1522.70%
promotion costs
Service fees 658399995.56 656190943.27 0.34%
Others 112902006.05 135746829.46 -16.83%
Total 6181762995.50 5436773057.25 13.70%
Details about advertisement
No. Main way Amount (RMB10000)
1 TV 41927.70
2 Offline 63802.84
3 Online 25183.61
Total 130914.15
~ 20 ~Annual Report 2024
4. R&D Investments
□ Applicable □ Not applicable
Names of main Expected impact on the future
Project objectives Project progress Objectives to be achieved
R&D projects development of the Company
Through an
The Company aims to
intelligent quinoa By improving work efficiency
monitor and adjust
The intelligent control of room platform and strengthening quality
Research on key quinoa-related parameters
the quinoa cultivation fermentation process control in the cultivation
technologies for the online establish quality
process is achieved to parameters are process the Company is
intelligent control standards for key control
establish a high-quality monitored and door expected to further enhance
of quinoa points in intelligent
large quinoa fermentation and window switches the quality of large quinoa
cultivation cultivation and achieve
model. are controlled in pilot and the level of digital and
intelligent control of the
quinoa cultivation intelligent management.cultivation process.rooms.The Company determines the
Research on the The impact of mung bean
positive and negative impacts The project is expected to
driving role of varieties on the key
of mung beans on the flavour improve the utilisation rate of
“Minglu No. 1” flavour compounds in
profile of Minglu baijiu raw materials and enhance the
mung beans in the Minglu baiju is
Concluded. through experiments. It quality grade of Minglu
formation of key determined to study the
applies the developed process baijiu bringing economic and
flavour compounds mechanism of flavour
to improve the flavour profile social benefits to the
in Minglu fragrant compound formation in
of the raw Minglu baijiu Company.baijiu Minglu baijiu.during production.Research on the The impact of
green and by-products from The Company aims to The project can save costs for
The project has been
high-value crushing raw materials improve the comprehensive the Company improve
concluded and the
utilisation of on high-temperature utilisation value of economic efficiency and
application has been
by-products from quinoa quality and raw by-products from crushing contribute to the Company’s
promoted.crushing baijiu liquor quality in quinoa baijiu brewing materials. green development.brewing materials production is explored.The project is expected to
Research on index enhance the intelligence level
optimisation has of labour-intensive processes
The Company aims to
Research on key A basic model for quinoa been completed in the traditional industry
improve the quality of its
technologies for cultivation is established which benefits the improve key technologies for
intelligent quinoa cultivation
intelligent quinoa to explore its impact on enhancement of large intelligent quinoa cultivation
and assist in its intelligent
cultivation large quinoa quality. quinoa’s sensory and contribute to the
development.characteristics and development of intelligent
flavour compounds. brewing technologies for the
Company.Research on The correlation of The preliminary The critical points for The project is expected to
~ 21 ~Annual Report 2024
distillation quality flavour components establishment of a segmented baijiu picking are improve the quality of
improvement during the distillation mathematical model identified providing intelligent liquor picking and
technologies of process is explored. for the variation theoretical support for the standardisation of raw
strongly fragrant curve of alcohol intelligent liquor picking and liquor quality.baijiu and content in liquor standardisation of raw liquor
intelligent samples over time quality.distillation rules of has been completed.baijiu With time increasing
the instantaneous
alcohol content
shows an exponential
decay.Through the optimisation
of single-grain crushing
degree testing methods
Ensuring that the grain flour
exploration of the current
Research on quality reaches the optimal
state of grain crushing in To determine the optimal
standards for gelatinisation state thereby
the Company study of Concluded. range of crushing degrees for
crushing brewing promoting an improvement in
crushing conditions and brewing grains.grains the quality of the brewing
workshop validation this
production.project aims to establish
evaluation standards for
grain crushing.Methods for
collecting workshop
The Company aims to
environmental
systematically study the The microbial community
The changes in microbial samples and genomic
changes in microbial regulation strategy will
Research on the communities during the extraction have been
communities during the provide guidance for
intelligent brewing intelligent park developed and
fermentation process of improving raw liquor quality
process and fermentation process are sampling of
intelligent parks and compare and lay the foundation for the
environmental explored to conduct trace fermenting grains
them with traditional brewing stable upgrading of the
microbial analysis of environmental and microbial
production workshops to quality of raw liquor
communities microbial communities community testing
analyse the differences in the produced in the intelligent
during fermentation. and analysis for both
quality of raw liquor in park
intelligent and
different factory areas.traditional workshops
have been completed.Details about R&D personnel:
2024 2023 Change (%)
Number of R&D personnel 1061 1147 -7.50%
R&D personnel as % of total
7.89%8.84%-0.95%
employees
~ 22 ~Annual Report 2024
Educational background of
——————
R&D personnel
Bachelor’s degree 203 190 6.84%
Master’s degree 89 68 30.88%
Other 769 889 -13.50%
Age structure of R&D
——————
personnel
Below 30 259 236 9.75%
30~404774584.15%
Over 40 325 453 -28.26%
Details about R&D investments:
2024 2023 Change (%)
R&D investments (RMB) 435332086.16 366964999.32 18.63%
R&D investments as % of
1.85%1.81%0.04%
operating revenue
Capitalized R&D investments
0.000.000.00
(RMB)
Capitalized R&D investments
0.00%0.00%0.00%
as % of total R&D investments
Reasons for any significant change to the composition of R&D personnel and the impact:
□ Applicable □ Not applicable
Reasons for any significant YoY change in the percentage of R&D investments in operating revenue:
□ Applicable □ Not applicable
Reasons for any sharp variation in the percentage of capitalized R&D investments and rationale:
□ Applicable □ Not applicable
5. Cash Flows
Unit: RMB
Item 2024 2023 Change (%)
Subtotal of cash generated from
25419226220.2522245995624.1214.26%
operating activities
Subtotal of cash used in operating
20691573346.4017749789589.7016.57%
activities
Net cash generated from/used in
4727652873.854496206034.425.15%
operating activities
Subtotal of cash generated from
979361059.901926743407.87-49.17%
investing activities
~ 23 ~Annual Report 2024
Subtotal of cash used in investing
2712403146.803204676207.01-15.36%
activities
Net cash generated from/used in
-1733042086.90-1277932799.14-35.61%
investing activities
Subtotal of cash generated from
146000100.00162200000.00-9.99%
financing activities
Subtotal of cash used in financing
2623643610.121809679253.1444.98%
activities
Net cash generated from/used in
-2477643510.12-1647479253.14-50.39%
financing activities
Net increase in cash and cash
516967276.831570793982.14-67.09%
equivalents
Explanation of why any of the data above varies significantly:
□ Applicable □ Not applicable
(1) Net cash generated from investing activities stood at RMB-1733042086.90 in the Reporting Period down 35.61% year-on-year
primarily driven by the decreased cash received from the recovery of investments.
(2) Net cash generated from financing activities stood at RMB-2477643510.12 in the Reporting Period down 50.39% year-on-year
primarily driven by the increased cash paid for dividend distributions.
(3) The net increase in cash and cash equivalents in the Reporting Period was RMB516967276.83 down 67.09% year-on-year
primarily driven by the increased cash paid for dividend distributions.Reasons for any big difference between the net operating cash flow and the net profit for this Reporting Period
□ Applicable □ Not applicable
V Analysis of Non-Core Businesses
□ Applicable □ Not applicable
VI Analysis of Assets and Liabilities
1. Significant Changes in Asset Composition
Unit: RMB
31 December 2024 1 January 2024 Reason
Change in
for any
As % of total As % of total percentage
Amount Amount significant
assets assets (%)
change
Monetary
15894104466.5339.22%15966371744.1945.08%-5.86%
assets
Accounts
69819734.990.17%68607919.270.19%-0.02%
receivable
~ 24 ~Annual Report 2024
Inventories 9264220836.58 22.86% 7519682536.51 21.23% 1.63%
Investment
43893659.880.11%46622910.190.13%-0.02%
property
Long-term
equity 11732641.44 0.03% 10367078.26 0.03% 0.00%
investments
Fixed assets 7896995404.62 19.49% 4596044056.92 12.98% 6.51%
Construction
1038780764.862.56%2910735155.398.22%-5.66%
in progress
Right-of-use
100293500.730.25%81038100.240.23%0.02%
assets
Short-term
50038194.440.12%0.000.00%0.12%
borrowings
Contract
3514800038.808.67%1401122249.533.96%4.71%
liabilities
Long-term
41600000.000.10%107106256.940.30%-0.20%
borrowings
Lease
84453588.300.21%68380767.780.19%0.02%
liabilities
Indicate whether overseas account for a larger proportion in the total assets.□ Applicable □ Not applicable
2. Assets and Liabilities at Fair Value
□ Applicable □ Not applicable
Unit: RMB
Gain/loss on Cumulative Impairment
fair-value fair-value allowance Purchased in
Beginning Sold in the Other
Item changes in the changes for the the Reporting Ending amount
amount Reporting Period c hanges
Reporting charged to Reporting Period
Period equity Period
Financial assets
1.
Held-for-trading
financial assets
719987547.42184353.810.00285000000.00944987547.4260184353.81
(excluding
derivative
financial assets)
~ 25 ~Annual Report 2024
2. Derivative
financial assets
3. Other debt
investments
4. Other equity
63105658.070.006395172.750.000.0069500830.82
investments
5. Other
non-current
financial assets
Subtotal of
783093205.49184353.816395172.75285000000.00944987547.42129685184.63
financial assets
Total of the
783093205.49184353.816395172.75285000000.00944987547.42129685184.63
above
Financial
0.000.000.000.000.000.00
liabilities
Significant changes to the measurement attributes of the major assets in the Reporting Period:
□ Yes □ No
3. Restricted Asset Rights as at the Period-End
Item Ending carrying value Reason for restriction
Time deposits and cash deposits that are pledged for issuing bank acceptance
Monetary assets 700969772.34
bills and other margins.Intangible assets 75865706.76 Pledged loans.Total 776835479.10 --
~ 26 ~Annual Report 2024
VII Investments Made
1. Total Investment Amount
□ Applicable □ Not applicable
2. Major Equity Investments Made in the Reporting Period
□ Applicable □ Not applicable
3. Major Non-Equity Investments Ongoing in the Reporting Period
□ Applicable □ Not applicable
Unit: RMB
Reason for
not
Accumulative
Fixed reaching
Accumulative actual input Estimated realized Disclosure
Way of assets Industry Input amount in the Capital the Disclosure
Item amount as of the Progress return on revenues as date (if
investment investment involved Reporting Period resources schedule index (if any)
period-end investment of the any)
or not and
period-end
anticipated
income
The smart For details
technology Self-owned please refer to
transformation Liquor funds and 3 March the
Self-built Yes 1926320026.58 7033603177.14 95.00% N/A N/A N/A
project for production raised 2020 Announcement
liquor funds on Investment
production in the Smart
~ 27 ~Annual Report 2024
Technology
Transformation
Project for
Liquor
Production
disclosed by
the Company
on the website
of Cninfo
dated 3 March
2020.
Total -- -- -- 1926320026.58 7033603177.14 -- -- N/A N/A -- -- --
The project is still under construction as of the end of the Reporting Period and has not yet been completed with the relevant project contract amount exceeding RMB200 million:
□ Yes ? No □ Not Applicable
~ 28 ~Annual Report 2024
4. Financial Investments
(1) Securities Investments
□ Applicable □ Not applicable
(2) Investments in Derivative Financial Instruments
□ Applicable □ Not applicable
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
Proportion of
closing Actual
Relationship Initial Beginning Purchased in Impairment Ending investment gain/loss
Connected Type of Starting Ending Sold in the
Operator with the investment investment the Reporting provision (if investment amount in the in the
transaction d erivative date date Reporting Period
Company amount amount Period any) amount Company’s Reporting
ending net Period
assets
Reverse Reverse 25 11
repurchase Naught No repurchase 2519.90 December January 2519.90 0.00 2519.90 0.00 0.00 0.00% 7.13
of national of national 2023 2024
~ 29 ~Annual Report 2024
debt debt
Total 2519.90 -- -- 2519.90 0.00 2519.90 0.00 0.00 0.00% 7.13
Capital source for derivative investment Company’s own funds
Lawsuits involved (if applicable) N/A
Disclosure date of board announcement
27 April 2024
approving derivative investment (if any)
Disclosure date of shareholders’ meeting
announcement approving derivative investment N/A
(if any)
Analysis of risks and control measures
associated with derivative investments held in
the Reporting Period (including but not limited N/A
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 analysis should include N/A
measurement method and related assumptions
and parameters)
Explanation of whether there have been
significant changes in the Company’s
accounting policies and specific accounting N/A
principles for derivatives compared to the
previous Reporting Period
~ 30 ~Annual Report 2024
5. Use of Funds Raised
□ Applicable □ Not applicable
(1) Overall Usage of Funds Raised
□ Applicable □ Not applicable
Unit: RMB’0000
The ratio
of funds Amount
raised Proportion of
Total Total
used at Accumulative of funds
Total
Way of Listing date Net of
funds used funds Total The usage and
Accumulative the end of funds with accumulative raised
Year funds funds in the with unused destination of
raising of securities fund used (2) the usage funds with idle for
raised raised (1) Current usage funds unused funds
Reporting changed usage over
Period changed
Period changed two
(3) = years
(2)/(1)
Permanent
Private
supplementation
2021 placement 22 July 2021 500000 495434.21 163961.40 472515.26 95.37% 0.00 0.00 0.00% 22918.95 0.00
of working
of stocks
capital
Total -- -- 500000 495434.21 163961.40 472515.26 95.37% 0.00 0.00 0.00% 22918.95 -- 0.00
Explanation of overall usage of funds raised
The Company’s fundraising projects have been completed and the remaining raised funds have been permanently allocated to supplement the Company’s working capital. (For specific details
please refer to the Announcement on the Completion of Fundraising Investment Projects and the Permanent Allocation of Surplus Funds to Supplement Working Capital disclosed by the
Company on 31 December 2024 on the CNINFO website).~ 31 ~Annual Report 2024
(2) Commitment Projects of Fund Raised
□ Applicable □ Not applicable
Unit: RMB’0000
Cumulative
Committed Accumulative Investment Whether
Changed Investment Investment Date of Realized benefits
investment investment schedule Whether occurred
Listing or not Committed amount amount in reaching income in achieved as
Financing project and Nature of the amount as of as the reached significant
date of (including investment after the intended the of the end
project name super raise project the period-end anticipated changes
securities partial amount adjustment Reporting use of the Reporting of the
fund period-end (3)＝ income in project
changes) (1) Period project Period Reporting
arrangement (2) (2)/(1) feasibility
Period
Committed investment project
The smart The smart
technology technology
31
transformation 22 July transformation Production and
Not 495434.21 495434.21 163961.40 472515.26 95.37% December 0.00 0.00 N/A Not
project for 2021 project for construction
2024
liquor liquor
production production
Subtotal of 0.00
committed
--495434.21495434.21163961.40472515.26--------
investment
project
Total -- 495434.21 495434.21 163961.40 472515.26 -- -- 0.00 -- --
Explanation for
each project on
N/A
the situation
and reasons for
~ 32 ~Annual Report 2024
not meeting the
planned
progress and
expected
benefits
(including the
reason for
selecting
“N/A” for“Whetherreached
anticipatedincome”)
Notes of
condition of
significant
changes N/A
occurred in
project
feasibility
Amount usage
and schedule of
N/A
super raise
fund
Changes in
implementation
N/A
address of
investment
~ 33 ~Annual Report 2024
project
Adjustment of
implementation
mode of N/A
investment
project
Advance
investments in
projects
financed with
raised funds
and swaps of N/A
such advance
investments
with
subsequent
raised funds
Idle fund
supplementing
the current N/A
capital
temporarily
Amount of Applicable
surplus in
project
During the implementation of the fundraising investment projects the Company strictly follows laws and regulations and uses the raised funds prudently. Based on the actual
implementation
circumstances of the projects the Company adopts the principles of rationality effectiveness and cost-efficiency and uses the raised funds in a scientific and prudent manner.and the reasons
~ 34 ~Annual Report 2024
While ensuring the quality of the fundraising projects the Company strengthens cost control supervision and management at every stage of the project construction reasonably
reducing the total investment in the projects. Additionally to improve the efficiency of using the raised funds the Company manages idle funds through cash management on
the premise of ensuring that the construction of fundraising projects and the safety of fundraising funds are not affected and has generated certain financial management income
and interest earnings.Usage and
destination of Permanent supplementation of working capital
unused funds
Problems
incurred in
fund using and N/A
disclosure or
other condition
(3) Raised Funds Re-purposed
□ Applicable □ Not applicable
No such cases in the Reporting Period.VIII 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
~ 35 ~Annual Report 2024
IX Principal Subsidiaries and Joint Stock Companies
□ Applicable □ Not applicable
Main subsidiaries and joint stock companies with an over 10% influence on the Company’s net profits
Unit: RMB
Relationship with the Main business
Company name scope Registered capital Total assets Net assets Operating revenues Operating profit Net profit Company
Wholesales of
baijiu construction
Bozhou Gujing
Subsidiary materials feeds 84864497.89 10456159042.33 1847206112.80 21189413169.88 2200627278.80 1572961696.29
Sales Co. Ltd
assistant materials
etc.Manufacture and
Anhui Longrui
Subsidiary sale of glass 88710268.98 625670292.89 498362220.15 506940966.04 50393236.31 46354636.68
Glass Co. Ltd
products etc.Yellow Crane Tower
Production and
Wine Industry Co. Subsidiary 400000000.00 1950998834.49 1060897560.28 2139845657.49 325667658.21 235967539.38
sales of baijiu etc.Ltd
Shanghai Gujing
Jinhao Hotel Hotel management
Subsidiary 54000000.00 191051876.97 157501716.28 71422591.72 6816420.62 5343969.43
Management Co. house lease etc.Ltd.Subsidiaries obtained or disposed in the Reporting Period:
□ Applicable □ Not applicable
Subsidiary How subsidiary was obtained or disposed Effects on overall operations and performance
Anhui Guge Cultural Media Co. Ltd. Incorporated with investment Optimising internal operation structure and enhancing
~ 36 ~Annual Report 2024
endogenous impetus
Optimising internal operation structure and enhancing
Anhui Gujing Sushuai Liquor Sales Co. Ltd. Incorporated with investment
endogenous impetus
Optimising internal operation structure and enhancing
Ezhou Junya Trading Co. Ltd. Incorporated with investment
endogenous impetus
Optimising internal operation structure and enhancing
Wuhan Juntai Trading Co. Ltd. Incorporated with investment
endogenous impetus
Wuhan Yashibo Technology Co. Ltd. De-registered and liquidated
Hubei Xinjia Testing Technology Co. Ltd. De-registered and liquidated
Hubei Junlou Cultural Tourism Co. Ltd. De-registered and liquidated
Hubei Yellow Crane Tower Beverage Co. Ltd. De-registered and liquidated
Fengyang Xiaogang Village Ming Wine Distillery Co. Ltd. De-registered and liquidated
Anhui Yangshengtianxia Brand Operation Co. Ltd. De-registered and liquidated
Notes to main controlled and joint stock companies:
Not applicable.~ 37 ~Annual Report 2024
X Structured Bodies Controlled by the Company
□ Applicable □ Not applicable
XI Prospects
(I) Development Prospect of the Industry the Company is in
1. Era of stock competition: Slower growth becomes the industry consensus
Under the combined effects of the macroeconomic cycle and industrial differentiation the baijiu industry has bid farewell to the
previous phase of high-speed growth. It has gradually shifted from volume-driven growth to structural growth. In 2024 the baijiu
industry faces issues such as overcapacity high inventory price inversion and intense internal competition while national baijiu
production continues to decline year by year. With the dual impact of a gradual slowdown in population growth and stock
competition within the industry slower growth has become a consensus within the baijiu industry.
2. Return to productism: Transition from “scale expansion” to “value deepening”
The baijiu industry is experiencing a trend of “return to productism” which emphasises product quality as the core competitive
advantage. Liquor enterprises are consolidating their market positions through an extreme pursuit of product quality precise
understanding of consumer needs and deep exploration of cultural connotations. In 2025 major liquor companies and governments
in baijiu-producing regions have also adapted to this trend by introducing more targeted and specific policy measures to promote the
industry’s transformation from “scale expansion” to “value deepening”. By fostering collaboration across the industry chain they aim
to drive high-quality development in baijiu-producing regions while firmly expanding markets and promoting stable growth in the
baijiu industry.
3. Clear trend of integrated development: Creating a “Baijiu +” new consumption model
The shift from selling liquor to selling lifestyle has become a vivid portrayal of the current integrated development of the baijiu
industry. Scene-based consumption emotional consumption and quality consumption are increasingly resonating with consumers. In
the face of stock competition baijiu-producing regions and enterprises need to create a “Baijiu +” new consumption model and new
scenarios to enhance the brand influence of the regions and enterprises. By creating immersive experience consumption scenarios
they aim to deeply integrate brands and culture creating a completely new consumer experience.
4. Acceleration of digital transformation: “Artificial Intelligence +” will drive the development and upgrading of the baijiu
industry
The rapid advancement of technology and the continuous penetration of new technologies into the baijiu industry chain are driving
the sector forward. “Artificial Intelligence +” is empowering the current and future development of the baijiu industry with its
powerful capabilities. For example baijiu brands can use deep data mining and consumer behaviour analysis to track the purchasing
preferences social dynamics and trends of younger consumers. The support of AI technology not only helps baijiu brands predict
trends related to consumers’ age region gender and other factors accurately but also allows for dynamic adjustments to marketing
strategies based on individual needs.
5. Acceleration of internationalisation: Opening up new opportunities to integrate into the global market
2024 is referred to as the “first year” of Chinese baijiu going overseas. The total export value of Chinese alcoholic beverages reached
USD1.9 billion a year-on-year increase of 6.0%. The total export volume was 750 million litres a 5.1% increase from the previous
year with baijiu continuing to lead as the largest export category. The 2025 Government Work Report proposes expanding high-level
opening-up and actively stabilising foreign trade and foreign investment which presents significant development opportunities for
Chinese liquor companies “going global”. Liquor companies may experience a year of concentrated efforts under the support of both
policies and strategies.(II) Development Strategy of the Company
1. Firmly boost “Strategy 5.0 Five-Star Operation” strategy
Comprehensively fulfil Strategy 5.0 and have the “User-Cantered” thought fully and deeply implemented in the Company. Solidly
create the “Five-Star Operation” enhance competitive force improve quality and efficiency optimise services and promote healthy
~ 38 ~Annual Report 2024
and efficient operation of the enterprise.
2. Firmly boost reform and innovation strategy
Deeply boost marketing innovation technological innovation and mechanism innovation and generate endogenous power of the
enterprise.
3. Firmly create “Talent Highland” strategy
Intensify talent recruitment and attraction and establish flexible talent attraction and wisdom experience borrowing mechanism.Innovate talent training mode and promote independent cultivation & development and absorption & attraction simultaneously.(III) Operating Revenue Plan of the Company in 2025
Total operating income has achieved steady growth compared to the previous year.(IV) Operating Risk of the Company
1. The escalation of global trade protectionism continues and the adverse impacts from changes in the external environment are
deepening.
2. The industry is experiencing greater differentiation with slow sales unstable prices and a cooling market entering a new period
of adjustment.(V) Operating Measures
1. Brand DevelopmentThe Company will continue to uphold the strategy of “high-profile promotion external focus with internal integration and a dualapproach of both internal and external” actively partnering with mainstream media leveraging integrated media and amplifying the
voice of Gujing. It will fully utilise platforms such as short videos and live streaming to enhance brand visibility. It will keep
harnessing the power of digital marketing obtaining attention with more product offerings creating a synergistic effect among
products and promoting the deep integration of online and offline channels. Thus product exposure is increased brand promotion is
strengthened consumer awareness is enhanced and customer experience is optimised and upgraded. The Company will create
national brand momentum comprehensively shaping brand value and elevating the cultural depth humanistic warmth and
experiential richness of the Gujing brand.
2. Marketing
The Company will continue to focus on the “nationalisation and premium segment” strategy adhering to the implementation path of
“setting up flags drilling wells cultivating customers and increasing volume” and further promoting the “Three ConnectivityProject”. It will implement the policy of “boosting sales reducing inventory expanding channels and stabilising prices”. It will
stabilise the existing market while exploring new markets strengthen the channel network expand coverage and seek new
opportunities. By deepening cooperation with distributors the Company will increase efforts in channel development and work
together to achieve a mutually beneficial and win-win situation.
3. Production Management
The Company will continue to enhance the advancement and applicability of the “Gujing Standard” across the entire supply chain
from raw material supply to production quality brewing exceptional wines and co-creating and sharing the value of fine wines. It
will accelerate the formation of a virtuous interaction among the field workshop laboratory and market focusing on advantages
such as fragrance types and production regions continually improving the product expression system and increasing consumer
recognition and satisfaction. The Company will strengthen the stable improvement of product quality and focus on establishing a
“quality-price matching” pricing system. It will coordinate the deep operations of the “Four Institutes and One Laboratory”
leveraging resources from cooperating universities and research institutions to provide strong scientific and cultural support for
Gujing and promoting the better transformation of research achievements.
4. Digitalisation Construction
The Company will accelerate the digitalisation of Gujing enhance digital management capabilities improve digital marketing levels
and optimise digital production models. It will build an integrated smart energy management platform and establish a microgrid to
realise intelligent and lean management of the Company’s power system. By promoting the application of AI large-model technology
in various scenarios the Company will further enhanced monitoring efficiency and the level of intelligence. It will establish a smart
management platform for Gujing’s raw material planting bases to systematically control the entire information flow of the raw
~ 39 ~Annual Report 2024
material planting process ensuring standardised management accurate quantity pure varieties safety controllability trustworthiness
and traceability of the raw material planting process.
5. Safety and Environmental Protection
The Company will strengthen the management of each production stage to ensure food safety. By deepening the implementation of
the three-year action plan the Company will address the root causes of production safety ensuring safe production and long-term
management to achieve the “four no’s” goal (no accidents no violations no leaks and no injuries). It will practise green and
low-carbon production systematically promote energy conservation and emission reduction and ensure compliance with emission
standards.
6. Internal Management
The Company will further remove institutional and systemic barriers to unleash the intrinsic potential and vitality of the organisation
and individuals. Focusing on building an “agile organisation” it will implement the talent development strategy deepen the “TwoPools and Two Paths” approach and carry out the Inheritance Plan Talent Programme and other initiatives. These efforts will help
form a talent management system of “attract nurture utilise and retain” driving the efficient operation of the enterprise. The
Company will optimise the organisational structure improve management systems and innovate incentive mechanisms to stimulate
employee enthusiasm and creativity continually enhancing the overall effectiveness of the organisation.
7. Corporate Culture Construction
The Company will continue to adhere to the principle of “Culture as the Stage Business as the Performance” combining productconnotations cultural values consumer emotions and brand stories to resonate with consumers’ hearts. With “Truth Goodness andBeauty” as the core value the Company aims to create a “Three-Right Ecological System” and promote the creative transformation
and innovative development of corporate and liquor culture allowing culture to empower product strength.In 2025 the Company will unite even more closely around the Central Committee of the Communist Party of China with Xi Jinpingat its core. Under the strong leadership of the municipal government of Bozhou the Company will carry forward the spirit of “dare tobe the first love to fight and win” and “how many times in life can one fight” maintaining its high fighting spirit staying true to the
founding mission of Gujing upholding the will of the Gujing Iron Army daring to think and act facing challenges head-on and
continuing to work alongside all shareholders to write a new chapter for Gujing to create more returns for all shareholders.XII Communications with the Investment Community such as Researches Inquiries and
Interviews
□ Applicable □ Not applicable
XIII. Formulation and Implementation of Market Value Management System and Valuation
Improvement Plan
Has the Company established a market value management system
□ Yes □ No
Has the Company disclosed the valuation improvement plan
□ Yes □ No
On 25 April 2025 the Company held the 10th meeting of the 10th Board of Directors during which the Proposal on Establishing a
Market Value Management System for the Company was reviewed and approved. To strengthen the Company’s market value
management further standardise market value management practises and effectively enhance the Company’s investment value and
shareholder return capacity the Company has formulated the Market Value Management System of Anhui Gujing Distillery
Company Limited. based on the Company Law of the People’s Republic of China Securities Law of the People’s Republic of China
Several Opinions of the State Council on Strengthening Supervision Preventing Risks and Promoting the High-Quality
Development of the Capital Market Guideline No. 10 on the Supervision of Listed Companies - Market Value Management and
other relevant laws regulations normative documents as well as the Articles of Association. For specific details please refer to the
~ 40 ~Annual Report 2024
Market Value Management System of Anhui Gujing Distillery Company Limited. disclosed by the Company on the same day on the
CNINFO website.XIV 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 stabilise the market and stabilise confidence” proposed by the
National Standing Committee combined with the company’s development strategy operating conditions and financial conditions in
order to safeguard the interests of all shareholders of the company To enhance investor confidence and promote the long-term
healthy and sustainable development of the company the company has formulated a “quality return double improvement” action plan.For details see the Announcement on Promoting the “Double Improvement of Quality Return” action Plan disclosed by the company
on March 7 2024 (Announcement Number: 2024-001).In accordance with the provisions on profit distribution policy in the Company Law and Articles of Association combined with the
company's actual situation and development needs in order to fully repay shareholders the company's profit distribution plan for
2024 is: based on the total share capital of 528600000 shares a cash dividend of RMB 2643000000.00 will be distributed to all
shareholders for every 10 shares (including tax). Combined with the mid-term dividend plan for 2024 the total dividend amount of
the company in 2024 accounts for 57.49% of the net profit attributable to shareholders of listed companies in this year's consolidated
statements and no bonus shares will be paid and no share capital will be converted from reserve funds. This year the company's
cash dividend ratio increased year-on-year fully sharing the company's development achievements with investors.~ 41 ~Annual Report 2024
Part IV Corporate Governance
I General Information of Corporate Governance
The Company has enabled the General Meeting the Board of Directors the Board of Supervisors and the management to form a
standardised and scientific decision-making mechanism of operation to sufficiently protect the rights and interests of investors and
small and medium investors in particular and to intensify the standardised operation of the Company in strict accordance with
relevant laws and regulations such as the Company Law the Securities Law the Code of Corporate Governance for Listed
Companies the Rules for Stock Listing of Shenzhen Stock Exchange and Self-Regulatory Guidelines No. 1 for Companies Listed on
Shenzhen Stock Exchange - Standard Operation of Listed Companies on the Main Board. During the Reporting Period the
Company’s actual situation of corporate governance met the relevant requirements of the normative documents on the governance of
listed companies issued by the China Securities Regulatory Commission. In strict accordance with the relevant laws and regulations
and the Company’s requirements on internal rules regulations and management system each of the directors supervisors and senior
managers of the Company executed his or her rights and obligations to ensure transparent disclosure of the Company’s information
its operation according to law and honesty and trustworthiness.
1. Shareholders and General Meeting of Shareholders
The Company regulates the convening holding and voting procedures of the general meeting of shareholders in strict accordance
with the provisions and requirements of the Company Law the Articles of Association and the Rules of Procedure of the General
Meeting. During the Reporting Period the convening and holding procedures of general meetings of shareholders the qualifications
of attendants to the meetings and the voting procedures of the meetings all met the provisions of the Company Law Rules of
Procedure of the General Meeting and other laws and regulations. The Company equally treated all of its shareholders and small
and medium shareholders in particular to ensure full execution of rights of all shareholders.
2. The Company and Controlling Shareholders
The Company’s controlling shareholders are able to strictly regulate their own behaviours without any violation of provisions of
relevant laws regulations and the Company’s Articles of Association. They have not directly or indirectly interfered with the
Company’s decision-making and production and operation activities nor have they occupied the Company’s funds; the Company
has not provided its controlling shareholders with any form of guarantee.
3. Directors and Board of Directors
The Company’s Board of Directors consists of nine directors three of whom are independent directors. The number of directors and
the personnel composition of the Board of Directors comply with the requirements of laws regulations and the Articles of
Association. All directors act in accordance with the Articles of Association Rules of Procedure of the Board of Directors and the
Work Policy for Independent Directors etc. attend the meetings of the Board of Directors and general meetings of shareholders
diligently and faithfully perform their duties and obligations. Meanwhile they actively participate in relevant training and get
familiar with relevant laws and legislations. Under the Board of Directors there are four special committees i.e. the Audit
Committee the Nomination Committee the Remuneration and Appraisal Committee and the Strategy Committee which perform
their normal duties to provide scientific and professional comments and references for decision-making of the Board of Directors.
4. Supervisors and Board of Supervisors
There are five supervisors in the Company’s Board of Supervisors including two employee supervisors. The number and
composition of the Board of Supervisors are in compliance with the requirements of laws and regulations. All supervisors are able to
conscientiously perform their duties in accordance with the requirements of the Rules of Procedure of the Board of Supervisors
earnestly perform their duties and supervise the major events related-party transactions financial status law-and-regulation
compliance of performance of duties of directors and senior managers of the Company.
5. The Mechanism of Performance Appraisal and Incentive and Constraint
~ 42 ~Annual Report 2024
The procedures for appointment and removal of directors supervisors and senior managers of the Company shall be open and
transparent and in line with the relevant provisions of laws regulations and the Articles of Association; the Company’s remuneration
appraisal scheme shall specifically stipulate the evaluation to the Company’s management team. The Company shall constantly
improve the performance evaluation standard and incentive and constraint mechanism of directors supervisors and senior managers.
6. Fulfilment of Social Responsibilities and Stakeholders
The Company is able to fully respect and protect the legitimate rights and interests of relevant stakeholders achieve a balance of
interests between the society shareholders the Company suppliers customers employees and other relevant parties to promote the
sustainable stable and healthy development of the Company.
7. Information Disclosure and Transparency
The Company faithfully performs the obligation of information disclosure in strict accordance with the Articles of Association of the
Company Rules for Stock Listing of Shenzhen Stock Exchange Self-Regulatory Guidelines No. 1 for Companies Listed on Shenzhen
Stock Exchange - Standard Operation of Listed Companies on the Main Board Self-regulatory Guidelines No. 5 for Companies
Listed on Shenzhen Stock Exchange - Management of Information Disclosure Affairs and the relevant laws and regulations of China
Securities Regulatory Commission and Shenzhen Stock Exchange. The Company designates China Securities Journal Shanghai
Securities News Ta Kung Pao and Cninfo (http://www.cninfo.com.cn) as its information disclosure media and website to guarantee
investors’ right to know and to ensure that all shareholders of the Company have a fair opportunity to obtain information of the
Company. Meanwhile the Company has established diversified communication channels for investors including special telephone
line exclusive mailbox and interactive platform for investors and many other forms to fully guarantee the right of a large number
of investors to know.
8. The Formulation and Implementation of the Registration and Management System on Inside Information and Insiders
In accordance with the requirements of regulatory authorities the Company and all of its controlling shareholders have formulated
the system for registration and record on inside information and insiders regulated the acts of managing inside information of the
Company and its controlling shareholder strengthened the classification of inside information and safeguarded the principle of
fairness for information disclosure. During the Reporting Period in strict accordance with the Management System on Inside
Information and Insiders the Company has made well classification of inside information and registration and record on insiders.Indicate by tick mark whether there is any material in-compliance with laws administrative regulations and the regulatory documents
issued by the CSRC governing the governance of listed companies.□Yes □No
No such cases in the Reporting Period.II The Company’s Independence from Its Controlling Shareholder and Actual Controller in
Business Personnel Asset Organisation and Financial Affairs
The Company and the controlling shareholder Anhui Gujing Group Co. Ltd. realised five independences in terms of business
personnel assets organisations and financial affairs with separate independent calculation independent and complete business
independent operation ability and independent responsibilities and risks. The controlling shareholder cannot surpass the General
Meeting of Shareholders to directly or indirectly interfere with the Company’s decisions and legal production as well as operation
activities and there is no same trade competition state of the same products between the Company and the controlling shareholder.
1. Independence of Business
The Company is mainly engaged in the production and sale of baijiu and the Company’s business is mutually independent of its
controlling shareholder Gujing Group and other enterprises controlled by the Group. The issuer owns independent research and
development system purchasing system production system and sale system forming a complete business chain all of which do not
rely on its shareholders and their subordinate enterprises. Therefore the issuer’s business is independent of its controlling
shareholders.~ 43 ~Annual Report 2024
2. Independence of Personnel
The Company has independent management systems of labour personnel salary etc. and independent staff teams in which the
salary payment and welfare expenditure of the Company are strictly independent of those of its shareholders and related parties. The
directors supervisors and senior managers of the Company are all selected in strict accordance with the relevant provisions of the
Company Law and the Company’s Articles of Association. All senior managers do not take other positions than directors or
supervisors in the controlling shareholders or actual controllers of the Company or other entities controlled by them nor do they
receive salary from the controlling shareholders or actual controllers of the Company or other entities controlled by them. None of
the financial staff members of the Company takes part-time positions in the controlling shareholders or actual controllers of the
Company or other entities controlled by them.
3. Independence of Assets
The Company has its production system auxiliary production system and supporting facilities related to its production and operation;
and legally has the ownership or use rights of the land plants machines trademarks and patents in relation to its production and
operation. Therefore there is not any damage to the Company’s interests in such a way that the assets and funds of the Company are
occupied by the Company’s controlling shareholders and their related parties.
4. Independence of Organisation
The Company has established a sound and integral governance structure of General Meeting of Shareholders the Board of Directors
and the Board of Supervisors and formulated the corresponding internal control management system. The Company independently
exercises the duties and rights of operation and management in which the Company’s units of production operation and office are
completely separated from the shareholding entities. Therefore the Company does not make mixed operation and has mixed office
with its shareholding entities; the Company’s shareholding entities and their related entities or persons do not interfere with the
Company’s structural setup; there is not any subordinate relationship between the Company and its controlling shareholders or
between their functional departments.
5. Independence of Finance
The Company has set up an independent finance department with full-time personnel; and established an independent accounting
system and financial management system independently making financial decisions and implementing a strict internal audit system.An independent bank account has been opened for the Company without sharing the account with the Company’s shareholding
entities or any other entity or person. The Company as an independent taxpayer declares taxes and fulfils tax payment obligations
independently according to law and does not pay taxes together with its shareholding entities.III Horizontal Competition
□ Applicable □ Not applicable
IV Annual and Extraordinary General Meetings Convened during the Reporting Period
1. General Meeting Convened during the Reporting Period
Investor
Meeting Type Date of the meeting Disclosure date Meeting resolutions
participation ratio
Announcement on
Resolutions of the
The 2023 Annual Annual General
59.58% 29 May 2024 30 May 2024 2023 Annual
General Meeting Meeting
General Meeting
disclosed on
~ 44 ~Annual Report 2024
www.cninfo.com.cn
2. Extraordinary General Meetings Convened at the Request of Preferred Shareholders with Resumed
Voting Rights
□ Applicable □ Not applicable
V Directors Supervisors and Senior Management
1. Basic Information
Increase Decrease Reasons for
Beginning in the in the Other Ending changes in
Start of End of
Name Gender A ge Office title Incumbent/Former shareholding Reporting Reporting increase/decrease shareholding shareholding
tenure tenure
(share) Period Period (share) (share)
(share) (share)
Chairman
Liang 23 April 29 June
Male 59 of the Incumbent
Jinhui 2014 2026
Board
23 August 29 June
Li Peihui Male 52 Director Incumbent
20162026
Zhou Director 23 April 29 June
Male 51 Incumbent
Qingwu GM 2014 2026
Director
5 August 29 June
Yan Lijun Male 52 Executive Incumbent
20162026
Deputy GM
Director 23 August 29 June
Xu Peng Male 55 Incumbent
Deputy GM 2016 2026
15
Ye 29 June
Male 51 Director Incumbent December
Changqing 2026
2011
2715
Wang Independent
Male 63 Incumbent September January
Ruihua director
20192025
Independent 19 June 29 June
Xu Zhihao M ale 49 Incumbent
director 2020 2026
Independent 29 June 29 June
Li Jing Female 57 Incumbent
director 2023 2026
Chairman
Yang 23 August 29 June
Male 58 of Board of Incumbent
Xiaofan 2016 2026
Supervisors
~ 45 ~Annual Report 2024
29 June 29 June
Song Zifa Male 44 Supervisor Incumbent
20232026
19
29 June
Mu hua Male 57 Supervisor Incumbent December
2026
2023
Employee 20 March 29 June
Cui Yujun Male 57 Incumbent
supervisor 2022 2026
Liu Employee 29 June 29 June
Female 49 Incumbent
Yongxia supervisor 2023 2026
Zhang 5 August 29 June
Male 57 Deputy GM Incumbent
Lihong 2016 2026
Gao 28 August 29 June
Male 55 Deputy GM Incumbent
Jiakun 2020 2026
Deputy
28 August 29 June
Li Anjun Male 55 GM chief Incumbent
20202026
engineer
Zhu 28 August 29 June
Male 51 Deputy GM Incumbent
Xianghong 2020 2026
23
29 June
Kang Lei Male 47 Deputy GM Incumbent September
2026
2022
23
Zhu 29 June
Male 48 Deputy GM Incumbent September
Jiafeng 2026
2022
Total -- -- -- -- -- -- --
Indicate by tick mark whether any directors or supervisors left or any senior management were disengaged during the Reporting
Period
□Yes □No
Change of Directors Supervisors and Senior Management
□ Applicable □ Not applicable
2. Biographical Information
Professional backgrounds major work experience and current duties in the Company of the incumbent directors supervisors and
senior management:
1. Mr. Liang Jinhui male born in 1966 member of CPC is Political Engineer a deputy to the 13 th National People’s Congress a
deputy to the 14th National People’s Congress and Chinese Brewmaster with MBA degree incumbent Secretary of CPC and president
of the Company and president and Secretary of CPC of Gujing Group. He ever took the post of MD GM Deputy GM GM of
Bozhou Gujing Sales Co. Ltd. Supervisor of Third Board of Supervisors Director of the 4 th 5th and 6th Board of Directors and
Chairman of the 7th 8th and 9th Board of Directors of the Company.
2. Mr. Li Peihui male born in 1973 member of CPC is a holder of master degree. He is a senior accountant CPA (non-practicing)
~ 46 ~Annual Report 2024
and member of national leading accounting talents. At present he acts as the director of the Company and Vice Secretary of CPC and
president of Gujing Group. He had ever served as deputy GM and GM of Financial Department deputy chief accountant chief
accountant Secretary of Board of Directors and Director of the Company; Chairman of the Board of Anhui Ruijing Business Travel
Group Co. and Anhui Huixin Financial Investment Group; executive vice president and CFO of Gujing Group; and director of the 7th
8th and 9th Board of Directors.
3. Mr. Zhou Qingwu male born in 1974 member of CPC is a senior engineer and China Chief Baijiu Taster with educational
experience of graduate student. At present he is Vice Secretary of CPC Director and General Manager of the Company Vice
Secretary of CPC of Gujing Group. He had ever acted as Deputy GM and executive deputy GM of the Company and Director of the
5th 6th 7th 8th and 9th Board of Directors of the Company.
4. Mr. Yan Lijun male born in 1973 member of CPC is a holder of master degree with Senior Taster. Now he is Vice Secretary of
CPC Director Executive Deputy GM of the Company member of CPC Committee of Gujing Group Chairman of the Board and
GM of Bozhou Gujing Sales Co. Ltd. He once worked as a salesman of Sale Company District Manager Director of Market
Research Vice Manager of Planning Department Director of Hefei Strategic Operations Centre Vice GM and director of the 7 th 8th
and 9th Board of Directors of the Company.
5. Mr. Xu Peng male born in 1970 member of CPC has educational experience of undergraduate college. He is the member of CPC
Committee Director and Deputy GM of the Company member of CPC Committee of Gujing Group. He had ever acted as Deputy
Director and Director of Finance Second Office of Finance Department of the Company Manager of Finance Department of Anhui
Laobada Co. Ltd. Vice Manager and Manager of Finance Department of the Company Deputy General Manager and Chief
Supervisor of Market Supervision Department of Bozhou Gujing Sales Co. Ltd. Chairman of the 7 th Board of Supervisors and
Director of the 7th 8th and 9th Board of Directors of the Company.
6. Mr. Ye Changqing male born in 1974 member of CPC senior accountant is a member of national leading accounting talents
with master degree and International Certified Internal Auditor. He is the incumbent Director of the Company and CFO of Gujing
Group. He had ever acted as Chief Auditor of Audit Department Vice Manager of Audit Department and Vice Supervisor and
Supervisor of Auditing & Supervision Department of Gujing Group; and Supervisor of the 4th Board of Supervisors of the Company;
Director and Secretary of the 5th 6th 7th 8th and 9th Board of Directors and Chief Accountant of the Company.
7. Wang Ruihua male born in 1962 member of CPC is a non-practicing Chinese CPA with a doctor’s degree in management
granted by Central University of Finance and Economics. Now he acts as the executive dean a professor and doctoral advisor at
Central University of Finance and Economics Guangdong-Hong Kong-Macao Greater Bay Area (Huangpu) Research Institute &
member of China National MBA Education Supervisory Committee member of Independent Director Committee of China
Association for Public Companies the independent director in the Company independent director in Bank of Beijing Co. Ltd.independent director of JD Technology Holding Co. Ltd. independent director of China Post Securities Co. Ltd.
8. Xu Zhihao male born in 1976 is a senior economist who holds a doctor’s degree. He received the national May 1 Labour Medal.
He is currently Independent Director of the Company CEO of Geely Technology Group Co. Ltd. and Chairman of QJMOTOR
(Stock Code: 000913.SZ).
9. Li Jing female born in 1968 holds a master’s degree and is a senior accountant. She is currently serving as an independent
director at the Company Kingsignal (300252) and Shunyu Water (301519). Her previous roles include Deputy Manager of the
Finance Department Director of the Audit Centre Manager of Audit and Internal Control Department and Director of the
Settlement Centre at Beijing District Heating Group Co. Ltd.
10. Mr. Yang Xiaofan male born in 1967 member of CPC is a holder of master degree. At present he is Chairman of the Board of
Supervisors of the Company and Vice President and member of CPC Committee of Gujing Group. He once acted as Vice President
and General Manager of Anhui Gujing Real Estates Group Co. Ltd. Assistant to President of Gujing Group; Director of the 5 th 6th
and 7th Board of Directors of the Company and Supervisor of the 7th 8th and 9th Board of Supervisors of the Company.
11. Song Zifa male born in 1981 is a member of the Communist Party of China and holds a university degree and a senior
~ 47 ~Annual Report 2024
accountant qualification. He currently occupies the position of Director of the Financial Management Centre at Gujing Group. His
past appointments include Supervisor and Assistant Director of Audit and Supervision Centre of Gujing Group Assistant Director of
the Financial Management Centre of Gujing Group and General Manager of Anhui Zhongxin Finance Leasing Co. Ltd.
12. Mu Hua male born in 1968 is a member of the Communist Party of China with an associate degree. He currently serves as the
Deputy Director of the Party Committee Office and Secretary of Party Committee of the Functional Departments at Gujing Group.His previous roles include Deputy Manager and Assistant Director of the President’s Office and Deputy Director at Anhui Gujing
Group Co. Ltd.
13. Mr. Cui Yujun male born in 1968 member of CPC is a holder of bachelor degree. He is incumbent the employee supervisor of
the Company and director of the Production Management Centre. He once worked as the workshop manager manager GM Assistant
Deputy Director of the Company’s Production Management Centre and Employee Supervisor of the 9th Board of Supervisors of the
Company.
14. Liu Yongxia female born in 1976 is educated to university level. She is currently the Vice Chair of the Company’s trade union
and the Vice Chair of the trade union at Gujing Group. She has previously held the positions of Deputy Manager of the Production
Management Centre’s Dispatch Centre and Deputy Manager and Manager of the Production Dispatch Department in the Company’s
Logistics Dispatch Centre.
15. Mr. Zhang Lihong male born in 1968 member of CPC is an economist with bachelor degree. He is incumbent Vice Secretary
of CPC and Deputy GM of the Company and full-time deputy secretary of CPC Committee of Gujing Group. He once acted as clerk
Secretary of Operation Department and Market Development Department Deputy GM Director of General Office Director of
Service Centre of Bozhou Gujing Sales Co. Ltd. Director of HR Department and Administrative Service Centre and GM Assistant
of the Company.
16. Mr. Gao Jiakun male born in 1970 member of CPC is a holder of bachelor degree. He is incumbent member of the CPC and
Deputy GM of the Company. He once served as GM of Production Management Department and Vice Director of Production
Management Centre of the Company Chairman of the Board and GM of Bozhou Pairuite Packing Products Co. Ltd. Director of
Finished Products Filling Centre and Production Management Centre and assistant to GM of the Company.
17. Li Anjun male born in 1970 is a member of CPC and professor-level senior engineer with a master’s degree. He is currently a
member of the Party Committee Deputy General Manager and Chief Engineer of the Company. He served as the Deputy Director
and Director of the Company’s Technical Quality Centre.
18. Mr. Zhu Xianghong male born in 1974 member of CPC is a senior Wine Taster with bachelor degree. He is incumbent member
of the Party Committee and Deputy GM of the Company Secretary of Party Committee and GM of Yellow Crane Tower Distillery.He once acted as GM of Product Department of Bozhou Gujing Sales Co. Ltd. GM of Hefei Office regional GM of Northern Anhui
Province GM of Anhui Operating Centre executive Deputy GM of Sales Company and assistant to GM of the Company.
19. Kang Lei male born in 1978 is a member of CPC and senior accountant with a college degree. He is currently a member of the
Party Committee Deputy GM and Director of the Enterprise Management Centre of the Company. He served as Deputy Director of
the Financial Management Centre of Bozhou Gujing Sales Company Director and Assistant to General Manager of the Company’s
Administrative Service Centre and Deputy Director of the President’s Executive Office of Gujing Group.
20. Zhu Jiafeng male born in 1977 is a member of CPC and senior accountant with a college degree. He is currently a member of
the Party Committee Deputy GM Chief Accountant Secretary of the Board and Director of the Financial Management Centre of the
Company. He served as the Manager Deputy Director assistant to General Manager and Deputy Chief Accountant of the Financial
Management Centre of the Company.Offices held concurrently in shareholding entities:
□ Applicable □ Not applicable
Office held in
Name Shareholding entity Start of tenure End of tenure
Remuneration or
the allowance from the
~ 48 ~Annual Report 2024
shareholding shareholding entity
entity
Chairman of
Liang Jinhui Anhui Gujing Group Co. Ltd. the Board of 1 May 2014 Yes
Directors
31 October
Li Peihui Anhui Gujing Group Co. Ltd. President Yes
2017
Vice 1 November
Yang Xiaofan Anhui Gujing Group Co. Ltd. Yes
President 2009
Ye Changqing Anhui Gujing Group Co. Ltd. CFO 13 August 2021 Yes
Head of
Financial 24 January
Song Zifa Anhui Gujing Group Co. Ltd. Yes
Management 2018
Centre
Deputy
Director of
Mu Hua Anhui Gujing Group Co. Ltd. the Party 19 August 2022 Yes
Committee
Office
Vice
Chairman of
Liu Yongxia Anhui Gujing Group Co. Ltd. June 2018 Yes
the Labour
Union
The above-mentioned personnel though they take posts in shareholding entities comply with the relevant
Notes employment requirements of Company Law Securities Law and never disciplined by CSRC other relevant
departments and the Stock Exchange.Offices held concurrently in other entities:
□ Applicable □ Not applicable
Remuneration or
Office held in
Name Other entity Start of tenure End of tenure allowance from
other entity
other entity
Central University of Finance and
Professor July 1983 Yes
Economics
Independent
China Medical Health Industry Co. Ltd. May 2023 Yes
director
Independent
Wang Ruihua Bank of Beijing Co. Ltd. December 2019 December 2025 Yes
director
Independent
JD Technology Holding Co. Ltd. June 2020 Yes
director
Independent
China Post Securities Co. Ltd. February 2023 Yes
director
~ 49 ~Annual Report 2024
Director and
Geely Technology Group Co. Ltd. general November 2023 Yes
Xu Zhihao manager
Chairman of
Zhejiang Qjiang Motorcycle Co. Ltd. May 2024 May 2027 No
the Board
Independent
Kingsignal Technology Co. Ltd. October 2024 October 2027 Yes
director
Li Jing
Independent
Anhui Shunyu Water Co. Ltd. December 2023 July 2025 Yes
Director
Notes Naught
Punishments imposed in the recent three years by the securities regulator on the incumbent directors supervisors and senior
management as well as those who left in the Reporting Period:
□Applicable □ Not applicable
3. Remuneration of Directors Supervisors and Senior Management
Decision-making procedure determination basis and actual payments of remuneration for directors supervisors and senior
management:
(1) Decision-making procedure of remuneration for Directors Supervisors and Executive Officers
The remuneration of independent directors is decided through the general meeting of shareholders and the remuneration of the
directors supervisors and senior managers assuming positions in the Company is defined in accordance with the relevant regulations
of the State-owned Assets Supervision and Administration Commission (the “SASAC”) of Bozhou Municipal People’s Government
and the relevant policies of the Company.
(2) Determination basis of remuneration for Directors Supervisors and Executive Officers
Compensation for personnel will be determined in accordance with the Implementation Opinions on Deepening the Reform of the
Remuneration System for Leaders of Provincial Enterprises issued by the CPC Anhui Provincial Committee and the Anhui
Provincial People’s Government (W.F. [2015] No. 28) and the Bozhou Municipal Enterprises Leaders’ Salary Management Interim
Measures (G.Z.G. [2017] No. 21) in conjunction with the Company’s annual operational status and performance evaluation results.
(3) Actual payment of remuneration for Directors Supervisors and Executive Officers
Part of basic remuneration is paid on a monthly basis and according to appraisal performance-based remuneration is paid at the end
of the year.Remuneration of directors supervisors and senior management for the Reporting Period
Unit: RMB’0000
Total before-tax
Any
remuneration
Name Gender Age Office title Incumbent/Former remuneration
from the
from related party
Company
Chairman of the
Liang Jinhui Male 59 Incumbent Yes
Board
Li Peihui Male 52 Director Incumbent Yes
Zhou Qingwu Male 51 Director GM Incumbent 251.08 No
~ 50 ~Annual Report 2024
Director
Yan Lijun Male 52 Executive Deputy Incumbent 496.53 No
GM
Director Deputy
Xu Peng Male 55 Incumbent 230.38 No
GM
Ye Changqing Male 51 Director Incumbent Yes
Independent
Wang Ruihua Male 63 Incumbent 20.00 No
director
Independent
Xu Zhihao Male 49 Incumbent 20.00 No
director
Independent
Li Jing Female 57 Incumbent 20.00 No
director
Chairman of
Yang Xiaofan Male 58 Board of Incumbent Yes
Supervisors
Song Zifa Male 44 Supervisor Incumbent Yes
Mu hua Male 57 Supervisor Incumbent Yes
Employee
Cui Yujun Male 57 Incumbent 148.00 No
supervisor
Employee
Liu Yongxia Female 49 Incumbent Yes
supervisor
Zhang Lihong Male 57 Deputy GM Incumbent 234.26 No
Gao Jiakun Male 55 Deputy GM Incumbent 222.27 No
Deputy GM
Li Anjun Male 55 Incumbent 221.52 No
chief engineer
Zhu Xianghong Male 51 Deputy GM Incumbent 431.24 No
Kang Lei Male 47 Deputy GM Incumbent 222.26 No
Zhu Jiafeng Male 48 Deputy GM Incumbent 221.69 No
Total -- -- -- -- 2739.23 --
Other notes:
□ Applicable □ Not applicable
VI Performance of Duty by Directors in the Reporting Period
1. Board Meeting Convened during the Reporting Period
Meeting Date of the meeting Disclosure date Meeting resolutions
Announcement on Resolutions
5th Meeting of the 10th Board 26 April 2024 27 April 2024
of the 5th Meeting of the 10th
~ 51 ~Annual Report 2024
of Directors Board of Directors of Anhui
Gujing Distillery Company
Limited (No.: 2024-003)
disclosed on the website of
Cninfo (www.cninfo.com.cn).Announcement on Resolutions
of the 6th Meeting of the 10th
Board of Directors of Anhui
6th Meeting of the 10th Board
30 August 2024 31 August 2024 Gujing Distillery Company
of Directors
Limited (No.: 2024-017)
disclosed on the website of
Cninfo (www.cninfo.com.cn).Reviewed and approved the
7th Meeting of the 10th Board
30 October 2024 Not applicable Company’s 2024 Third Quarter
of Directors
Report.Announcement on Resolutions
of the 8th Meeting of the 10th
Board of Directors of Anhui
8th Meeting of the 10th Board
30 December 2024 31 December 2024 Gujing Distillery Company
of Directors
Limited (No.: 2024-022)
disclosed on the website of
Cninfo (www.cninfo.com.cn).
2. Attendance of Directors at Board Meetings and General Meetings
Attendance of directors at board meetings and general meetings
The director
Total number
Board failed to attend
of board Board Board
Board meetings meetings two General
meetings the meetings meetings the
Director attended by way of attended consecutive meetings
director was attended on director failed
telecommunication through a board attended
eligible to site to attend
proxy meetings
attend
(yes/no)
Liang Jinhui 4 1 3 0 0 No 1
Li Peihui 4 1 3 0 0 No 1
Zhou Qingwu 4 1 3 0 0 No 1
Yan Lijun 4 1 3 0 0 No 1
Xu Peng 4 1 3 0 0 No 1
Ye Changqing 4 1 3 0 0 No 1
Wang Ruihua 4 1 3 0 0 No 1
~ 52 ~Annual Report 2024
Xu Zhihao 4 1 3 0 0 No 1
Li Jing 4 1 3 0 0 No 1
3. Objections Raised by Directors on Matters of the Company
Indicate by tick mark whether any independent directors raised any objections on any matter of the Company.□Yes □No
No such cases in the Reporting Period.
4. Other Information about the Performance of Duty by Directors
Indicate by tick mark whether any suggestions from directors were adopted by the Company.□Yes □No
Suggestions from directors adopted or not adopted by the Company
During the Reporting Period the directors of the Company carried out their work diligently and conscientiously in strict accordance
with the Company Law the Securities Law the Code of Corporate Governance for Listed Companies the Self-Regulatory
Guidelines No. 1 for Companies Listed on Shenzhen Stock Exchange - Standard Operation of Listed Companies on the Main Board
the Articles of Association and Rules of Procedure of the Board of Directors. Based on the Company’s reality they put forward
relevant opinions on the Company’s major governance and operation decisions and reached consensus through full communication
and discussion. They resolutely supervised and promoted the implementation of the resolutions of the Board of Directors to ensure
scientific timely and efficient decision-making and safeguard the legitimate rights and interests of the Company and all of its
shareholders.VII Performance of Duty by Special Committees under the Board in the Reporting Period
Other Details
Number of Important opinions information about issues
Convene
Committee Members meetings Content and suggestions about the with
d date
convened raised performance objections
of duty (if any)
Review of the Company’s
2023 annual audit report
and communication letter Upon full
Wang Ruihua with the governance team communication and
Audit 5
Xu Zhihao Li 2023 internal audit work discussion all
Committee of 1 February
Jing Xu Peng summary and 2024 work proposals were
the Board 2024
Ye Changqing plan review report on the unanimously
use and placement of approved.raised funds in the fourth
quarter of 2023.Audit Wang Ruihua 25 April Review of the Company’s Upon full
Committee of Xu Zhihao Li 2024 2023 internal control communication and
~ 53 ~Annual Report 2024
the Board Jing Li Peihui self-assessment report the discussion all
Ye Changqing 2023 annual report and proposals were
summary the first-quarter unanimously
report for 2024 and its approved.summary the proposal to
hire the 2024 audit
agency special report on
the use and placement of
raised funds in 2023 2023
financial final report and
the proposal to revise the
implementation rules of
the Audit Committee.Review of the Company’s Upon full
Wang Ruihua 2024 semi-annual report communication and
Audit 29
Xu Zhihao Li and summary special discussion all
Committee of 1 August
Jing Li Peihui report on the use and proposals were
the Board 2024
Ye Changqing placement of raised funds unanimously
in the first half of 2024. approved.Review of the Company’s Upon full
Wang Ruihua 2024 third-quarter report communication and
Audit 28
Xu Zhihao Li and the review report on discussion all
Committee of 1 October
Jing Li Peihui the use and placement of proposals were
the Board 2024
Ye Changqing raised funds in the third unanimously
quarter of 2024. approved.Upon full
Li Jing Liang
Review of the proposal to communication and
Nomination Jinhui Wang
25 April adjust the members of the discussion all
Committee of Ruihua Xu 1
2024 Audit Committee of the proposals were
the Board Zhihao Zhou
Board. unanimously
Qingwu
approved.Upon full
Li Jing Liang Review of the proposal to
communication and
Nomination Jinhui Wang 30 nominate Mr. Zhang Bin
discussion all
Committee of Ruihua Xu 1 Decemb as an independent director
proposals were
the Board Zhihao Zhou er 2024 candidate for the 10th
unanimously
Qingwu Board of Directors.approved.Xu Zhihao Review of the proposal Upon full
Remuneration
Wang Ruihua Li regarding the 2023 communication and
and Appraisal 25 April
Jing Zhou 1 compensation and discussion all
Committee of 2024
Qingwu Yan performance assessment proposals were
the Board
Lijun of the board members and unanimously
~ 54 ~Annual Report 2024
senior executives. approved.Review of the proposal to
use idle self-owned funds
for entrusted financial Upon full
Liang Jinhui management the 2024 communication and
Strategy
Wang Ruihua 26 April annual financial budget discussion all
Committee of 1
Xu Zhihao Li 2024 report the 2023 annual proposals were
the Board
Jing Li Peihui financial final report and unanimously
the proposal to rename the approved.Strategy Committee and
revise its procedural rules.VIII Performance of Duty by the Board of Supervisors
Indicate by tick mark whether the Board of Supervisors found any risk to the Company during its supervision in the Reporting
Period.□Yes □No
The Board of Supervisors raised no objections in the Reporting Period.IX Employees
1. Number Functions and Educational Backgrounds of Employees
Number of in-service employees of the Company as the parent at
6676
the period-end
Number of in-service employees of major subsidiaries at the
6777
period-end
Total number of in-service employees 13453
Total number of paid employees in the Reporting Period 13453
Number of retirees to whom the Company as the parent or its
1849
major subsidiaries need to pay retirement pensions
Functions
Function Employees
Production 6635
Sales 3975
Technical 623
Financial 200
Administrative 1072
Other 948
Total 13453
~ 55 ~Annual Report 2024
Educational backgrounds
Educational background Employees
Master or above 228
Bachelor 4435
Junior college 3397
High school or below 5393
Total 13453
2. Employee Remuneration Policy
The remuneration policy was conducted strictly in line with the related law and regulations of the state and the plan of operation
performance and profits of the Company and the relevant remuneration management policy.
3. Employee Training Plans
Employee training is significant in the human resource management. The Company always pay high attention to the employee
training and development and the Company sets up effective training plan combining with the current situation of the Company
annual plan nature of the post and the demand of employee learning which includes new employee induction training on-job
training front-line employee operating skills training management improvement training and part-time study. The Company worked
to continuously improve the whole quality of the employees and realise a win-win situation and progress between the Company and
the employees.
4. Labour Outsourcing
□ Applicable □ Not applicable
Total man-hours (hour) 5099135.34
Total remuneration paid (RMB) 140459531.63
X Profit Distributions (in the Form of Cash and/or Stock)
How the profit distribution policy especially the cash dividend policy was formulated executed or revised in the Reporting Period:
□ Applicable □ Not applicable
The 2023 Annual General Meeting held on 29 May 2024 reviewed and approved the Company’s Interest Distribution Scheme in
2023 that based on the total shares of 528600000 of the Company on 31 December 2023 cash dividends was distributed at
RMB45.00 per 10 shares (tax inclusive) and the total cash dividends distributed was RMB2378700000.00 (tax inclusive) which
has been carried out completely in June 2024.Special statement about the cash dividend policy
In compliance with the Company’s Articles of Association and
Yes
resolution of General Meeting
Specific and clear dividend standard and ratio Yes
~ 56 ~Annual Report 2024
Complete decision-making procedure and mechanism Yes
Independent directors faithfully performed their duties and
Yes
played their due role
If the Company has not distributed cash dividends it should
disclose the specific reasons and the measures it plans to take in Not applicable
the next step to enhance investor returns
Non-controlling interests are able to fully express their opinion
Yes
and desire and their legal rights and interests are fully protected
In case of adjusting or changing the cash dividend policy the
conditions and procedures involved are in compliance with No adjustments or changes
applicable regulations and transparent
Indicate by tick mark whether the Company fails to put forward a cash dividend proposal for shareholders despite the facts that the
Company has made profits in the Reporting Period and the profits of the Company as the parent distributable to shareholders are
positive.□Applicable □ Not applicable
Final dividend plan for the Reporting Period
□ Applicable □ Not applicable
Bonus issue from profit for every 10 shares (share) 0
Dividend for every 10 shares (RMB) (tax inclusive) 50.00
Bonus issue from capital reserves for every 10
0
shares (share)
Total shares as the basis for the final dividend plan
528600000
(share)
Total cash dividends (RMB) (tax inclusive) 2643000000.00
Cash dividends in other ways (such as share
0.00
repurchase) (RMB)
Total cash bonus (including other methods) (RMB) 2643000000.00
Distributable profits (RMB) 14654488838.59
Percentage of cash dividends (including other
100.00%
methods) to the total distributed profits
Particulars about the cash dividends
If the Company is in a mature development stage and has plans for any significant expenditure in profit allocation the ratio of cash
dividends in the profit allocation shall be 40% or above.Details of final dividend plan for the Reporting Period
The Company intends to distribute RMB50.00 (tax included) per 10 shares based on the total shares of 528600000 at the end of
the year totalling RMB2643000000.00. In this year there is no bonus issue from either profit or capital reserves.~ 57 ~Annual Report 2024
XI Equity Incentive Plans Employee Stock Ownership Plans or Other Incentive Measures for
Employees
□Applicable □ Not applicable
No such cases in the Reporting Period.XII Establishment and Execution of the Internal Control System for the Reporting Period
1. Establishment and Execution of the Internal Control System
In accordance with the provisions of the Basic Code for Internal Control of Enterprises and its supporting guidelines the Company
has set up a complete procedure system for internal control system in which the assessment incorporates the entities business
matters and high risk fields covering all major aspects of the Company’s operation and management without material omissions.The Company’s internal control is designed soundly and reasonably and basically implemented effectively without material
omissions. Through the operation analysis and assessment of the internal control system the Company has effectively prevented
risks in operation and management and promoted the realisation of internal control objectives.
2. Material Internal Control Weaknesses Identified for the Reporting Period
□Yes □ No
XIII Management and Control over Subsidiaries by the Company for the Reporting Period
During the Reporting Period in accordance with the relevant requirements for standard operation of listed companies and the
relevant internal control system of the Company and by dispatching directors and supervisors to subsidiary companies to participate
in the daily operation of their board of directors and board of supervisors the Company realised the effective management and
supervision on such matters as overseas investment related-party transactions development planning compliant operation and
human resources of subsidiary companies specified the reporting system and deliberation procedure of major events and in a timely
manner followed up such major events as financial status business operation and investment operation of subsidiary companies.XIV Internal Control Self-Evaluation Report or Independent Auditor’s Report on Internal
Control
1. Internal Control Self-Evaluation Report
Disclosure date of the internal control
28 April 2025
self-evaluation report
Index to the disclosed internal control See www.cninfo.com.cn for the Self-assessment Report of Internal Control of Anhui
self-evaluation report Gujing Distillery Company Limited.Evaluated entities’ combined assets as % of
98.51%
consolidated total assets
Evaluated entities’ combined operating
revenue as % of consolidated operating 99.64%
revenue
~ 58 ~Annual Report 2024
Identification standards for internal control weaknesses
Weaknesses in internal control over financial Weaknesses in internal control not related
Type
reporting to financial reporting
Critical defect: Separate defect or other
defects that result in failure in preventing
finding out and correcting major wrong
reporting in financial report in time. The
following circumstances are deemed as
critical defects: (1) Ineffective in controlling
Any of the following circumstances shall
the environment; (2) Malpractise of directors
be deemed as a critical defect and other
supervisors and senior management officers;
circumstances shall be deemed as major
(3) According to external auditing there’s
or minor defects according to their degree
major wrong reporting in current financial
of impact.report which fails to be found by the
Company in its operating process; (4) Critical (1) Violate national laws regulations or
defects found and reported to the top standardised documents;
Nature standard management fail to be corrected within a (2) Major decision making procedure is
reasonable period of time; (5) The not scientific;
supervision of the Audit Committee of the (3) Lack of systems results in systematic
Company and its internal audit department failure;
for internal control is ineffective; (6) Other (4) Critical or major defects fail to be
defects that may affect correct judgment of rectified;
users of statements. Major defect: Separate
(5) Other circumstances that have major
defect or other defects that result in failure in
impact on the Company.preventing finding out and correcting wrong
reporting in financial report in time which
shall be noted by the top management despite
of not attaining or exceeding critical level.Minor defect: Other internal control defects
not constituting critical or major defects.Critical defect: Critical defect: The defect with direct
(1) Wrong reporting ≥0.5% of total operating property loss amounting to over RMB10
revenue; million has great negative impact on the
Company and is disclosed in public in the
(2) Wrong reporting ≥5% of total profit;
form of announcement.
(3) Wrong reporting ≥0.5% of total assets;
Major defect: The defect with direct
(4) Wrong reporting ≥0.5% of total owner’s
Quantitative standard property loss amounting to RMB1
equity.million to RMB10 million (included) or
Major defect:
is penalised by governmental authority of
(1) Wrong reporting ≥0.2% but <0.5% of the country but has not resulted in
total operating revenue; negative impact on the Company.
(2) Wrong reporting ≥2% but <5% of total Minor defect: The defect with direct
profit; property loss no more than RMB1 million
~ 59 ~Annual Report 2024
(3) Wrong reporting ≥0.2% but <0.5% of (included) or is penalised by
total assets; governmental authority of the
(4) Wrong reporting ≥0.2% but <0.5% of provincial-level or below but has not
total owner’s equity. resulted in negative impact on the
Minor defect: Company.
(1) Wrong reporting <0.2% of total operating
revenue;
(2) Wrong reporting <2% of total profit;
(3) Wrong reporting <0.2% of total assets;
(4) Wrong reporting <0.2% of total owner’s
equity.Number of material weaknesses in internal
0
control over financial reporting
Number of material weaknesses in internal
0
control not related to financial reporting
Number of serious weaknesses in internal
0
control over financial reporting
Number of serious weaknesses in internal
0
control not related to financial reporting
2. Independent Auditor’s Report on Internal Control
□ Applicable □ Not applicable
Opinion paragraph in the independent auditor’s report on internal control
We believe that the Company has maintained effective internal control on financial report in all significant respects according to the
Basic Code for Internal Control of Enterprises and relevant regulations on 31 December 2024.Independent auditor’s report on
Disclosed
internal control disclosed or not
Disclosure date 28 April 2025
Index to such report disclosed See www.cninfo.com.cn for Audit Report of Internal Control
Type of the auditor’s opinion Unmodified unqualified opinion
Material weaknesses in internal
control not related to financial None
reporting
Indicate by tick mark whether any modified opinion is expressed in the independent auditor’s report on the Company’s internal
control.□Yes □ No
Indicate by tick mark whether the independent auditor’s report on the Company’s internal control is consistent with the internal
control self-evaluation report issued by the Company’s Board.□ Yes □No
~ 60 ~Annual Report 2024
XV Rectifications of Problems Identified by Self-inspection in the Special Action for Listed
Company Governance
The Company strictly follows the requirements of the Company Law Securities Law the Code of Corporate Governance for Listed
Companies and the relevant laws and regulations of the CSRC and the Shenzhen Stock Exchange. The Company has established and
improved a relatively complete and reasonable corporate governance structure and internal control system. In the future the
Company will continue to comply with the relevant regulatory requirements combining these with the Company’s actual situation to
further enhance the level of standardised operations and the effectiveness of corporate governance promoting the Company’s
continuous healthy and steady development.~ 61 ~Annual Report 2024
Part V Environmental and Social Responsibility
I Major Environmental Issues
Indicate by tick mark whether the Company or any of its subsidiaries is a heavily polluting business identified by the environmental
protection authorities of China.□ Yes □No
Policies and industry standards pertaining to environmental protection
The Company carries out environmental protection work in strict accordance with the requirements of laws and regulations such as
Environmental Protection Law of the People’s Republic of China Air Pollution Prevention and Control Law of the People’s Republic
of China Water Pollution Prevention and Control Law of the People’s Republic of China Solid Waste Pollution Prevention and
Control Law of the People’s Republic of China and other laws and regulations and strictly follows the Management Measures for the
Disclosure of Enterprise Environmental Information According to Law and Measures for Self-monitoring and Information Disclosure
of National Key Monitoring Enterprises (Trial). The Company discloses environmental information in a timely manner and
consciously accepts social supervision. The Company implements the Emission Standards of Air Pollutants for Boilers
(GB13271-2014) Discharge Standard of Water Pollutants for Fermentation Alcohol and Distilled Spirits Industry (GB27631-2011)
and Environmental Noise Emission Standards for Industrial Enterprises (GB12348-2008) and other relevant standards.Environmental protection administrative license
No. Administrative matter Serial number Application time Expiry date
Sewage discharge permit for Gujing
1 913400001519400083001V 19 July 2022 18 July 2027
plant
Sewage discharge permit for Zhangji
2 913400001519400083002V 19 July 2022 18 July 2027
plant
Sewage discharge permit for
3 913400001519400083003V 19 July 2022 18 July 2027
headquarters plant
Sewage discharge permit for
4 913400001519400083004V 17 October 2022 16 October 2027
Intelligent Park plant
Sewage discharge permit for
5 91341600151946047T001U 24 July 2023 23 July 2028
Longrui Glass
Sewage discharge permit for Yellow
6 914201057483467497001R 6 January 2023 5 January 2028
Crane Tower Distillery (Wuhan)
Sewage discharge permit for Yellow
7 91421200562735332N001V 25 June 2023 24 June 2028
Crane Tower Distillery (Xianning)
Sewage discharge permit for Yellow
8 9142130077756290XJ001V 29 December 2023 28 December 2028
Crane Tower Distillery (Suizhou)
Sewage discharge permit for Anhui
9 91341182781098222U001T 26 November 2022 25 November 2027
Mingguang Distillery
The regulations for industrial emissions and the detailed information about pollutant emissions associated with production and
operational activities.Name of Type of Name of Way of Number Distribution Discharge Discharge Total Approved Excessive
polluter major major discharge of of discharge concentration/intensity standards discharge total discharge
~ 62 ~Annual Report 2024
pollutants p ollutants discharge outlets implemented discharge
outlets
Gujing plant 12.77mg/L ≦50mg/L 5.28t 52.958t/a Naught
Anhui
Zhangji
Gujing Water Direct 28.35mg/L ≦100mg/L 3.47t 26.504t/a Naught
COD 3 plant
Distillery pollutant discharge
Co. Ltd. Headquarters
11.96mg/L ≦100mg/L 10.39t 116.0596t/a Naught
plant
Gujing plant 0.220mg/L ≦5mg/L 0.09t 5.2958t/a Naught
Anhui
Zhangji
Gujing Water Direct 0.212mg/L ≦10mg/L 0.03t 2.6504t/a Naught
NH3-N 3 plant
Distillery pollutant discharge
Co. Ltd. Headquarters
0.237mg/L ≦10mg/L 0.21t 11.606t/a Naught
plant
Anhui Gujing plant 0.598mg/m3 ≦10mg/m3 0.17t 4.301t/a Naught
Gujing Air
Smoke Organised 2 Headquarters
Distillery pollutant 0.819mg/m3 ≦10mg/m3 0.91t 5.01t/a Naught
plant
Co. Ltd.Anhui Gujing plant 8.85mg/m3 ≦35mg/m3 2.44t 15.055t/a Naught
Gujing Air
SO2 Organised 2 Headquarters
Distillery pollutant 4.09mg/m3 ≦35mg/m3 4.52t 17.536t/a Naught
plant
Co. Ltd.Gujing plant 20.10mg/m3 ≦50mg/m3 5.55t 21.056t/a Naught
Anhui
Zhangji
Gujing Air Nitrogen 14.89mg/m3 ≦150mg/ m3 0.54t 10.318t/a Naught
Organised 3 plant
Distillery pollutant oxide
Co. Ltd. Headquarters
21.42mg/m3 ≦50mg/m3 23.67t 25.051t/a Naught
plant
Anhui 1# furnace 2.24mg/m3 ≦10mg/m3 0.44t Naught
Longrui Air
Smoke Organised 2
Glass Co. pollutant 2# furnace 2.15mg/m3 ≦10mg/m3 0.72t Naught
Ltd
Anhui 1# furnace 18.30mg/m3 ≦50mg/m3 3.11t Naught
Longrui Air
SO2 Organised 2
Glass Co. pollutant 2# furnace 12.35mg/m3 ≦50mg/m3 5.26t Naught
Ltd
Anhui 1# furnace 81.78mg/m3 ≦200mg/m3 16.75t Naught
Longrui Air Nitrogen
Organised 2
Glass Co. pollutant oxide 2# furnace 70.63mg/m3 ≦200mg/m3 26.03t Naught
Ltd
Yellow
Water Indirect
Crane COD 1 Wuhan plant 25 mg/L ≦400mg/L 0.47t 11.07t/a Naught
pollutant discharge
Tower
~ 63 ~Annual Report 2024
Distillery
(Wuhan)
Co. Ltd.Yellow
Crane
Tower Water Indirect
NH3-N 1 Wuhan plant 0.7595mg/L ≦30mg/L 0.02t 4.05t/a Naught
Distillery pollutant discharge
(Wuhan)
Co. Ltd.Yellow
Crane
Tower Air
SO2 Organised 1 Wuhan plant ND ≦50mg/ m3 0.09t Naught
Distillery pollutant
(Wuhan)
Co. Ltd.Yellow
Crane
Tower Air Nitrogen
Organised 1 Wuhan plant 54.38mg/ m3 ≦150mg/ m3 0.30 t Naught
Distillery pollutant oxide
(Wuhan)
Co. Ltd.Yellow
Crane
Tower Water Indirect Xianning
COD 1 13.502mg/L ≦350 mg/L 0.17t 6t/a Naught
Distillery pollutant discharge plant
(Xianning)
Co. Ltd.Yellow
Crane
Tower Water Ammonia Indirect Xianning
1 0.146mg/L ≦30mg/L 0.01t 1t/a Naught
Distillery pollutant nitrogen discharge plant
(Xianning)
Co. Ltd.Yellow
Crane
Tower Air Xianning
SO2 Organised 1 ND ≦50mg/m3 0.11t Naught
Distillery pollutant plant
(Xianning)
Co. Ltd.Yellow
Air Nitrogen Xianning
Crane Organised 1 78mg/ m3 ≦150mg/ m3 0.88t Naught
pollutant oxide plant
Tower
~ 64 ~Annual Report 2024
Distillery
(Xianning)
Co. Ltd.Yellow
Crane
Tower Water Indirect Suizhou
COD 1 14.12mg/L ≦300mg/L 1.26t 17.83t/a Naught
Distillery pollutant discharge plant
(Suizhou)
Co. Ltd.Yellow
Crane
Tower Water Indirect Suizhou
NH3-N 1 0.38mg/L ≦25mg/L 0.04t 1.783t/a Naught
Distillery pollutant discharge plant
(Suizhou)
Co. Ltd.Yellow
Crane
Tower Air Suizhou
SO2 Organised 1 1.5mg/m3 ≦50mg/m3 0.03t 0.634t/a Naught
Distillery pollutant plant
(Suizhou)
Co. Ltd.Yellow
Crane
Tower Air Nitrogen Suizhou
Organised 1 14.9mg/m3 ≦200mg/m3 0.91t 2.966t/a Naught
Distillery pollutant oxide plant
(Suizhou)
Co. Ltd.Anhui
Mingguang Air Nitrogen 10t boiler
Organised 1 19.7mg/m3 ≦50mg/m3 0.43t 2.128t/a Naught
Distillery pollutant oxide furnace
Co. Ltd.Anhui
Outlet
Mingguang Water Indirect
COD 1 outside the 72.5mg/L ≦400mg/L 2.14t 11.107t/a Naught
Distillery pollutant discharge
plant
Co. Ltd.Anhui
Outlet
Mingguang Water Ammonia Indirect
1 outside the 3.546mg/L ≦30mg/L 0.10t 0.18t/a Naught
Distillery pollutant nitrogen discharge
plant
Co. Ltd.Treatment of pollutants
In 2024 the Company and its subsidiaries maintained normal operations of their waste management facilities effectively achieving
standard emissions for major pollutants. The Company was transparent with its environmental information and successfully fulfilled
~ 65 ~Annual Report 2024
its social responsibilities. Details are as follows:
1. Construction and operational status of the sewage treatment facilities of the listed company and its subsidiaries
(1) The sewage treatment station in the Gujing plant of the Company employed a sewage treatment process comprising “IC anaerobic+ A2/O aerobic + in-depth treatment” techniques. The facility was designed with a capacity to treat 5000 tonnes per day. The sewage
was discharged after being treated up to standard. The sewage treatment facility operated normally discharging a total of 413437
tonnes of treated sewage annually. The treated sewage met the direct discharge requirements set by the GB27631-2011 Discharge
Standard of Water Pollutants for Fermentation Alcohol and Distilled Spirits Industry.
(2) The sewage treatment station in the Zhangji plant of the Company employed a sewage treatment process comprising “ICanaerobic + A2/O aerobic + in-depth treatment” techniques. The facility was designed with a capacity to treat 1500 tonnes per day.The sewage was discharged after being treated up to standard. The sewage treatment facility operated normally discharging a total of
122307 tonnes of treated sewage annually. The treated sewage met the direct discharge requirements set by the GB27631-2011
Discharge Standard of Water Pollutants for Fermentation Alcohol and Distilled Spirits Industry.
(3) The sewage treatment station in the headquarters plant of the Company employed a sewage treatment process comprising “ICanaerobic + A2/O aerobic + in-depth treatment” techniques. The facility was designed with a capacity to treat 8000 tonnes per day.The sewage was discharged after being treated up to standard. The sewage treatment facility operated normally discharging a total of
868223 tonnes of treated sewage annually. The treated sewage met the direct discharge requirements set by the GB27631-2011
Discharge Standard of Water Pollutants for Fermentation Alcohol and Distilled Spirits Industry.
(4) The production and living sewage of Longrui Glass was discharged indirectly and treated by the sewage treatment station of
Zhangji plant under Anhui Gujing Distillery Company Limited and it was discharged after being treated up to standard. The sewage
treatment facility operated normally.
(5) The sewage treatment station of Yellow Crane Tower Distillery (Wuhan) Co. Ltd. employed a sewage treatment process
comprising “anaerobic + aerobic treatment” techniques. The facility was designed with a capacity to treat 250 tonnes per day. The
sewage was discharged after being treated up to standard. The sewage treatment facility operated normally discharging a total of
45371 tonnes of treated sewage annually. The treated sewage met the requirements set by the GB27631-2011 Discharge Standard of
Water Pollutants for Fermentation Alcohol and Distilled Spirits Industry.
(6) The sewage treatment station of Yellow Crane Tower Distillery (Xianning) Co. Ltd. employed a sewage treatment process
comprising “UASB anaerobic + A2/O2” techniques. The facility was designed with a capacity to treat 100 tonnes per day. The
sewage was discharged after being treated up to standard. The sewage treatment facility operated normally discharging a total of
17079 tonnes of treated sewage annually. The treated sewage met the requirements set by the GB27631-2011 Discharge Standard of
Water Pollutants for Fermentation Alcohol and Distilled Spirits Industry.
(7) The sewage treatment station of Yellow Crane Tower Distillery (Suizhou) Co. Ltd. employed a sewage treatment process
comprising “IC anaerobic + A2/O + in-depth treatment” techniques. The facility was designed with a capacity to treat 1500 tonnes
per day. The sewage was discharged after being treated up to standard. The sewage treatment facility operated normally discharging
a total of 86749 tonnes of treated sewage annually. The sewage was discharged according to the requirements set by the
GB27631-2011 Discharge Standard of Water Pollutants for Fermentation Alcohol and Distilled Spirits Industry.
(8) The sewage treatment station of Mingguang Distillery employed a sewage treatment process comprising “UASB anaerobic +facultative pond + contact oxidation pond” techniques. The facility was designed with a capacity to treat 500 tonnes per day. The
sewage was discharged after being treated up to standard. The sewage treatment facility operated normally discharging a total of
29369 tonnes of sewage annually. The treated sewage met the indirect discharge requirements set by the GB27631-2011 Discharge
Standard of Water Pollutants for Fermentation Alcohol and Distilled Spirits Industry.
2. Construction and operational status of the waste gas treatment facilities of the listed company and its subsidiaries
(1) The power station of Gujing plant of the Company operated two 35t/h coal-fired boilers. The flue gas treatment facilitiesdesigned with a capacity of 100000 Nm3/h employed a combination of “baghouse dust removal limestone-gypsum wetdesulphurisation SNCR non-catalytic reduction SCR catalytic reduction and wet electrostatic precipitation” processes. It also
~ 66 ~Annual Report 2024
operated two 19t/h gas boilers with flue gas treatment facilities designed to process 25000 Nm3/h using “low NOx combustion”
techniques. The waste gas treatment facilities operated normally and treated 276.05 million Nm3 of flue gases annually adhering to
ultra-low emission standards.
(2) The power station of Zhangji plant of the Company operated a 25t/h gas boiler with flue gas treatment facilities designed to
handle 25000 Nm3/h using “low NOx combustion” techniques. The waste gas treatment facilities operated normally and treated
35.92 million Nm3 of flue gases annually adhering to the requirements related to gas boilers in GB13271-2014 Emission Standards
of Air Pollutants for Boilers.
(3) The power station of headquarters plant of the Company operated three coal-fired boilers with flue gas treatment facilitiesdesigned with a capacity of 200000 Nm3/h using a combination of “baghouse dust removal limestone-gypsum wet desulphurisationSNCR non-catalytic reduction SCR catalytic reduction and wet electrostatic precipitation” processes. It also operated two 19t/h andfour 40t/h gas boilers with flue gas treatment facilities designed to respectively process 30000 Nm3/h and 55000 Nm3/h using “lowNOx combustion” techniques. The waste gas treatment facilities operated normally and treated 1104.93 million Nm3 of flue gases
annually adhering to ultra-low emission standards.
(4) Longrui Glass operated two glass kilns with flue gas treatment facilities capable of handling 100000 Nm3/h. The process
included “baghouse dust removal dry desulphurisation and SCR catalytic reduction.” The waste gas treatment facilities operated
normally and treated 675.81 million Nm3 of flue gases annually meeting the emission requirements for A-level enterprises in the
glass industry under the Technical Guide for Emergency Emission Reduction Measures in Key Industries during Heavy Pollution
Weather.
(5) Yellow Crane Tower Distillery (Wuhan) Co. Ltd. operated five 1t/h natural gas steam heat sources with flue gas treatment
facilities designed to manage 18000 Nm3/h using “low NOx combustion” techniques. The waste gas treatment facilities operated
normally and treated 4.67 million Nm3 of flue gases annually ensuring compliance with the special emission limits for air pollutants
from gas boilers as specified in GB13271-2014 Emission Standards of Air Pollutants for Boilers.
(6) Yellow Crane Tower Distillery (Xianning) Co. Ltd. operated one 3t/h and one 4t/h gas boiler with flue gas treatment facilities
designed to process 13000 Nm3/h using “low NOx combustion” techniques. The waste gas treatment facilities operated normally and
treated 21.82 million Nm3 of flue gases annually adhering to the requirements related to gas boilers in GB13271-2014 Emission
Standards of Air Pollutants for Boilers.
(7) Yellow Crane Tower Distillery (Suizhou) Co. Ltd. operated one 15t/h and one 25t/h natural gas boiler with flue gas treatment
facilities designed to process 35000 Nm3/h using “low NOx combustion” techniques. The waste gas treatment facilities operated
normally and treated 40.65 million Nm3 of flue gases annually adhering to the requirements related to gas boilers in GB13271-2014
Emission Standards of Air Pollutants for Boilers.
(8) Mingguang Distillery operated one 10t/h gas boiler with flue gas treatment facilities designed to process 11000 m3/h using “lowNOx combustion” techniques. The waste gas treatment facilities operated normally and treated 18.76 million Nm3 of flue gases
annually adhering to the requirements related to gas boilers in GB13271-2014 Emission Standards of Air Pollutants for Boilers.Emergency plan for sudden environment affairs
1. The Company has formulated the Emergency Plan of Anhui Gujing Distillery Company Limited for Sudden Environmental
Pollution Accidents which has been filed with Bureau of Ecology and Environment of Bozhou (File No. 341602-2024-028-H).Emergency plan drills have been carried out as required.
2. Longrui Glass has formulated the Emergency Plan of Anhui Longrui Glass Co. Ltd. for Sudden Environmental Issues which has
been filed with Bureau of Ecology and Environment of Bozhou (File No. 341602-2023-027-M). Emergency plan drills have been
carried out as required.
3. Yellow Crane Tower Distillery (Wuhan) Co. Ltd. has formulated the Emergency Plan of Yellow Crane Tower Distillery Co. Ltd.
for Sudden Environmental Issues which has been filed with the Hanyang District branch of the Wuhan Municipal Ecology and
Environment Bureau (File No. 420105-2024-005-L). Emergency plan drills have been carried out as required.~ 67 ~Annual Report 2024
4. Yellow Crane Tower Distillery (Xianning) Co. Ltd. has formulated the Emergency Plan of Yellow Crane Tower Distillery
(Xianning) Co. Ltd. for Sudden Environmental Issues which has been filed with the Xianning High-tech District branch of the
Xianning Municipal Ecology and Environment Bureau (File No. 421201-2024-31-H). Emergency plan drills have been carried out as
required.
5. Yellow Crane Tower Distillery (Suizhou) Co. Ltd. has formulated the Emergency Plan of Yellow Crane Tower Distillery Co. Ltd.
for Sudden Environmental Issues which has been filed with the High-tech Zone Branch of Suizhou Municipal Ecology and
Environment Bureau (File No. 421303-2024-003-L). Emergency plan drills have been carried out as required.
6. Mingguang Distillery has formulated the Emergency Plan of Anhui Mingguang Distillery Co. Ltd. for Sudden Environmental
Issues which has been filed with the Mingguang Municipal Ecology and Environment Sub-Bureau (File No. 341182-2024-047-M).Emergency plan drills have been carried out as required.Environmental self-monitoring scheme
The Company and its subsidiaries have formulated their Environmental Self-Monitoring Schemes and published them on the local
websites for self-monitoring information disclosure.Input in environment governance and protection and payment of environmental protection tax
In 2024 the total investment in environmental governance and protection by the Company and its subsidiaries amounted to
RMB46143700 with environmental taxes paid totalling RMB154300.Measures taken to decrease carbon emission in the Reporting Period and corresponding effects
□ Applicable □ Not applicable
1. Promoted green energy transition: Actively advanced the construction of photovoltaic (PV) projects. In 2024 the use of green
electricity was approximately 12 million kWh reducing carbon dioxide emissions by around 6900 tonnes.
2. Intensified power conservation of the Company:
(1) The Company conserved power in offices sufficiently utilised natural light and prohibited lamps from shining all the time
replaced lamps in passageways with sound-controlled types and strictly implemented the requirements of temperature setting on
air-conditioners.
(2) The Company conserved power used by street lamps and strictly specified turn-off and turn-on time; through the
above-mentioned measures power wasted in offices has been greatly reduced which has played an active role in the energy
conservation and carbon reduction of the Company.Administrative penalties imposed for environmental issues during the Reporting Period
Influence on
Rectification
Name Reason Case Result production and
measures
operation
Naught N/A N/A N/A N/A N/A
Other environment information that should be disclosed
Naught
Other related environment protection information
Naught
II Social Responsibility
For details please refer to the Corporate Environmental Social and Governance (ESG) Report for 2024 disclosed by the Company
on the website Cninfo dated 28 April 2025.~ 68 ~Annual Report 2024
III Consolidation and Expansion of Poverty Alleviation Outcomes and Rural Revitalisation
For details please refer to the Corporate Environmental Social and Governance (ESG) Report for 2024 disclosed by the Company
on the website Cninfo dated 28 April 2025.~ 69 ~Annual Report 2024
Part VI Significant Events
I Fulfilment of Commitments
1. Commitments of the Company’s Actual 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
2. Where There Had Been an Earnings Forecast for an Asset or Project and the Reporting Period Was Still
within the Forecast Period Explain Why the Forecast Has Been Reached for the Reporting Period.□Applicable □ Not applicable
II Occupation of the Company’s Capital by the Controlling Shareholder or any of Its Related
Parties for Non-Operating Purposes
□Applicable □ Not applicable
III Irregularities in the Provision of Guarantees
□Applicable □ Not applicable
IV Explanations Given by the Board of Directors Regarding the Latest “Modified Opinion”
on the Financial Statements
□Applicable □ Not applicable
V Explanations Given by the Board of Directors the Board of Supervisors and the
Independent Directors (if any) Regarding the Independent Auditor’s “Modified Opinion” on
the Financial Statements of the Reporting Period
□Applicable □ Not applicable
VI YoY Changes to Accounting Policies Estimates or Correction of Material Accounting
Errors
□Applicable □ Not applicable
For details please refer to "III. Significant Accounting Policies and Accounting Estimates" and "31. Changes in Significant
Accounting Policies and Accounting Estimates" in the Notes to the Financial Statements in this report.VII YoY Changes to the Scope of the Consolidated Financial Statements
□ Applicable □ Not applicable
In this period the Company has expanded the scope of its consolidation compared to the previous period with the addition of Anhui
~ 70 ~Annual Report 2024
Guge Cultural Media Co. Ltd. Anhui Gujing Suhuai Liquor Sales Co. Ltd. Ezhou Junya Trading Co. Ltd. and Wuhan Juntai
Trading Co. Ltd. The following subsidiaries have been deregistered: Wuhan Yashibo Technology Co. Ltd. Hubei Xinjia Testing
Technology Co. Ltd. Hubei Junlou Cultural Tourism Co. Ltd. Hubei Yellow Crane Tower Beverage Co. Ltd. Fengyang Xiaogang
Village Ming Wine Distillery Co. Ltd. and Anhui Yangshengtianxia Brand Operation Co. Ltd.VIII Engagement and Disengagement of Independent Auditor
Current independent auditor
Name of the domestic independent auditor RSM China CPA LLP
The Company’s payment to the domestic independent
200.00
auditor (RMB10000)
How many consecutive years the domestic independent
6
auditor has provided audit service for the Company
Names of the certified public accountants from the
domestic independent auditor writing signatures on the Zhang Liping Han Songliang
auditor’s report
How many consecutive years the certified public
accountants have provided audit service for the 4 years for Zhang Liping and Han Songliang
Company
Indicate by tick mark whether the independent auditor was changed for the Reporting Period.□Yes □ No
Independent auditor financial advisor or sponsor engaged for the audit of internal controls:
□ Applicable □ Not applicable
In 2024 the Company engaged RSM China CPA LLP as the internal control auditor.IX Possibility of Delisting after Disclosure of this Report
□Applicable □ Not applicable
X Insolvency and Reorganisation
□Applicable □ Not applicable
XI Major Legal and Arbitration Matters
□Applicable □ Not applicable
XII Punishments and Rectifications
□Applicable □ Not applicable
~ 71 ~Annual Report 2024
XIII Credit Quality of the Company as well as Its Controlling Shareholder and Actual
Controller
□Applicable □ Not applicable
XIV Major Related-Party Transactions
1. Continuing Related-Party Transactions
□Applicable □ Not applicable
2. Related-Party Transactions Regarding Purchase or Sales of Assets or Equity Interests
□Applicable □ Not applicable
3. Related-Party Transactions Regarding Joint Investments in Third Parties
□Applicable □ Not applicable
4. Credits and Liabilities with Related Parties
□Applicable □ Not applicable
5. Transactions with Related Finance Companies
□Applicable □ Not applicable
6. Transactions with Related Parties by Finance Companies Controlled by the Company
□Applicable □ Not applicable
7. Other Major Related-Party Transactions
□Applicable □ Not applicable
XV Major Contracts and Execution Thereof
1. Entrustment Contracting and Leases
(1) Entrustment
□Applicable □ Not applicable
~ 72 ~Annual Report 2024
(2) Contracting
□Applicable □ Not applicable
(3) Leases
□Applicable □ Not applicable
2. Major Guarantees
□Applicable □ Not applicable
3. Cash Entrusted for Wealth Management
(1) Cash Entrusted for Wealth Management
□ Applicable □ Not applicable
(2) Entrusted Loans
□Applicable □ Not applicable
4. Other Major Contracts
□Applicable □ Not applicable
XVI Other Significant Events
□Applicable □ Not applicable
XVII Significant Events of Subsidiaries
□Applicable □ Not applicable
~ 73 ~Annual Report 2024
Part VII Share Changes and Shareholder Information
I Share Changes
1. Share Changes
Unit: share
Before Increase/decrease in the Reporting Period (+/-) After
Shares as
Shares as
dividend
dividend
Percentage New converted Percentage
Shares converted Other Subtotal Shares
(%) issues from (%)
from
capital
profit
reserves
I. Restricted shares
1. Shares held by the state
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
~ 74 ~Annual Report 2024
3. Overseas listed foreign
shares
4. Other
III. Total shares 528600000 100.00% 528600000 100.00%
Reasons for share changes:
□ Applicable □ Not applicable
Approval of share changes:
□ Applicable □ Not applicable
Transfer of share ownership:
□ 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
1. Securities (Exclusive of Preferred Shares) Issued in the Reporting Period
□ Applicable □ Not applicable
2. Changes to Total Shares Shareholder Structure and Asset and Liability Structures
□ Applicable □ Not applicable
3. Existing Staff-Held Shares
□ Applicable □ Not applicable
III Shareholders and Actual Controller
1. Shareholders and Their Shareholdings at the Period-End
Unit: share
Number of Number of Number of Number of
ordinary 47512 ordinary 40861 preferred 0 preferred 0
shareholders shareholders at shareholders with shareholders with
~ 75 ~Annual Report 2024
the month-end resumed voting resumed voting
prior to the rights (if any) (see rights at the
disclosure of this note 8) month-end prior
Report to the disclosure
of this Report (if
any) (see note 8)
5% or greater shareholders or top 10 shareholders
Increase/dec Shares in pledge marked
Total shares
Name of Nature of Shareholding rease in the Restricted Non-restricted or frozen
held at the
shareholder shareholder percentage Reporting shares held shares held
period-end Status Shares
Period
ANHUI
GUJING
State-owned
GROUP 51.34% 271404022 41300 271404022 In pledge 30000000
legal person
COMPANY
LIMITED
BANK OF
CHINA-CHINA
MERCHANTS
CHINA
SECURITIES
BAIJIU INDEX Other 2.41% 12731441 -83014 12731441 N/A
CLASSIFICATI
ON
SECURITIES
INVESTMENT
FUND
INDUSTRIAL
AND
COMMERCIAL
BANK OF
CHINA
LIMITED-
INVESCO
Other 1.82% 9621200 -378751 9621200 N/A
GREAT WALL
EMERGING
GROWTH
HYBRID
SECURITIES
INVESTMENT
FUND
CHINA Foreign 1.69% 8934853 228324 8934853 N/A
~ 76 ~Annual Report 2024
INTERNATION legal person
AL CAPITAL
CORPORATIO
N HONG
KONG
SECURITIES
LTD
AGRICULTUR
AL BANK OF
CHINA － E
FUND
CONSUMPTIO
Other 1.51% 7978008 -498800 7978008 N/A
N SECTOR
STOCK
SECURITIES
INVESTMENT
FUND
UBS (LUX) Foreign N/A
EQUITY FUND legal person
- CHINA 1.35% 7122945 226284 7122945
OPPORTUNIT
Y (USD)
HONG KONG
SECURITIES
Foreign
CLEARING 1.20% 6347671 -688701 6347671 N/A
legal person
COMPANY
LTD.GREENWOOD
S CHINA
Foreign
ALPHA 1.14% 6049760 6049760 N/A
legal person
MASTER
FUND
BANK OF
CHINA-
INVESCO
GREAT WALL
DINGYI Other 0.85% 4500000 -400000 4500000 N/A
HYBRID
SECURITIES
INVESTMENT
FUND (LOF)
3W GLOBAL Foreign 0.77% 4051528 4051528 N/A
~ 77 ~Annual Report 2024
FUND legal person
Strategic investor or general
legal person becoming a
top-10 ordinary shareholder N/A
due to rights issue (if any)
(see note 3)
Among the shareholders above the Company’s controlling shareholder—Anhui Gujing Group
Company Limited—is not a related party of other shareholders; nor are they parties acting in
Related or acting-in-concert concert as defined in the Administrative Measures on Information Disclosure of Changes in
parties among the Shareholding of Listed Companies. As for the other shareholders the Company does not know
shareholders above 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
N/A
the top 10 shareholders (see
note 10)
Top 10 non-restricted shareholders
Shares by type
Name of shareholder Non-restricted shares held at the period-end
Type Shares
ANHUI GUJING GROUP RMB-denominated
271404022271404022
COMPANY LIMITED ordinary share
BANK OF CHINA-CHINA
MERCHANTS CHINA
RMB-denominated
SECURITIES BAIJIU INDEX 12731441 12731441
ordinary share
CLASSIFICATION SECURITIES
INVESTMENT FUND
INDUSTRIAL AND
COMMERCIAL BANK OF
CHINA LIMITED- INVESCO RMB-denominated
96212009621200
GREAT WALL EMERGING ordinary share
GROWTH HYBRID SECURITIES
INVESTMENT FUND
CHINA INTERNATIONAL
Domestically listed
CAPITAL CORPORATION 8934853 8934853
foreign share
HONG KONG SECURITIES LTD
~ 78 ~Annual Report 2024
AGRICULTURAL BANK OF
CHINA － E FUND
RMB-denominated
CONSUMPTION SECTOR 7978008 7978008
ordinary share
STOCK SECURITIES
INVESTMENT FUND
UBS (LUX) EQUITY FUND - Domestically listed
71229457122945
CHINA OPPORTUNITY (USD) foreign share
HONG KONG SECURITIES RMB-denominated
63476716347671
CLEARING COMPANY LTD. ordinary share
GREENWOODS CHINA ALPHA Domestically listed
60497606049760
MASTER FUND foreign share
BANK OF CHINA- INVESCO
GREAT WALL DINGYI HYBRID RMB-denominated
45000004500000
SECURITIES INVESTMENT ordinary share
FUND (LOF)
Domestically listed
3W GLOBAL FUND 4051528 4051528
foreign share
Among the shareholders above the Company’s controlling shareholder—Anhui Gujing Group
Related or acting-in-concert parties
Company Limited—is not a related party of other shareholders; nor are they parties acting in
among top 10 unrestricted public
concert as defined in the Administrative Measures on Information Disclosure of Changes in
shareholders as well as between
Shareholding of Listed Companies. As for the other shareholders the Company does not know
top 10 unrestricted public
whether they are related parties or whether they belong to parties acting in concert as defined
shareholders and top 10
in the Administrative Measures on Information Disclosure of Changes in Shareholding of
shareholders
Listed Companies.Top 10 ordinary shareholders
involved in securities margin N/A
trading (if any) (see note 4)
Shareholders holding more than 5% of shares the top 10 shareholders and the top 10 shareholders with unrestricted shares
participating in the refinancing business to lend shares
□ Applicable □ Not applicable
The top 10 shareholders and the top 10 shareholders of unrestricted shares have changed from the previous period due to
lending/returning of refinancing
□ Applicable □ Not applicable
Whether the top 10 ordinary shareholders and the top 10 unrestricted ordinary shareholders of the company made agreed repurchase
transactions during the reporting period
□ Yes □ No
The top 10 ordinary shareholders and the top 10 unrestricted ordinary shareholders of the company did not conduct agreed
repurchase transactions during the reporting period.
2. Controlling Shareholder
Nature of the controlling shareholder: controlled by a local state-owned legal person
Type of the controlling shareholder: legal person
Name of controlling Legal Unified social credit
Date of establishment Principal activity
shareholder representative/person code
~ 79 ~Annual Report 2024
in charge
ANHUI GUJING GROUP
Liang Jinhui 16 January 1995 91341600151947437P Commercial trade
COMPANY LIMITED
Controlling shareholder’s
As of 31 December 2024 the controlling shareholder ANHUI GUJING GROUP COMPANY
holdings in other listed
LIMITED directly holds 130000000 shares of Huaan Securities Co. Ltd. owning the proportion of
companies at home or abroad
shares of 2.77%.in the Reporting Period
Change of the controlling shareholder in the Reporting Period:
□Applicable □ Not applicable
No such cases in the Reporting Period.
3. Information about the Actual Controller and Acting-in-concert Parties
Nature of the actual controller: Local administrator for state-owned assets
Type of the actual controller: legal person
Legal
Date of Unified social credit
Name of actual controller representative/person Principal activity
establishment code
in charge
State-owned Assets Supervision
and Administration
Commission of Bozhou Zhao Liang N/A 113416007316875206 N/A
Municipal People’s
Government
Other listed companies at home
or abroad controlled by the
N/A
actual controller in the
Reporting Period
Change of the actual controller during the Reporting Period:
□Applicable □ Not applicable
No such cases in the Reporting Period.Ownership and control relations between the actual controller and the Company:
Indicate by tick mark whether the actual controller controls the Company via trust or other ways of asset management.□Applicable □ Not applicable
~ 80 ~Annual Report 2024
4. Number of Accumulative Pledged Shares Held by the Company’s Controlling Shareholder or the
Largest Shareholder as well as Its Acting-in-Concert Parties Accounts for 80% of All Shares of the
Company Held by Them
□Applicable □ Not applicable
5. Other 10% or Greater Corporate Shareholders
□Applicable □ Not applicable
6. Limitations on Shareholding Decrease by the Company’s Controlling Shareholder Actual Controller
Reorganiser and Other Commitment Makers
□Applicable □ Not applicable
IV Specific Implementation of Share Repurchase during the Reporting Period
Progress on any share repurchase
□Applicable □ Not applicable
Progress on reducing the repurchased shares by means of centralised bidding
□Applicable □ Not applicable
~ 81 ~Annual Report 2024
Part VIII Preference Shares
□ Applicable □ Not applicable
No preference shares in the Reporting Period.Part IX Corporate Bonds
□ Applicable □ Not applicable
~ 82 ~Annual Report 2024
Part X Financial Statements
I Independent Auditor’s Report
Type of auditor’s opinion Unmodified unqualified opinion
Date of signing the auditor’s report 25 April 2025
Name of the auditor RSM China CPA LLP
No. of the auditor’s report RSM Auditor’s Report No. [2025] 518Z0733
Name of CPA Zhang Liping Han Songliang
Text of the Auditor’s Report
To the Shareholders of Anhui Gujing Distillery Company Limited:
I. Opinion
We have audited the financial statements of Anhui Gujing Distillery Company Limited. (hereafter referred to as “Anhui Gujing”)
which comprises the consolidated and the parent company’s statement of financial position as at 31 December 2024 the consolidated
and the parent company’s statement of profit or loss and other comprehensive income the consolidated and the parent company’s
statement of cash flows the consolidated and the parent company’s statement of changes in equity for the year then ended and the
notes to the financial statements.In our opinion the accompanying Anhui Gujing’s financial statements present fairly in all material respects the consolidated and the
company’s financial position as at 31 December 2024 and of their financial performance and cash flows for the year then ended in
accordance with Accounting Standards for Business Enterprises.II. Basis for Opinion
We conducted our audit in accordance with Chinese Standards on Auditing (CSAs). Our responsibilities under those standards are
further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are independent
of Anhui Gujing in accordance with the Code of Ethics for Professional Accountants of the Chinese Institute of Certified Public
Accountants and we have fulfilled our other ethical responsibilities. We believe that the audit evidence we obtained is sufficient and
appropriate to provide a basis for our opinion.III. Key Audit Matters
Key audit matters are those matters that in our professional judgment were of the most significance in our audit of the financial
statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole and
informing our opinion thereon and we do not provide a separate opinion on these matters.(I) Revenue recognition
1. Description
Refer to notes to the financial statements “3. 27. Revenue” and “5. 37. Operating Revenue and Cost of Sales”.In 2024 the Company achieved baijiu sales revenue of RMB22865 million accounting for 96.98% of operating revenue. Since
baijiu revenue is one of the key performance indicators of the Company there may be the risk of material misstatement in whether
the revenue is recognised in an appropriate accounting period. Therefore we regard baijiu sales revenue recognition as a key audit
matter.~ 83 ~Annual Report 2024
2. Audit response
Our procedures for revenue recognition include:
(1) Understand the internal control process design related to the sales business and execute the walk-through test perform the
control test on the identified key control points;
(2) Additionally discussions were held with the management and samples of sales contracts were reviewed to identify clauses and
conditions related to the transfer of control over goods. This process is essential for evaluating whether the timing of revenue
recognition complies with corporate accounting standards;
(3) Sampling inspection of supporting documents related to baijiu sales revenue recognition including sales orders sales invoices
outbound orders sales outstanding etc.;
(4) Compared with the baijiu sales data of other enterprises in the same industry compared the baijiu sales data of the last period with
the current period analysed the overall rationality of revenue and gross margin;
(5) For the baijiu sales revenue recognised before and after the balance sheet date select samples to check the sales orders sales
invoices outbound orders sales outstanding etc. in order to evaluate whether the sales revenue is recorded in an appropriate
accounting period;
(6) Confirm the amount of baijiu sold and the closing balance of the advance payment to the main distributor by sending
confirmation letter.(II) Authenticity and completeness of monetary assets
1. Description
Refer to notes to the financial statements “3. 9. Cash and Cash Equivalents” and “5. 1. Monetary Assets”.As of 31 December 2024 the balance of monetary assets for Anhui Gujing was RMB15894 million accounting for 39.22% of total
assets. Due to the material amount of monetary assets and the significant impact of their authenticity and completeness on the overall
fairness of the financial statements we regard the audit of monetary assets as a key audit matter.
2. Audit response
The procedures we performed to verify the authenticity and completeness of monetary assets include:
(1) Understand the reasonableness of the internal control design related to monetary assets management at Anhui Gujing and test the
effectiveness of key internal controls;
(2) Obtain a list of bank accounts opened and reconcile it with the Company’s book records of bank accounts to check the
completeness of the bank accounts; obtain credit reports to verify whether the monetary assets are subject to any mortgages pledges
or freezes;
(3) Send confirmation letters to the banks to confirm the balances and restrictions of the Company’s bank accounts and reconcile the
confirmation results with the Company’s book records;
(4) Perform bidirectional testing of cash flows on significant bank accounts by combining bank statements and bank ledgers and
check large receipt and payment transactions;
(5) Conduct physical verification of original time deposits and review information such as the holder of the time deposits;
(6) Review the actual use of the raised funds in the current year for each fundraising project and verify whether it complies with
relevant regulations such as the Management Measures for Raised Funds of Listed Companies issued by the Shenzhen Stock
Exchange.IV. Other Information
Management of Anhui Gujing (hereinafter referred to as “Management”) is responsible for the other information. The other
information comprises the information included in the Annual Report of Anhui Gujing for the year of 2024 but does not include the
financial statements and our auditor’s report thereon.Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion
~ 84 ~Annual Report 2024
thereon.In connection with our audit of the financial statements our responsibility is to read the other information and in doing so consider
whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or
otherwise appears to be materially misstated.If based on the work we have performed we conclude that there is a material misstatement of this other information we are required
to report that fact. We have nothing to report in this regard.V. Responsibilities of Management and Those Charged with Governance for the Financial Statements
Management of Anhui Gujing is responsible for the preparation and fair presentation of the financial statements in accordance with
Accounting Standards for Business Enterprises and for the design implementation and maintenance of such internal control as
management determines is necessary to enable the preparation of financial statements that are free from material misstatement
whether due to fraud or error.In preparing the financial statements management is responsible for assessing Anhui Gujing’s ability to continue as a going concern
disclosing as applicable matters related to going concern and using the going concern basis of accounting unless management either
intends to liquidate Anhui Gujing or to cease operations or have no realistic alternative but to do so.Those charged with governance are responsible for overseeing Anhui Gujing’s financial reporting process.VI. Auditor’s Responsibilities for the Audit of the Financial Statements
Our Objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material
misstatement whether due to fraud or error and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high
level of assurance but is not a guarantee that an audit conducted in accordance with CSAs will always detect a material misstatement
when it exists. Misstatements can arise from fraud or error and are considered material if individually or in the aggregate they could
reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.As part of an audit in accordance with CSAs we exercise professional judgment and maintain professional scepticism throughout the
audit. We also:
(1) Identify and assess the risks of material misstatement of the financial statements whether due to fraud or error design and
perform audit procedures responsive to those risks and obtain audit evidence that is sufficient and appropriate to provide a basis for
our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error as
fraud may involve collusion forgery intentional omissions misrepresentations or the override of internal control.
(2) Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the
circumstances.
(3) Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures
made by management.
(4) Conclude on the appropriateness of management’s use of the going concern basis of accounting and based on the audit evidence
obtained whether a material uncertainty exists related to events or conditions that may cast significant doubt on Anhui Gujing’s
ability to continue as a going concern. If we conclude that a material uncertainty exists we are required to draw attention in our
auditor’s report to the related disclosures in the financial statements or if such disclosures are inadequate to modify our opinion. Our
conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However future events or conditions may
cause Anhui Gujing to cease to continue as a going concern.
(5) Evaluate the overall presentation structure and content of the financial statements and whether the financial statements represent
the underlying transactions and events in a manner that achieves fair presentation.
(6) Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within Anhui
Gujing to express an opinion on the financial statements. We are responsible for the direction supervision and performance of the
group audit. We remain solely responsible for our audit opinion.~ 85 ~Annual Report 2024
We communicate with those charged with governance regarding among other matters the planned scope and timing of the audit and
significant audit findings including any significant deficiencies in internal control that we identify during our audit.We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding
independence and to communicate with them all relationships and other matters that may reasonably be thought to bear on our
independence and where applicable related safeguards.From the matters communicated with those charged with governance we determine those matters that were of most significance in
the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in our
auditor’s report unless law or regulation precludes public disclosure about the matter or when in extremely rare circumstances we
determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be
expected to outweigh the public interest benefits of such communication.RSM China CPA LLP [Name of CPA]: Zhang Liping
(Engagement Partner)
China·Beijing [Name of CPA]: Han Songliang
25 April 2025
~ 86 ~Annual Report 2024
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
31 December 2024
Unit: RMB
Item 31 December 2024 1 January 2024
Current assets:
Monetary assets 15894104466.53 15966371744.19
Settlement reserve
Interbank loans granted
Held-for-trading financial assets 60184353.81 719987547.42
Derivative financial assets
Notes receivable
Accounts receivable 69819734.99 68607919.27
Accounts receivable financing 2966732807.75 957560115.73
Prepayments 278472276.28 91607342.18
Premiums receivable
Reinsurance receivables
Receivable reinsurance contract
reserve
Other receivables 86894981.69 49178194.70
Including: Interest receivable
Dividends receivable
Financial assets purchased under
resale agreements
Inventories 9264220836.58 7519682536.51
Including: Data resources
Contract assets
Assets held for sale
Current portion of non-current assets
Other current assets 191503861.97 135071255.36
Total current assets 28811933319.60 25508066655.36
Non-current assets:
Loans and advances to customers
Investments in debt obligations
Investments in other debt obligations
Long-term receivables
~ 87 ~Annual Report 2024
Long-term equity investments 11732641.44 10367078.26
Investments in other equity
69500830.8263105658.07
instruments
Other non-current financial assets
Investment property 43893659.88 46622910.19
Fixed assets 7896995404.62 4596044056.92
Construction in progress 1038780764.86 2910735155.39
Productive living assets
Oil and gas assets
Right-of-use assets 100293500.73 81038100.24
Intangible assets 1129272763.98 1123186836.65
Including: Data resources
Development costs
Including: Data resources
Goodwill 561364385.01 561364385.01
Long-term prepaid expense 374605387.89 59102583.98
Deferred income tax assets 483333690.76 455588567.46
Other non-current assets 707352.50 5685287.46
Total non-current assets 11710480382.49 9912840619.63
Total assets 40522413702.09 35420907274.99
Current liabilities:
Short-term borrowings 50038194.44 0.00
Borrowings from the central bank
Interbank loans obtained
Held-for-trading financial liabilities
Derivative financial liabilities
Notes payable 589364409.55 1353187723.44
Accounts payable 2942339182.13 2814192071.24
Advances from customers
Contract liabilities 3514800038.80 1401122249.53
Financial assets sold under repurchase
agreements
Customer deposits and interbank
deposits
Payables for acting trading of
securities
Payables for underwriting of securities
Employee benefits payable 1121224782.28 1180605773.29
Taxes payable 1163171843.49 1179368855.69
Other payables 3146672513.57 3267292222.01
Including: Interest payable
~ 88 ~Annual Report 2024
Dividends payable
Handling charges and commissions
payable
Reinsurance payables
Liabilities directly associated with
assets held for sale
Current portion of non-current
89836200.5780825022.51
liabilities
Other current liabilities 1691188287.40 1132018451.10
Total current liabilities 14308635452.23 12408612368.81
Non-current liabilities:
Insurance contract reserve
Long-term borrowings 41600000.00 107106256.94
Bonds payable
Including: Preferred shares
Perpetual bonds
Lease liabilities 84453588.30 68380767.78
Long-term payables
Long-term employee benefits payable
Provisions
Deferred income 122142913.25 100811404.82
Deferred income tax liabilities 271795024.98 321723514.56
Other non-current liabilities
Total non-current liabilities 519991526.53 598021944.10
Total liabilities 14828626978.76 13006634312.91
Owners’ equity:
Share capital 528600000.00 528600000.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserves 6229111206.22 6224747667.10
Less: Treasury stock
Other comprehensive income -9604119.74 1596322.73
Specific reserve
Surplus reserves 269402260.27 269402260.27
General reserve
Retained earnings 17639514432.44 14500963359.34
Total equity attributable to owners of the
24657023779.1921525309609.44
Company as the parent
Non-controlling interests 1036762944.14 888963352.64
Total owners’ equity 25693786723.33 22414272962.08
Total liabilities and owners’ equity 40522413702.09 35420907274.99
~ 89 ~Annual Report 2024
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 31 December 2024 1 January 2024
Current assets:
Monetary assets 7578634079.50 7430906530.24
Held-for-trading financial assets 0.00 719987547.42
Derivative financial assets
Notes receivable 0.00 44669454.15
Accounts receivable
Accounts receivable financing 1692337127.64 353179776.80
Prepayments 6440878.02 64184453.89
Other receivables 505111096.18 384878020.29
Including: Interest receivable
Dividends receivable
Inventories 7258975398.24 5791297076.99
Including: Data resources
Contract assets
Assets held for sale
Current portion of non-current assets
Other current assets 132970178.96 70067944.53
Total current assets 17174468758.54 14859170804.31
Non-current assets:
Investments in debt obligations
Investments in other debt obligations
Long-term receivables
Long-term equity investments 1648298837.80 1602935444.04
Investments in other equity
instruments
Other non-current financial assets
Investment property 42562431.85 46622910.19
Fixed assets 6079767997.96 3457239038.00
Construction in progress 928920528.47 2081093829.00
Productive living assets
Oil and gas assets
Right-of-use assets 100293500.73 81038100.24
Intangible assets 498603502.55 494450059.46
~ 90 ~Annual Report 2024
Including: Data resources
Development costs
Including: Data resources
Goodwill
Long-term prepaid expense 305453097.21 22664614.49
Deferred income tax assets 0.00 31803704.33
Other non-current assets
Total non-current assets 9603899896.57 7817847699.75
Total assets 26778368655.11 22677018504.06
Current liabilities:
Short-term borrowings
Held-for-trading financial liabilities
Derivative financial liabilities
Notes payable
Accounts payable 2092055042.44 1658351501.91
Advances from customers
Contract liabilities 794714253.43 858057014.88
Employee benefits payable 325195369.96 477940588.68
Taxes payable 735214837.75 730264020.00
Other payables 882504197.38 879518254.66
Including: Interest payable
Dividends payable
Liabilities directly associated with
assets held for sale
Current portion of non-current
13346230.7310771925.29
liabilities
Other current liabilities 125309809.42 134926323.61
Total current liabilities 4968339741.11 4749829629.03
Non-current liabilities:
Long-term borrowings
Bonds payable
Including: Preferred shares
Perpetual bonds
Lease liabilities 84453588.30 68380767.78
Long-term payables
Long-term employee benefits payable
Provisions
Deferred income 59582910.44 35650375.64
Deferred income tax liabilities 49348636.55 71944672.72
Other non-current liabilities
Total non-current liabilities 193385135.29 175975816.14
~ 91 ~Annual Report 2024
Total liabilities 5161724876.40 4925805445.17
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 -7249242.08 -1993312.09
Specific reserve
Surplus reserves 264300000.00 264300000.00
Retained earnings 14654488838.59 10783802188.78
Total owners’ equity 21616643778.71 17751213058.89
Total liabilities and owners’ equity 26778368655.11 22677018504.06
3. Consolidated Income Statement
Unit: RMB
Item 2024 2023
1. Revenue 23577928065.99 20253526598.02
Including: Operating revenue 23577928065.99 20253526598.02
Interest revenue
Insurance premium income
Handling charge and
commission income
2. Costs and expenses 15831967986.27 14002575265.55
Including: Cost of sales 4738054529.34 4239850906.91
Interest costs
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 3740333528.99 3050101661.89
Selling expense 6181762995.50 5436773057.25
Administrative expense 1442398926.31 1367146467.89
R&D expense 78242212.58 70947196.49
~ 92 ~Annual Report 2024
Finance costs -348824206.45 -162244024.88
Including: Interest costs 6145816.53 3289772.96
Interest
367977768.88169297052.44
revenue
Add: Other income 63946740.48 48053328.37
Return on investment (“-” for loss) -34487487.67 -6338129.69
Including: Share of profit or loss
1365563.18212842.28
of joint ventures and associates
Income from the
derecognition of financial assets at
amortised cost (“-” for loss)
Exchange gain (“-” for loss)
Net gain on exposure hedges (“-”
for loss)
Gain on changes in fair value (“-”
184353.8119987547.42
for loss)
Credit impairment loss (“-” for
-1645272.23891610.40
loss)
Asset impairment loss (“-” for
-23585609.99-31053196.87
loss)
Asset disposal income (“-” for
-192200.99437622.67
loss)
3. Operating profit (“-” for loss) 7750180603.13 6282930114.77
Add: Non-operating income 60806091.26 85066844.12
Less: Non-operating expense 15399484.99 35851126.34
4. Profit before tax (“-” for loss) 7795587209.40 6332145832.55
Less: Income tax expense 2088975630.59 1605876011.66
5. Net profit (“-” for net loss) 5706611578.81 4726269820.89
5.1 By operating continuity
5.1.1 Net profit from continuing
5706611578.814726269820.89
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 5517251073.10 4589164052.80
parent
5.2.2 Net profit attributable to
189360505.71137105768.09
non-controlling interests
6. Other comprehensive income net of
-9181460.313060072.18
tax
Attributable to owners of the -11200442.47 1187583.12
~ 93 ~Annual Report 2024
Company as the parent
6.1 Items that will not be
2877827.742996040.66
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
2877827.742996040.66
investments in other equity instruments
6.1.4 Changes in the fair value
arising from changes in own credit risk
6.1.5 Other
6.2 Items that will be reclassified to
-14078270.21-1808457.54
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 -14078270.21 -1808457.54
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
2018982.161872489.06
interests
7. Total comprehensive income 5697430118.50 4729329893.07
Attributable to owners of the
5506050630.634590351635.92
Company as the parent
Attributable to non-controlling
191379487.87138978257.15
interests
8. Earnings per share
8.1 Basic earnings per share 10.44 8.68
~ 94 ~Annual Report 2024
8.2 Diluted earnings per share 10.44 8.68
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 2024 2023
1. Operating revenue 13011311837.05 10625037756.73
Less: Cost of sales 4240402284.96 3708083747.47
Taxes and surcharges 3125649960.09 2575219279.98
Selling expense 53576677.10 48250729.30
Administrative expense 877833183.04 940282659.56
R&D expense 29707498.92 29954006.67
Finance costs -130747593.73 -110266407.56
Including: Interest expense 7534658.55 1700517.02
Interest revenue 149932201.32 114742716.55
Add: Other income 14365502.63 8532622.97
Return on investment (“-” for loss) 2663107259.84 143470881.11
Including: Share of profit or loss
1363393.76185830.36
of joint ventures and associates
Income from the
derecognition of financial assets at
amortised cost (“-” for loss)
Net gain on exposure hedges (“-”
for loss)
Gain on changes in fair value (“-”
0.0019987547.42
for loss)
Credit impairment loss (“-” for
-775857.58165875.85
loss)
Asset impairment loss (“-” for
-16281050.12-25391138.49
loss)
Asset disposal income (“-” for
1897869.11232884.34
loss)
2. Operating profit (“-” for loss) 7477203550.55 3580512414.51
Add: Non-operating income 36460849.92 34681066.94
Less: Non-operating expense 7006919.47 27568586.35
3. Profit before tax (“-” for loss) 7506657481.00 3587624895.10
Less: Income tax expense 1257270831.19 909045628.10
4. Net profit (“-” for net loss) 6249386649.81 2678579267.00
4.1 Net profit from continuing
6249386649.812678579267.00
operations (“-” for net loss)
~ 95 ~Annual Report 2024
4.2 Net profit from discontinued
operations (“-” for net loss)
5. Other comprehensive income net of
-5255929.99-1463957.32
tax
5.1 Items that will not be reclassified
to profit or loss
5.1.1 Changes caused by
remeasurements on defined benefit
schemes
5.1.2 Other comprehensive income
that will not be reclassified to profit or
loss under the equity method
5.1.3 Changes in the fair value of
investments in other equity instruments
5.1.4 Changes in the fair value
arising from changes in own credit risk
5.1.5 Other
5.2 Items that will be reclassified to
-5255929.99-1463957.32
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 -5255929.99 -1463957.32
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 6244130719.82 2677115309.68
7. Earnings per share
7.1 Basic earnings per share 11.82 5.07
7.2 Diluted earnings per share 11.82 5.07
5. Consolidated Cash Flow Statement
Unit: RMB
~ 96 ~Annual Report 2024
Item 2024 2023
1. Cash flows from operating activities:
Proceeds from sale of commodities
23210865893.0520796713697.12
and rendering of services
Net increase in customer deposits and
interbank deposits
Net increase in borrowings from the
central bank
Net increase in loans from other
financial institutions
Premiums received on original
insurance contracts
Net proceeds from reinsurance
Net increase in deposits and
investments of policy holders
Interest handling charges and
commissions received
Net increase in interbank loans
obtained
Net increase in proceeds from
repurchase transactions
Net proceeds from acting trading of
securities
Tax rebates 28035855.88 25589555.96
Cash generated from other operating
2180324471.321423692371.04
activities
Subtotal of cash generated from
25419226220.2522245995624.12
operating activities
Payments for commodities and
4085891932.483187127580.32
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 4166336969.08 3667689324.27
Taxes paid 8236777809.30 6693398014.08
Cash used in other operating activities 4202566635.54 4201574671.03
~ 97 ~Annual Report 2024
Subtotal of cash used in operating
20691573346.4017749789589.70
activities
Net cash generated from/used in
4727652873.854496206034.42
operating activities
2. Cash flows from investing activities:
Proceeds from disinvestment 950199000.00 1895000000.00
Return on investment 23252370.14 26136797.69
Net proceeds from the disposal of
fixed assets intangible assets and other 5909689.76 5606610.18
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
979361059.901926743407.87
investing activities
Payments for the acquisition of fixed
assets intangible assets and other 2427403146.80 2381037944.96
long-lived assets
Payments for investments 285000000.00 810199000.00
Net increase in pledged loans granted
Net payments for the acquisition of
0.0013439262.05
subsidiaries and other business units
Cash used in other investing activities
Subtotal of cash used in investing
2712403146.803204676207.01
activities
Net cash generated from/used in
-1733042086.90-1277932799.14
investing activities
3. Cash flows from financing activities:
Capital contributions received 26000000.00 4000000.00
Including: Capital contributions by
26000000.004000000.00
non-controlling interests to subsidiaries
Borrowings raised 120000100.00 158200000.00
Cash generated from other financing
activities
Subtotal of cash generated from
146000100.00162200000.00
financing activities
Repayment of borrowings 129000100.00 139110000.00
Interest and dividends paid 2472703924.46 1647714435.86
Including: Dividends paid by
79865320.1160232272.03
subsidiaries to non-controlling interests
Cash used in other financing activities 21939585.66 22854817.28
Subtotal of cash used in financing 2623643610.12 1809679253.14
~ 98 ~Annual Report 2024
activities
Net cash generated from/used in
-2477643510.12-1647479253.14
financing activities
4. Effect of foreign exchange rates
changes on cash and cash equivalents
5. Net increase in cash and cash
516967276.831570793982.14
equivalents
Add: Cash and cash equivalents
14676167417.3613105373435.22
beginning of the period
6. Cash and cash equivalents end of the
15193134694.1914676167417.36
period
6. Cash Flow Statement of the Company as the Parent
Unit: RMB
Item 2024 2023
1. Cash flows from operating activities:
Proceeds from sale of commodities
12549758616.0311647556108.04
and rendering of services
Tax rebates 5160883.87 554315.70
Cash generated from other operating
1627480751.471945896434.51
activities
Subtotal of cash generated from
14182400251.3713594006858.25
operating activities
Payments for commodities and
3066423348.262966088152.22
services
Cash paid to and for employees 1451425508.82 1330813936.27
Taxes paid 5352859334.13 4002592476.22
Cash used in other operating activities 1975173936.80 2164383676.11
Subtotal of cash used in operating
11845882128.0110463878240.82
activities
Net cash generated from/used in
2336518123.363130128617.43
operating activities
2. Cash flows from investing activities:
Proceeds from disinvestment 710199000.00 1270000000.00
Return on investment 1657498129.72 155367881.51
Net proceeds from the disposal of
fixed assets intangible assets and other 193207592.28 996472.31
long-lived assets
Net proceeds from the disposal of
subsidiaries and other business units
Cash generated from other investing
activities
~ 99 ~Annual Report 2024
Subtotal of cash generated from
2560904722.001426364353.82
investing activities
Payments for the acquisition of fixed
assets intangible assets and other 2293434362.35 2112501571.75
long-lived assets
Payments for investments 44000000.00 736199000.00
Net payments for the acquisition of
0.0013439262.05
subsidiaries and other business units
Cash used in other investing activities
Subtotal of cash used in investing
2337434362.352862139833.80
activities
Net cash generated from/used in
223470359.65-1435775479.98
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 2390321348.09 1585800000.00
Cash used in other financing activities 21939585.66 15930799.73
Subtotal of cash used in financing
2412260933.751601730799.73
activities
Net cash generated from/used in
-2412260933.75-1601730799.73
financing activities
4. Effect of foreign exchange rates
changes on cash and cash equivalents
5. Net increase in cash and cash
147727549.2692622337.72
equivalents
Add: Cash and cash equivalents
7430906530.247338284192.52
beginning of the period
6. Cash and cash equivalents end of the
7578634079.507430906530.24
period
~ 100 ~Annual Report 2024
7. Consolidated Statements of Changes in Owners’ Equity
2024
Unit: RMB
2024
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 Preferred Perpetual Capital reserves Treasury comprehensive Retained earnings Other Subtotal
interests equity
Other reserve reserves reserve
shares bonds stock income
1. Balance as at
the end of the 528600000.00 6224747667.10 1596322.73 269402260.27 14500963359.34 21525309609.44 888963352.64 22414272962.08
prior year
Add:
Adjustment for
change in
accounting
policy
Adjustment
for correction
of previous
error
Other
adjustments
2. Balance as at
the beginning 528600000.00 6224747667.10 1596322.73 269402260.27 14500963359.34 21525309609.44 888963352.64 22414272962.08
of the year
3. Increase/ 4363539.12 -11200442.47 3138551073.10 3131714169.75 147799591.50 3279513761.25
~ 101 ~Annual Report 2024
decrease in the
period (“-” for
decrease)
3.1 Total
comprehensive -11200442.47 5517251073.10 5506050630.63 191379487.87 5697430118.50
income
3.2 Capital
increased and
4363539.124363539.1236285423.7440648962.86
reduced by
owners
3.2.1
Ordinary shares
28050000.0028050000.00
increased by
owners
3.2.2
Capital
increased by
holders of other
equity
instruments
3.2.3
Share-based
payments
included in
owners’ equity
3.2.4
4363539.124363539.128235423.7412598962.86
Other
3.3 Profit
-2378700000.00-2378700000.00-79865320.11-2458565320.11
distribution
~ 102 ~Annual Report 2024
3.3.1
Appropriation
to surplus
reserves
3.3.2
Appropriation
to general
reserve
3.3.3
Appropriation
-2378700000.00-2378700000.00-79865320.11-2458565320.11
to owners (or
shareholders)
3.3.4
Other
3.4 Transfers
within owners’
equity
3.4.1
Increase in
capital (or
share capital)
from capital
reserves
3.4.2
Increase in
capital (or
share capital)
from surplus
reserves
~ 103 ~Annual Report 2024
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
~ 104 ~Annual Report 2024
4. Balance as at
the end of the 528600000.00 6229111206.22 -9604119.74 269402260.27 17639514432.44 24657023779.19 1036762944.14 25693786723.33
period
2023
Unit: RMB
2023
Equity attributable to owners of the Company as the parent
Item
Other equity instruments Less: Other Non-controlling Total owners’
Specific General
Share capital Preferred Perpetual Capital reserves Treasury comprehensive Surplus reserves Retained earnings Other Subtotal
interests equity
Other reserve reserve
shares bonds stock income
1. Balance as at
the end of the 528600000.00 6224747667.10 408739.61 269402260.27 11497599306.54 18520757973.52 812095782.69 19332853756.21
prior year
Add:
Adjustment for
change in
accounting
policy
Adjustment
for correction
of previous
error
Other
adjustments
2. Balance as at
the beginning 528600000.00 6224747667.10 408739.61 269402260.27 11497599306.54 18520757973.52 812095782.69 19332853756.21
of the year
3. Increase/ 1187583.12 3003364052.80 3004551635.92 76867569.95 3081419205.87
~ 105 ~Annual Report 2024
decrease in the
period (“-” for
decrease)
3.1 Total
comprehensive 1187583.12 4589164052.80 4590351635.92 138978257.15 4729329893.07
income
3.2 Capital
increased and
-1878415.17-1878415.17
reduced by
owners
3.2.1
Ordinary shares
-1878415.17-1878415.17
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
-1585800000.00-1585800000.00-60232272.03-1646032272.03
distribution
~ 106 ~Annual Report 2024
3.3.1
Appropriation
to surplus
reserves
3.3.2
Appropriation
to general
reserve
3.3.3
Appropriation
-1585800000.00-1585800000.00-60232272.03-1646032272.03
to owners (or
shareholders)
3.3.4
Other
3.4 Transfers
within owners’
equity
3.4.1
Increase in
capital (or
share capital)
from capital
reserves
3.4.2
Increase in
capital (or
share capital)
from surplus
reserves
~ 107 ~Annual Report 2024
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
528600000.006224747667.101596322.73269402260.2714500963359.3421525309609.44888963352.6422414272962.08
the end of the
~ 108 ~Annual Report 2024
period
8. Statements of Changes in Owners’ Equity of the Company as the Parent
2024
Unit: RMB
2024
Other equity instruments Less: Other
Item Specific
Share capital Preferred Perpetual Capital reserves Treasury comprehensive Surplus reserves Retained earnings Other Total owners’ equity
Other reserve
shares bonds stock income
1. Balance as at
the end of the 528600000.00 6176504182.20 -1993312.09 264300000.00 10783802188.78 17751213058.89
prior year
Add: Adjustment
for change in
accounting policy
Adjustment for
correction of
previous error
Other
adjustments
2. Balance as at
the beginning of 528600000.00 6176504182.20 -1993312.09 264300000.00 10783802188.78 17751213058.89
the year
3. Increase/
decrease in the
-5255929.993870686649.813865430719.82
period (“-” for
decrease)
~ 109 ~Annual Report 2024
3.1 Total
comprehensive -5255929.99 6249386649.81 6244130719.82
income
3.2 Capital
increased and
reduced by
owners
3.2.1
Ordinary shares
increased by
owners
3.2.2 Capital
increased by
holders of other
equity
instruments
3.2.3
Share-based
payments
included in
owners’ equity
3.2.4 Other
3.3 Profit
-2378700000.00-2378700000.00
distribution
3.3.1
Appropriation to
surplus reserves
3.3.2
-2378700000.00-2378700000.00
Appropriation to
~ 110 ~Annual Report 2024
owners (or
shareholders)
3.3.3 Other
3.4 Transfers
within owners’
equity
3.4.1
Increase in
capital (or share
capital) from
capital reserves
3.4.2
Increase in
capital (or share
capital) from
surplus reserves
3.4.3 Loss
offset by surplus
reserves
3.4.4
Changes in
defined benefit
schemes
transferred to
retained earnings
3.4.5 Other
comprehensive
income
transferred to
~ 111 ~Annual Report 2024
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 -7249242.08 264300000.00 14654488838.59 21616643778.71
period
2023
Unit: RMB
2023
Other equity instruments Less: Other
Item Specific
Share capital Preferred Perpetual Capital reserves Treasury comprehensive Surplus reserves Retained earnings Other Total owners’ equity
Other reserve
shares bonds stock income
1. Balance as at
the end of the 528600000.00 6176504182.20 -529354.77 264300000.00 9691022921.78 16659897749.21
prior year
~ 112 ~Annual Report 2024
Add: Adjustment
for change in
accounting policy
Adjustment for
correction of
previous error
Other
adjustments
2. Balance as at
the beginning of 528600000.00 6176504182.20 -529354.77 264300000.00 9691022921.78 16659897749.21
the year
3. Increase/
decrease in the
-1463957.321092779267.001091315309.68
period (“-” for
decrease)
3.1 Total
comprehensive -1463957.32 2678579267.00 2677115309.68
income
3.2 Capital
increased and
reduced by
owners
3.2.1
~ 113 ~Annual Report 2024
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
-1585800000.00-1585800000.00
distribution
3.3.1
Appropriation to
surplus reserves
3.3.2
Appropriation to
-1585800000.00-1585800000.00
owners (or
shareholders)
3.3.3 Other
3.4 Transfers
within owners’
equity
3.4.1
~ 114 ~Annual Report 2024
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
~ 115 ~Annual Report 2024
3.5.2 Used
in the period
3.6 Other
4. Balance as at
the end of the 528600000.00 6176504182.20 -1993312.09 264300000.00 10783802188.78 17751213058.89
period
~ 116 ~Annual Report 2024
Anhui Gujing Distillery Company Limited
Notes to the Financial Statements
For the year ended 31 December 2024
（All amounts are expressed in Renminbi Yuan(“RMB”)unless otherwise stated）
1. BASIC INFORMATION ABOUT THE COMPANY
1.1 Company Profile
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. The incorporation General Meeting was held on 28
May 1996 and the incorporation was registered with the Anhui Admistration Bureau for Commerce
and Industry on 30 May 1996 with the registered address at Bozhou Anhui the People’s Republic
of China (the PRC). At incorporation the Company’s total number of shares stood at 155 million
with a valuation of CNY 377.17million 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 CNY ordinary shares
(known as “A share(s)”) in September 1996. The par value of both the B share and A share is CNY
1.00 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 CNY
235 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 CNY 1.00 per
share.In accordance with the resolution of the General Meeting held on 29 May 2006 the Company
exercised the share reorganisation plan in June 2006. Immediately after the implementation of the
share reorganisation plan the Company had in total 235 million shares comprising 147 million
shares with restriction of disposal (equal to 62.55% of total shares) and 88 million free-floating
shares (equal to 37.45% of total shares).Upon the Company’s publication of the Notice of Lifting Restriction of Shares on 27 June 2007 the
~ 117 ~Annual Report 2024
restriction on disposal on 11.75 million shares was lifted on 29 June 2007. Immediately after the
lifting the Company had in total 235 million shares comprising 135.25 million shares with
restriction of disposal (equal to 57.55% of total shares) and 99.75 million free-floating shares (equal
to 42.45% of total shares).Upon the Company’s publication of the Notice of Lifting Restriction of Shares on 17 July 2008 the
restriction on disposal on 11.75 million shares was lifted on 18 July 2008. Immediately after the
lifting the Company had in total 235 million shares comprising 123.5 million shares with
restriction of disposal (equal to 52.55% of total shares) and 111.5 million free-floating shares (equal
to 47.45% of total shares).Upon the Company’s publication of the Notice of Lifting Restriction of Shares on 24 July 2009 the
restriction on disposal on 123.5 million shares was lifted on 29 July 2009. Immediately after the
lifting the Company had in total 235 million shares comprising 235 million free-floating shares
(equal to 100% of total shares).Upon approval by the China Securities Regulatory Commission (CSRC) through ZhengJianXuKe
[2011] 943 the Company issued on 15 July 2011 through private offering of 16.8 million A shares
with the par value at CNY 1.00 to designated investors. The shares were issued at CNY 75.00 per
share. Gross proceeds from this issuance was CNY 1260 million and the respective net proceeds
after deduction of the cost of issuance (CNY 32.5 million) was CNY 1227.5 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
CNY 251.8 million.In accordance with the resolution of the Company’s 2011 General Meeting a bonus issue of 10
shares for every 10 shares held at 31 December 2011 through utilisation of capital reserves was
exercised in 2012. 251.8 bonus shares were issued in total. Immediately after the exercise of the
bonus issue the Company’s share capital increased to CNY 503.6 million.Upon approval by the CSRC through ZhengJianXuKe [2021] 1422 the Company issued on 22 July
2021 through private offering of 25 million A shares with the par value at CNY 1.00 to designated
investors. The shares were issued at CNY 200.00 per share. Gross proceeds from this issuance was
CNY 5000 million and the respective net proceeds after deduction of the cost of issuance (CNY
45.66 million) was CNY 4954.34 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 CNY 528.6 million.As of 31 December 2024 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 Bozhou City Anhui Province Gujing town. Legal
~ 118 ~Annual Report 2024
representative of the company is Liang Jinhui.The company is mainly engaged in the production and sales of distilled wine which belongs to the
food manufacturing industry.These financial statements are approved on 25 April 2025 by the Company’s Board of Directors for
publication.
2. BASIS OF PREPARATION OF THE FINANCIAL STATEMENTS
2.1 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.
2.2 Going Concern
The Company has assessed its ability to continually operate for the next twelve 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.
3. SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES
The following significant accounting policies and accounting estimates of the Company are
formulated in accordance with the Accounting Standards for Business Enterprises. Businesses not
mentioned are complied with relevant accounting policies of the Accounting Standards for Business
Enterprises.
3.1 Statement of Compliance with the Accounting Standards for Business Enterprises
The Company prepares its financial statements in accordance with the requirements of the
Accounting Standards for Business Enterprises truly and completely reflecting the Company’s
financial position as at 31 December 2024 and its operating results changes in shareholders' equity
cash flows and other related information for the year then ended.~ 119 ~Annual Report 2024
3.2 Accounting Period
The accounting year of the Company is from 1 January to 31 December in calendar year.
3.3 Operating Cycle
The normal operating cycle of the Company is twelve months.
3.4 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.
3.5 Determining Factor and Basis of Selection of Materiality
Item Factor and basis of materiality
Significant write-off of other receivables Amount greater than 5 million
Significant individual provision for bad debt of accounts
Amount greater than 5 million
receivable
Significant other payables with aging of over one year More than 0.03% of the total assets
Significant accounts payable with aging of over one year More than 0.03% of the total assets
Total assets operating income and net profit account for
Significant non-wholly owned subsidiaries more than 5% of the corresponding items in the
consolidated financial statements
Significant goodwill Individual amount more than 50 million
Significant construction in progress Individual amount more than 20 million
3.6 Accounting Treatment of Business Combinations under and not under Common Control
(a) Business combinations under common control
The assets and liabilities that the Company obtains in a business combination under common
control shall be measured at their carrying amount of the acquired entity at the combination date. If
the accounting policy and accounting period adopted by the acquired entity is different from that
adopted by the acquiring entity the acquiring entity shall according to accounting policy and
accounting period it adopts adjust the relevant items in the financial statements of the acquired
party based on the principal of materiality. As for the difference between the carrying amount of the
net assets obtained by the acquiring entity and the carrying amount of the consideration paid by it
the capital reserve (capital premium or share premium) shall be adjusted. If the capital reserve
(capital premium or share premium) is not sufficient to absorb the difference any excess shall be
adjusted against retained earnings.~ 120 ~Annual Report 2024
For the accounting treatment of business combination under common control by step acquisitions
please refer to Note 3.7 (6).(b) Business combinations not under common control
The assets and liabilities that the Company obtains in a business combination not under common
control shall be measured at their fair value at the acquisition date. If the accounting policy and
accounting period adopted by the acquired entity is different from that adopted by the acquiring
entity the acquiring entity shall according to accounting policy and accounting period it adopts
adjust the relevant items in the financial statements of the acquired entity based on the principal of
materiality. The acquiring entity shall recognise the positive balance between the combination costs
and the fair value of the identifiable net assets it obtains from the acquired entity as goodwill. The
acquiring entity shall pursuant to the following provisions treat the negative balance between the
combination costs and the fair value of the identifiable net assets it obtains from the acquired entity:
(i) It shall review the measurement of the fair values of the identifiable assets liabilities and
contingent liabilities it obtains from the acquired entity as well as the combination costs;
(ii) If after the review the combination costs are still less than the fair value of the identifiable net
assets it obtains from the acquired entity the balance shall be recognised in profit or loss of the
reporting period.For the accounting treatment of business combination under the same control by step acquisitions
please refer to Note 3.7 (6).(c) 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.
3.7 Judgment of Control and Method of Preparing the Consolidated Financial Statements
(a) Judgment of control and consolidation decision
Control exists when the Company has power over the investee exposure or rights to variable
returns from its involvement with the investee and the ability to use its power over the investee to
affect the amount of the returns. The definition of control contains there elements: - power over the
investee; exposure or rights to variable returns from the Company’s involvement with the investee;
and the ability to use its power over the investee to affect the amount of the investor’s returns. The
Company controls an investee if and only if the Company has all the above three elements.The scope of consolidated financial statements shall be determined on the basis of control. It not
~ 121 ~Annual Report 2024
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.(b) 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.(c) Method of preparing the consolidated financial statements
The consolidated financial statements shall be prepared by the Company based on the financial
statements of the Company and its subsidiaries and using other related information.When preparing consolidated financial statements the Company shall consider the entire group as
an accounting entity adopt uniform accounting policies and apply the requirements of Accounting
~ 122 ~Annual Report 2024
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 recognised in full.(iv) Make adjustments to special transactions from the perspective of the group.(d) Method of preparation of the consolidated financial statements when subsidiaries are
acquired or disposed in the reporting period
(i) Acquisition of subsidiaries or business
Subsidiaries or business acquired through business combination under common control
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.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.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.Subsidiaries or business acquired through business combination not under common control
When preparing the consolidated statements of financial position the opening balance of the
consolidated statements of financial position shall not be adjusted.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.Cash flows from the acquisition date to the end of the reporting period shall be included into the
consolidated statement of cash flows.~ 123 ~Annual Report 2024
(ii) Disposal of subsidiaries or business
When preparing the consolidated statements of financial position the opening balance of the
consolidated statements of financial position shall not be adjusted.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.Cash flows from the beginning of the subsidiary to the disposal date shall be included into the
consolidated statement of cash flows.(e) Special consideration in consolidation elimination
(i) Long-term equity investment held by the subsidiaries to the Company shall be recognised astreasury stock of the Company which is offset with the owner’s equity represented as “treasurystock” under “owner’s equity” in the consolidated statement of financial position.Long-term equity investment held by subsidiaries between each other is accounted for taking
long-term equity investment held by the Company to its subsidiaries as reference. That is the
long-term equity investment is eliminated (off-set) against the portion of the corresponding
subsidiary’s equity.(ii) Due to not belonging to paid-in capital (or share capital) and capital reserve and being different
from retained earnings and undistributed profit “Specific reserves” and “General risk provision”
shall be recovered based on the proportion attributable to owners of the parent company after
long-term equity investment to the subsidiaries is eliminated with the subsidiaries’ equity.(iii) If temporary timing difference between the book value of the assets and liabilities in the
consolidated statement of financial position and their tax basis is generated as a result of elimination
of unrealized inter-company transaction profit or loss deferred tax assets of deferred tax liabilities
shall be recognised and income tax expense in the consolidated statement of profit or loss shall be
adjusted simultaneously excluding deferred taxes related to transactions or events directly
recognised in owner’s equity or business combination.(iv) Unrealised inter-company transactions profit or loss generated from the Company selling assetsto its subsidiaries shall be eliminated against “net profit attributed to the owners of the parentcompany” in full. 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
Company in the selling subsidiaries.(v) If loss attributed to the minority shareholders of a subsidiary in current period is more than the
~ 124 ~Annual Report 2024
proportion of non-controlling interest in this subsidiary at the beginning of the period
non-controlling interest is still to be written down.(f) 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
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 difference
in accounting policies and accounting period. The difference between the carrying amount of the
investment held prior of control plus book value of additional consideration paid on the acquisition
date and the net assets acquired through the combination is adjusted into capital reserve (capital
premium or share premium). If the capital reserve is not enough to absorb the difference any excess
shall be adjusted against retained earnings.If the acquiring entity holds equity investment in the acquired entity prior to the combination date
related profit or loss other comprehensive income and other changes in equity which have been
recognised during the period from the later of the date of the Company obtaining original equity
interest and the date of both the acquirer and the acquiree under common control of the same
ultimate controlling party to the combination date should be offset against the opening balance of
~ 125 ~Annual Report 2024
retained earnings at the comparative financial statements period respectively or the profit or loss for
the current period.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. If the equity interest in
the acquired entity held prior to the acquisition date is designated as a financial asset measured at
fair value with changes recognised in other comprehensive income the difference between the fair
value and the carrying amount shall be recognised in retained earnings and the cumulative fair
value changes previously recognised in other comprehensive income shall be transferred to retained
earnings. If the equity interest in the acquired entity held prior to the acquisition date is measured at
fair value with changes recognised in profit or loss or accounted for as a long-term equity
investment using the equity method the difference between the fair value and the carrying amount
shall be recognised in investment income for the current period. For equity interests held in the
acquired entity prior to the acquisition date that are accounted for under the equity method and
involve other comprehensive income as well as other changes in the owner's equity (excluding net
profit or loss other comprehensive income and profit distributions) the related other
comprehensive income shall be accounted for on the acquisition date using the same basis as if the
investee had directly disposed of the related assets or liabilities. The related changes in other
owner's equity shall be reclassified to investment income for the period in which the acquisition
date falls..(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
Disposal through one transaction
If the Company loses control in an investee through partial disposal of the equity investment when
the consolidated financial statements are prepared the retained equity interest should be
re-measured at fair value at the date of loss of control. The difference between i) the sum of the
~ 126 ~Annual Report 2024
consideration received from the disposal and the fair value of the remaining equity interest and ii)
the sum of the share of the net assets of the former subsidiary ( calculated on a cumulative basis
from the acquisition date or combination date in accordance with the original ownership percentage)
and the related goodwill shall be recognised in investment income for the period in which control is
lost.Moreover other comprehensive income related to the equity investment in the former subsidiary
shall be accounted for on the same basis as if the former subsidiary had directly disposed of the
relevant assets or liabilities upon the loss of control. Other changes in owners’ equity related to the
former subsidiary that were recognised under the equity method shall be reclassified to profit or loss
upon the loss of control.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 recognised as other comprehensive income
firstly and transferred to profit or loss as a whole when control is lost; in the consolidated financial
statements for each transaction prior of the date of loss of control difference between consideration
received and proportion of the subsidiary’s net assets corresponding to the equity interest disposed
should be recognised in profit or loss as a whole when control is lost.In considering of the terms and conditions of the transactions as well as their economic impact the
presence of one or more of the following indicators may lead to account for multiple transactions as
a single transaction:
? The transactions are entered into simultaneously or in contemplation of one another.? The transactions form a single transaction designed to achieve an overall commercial effect.~ 127 ~Annual Report 2024
? The occurrence of one transaction depends on the occurrence of at least one other transaction.? 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.
3.8 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.(a) Joint operation
A joint operation is a joint arrangement whereby the parties that have joint control of the
arrangement have rights to the assets and obligations for the liabilities relating to the arrangement.The Company shall recognise the following items in relation to shared interest in a joint operation
and account for them in accordance with relevant accounting standards of the Accounting Standards
for Business Enterprises:
(i) its assets including its share of any assets held jointly;
(ii) its liabilities including its share of any liabilities incurred jointly;
(iii) its revenue from the sale of its share of the output arising from the joint operation;
(iv) its share of the revenue from the sale of the output by the joint operation; and
(v) its expenses including its share of any expenses incurred jointly.(b) 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.
3.9 Cash and Cash Equivalents
~ 128 ~Annual Report 2024
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.
3.10 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.(a) Recognition and derecognition of financial instrument
A financial asset or a financial liability should be recognised in the statement of financial position
when and only when an entity becomes party to the contractual provisions of the instrument.A financial asset can only be derecognised when meets one of the following conditions:
(i) The rights to the contractual cash flows from a financial asset expire
(ii) The financial asset has been transferred and meets one of the following derecognition
conditions:
Financial liabilities (or part thereof) are derecognised only when the liability is extinguished—i.e.when the obligation specified in the contract is discharged or cancelled or expires. An exchange of
the Company (borrower) and lender of debt instruments that carry significantly different terms or a
substantial modification of the terms of an existing liability are both accounted for as an
extinguishment of the original financial liability and the recognition of a new financial liability.Purchase or sale of financial assets in a regular-way shall be recognised and derecognised using
trade date accounting. A regular-way purchase or sale of financial assets is a transaction under a
contract whose terms require delivery of the asset within the time frame established generally by
regulations or convention in the market place concerned. Trade date is the date at which the entity
commits itself to purchase or sell an asset.(b) Classification and measurement of financial assets
At initial recognition the Company classified its financial asset based on both the business model
for managing the financial asset and the contractual cash flow characteristics of the financial asset:
financial asset at amortised cost financial asset at fair value through profit or loss (FVTPL) and
financial asset at fair value through other comprehensive income (FVTOCI). Reclassification of
financial assets is permitted if and only if the objective of the entity’s business model for
managing those financial assets changes. In this circumstance all affected financial assets shall be
reclassified on the first day of the first reporting period after the changes in business model;
otherwise the financial assets cannot be reclassified after initial recognition.~ 129 ~Annual Report 2024
Financial assets shall be measured at initial recognition at fair value. For financial assets measured
at FVTPL transaction costs are recognised in current profit or loss. For financial assets not
measured at FVTPL transaction costs should be included in the initial measurement. Notes
receivable or accounts receivable that arise from sales of goods or rendering of services are initially
measured at the transaction price defined in the accounting standard of revenue where the
transaction does not include a significant financing component.Subsequent measurement of financial assets will be based on their categories:
(i)Financial asset at amortised cost
The financial asset at amortised cost category of classification applies when both the following
conditions are met: the financial asset is held within the business model whose objective is to hold
financial assets in order to collect contractual cash flows and the contractual term of the financial
asset gives rise on specified dates to cash flows that are solely payment of principal and interest on
the principal amount outstanding. These financial assets are subsequently measured at amortised
cost by adopting the effective interest rate method. Any gain or loss arising from derecognition
according to the amortisation under effective interest rate method or impairment are recognised in
current profit or loss.(ii)Financial asset at fair value through other comprehensive income (FVTOCI)
The financial asset at FVTOCI category of classification applies when both the following
conditions are met: the financial asset is held within the business model whose objective is achieved
by both collecting contractual cash flows and selling financial assets and the contractual term of the
financial asset gives rise on specified dates to cash flows that are solely payment of principle and
interest on the principal amount outstanding. All changes in fair value are recognised in other
comprehensive income except for gain or loss arising from impairment or exchange differences
which should be recognised in current profit or loss. At derecognition cumulative gain or loss
previously recognised under OCI is reclassified to current profit or loss. However interest income
calculated based on the effective interest rate is included in current profit or loss.The Company make an irrevocable decision to designate part of non-trading equity instrument
investments as measured through FVTOCI. All changes in fair value are recognised in other
comprehensive income except for dividend income recognised in current profit or loss. At
derecognition cumulative gain or loss are reclassified to retained earnings.(iii)Financial asset at fair value through profit or loss (FVTPL)
Financial asset except for above mentioned financial asset at amortised cost or financial asset at fair
value through other comprehensive income (FVTOCI) should be classified as financial asset at fair
value through profit or loss (FVTPL). These financial assets should be subsequently measured at
fair value. All the changes in fair value are included in current profit or loss.~ 130 ~Annual Report 2024
(c) Classification and measurement of financial liabilities
The Company classified the financial liabilities as financial liabilities at fair value through profit or
loss (FVTPL) loan commitments at a below-market interest rate and financial guarantee contracts
and financial asset at amortised cost.Subsequent measurement of financial assets will be based on the classification:
(i)Financial liabilities at fair value through profit or loss (FVTPL)
Held-for-trading financial liabilities (including derivatives that are financial liabilities) and financial
liabilities designated at FVTPL are classified as financial liabilities at FVTP. After initial
recognition any gain or loss (including interest expense) are recognised in current profit or loss
except for those hedge accounting is applied. For financial liability that is designated as at FVTPL
changes in the fair value of the financial liability that is attributable to changes in the own credit risk
of the issuer shall be presented in other comprehensive income. At derecognition cumulative gain
or loss previously recognised under OCI is reclassified to retained earnings.(ii)Loan commitments and financial guarantee contracts
Loan commitment is a commitment by the Company to provide a loan to customer under specified
contract terms. The provision of impairment losses of loan commitments shall be recognised based
on expected credit losses model.Financial guarantee contract is a contract that requires the Company to make specified payments to
reimburse the holder for a loss it incurs because a specified debtor fails to make payment when due
in accordance with the original or modified terms of a debt instrument. Financial guarantee
contracts liability shall be subsequently measured at the higher of: The amount of the loss
allowance recognised according to the impairment principles of financial instruments; and the
amount initially recognised less the cumulative amount of income recognised in accordance with
the revenue principles.(iii)Financial liabilities at amortised cost
After initial recognition the Company measured other financial liabilities at amortised cost using
the effective interest method.Except for special situation financial liabilities and equity instrument should be classified in
accordance with the following principles:
(i) If the Company has no unconditional right to avoid delivering cash or another financial
instrument to 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.~ 131 ~Annual Report 2024
(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).(d) 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 recognised as a liability.Gains or losses arising from the changes in fair value of derivatives shall be recognised directly into
current profit or loss except for the effective portion of cash flow hedges which shall be recognised
in other comprehensive income and reclassified into current profit or loss when the hedged items
affect profit or loss.An embedded derivative is a component of a hybrid contract with a financial asset as a host the
Company shall apply the requirements of financial asset classification to the entire hybrid contract.If a host that is not a financial asset and the hybrid contract is not measured at fair value with
changes in fair value recognised in profit or loss and the economic characteristics and risks of the
embedded derivative are not closely related to the economic characteristics and risks of the host
and a separate instrument with the same terms as the embedded derivative would meet the
definition of a derivative the embedded derivative shall be separated from the hybrid instrument
and accounted for as a separate derivative instrument. If the Company is unable to measure the fair
value of the embedded derivative at the acquisition date or subsequently at the balance sheet date
the entire hybrid contract is designated as financial assets or financial liabilities at fair value through
profit or loss.(e) Impairment of financial instrument
The Company shall recognise a loss allowance based on expected credit losses on a financial asset
that is measured at amortised cost a debt investment at fair value through other comprehensive
income a contract asset a lease receivable a loan commitment and a financial guarantee contract.(i) Measurement of expected credit losses
~ 132 ~Annual Report 2024
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 (ie 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
(ie impairment loss not been deducted). For financial instrument at stage 3 interest revenue shall
be calculated by applying the effective interest rate to the amortised cost after deducting of
impairment loss.For notes receivable accounts receivable and accounts receivable financing no matter it contains a
significant financing component or not the Company shall measure the loss allowance at an amount
equal to the lifetime expected credit losses.Receivables/Contract assets
For the notes receivable accounts receivable other receivables accounts receivable financing and
~ 133 ~Annual Report 2024
long-term receivables which are demonstrated to be impaired by any objective evidence or
applicable for individual assessment the Company shall individually assess for impairment and
recognise the loss allowance for expected credit losses. If the Company determines that no objective
evidence of impairment exists for notes receivable accounts receivable other receivables accounts
receivable financing and long-term receivables or the expected credit loss of a single financial asset
cannot be assessed at reasonable cost such notes receivable accounts receivable other receivables
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.~ 134 ~Annual Report 2024
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%
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
~ 135 ~Annual Report 2024
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:
? Significant changes in internal price indicators of credit risk as a result of a change in credit risk since
inception
? 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；
? 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；
? 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;
? Significant change that are expected to reduce the borrower’s economic incentive to make scheduled
contractual payments;
? 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；
? Significant changes in the expected performance and behavior of the borrower；
? 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
~ 136 ~Annual Report 2024
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 amortised cost and debt investment at fair value through other comprehensive
income. A financial asset is credit-impaired when one or more events that have a detrimental impact
on the estimated future cash flows of that financial asset have occurred. Evidences that a financial
asset is credit-impaired include observable data about the following events:
Significant financial difficulty of the issuer or the borrower；a breach of contract such as a default
or past due event; the lender(s) of the borrower for economic or contractual reasons relating to the
borrower’s financial difficulty having granted to the borrower a concession(s) that the lender(s)
would not otherwise consider；it is becoming probable that the borrower will enter bankruptcy or
other financial reorganisation;the disappearance of an active market for that financial asset because
of financial difficulties；the purchase or origination of a financial asset at a deep discount that
reflects the incurred credit losses.(v) Presentation of impairment of expected credit loss
In order to reflect the changes of credit risk of financial instrument since initial recognition the
Company shall at each reporting date remeasure the expected credit loss and recognise in profit or
loss as an impairment gain or loss the amount of expected credit losses addition (or reversal). For
financial asset at amortised cost the loss allowance shall reduce the carrying amount of the financial
asset in the statement of financial position; for debt investment at fair value through other
comprehensive income the loss allowance shall be recognised in other comprehensive income and
shall not reduce the carrying amount of the financial asset in the statement of financial position.(vi) Write-off
The Company shall directly reduce the gross carrying amount of a financial asset when the
Company has no reasonable expectations of recovering the contractual cash flow of a financial asset
in its entirety or a portion thereof. Such write-off constitutes a derecognition of the financial asset.This circumstance usually occurs when the Company determines that the debtor has no assets or
sources of income that could generate sufficient cash flow to repay the write-off amount.Recovery of financial asset written off shall be recognised in profit or loss as reversal of impairment
loss.(f) Transfer of financial assets
Transfer of financial assets refers to following two situations:
? Transfers the contractual rights to receive the cash flows of the financial asset;
~ 137 ~Annual Report 2024
? 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 derecognised.Whether the Company has retained control of the transferred asset depends on the transferee’s
ability to sell the asset. If the transferee has the practical ability to sell the asset in its entirety to an
unrelated third party and is able to exercise that ability unilaterally and without needing to impose
additional restrictions on the transfer the Company has not retained control.The Company judges whether the transfer of financial asset qualifies for derecognition based on the
substance of the transfer.If the transfer of financial asset qualifies for derecognition in its entirety the difference between the
following shall be recognised in profit or loss:
? The carrying amount of transferred financial asset;
? The sum of consideration received and the part derecognised of the cumulative changes in fair value
previously recognised in other comprehensive income (The financial assets involved in the transfer are
classified as financial assets at fair value through other comprehensive income in accordance with Article 18
of the Accounting Standards for Business Enterprises - Recognition and Measurement of Financial
Instruments).If the transferred asset is a part of a larger financial asset and the part transferred qualifies for
derecognition the previous carrying amount of the larger financial asset shall be allocated between
the part that continues to be recognised (For this purpose a retained servicing asset shall be treated
as a part that continues to be recognised) and the part that is derecognised based on the relative fair
values of those parts on the date of the transfer. The difference between following two amounts shall
be recognised in profit or loss:
? The carrying amount (measured at the date of derecognition) allocated to the part derecognised；
? The sum of the consideration received for the part derecognised and part derecognised of the cumulative
changes in fair value previously recognised in other comprehensive income (The financial assets involved in
the transfer are classified as financial assets at fair value through other comprehensive income in accordance
with Article 18 of the Accounting Standards for Business Enterprises - Recognition and Measurement of
Financial Instruments).(ii) Continuing involvement in transferred assets
If the Company neither transfers nor retains substantially all the risks and rewards of ownership of a
~ 138 ~Annual Report 2024
transferred asset and retains control of the transferred asset the Company shall continue to
recognise the transferred asset to the extent of its continuing involvement and also recognise an
associated liability.The extent of the Company’s continuing involvement in the transferred asset is the extent to which
it is exposed to changes in the value of the transferred asset
(iii) Continue to recognise the transferred assets
If the Company retains substantially all the risks and rewards of ownership of the transferred
financial asset the Company shall continue to recognise the transferred asset in its entirety and the
consideration received shall be recognised as a financial liability.The financial asset and the associated financial liability shall not be offset. In subsequent
accounting period the Company shall continuously recognise any income (gain) arising from the
transferred asset and any expense (loss) incurred on the associated liability.(g) Offsetting financial assets and financial liabilities
Financial assets and financial liabilities shall be presented separately in the statement of financial
position and shall not be offset. When meets the following conditions financial assets and financial
liabilities shall be offset and the net amount presented in the statement of financial position:
The Company currently has a legally enforceable right to set off the recognised amounts; The
Company intends either to settle on a net basis or to realise the asset and settle the liability
simultaneously.In accounting for a transfer of a financial asset that does not qualify for derecognition the Company
shall not offset the transferred asset and the associated liability.(h) Determination of fair value of financial instruments
Determination of fair value of financial assets and financial liabilities please refer to Note 3.11.
3.11 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
~ 139 ~Annual Report 2024
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 categorises into three levels the inputs to
valuation techniques used to measure fair value. The fair value hierarchy gives the highest priority
to Level 1 inputs and second to the Level 2 inputs and the lowest priority to Level 3 inputs. Level 1
inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the
entity can access at the measurement date. Level 2 inputs are inputs other than quoted prices
included within Level 1 that are observable for the asset or liability either directly or indirectly.Level 3 inputs are unobservable inputs for the asset or liability.
3.12 Inventories
(a) Classification of inventories
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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.(b) 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.(c) 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.(d) Recognition Criteria and Provision for impairment of inventory
Inventories are stated at the lower of cost and net realizable value. The excess of cost over net
realizable value of the inventories is recognised as provision for impairment of inventory and
recognised in current profit or loss.Net realizable value of the inventory should be determined on the basis of reliable evidence
obtained and factors such as purpose of holding the inventory and impact of post balance sheet
event shall be considered.(i) In normal operation process finished goods products and materials for direct sale their net
realizable values are determined at estimated selling prices less estimated selling expenses and
relevant taxes and surcharges; for inventories held to execute sales contract or service contract their
net realizable values are calculated on the basis of contract price. If the quantities of inventories
specified in sales contracts are less than the quantities held by the Company the net realizable value
of the excess portion of inventories shall be based on general selling prices. Net realizable value of
materials held for sale shall be measured based on market price.(ii) For materials in stock need to be processed in the ordinary course of production and business
net realisable value is determined at the estimated selling price less the estimated costs of
completion the estimated selling expenses and relevant taxes. If the net realisable value of the
finished products produced by such materials is higher than the cost the materials shall be
measured at cost; if a decline in the price of materials indicates that the cost of the finished products
exceeds its net realisable value the materials are measured at net realisable value and differences
shall be recognised at the provision for impairment.(iii) Provisions for inventory impairment are generally determined on an individual basis. For
inventories with large quantity and low unit price the provisions for inventory impairment are
determined on group basis.~ 141 ~Annual Report 2024
(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.(e) Amortisation method of low-value consumables
Low-value consumables: One-off writing off method is adopted.Package material: One-off writing off method is adopted.
3.13 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.
3.14 Contract costs
Contract costs include costs to fulfill a contract and the costs to obtain a contract.The Company shall recognise 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 labour
direct materials manufacturing costs (or similar costs) costs that are explicitly chargeable to the
customer under the contract and other costs that are incurred only because an entity entered into the
contract;
(ii) The costs enhance resources of the Company that will be used in satisfying performance
obligations in the future; and
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(iii) The costs are expected to be recovered.The incremental costs of obtaining a contract shall be recognised as an asset if the Company expects
to recover them.An asset related to contract costs shall be amortised on a systematic basis that is consistent with the
revenue recognition of the goods or services to which the asset relates. The Company recognises the
contract acquisition costs as an expense when incurred if the amortisation period of the asset that
the Company otherwise would have recognised is one year or less.The Company shall accrue the provision for impairment recognise an impairment loss in profit or
loss to the extent that the carrying amount of an asset related to the contract cost exceeds the
difference of below two items and further consider whether the estimated liability related to the
onerous contract needs to be accrued:
(i) The remaining amount of consideration that the Company expects to receive in exchange for the
goods or services to which the asset relates; less
(ii) The costs that relate directly to providing those goods or services and that have not been
recognised as expenses.The Company shall recognise in profit or loss a reversal of some or all of an impairment loss
previously recognised when the impairment conditions no longer exist or have improved. The
increased carrying amount of the asset shall not exceed the amount that would have been
determined (net of amortisation) if no impairment loss had been recognised previously.Providing that the costs to fulfil a contract satisfy the requirement to be recognised as an asset the
Company shall present them in the account “Inventory” if the contract has an original expectedduration of one year (or a normal operating cycle) or less or in the account “Other non-currentassets” if the contract has an original expected duration of more than one year (or a normal
operating cycle).Providing that the costs to obtain a contract satisfy the requirement to be recgonised 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).
3.15 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.~ 143 ~Annual Report 2024
(a) Determination basis of joint control or significant influence over the investee
Joint control is the relevant agreed sharing of control over an arrangement and the arranged
relevant activity must be decided under unanimous consent of the parties sharing control. In
assessing whether the Company has joint control of an arrangement the Company shall assess first
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.(b) Determination of initial investment cost
(i) Long-term equity investments generated in business combinations
For a business combination involving enterprises under common control if the Company makes
payment in cash transfers non-cash assets or bears liabilities as the consideration for the business
combination the share of carrying amount of the owners’ equity of the acquiree in the consolidated
financial statements of the ultimate controlling party is recognised as the initial cost of the
long-term equity investment on the combination date. The difference between the initial investment
cost and the carrying amount of cash paid non-cash assets transferred and liabilities assumed shall
be adjusted against the capital reserve; if capital reserve is not enough to be offset undistributed
profit shall be offset in turn.For a business combination involving enterprises under common control if the Company issues
equity securities as the consideration for the business combination the share of carrying amount of
the owners’ equity of the acquiree in the consolidated financial statements of the ultimate
controlling party is recognised as the initial cost of the long-term equity investment on the
~ 144 ~Annual Report 2024
combination date. The total par value of the shares issued is recognised as the share capital. The
difference between the initial investment cost and the carrying amount of the total par value of the
shares issued shall be adjusted against the capital reserve; if capital reserve is not enough to be
offset undistributed profit shall be offset in turn.For business combination not under common control the assets paid liabilities incurred or assumed
and the fair value of equity securities issued to obtain the control of the acquiree at the acquisition
date shall be determined as the cost of the business combination and recognised as the initial cost of
the long-term equity investment. The audit legal valuation and advisory fees other intermediary
fees and other relevant general administrative costs incurred for the business combination shall be
recognised in profit or loss as incurred.(ii) Long-term equity investments acquired not through the business combination the investment
cost shall be determined based on the following requirements:
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.For long-term equity investments acquired through issuance of equity securities the initial cost is
the fair value of the issued equity securities.For the long-term equity investments obtained through exchange of non-monetary assets if the
exchange has commercial substance and the fair values of assets traded out and traded in can be
measured reliably the initial cost of long-term equity investment traded in with non-monetary
assets are determined based on the fair values of the assets traded out together with relevant taxes.Difference between fair value and book value of the assets traded out is recorded in current profit or
loss. If the exchange of non-monetary assets does not meet the above criterion the book value of
the assets traded out and relevant taxes are recognised as the initial investment cost.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.(c) Subsequent measurement and recognition of profit or loss
Long-term equity investment to an entity over which the Company has ability of control shall be
accounted for at cost method. Long-term equity investment to a joint venture or an associate shall
be accounted for at equity method.(i) Cost method
For Long-term equity investment at cost method cost of the long-term equity investment shall be
adjusted when additional amount is invested or a part of it is withdrawn. The Company recognises
its share of cash dividends or profits which have been declared to distribute by the investee as
~ 145 ~Annual Report 2024
current investment income.(ii) Equity method
If the initial cost of the investment is in excess of the share of the fair value of the net identifiable
assets in the investee at the date of investment the difference shall not be adjusted to the initial cost
of long-term equity investment; if the initial cost of the investment is in short of the share of the fair
value of the net identifiable assets in the investee at the date investment the difference shall be
included in the current profit or loss and the initial cost of the long-term equity investment shall be
adjusted accordingly.The Company recognises the share of the investee’s net profits or losses as well as its share of the
investee’s other comprehensive income as investment income or losses and other comprehensive
income respectively and adjusts the carrying amount of the investment accordingly. The carrying
amount of the investment shall be reduced by the share of any profit or cash dividends declared to
distribute by the investee. The investor’s share of the investee’s owners’ equity changes other than
those arising from the investee’s net profit or loss other comprehensive income or profit
distribution shall be recognised in the investor’s equity and the carrying amount of the long-term
equity investment shall be adjusted accordingly. The Company recognises its share of the investee’s
net profits or losses after making appropriate adjustments of investee’s net profit based on the fair
values of the investee’s identifiable net assets at the investment date. If the accounting policy and
accounting period adopted by the investee is not in consistency with the Company the financial
statements of the investee shall be adjusted according to the Company’s accounting policies and
accounting period based on which investment income or loss and other comprehensive income
etc. shall be adjusted. The 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
recognised. Any losses resulting from inter-company transactions between the investor and the
investee which belong to asset impairment shall be recognised in full.Where the Company obtains the power of joint control or significant influence but not control over
the investee due to additional investment or other reason the relevant long-term equity investment
shall be accounted for by using the equity method initial cost of which shall be the fair value of the
original investment plus the additional investment. Where the original investment is classified as
other equity investment difference between its fair value and the carrying value in addition to the
cumulative changes in fair value previously recorded in other comprehensive income shall be
recogised into retained earnings of the period of using equity method.If the Company loses the joint control or significant influence of the investee for some reasons such
as disposal of equity investment the retained interest shall be measured at fair value and the
difference between the carrying amount and the fair value at the date of loss the joint control or
significant influence shall be recognised in profit or loss. When the Company discontinues the use
~ 146 ~Annual Report 2024
of the equity method the Company shall account for all amounts previously recognised in other
comprehensive income under equity method in relation to that investment on the same basis as
would have been required if the investee had directly disposed of the related assets or liabilities.(d) 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.(f) 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.
3.16 Investment Properties
(a) 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
(b) The measurement model of investment property
The Company adopts the cost model for subsequent measurement of investment properties.For provision for impairment please refer to Note 3.22.The Company calculates the depreciation or amortisation based on the net amount of
investment property cost less the accumulated impairment and the net residual value using
straight-line method. The estimated useful life and annual depreciation rates which are determined
according to the categories estimated economic useful lives and estimated net residual rates are
listed as followings:
Estimated useful life
Category Residual rates (%) Annual depreciation rates (%)
(year)
Buildings and constructions 10.00-30.00 3.00-5.00 3.17-9.70
Land use right 40.00-50.00 0.00 2.00-2.50
3.17 Fixed Assets
~ 147 ~Annual Report 2024
Fixed assets refer to the tangible assets with higher unit price held for the purpose of producing
commodities rendering services renting or business management with useful lives exceeding one
year.(a) Recognition criteria of fixed assets
Fixed assets will only be recognised at the actual cost paid when obtaining as all the following
criteria are satisfied:
(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.(b) 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:
Depreciation Estimated useful Annual depreciation
Category Residual rates (%)
method life (year) rates (%)
Buildings and constructions straight-line-method 8.00-35.00 3.00-5.00 2.71-12.13
Machinery equipment straight-line-method 8.00-10.00 3.00-5.00 9.50-12.13
Transportation vehicles straight-line-method 4.00 3.00 24.25
Administrative and other
straight-line-method 3.00 3.00 32.33
devices
For the fixed assets with impairment provided the impairment provision should be excluded from
the cost when calculating depreciation.At the end of reporting period the Company shall review the useful life estimated net residual
value and depreciation method of the fixed assets. Estimated useful life of the fixed assets shall be
adjusted if it is changed compared to the original estimation.
3.18 Construction in Progress
(a) Classification of construction in progress
Construction in progress is measured on an individual project basis.(b) Recognition criteria and timing of transfer from construction in progress to fixed
assets
~ 148 ~Annual Report 2024
The initial book values of the fixed assets are stated at total expenditures incurred before they are
ready for their intended use including construction costs original price of machinery equipment
other necessary expenses incurred to bring the construction in progress to get ready for its intended
use and borrowing costs of the specific loan for the construction or the proportion of the general
loan used for the constructions incurred before they are ready for their intended use. The
construction in progress shall be transferred to fixed asset when the installation or construction is
ready for the intended use. For construction in progress that has been ready for their intended use
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
(i) The main construction project and supporting projects have been
substantially completed;
(ii) 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
Houses and buildings
inspected and accepted by the local construction authorities and other relevant units;
(iii) 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.(i) Relevant equipment and other supporting facilities have been installed;
(ii) After debugging the equipment can maintain normal and stable operation for a period of
Equipment to be installed and time and the production equipment can produce qualified products stably in a period of time;
debugged (iii) The equipment management department shall conduct joint inspection with the asset use
department safety management Department emergency Department environmental
Protection Department and other departments.
3.19 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:
~ 149 ~Annual Report 2024
(i) The amount of the initial measurement of the lease liability;
(ii) Any lease payments made at or before the commencement date less any lease incentives
received;
(iii) Any initial direct costs incurred by the Group; and
(iv) 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 expiry of the lease the leased item is depreciated
over its useful life; if however transfer of ownership of the leased item upon expiry of the lease to
the Group cannot be reasonably expected the leased item is depreciated over the shorter of its
useful life and the lease term. Where a leased item has recorded impairment its residual value after
deducting the impairment allowance is depreciated in accordance the principle described in this
paragraph.
3.20 Borrowing costs
(a) 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 recognised as expenses when incurred.(b) 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
~ 150 ~Annual Report 2024
capitalisation as the actual borrowing costs incurred on that borrowing during the period less any
interest income on bank deposit or investment income on the temporary investment of those
borrowings.Where funds allocated for purchase construction or manufacturing of assets eligible for
capitalization are part of a general borrowing the eligible amounts are determined by the
weighted-average of the cumulative capital expenditures in excess of the specific borrowing
multiplied by the general borrowing capitalization rate. The capitalisation rate will be the weighted
average of the borrowing costs applicable to the general borrowing.
3.21 Intangible Assets
(a) Measurement method of intangible assets
Intangible assets are recognised at actual cost at acquisition.(b) The useful life and amortisation of intangible assets
(i) The estimated useful lives of the intangible assets with finite useful lives are as follows:
Category Estimated useful life Basis
Land use right 40-50 years Legal life
The service life is determined by reference to the period that
Patents 10 years
can bring economic benefits to the Company
The service life is determined by reference to the period that
Software 3-5 years
can bring economic benefits to the Company
The service life is determined by reference to the period that
Trademarks 10 years
can bring economic benefits to the Company
For intangible assets with finite useful life the estimated useful life and amortisation method are
reviewed annually at the end of each reporting period and adjusted when necessary. No change has
incurred in current year in the estimated useful life and amortisation method upon review.(ii) Assets of which the period to bring economic benefits to the Company are unforeseeable are
regarded as intangible assets with indefinite useful lives. The Company reassesses the useful
lives of those assets at every year end. If the useful lives of those assets are still indefinite
impairment test should be performed on those assets at the balance sheet date.(iii) Amortisation of the intangible assets
For intangible assets with finite useful lives their useful lives should be determined upon
their acquisition and systematically amortised on a straight-line basis [units of production
method] over the useful life. The amortisation amount shall be recognised into current profit
or loss according to the beneficial items. The amount to be amortised is cost deducting residual
value. For intangible assets which has impaired the cumulative impairment provision shall be
deducted as well. The residual value of an intangible asset with a finite useful life shall be
assumed to be zero unless: there is a commitment by a third party to purchase the asset at the
end of its useful life; or there is an active market for the asset and residual value can be
determined by reference to that market; and it is probable that such a market will exist at the
~ 151 ~Annual Report 2024
end of the asset’s useful life.Intangible assets with indefinite useful lives shall not be amortised. The Company reassesses
the useful lives of those assets at every year end. If there is evidence to indicate that the
useful lives of those assets become finite the useful lives shall be estimated and the intangible
assets shall be amortised systematically and reasonably within the estimated useful lives.(c) Scope of Research and Development Expenditures
The Company classifies the expenses directly related to research and development activities as
research and development expenditures including remuneration of research and development staff
direct material depreciation cost and long-term amortised expense design fee equipment
commissioning fee intangible assets amortisation cost outsourcing research and development
cost and other expenses etc.(d) Criteria of classifying expenditures on internal research and development projects
into research phase and development phase
Preparation activities related to materials and other relevant aspects undertaken by the Company
for the purpose of further development shall be treated as research phase. Expenditures incurred
during the research phase of internal research and development projects shall be recognised in
profit or loss when incurred.Development activities after the research phase of the Company shall be treated as development
phase.(e) Criteria for capitalization of qualifying expenditures during the development phase
Expenditures arising from development phase on internal research and development projects shall
be recognised as intangible assets only if all of the following conditions have been met:
(i) Technical feasibility of completing the intangible assets so that they will be available
for use or sale;
(ii) Its intention to complete the intangible asset and use or sell it;
(iii) 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;
(iv) The availability of adequate technical financial and other resources to complete the
development and to use or sell the intangible asset; and
(v) Its ability to measure reliably the expenditure attributable to the intangible asset.
3.22 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
~ 152 ~Annual Report 2024
combination intangible assets with an indefinite useful life or intangible assets not yet
available for use annually.The recoverable amounts of the long-term assets are the higher of their fair values less costs
to dispose and the present values of the estimated future cash flows of the long-term assets.The Company estimate the recoverable amounts on an individual basis. If it is difficult to estimate
the recoverable amount of the individual asset the Company estimates the recoverable amount
of the groups of assets that the individual asset belongs to. Identification of a group of asset
is based on whether the cash inflows from it are largely independent of the cash inflows from
other assets or groups of assets.If and only if the recoverable amount of an asset or a group of assets is less than its carrying
amount the carrying amount of the asset shall be reduced to its recoverable amount and the
provision for impairment loss shall be recognised accordingly.For the purpose of impairment testing goodwill acquired in a business combination shall from
the acquisition date be allocated to relevant group of assets based on reasonable method; if
it is difficult to allocate to relevant group of assets good will shall be allocated to relevant
combination of asset groups. The relevant group of assets or combination of asset groups is a
group of assets or combination of asset groups that is benefit from the synergies of the business
combination and is not larger than the reporting segment determined by the Company.When test for impairment if there is an indication that relevant group of assets or combination
of asset groups may be impaired impairment testing for group of assets or combination of asset
groups excluding goodwill shall be conducted first and the recoverable amount shall be then
calculated and the impairment loss shall be recognised accordingly. Then the group of assets
or combination of asset groups including goodwill shall be tested for impairment by comparing
the carrying amount with its recoverable amount. If the recoverable amount is less than the
carrying amount the Company shall recognise the impairment loss.The mentioned impairment loss will not be reversed in subsequent accounting period once it had
been recognised.
3.23 Long-term Deferred Expenses
Long-term deferred expenses are various expenses already incurred which shall be amortised over
current and subsequent periods with the amortisation period exceeding one year.
3.24 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”.~ 153 ~Annual Report 2024
(a) Short-term employee benefits
(i) Employee basic salary (salary bonus allowance subsidy)
The Company recognises in the accounting period in which an employee provides service actually
occurred short-term employee benefits as a liability with a corresponding charge to current profit
except for those recognised as capital expenditure based on the requirement of accounting
standards.(ii) Employee welfare
The Company shall recognise the employee welfare based on actual amount when incurred into
current profit or loss or related capital expenditure. Employee welfare shall be measured at fair
value as it is a non-monetary benefits.(iii) Social insurance such as medical insurance work injury insurance and maternity insurance
housing funds labor union fund and employee education fund
Payments made by the Company of social insurance for employees such as medical insurance
work injury insurance and maternity insurance payments of housing funds and 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 recognised in current profit or loss or the cost of relevant asset.(iv) Short-term paid absences
The company shall recognise the related employee benefits arising from accumulating paid
absences when the employees render service that increases their entitlement to future paid absences.The additional payable amounts shall be measured at the expected additional payments as a result of
the unused entitlement that has accumulated. The Company shall recognise relevant employee
benefit of non-accumulating paid absences when the absences actually occurred.(v)Short-term profit-sharing plan
The Company shall recognise the related employee benefits payable under a profit-sharing plan
when all of the following conditions are satisfied:
? The Company has a present legal or constructive obligation to make such payments as a result of past
events; and
? A reliable estimate of the amounts of employee benefits obligation arising from the profit- sharing plan
can be made.(b) Post-employment benefits
(i) Defined contribution plans
The Company shall recognise in the accounting period in which an employee provides service the
~ 154 ~Annual Report 2024
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
The present value of defined benefit obligation and current service costs
Based on the expected accumulative welfare unit method the Company shall make estimates about
demographic variables and financial variables in adopting the unbiased and consistent actuarial
assumptions and measure defined benefit obligation and determine the obligation period. The
Company shall discount the obligation arising from defined benefit plan using relevant discount rate
(market yields at the end of the reporting period on high quality corporate bonds in active market or
government bonds with the currency and term which shall be consistent with the currency and
estimated term of the defined benefit obligations) in order to determine the present value of the
defined benefit obligation and the current service cost.The net defined benefit liability or asset
The net defined benefit liability (asset) is the deficit or surplus recognised as the present value of
the defined benefit obligation less the fair value of plan assets (if any).When the Company has a surplus in a defined benefit plan it shall measure the net defined benefit
asset at the lower of the surplus in the defined benefit plan and the asset ceiling.The amount recognised in the cost of asset or current profit or loss
Service cost comprises current service cost past service cost and any gain or loss on settlement.Other service cost shall be recognised in profit or loss unless accounting standards require or allow
the inclusion of current service cost within the cost of assets.Net interest on the net defined benefit liability (asset) comprising interest income on plan assets
interest cost on the defined benefit obligation and interest on the effect of the asset ceiling shall be
included in profit or loss.The amount recognised in other comprehensive income
Changes in the net liability or asset of the defined benefit plan resulting from the remeasurements
including:
? Actuarial gains and losses the changes in the present value of the defined benefit obligation resulting
~ 155 ~Annual Report 2024
from experience adjustments or the effects of changes in actuarial assumptions;
? Return on plan assets excluding amounts included in net interest on the net defined benefit liability or
asset;
? Any change in the effect of the asset ceiling excluding amounts included in net interest on the net defined
benefit liability (asset).Remeasurements of the net defined benefit liability (asset) recognised in other comprehensive
income shall not be reclassified to profit or loss in subsequent periods. Upon termination of the
original defined benefit plan the portion previously recognised in other comprehensive income
shall be reclassified in full to retained earnings within equity.(c) Termination benefits
The Company providing termination benefits to employees shall recognise an employee benefits
liability for termination benefits with a corresponding charge to the profit or loss of the reporting
period at the earlier of the following dates:
(i) When the Company cannot unilaterally withdraw the offer of termination benefits because of
an employment termination plan or a curtailment proposal.(ii) When the Company recognises costs or expenses related to a restructuring that involves the
payment of termination benefits.If the termination benefits are not expected to be settled wholly before twelve months after the end
of the annual reporting period the Company shall discount the termination benefits using relevant
discount rate (market yields at the end of the reporting period on high quality corporate bonds in
active market or government bonds with the currency and term which shall be consistent with the
currency and estimated term of the defined benefit obligations) to measure the employee benefits.(d) Other long-term employee benefits
(i) Meet the conditions of the defined contribution plan
When other long-term employee benefits provided by the Company to the employees satisfies the
conditions for classifying as a defined contribution plan all those benefits payable shall be
accounted for as employee benefits payable at their discounted value.(ii) Meet the conditions of the defined benefit plan
At the end of the reporting period the Company recognised the cost of employee benefit from other
long-term employee benefits as the following components:
? Service costs;
? Net interest cost for net liability or asset of other long-term employee benefits
~ 156 ~Annual Report 2024
? Changes resulting from the remeasurements of the net liability or asset of other long-term employee benefits
In order to simplify the accounting treatment the net amount of above items shall be recognised in
profit or loss or relevant cost of assets.
3.25 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:
(i) Fixed payments or in-substance fixed payments less any lease incentives receivable;
(ii) Variable lease payments that depend on an index or a rate;
(iii) The exercise price of a purchase option if the Group is reasonably certain to exercise that
option;
(iv) Payments of penalties for terminating the lease if the lease term reflects the Group exercising
an option to terminate the lease; and
(v) 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 amortised
over the lease term as interest expenses using the discount rate. A variable lease payment which is
not included in the initial measurement of the lease liability is recognised in profit or loss when
incurred.
3.26 Provisions
(a) Recognition
A provision is recognised for an obligation associated with a contingent event when the following
conditions are satisfied:
(i) The obligation is a present obligation assumed by the entity;
(ii) It is probable that fulfillment of the obligation will result in outflows of economic benefits from
the entity;
(iii) The amount of the obligation can be reliably measured.(b) 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
~ 157 ~Annual Report 2024
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.
3.27 Revenue
(a) General Principle
Revenue is defined as the gross inflow of economic benefits arising in the course of the ordinary
activities of the Company when those inflows result in the increases in shareholders’ equity other
than increases relating to contributions from shareholders.The Company shall recognise revenue when it satisfies a performance obligation in the contract as
the customer obtains control of a good or service. Control of a good or service refers to the ability to
direct the use of and obtain substantially all of the remaining economic benefits from the good or
service.When the contract has two or more obligation performances the Company shall allocate the
transaction price to each performance obligation in proportion to a relative stand-alone selling price
at contract inception of the promised good or service underlying each performance obligation in the
contract and 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 recognised will not occur when the uncertainty associated with the variable
consideration is subsequently resolved. If the contract contains a significant financing component
the Company shall determine the transaction price at an amount that reflects the price that a
customer would have paid for the promised goods or services if the customer had paid cash for
those goods or services when (or as) they transfer to the customer. The difference between the
transaction price and the promised consideration shall be amortised using the effective interest
method within the contract period. The Company need not consider the effects of a significant
financing component if the period between when the Company transfers control of a good or
service to a customer and when the customer pays for that good or service will be one year or less.The Company satisfies a performance obligation over time if one of the following criteria is met;
otherwise a performance obligation is satisfied at a point in time:
(i) The customer simultaneously receives and consumes the benefits provided by the Company’s
~ 158 ~Annual Report 2024
performance as the Company performs;
(ii) The Company’s performance creates or enhances an asset (for example work in progress) that
the customer controls as the asset is created or enhanced;
(iii) The Company’s performance does not create an asset with an alternative use to the Company
and the Company has an enforceable right to payment for performance completed to date.For each performance obligation satisfied over time the Company shall recognise revenue over
time by measuring the progress towards complete satisfaction of that performance obligation unless
those progress cannot be reasonably measured. The Company measures the progress of a
performance obligation for the service rendered using input methods (or output methods). In some
circumstances the Company cannot be able to reasonably measure the progress of a performance
obligation but the Company expects to recover the costs incurred in satisfying the performance
obligation. In those circumstances the Company shall recognise revenue only to the extent of the
costs incurred until such time that it can reasonably measure the progress of the performance
obligation.The Company shall recognise revenue at the point in which a customer obtains control of a
promised good or service if a performance obligation is satisfied at a point in time. To determine the
point in time at which a customer obtains control of a promised good or service the Company shall
consider indicators of the transfer of control which include but are not limited to the followings:
(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.(b) Specific Method
Revenue recognition methods of the Company are as follows:
(i) Contract of sales of goods
According to the contract of sales of goods between the Company and the customer the Company
~ 159 ~Annual Report 2024
satisfies a performance obligation by transferring goods to the customer which is a performance
obligation satisfied at a point in time.Revenue from domestic sales of goods can only be recognised when the following conditions are
satisfied: the Company has transferred the promised goods to the customer according to the contract
and the customer has accepted the goods; the payment has been received or the receipt voucher has
been obtained and it is highly probable that the consideration will be received; the significant risks
and rewards of ownership of the asset has been transferred; legal title of the asset has been
transferred.(ii) Contract of rendering services
The customer simultaneously receives and consumes the benefits provided by the Company’s
performance as the Company performs，Company satisfies a performance obligation by renderingof services to the customer which is a performance obligation satisfied over time. For each
performance obligation satisfied over time the Company shall recognise revenue over time by
measuring the progress towards complete satisfaction of that performance obligation.The customer can’t simultaneously receives 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
(iii) Revenue from usage of assets
Revenue from usage of the Group’s assets is recognised if the revenue can be reliably measured and
it is probable that the associated economic benefits will flow to the Group.Revenue from usage of assets mainly includes the income from the leasing of premises and
houses.Revenue measured in accordance with the method determined by the respective contracts.
3.28 Government Grants
(a) Recognition of government grants
A government grant shall not be recgonised until there is reasonable assurance that:
(i) The Company will comply with the conditions attaching to them; and
~ 160 ~Annual Report 2024
(ii) The grants will be received.(b) 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 RMB 1.00 when reliable fair value is not available.(c) Accounting for government grants
(i) Government grants related to assets
Government grants pertinent to assets mean the government grants that are obtained by the
Company used for purchase or construction or forming the long-term assets by other ways.Government grants pertinent to assets shall be recognised as deferred income and should be
recognised in profit or loss on a systematic basis over the useful lives of the relevant assets. Grants
measured at their nominal value shall be directly recognised in profit or loss of the period when the
grants are received. When the relevant assets are sold transferred written off or damaged before the
assets are terminated the remaining deferred income shall be transferred into profit or loss of the
period of disposing relevant assets.(ii) Government grants related to income
Government grants other than related to assets are classified as government grants related to income.Government grants related to income are accounted for in accordance with the following principles:
If the government grants related to income are used to compensate the enterprise’s relevant
expenses or losses in future periods such government grants shall be recognised as deferred income
and included into profit or loss (or write down related expenses) in the same period as the relevant
expenses or losses are recognised;
If the government grants related to income are used to compensate the enterprise’s relevant
expenses or losses incurred such government grants are directly recognised into current profit or
loss (or write down related expenses).For government grants comprised of part related to assets as well as part related to income each
part is accounted for separately; if it is difficult to identify different part the government grants are
accounted for as government grants related to income as a whole.Government grants related to daily operation activities are recognised in other income (or write
down related expenses) in accordance with the nature of the activities and government grants
irrelevant to daily operation activities are recognised in non-operating income.(iii) Loan interest subsidy
When loan interest subsidy is allocated to the bank and the bank provides a loan at lower-market
~ 161 ~Annual Report 2024
rate of interest to the Company the loan is recognised at the actual received amount and the interest
expense is calculated based on the principal of the loan and the lower-market rate of interest.When loan interest subsidy is directly allocated to the Company the subsidy shall be recognised as
offsetting the relevant borrowing cost.(iv) Repayment of the government grants
Repayment of the government grants shall be recorded by increasing the carrying amount of the
asset if the book value of the asset has been written down or reducing the balance of relevant
deferred income if deferred income balance exists any excess will be recognised into current profit
or loss; or directly recognised into current profit or loss for other circumstances.
3.29 Deferred Tax Assets and Deferred Tax Liabilities
Temporary differences are differences between the carrying amount of an asset or liability in
the statement of financial position and its tax base at the balance sheet date. The Company
recognise and measure the effect of taxable temporary differences and deductible temporary
differences on income tax as deferred tax liabilities or deferred tax assets using liability
method. Deferred tax assets and deferred tax liabilities shall not be discounted.(a) Recognition of deferred tax assets
Deferred tax assets should be recognised for deductible temporary differences the carryforward of
unused tax losses and the carryforward of unused tax credits to the extent that it is probable that
taxable profit will be available against which the deductible temporary differences the carryforward
of unused tax losses and the carryforward of unused tax credits can be utilised at the tax rates that
are expected to apply to the period when the asset is realised unless the deferred tax asset arises
from the initial recognition of an asset or liability in a transaction that:
(i) Is not a business combination; and
(ii) At the time of the transaction affects neither accounting profit nor taxable profit (tax loss)
However the exemption from recognising deferred tax liabilities and assets upon initial recognition
does not apply to a single transaction that: (a) simultaneously satisfies both of the aforementioned
conditions; and (b) generates equal amounts of taxable temporary differences and deductible
temporary differences from the initial recognition of related assets and liabilities. For such
transactions the Company recognises corresponding deferred tax liabilities for taxable temporary
differences and deferred tax assets for deductible temporary differences at the transaction date.The Company shall recognise a deferred tax asset for all deductible temporary differences arising
from investments in subsidiaries associates and joint ventures only to the extent that it is probable
that:
~ 162 ~Annual Report 2024
(i) The temporary difference will reverse in the foreseeable future; and
(ii) Taxable profit will be available against which the deductible temporary difference can be
utilised.At the end of each reporting period if there is sufficient evidence that it is probable that taxable
profit will be available against which the deductible temporary difference can be utilized the
Company recognises a previously unrecognised deferred tax asset.The carrying amount of a deferred tax asset shall be reviewed at the end of each reporting period.The Company shall reduce the carrying amount of a deferred tax asset to the extent that it is no
longer probable that sufficient taxable profit will be available to allow the benefit of part or all of
that deferred tax asset to be utilised. Any such reduction shall be reversed to the extent that it
becomes probable that sufficient taxable profit will be available.(b) Recognition of deferred tax liabilities
A deferred tax liability shall be recognised for all taxable temporary differences at the tax rate that
are expected to apply to the period when the liability is settled.(i) No deferred tax liability shall be recognised for taxable temporary differences arising from:
? The initial recognition of goodwill; or
? 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 recognise a deferred tax liability for all taxable temporary differences associated
with investments in subsidiaries associates and joint ventures except to the extent that both of the
following conditions are satisfied:
? The Company is able to control the timing of the reversal of the temporary difference; and
? It is probable that the temporary difference will not reverse in the foreseeable future.(c) Recognition of deferred tax liabilities or assets involved in special transactions or events
(i) Deferred tax liabilities or assets related to business combination
For the taxable temporary difference or deductible temporary difference arising from a business
combination not under common control a deferred tax liability or a deferred tax asset shall be
recognised and simultaneously goodwill recognised in the business combination shall be adjusted
based on relevant deferred tax expense (income).(ii) Items directly recognised in equity
~ 163 ~Annual Report 2024
Current tax and deferred tax related to items that are recognised directly in equity shall be
recognised in equity. Such items include: other comprehensive income generated from fair value
fluctuation of other debt investments; an adjustment to the opening balance of retained earnings
resulting from either a change in accounting policy that is applied retrospectively or the correction
of a prior period (significant) error; amounts arising on initial recognition of the equity component
of a compound financial instrument that contains both liability and equity component.(iii) Unused tax losses and unused tax credits
Unused tax losses and unused tax credits generated from daily operation of the Company itself
Deductible loss refers to the loss calculated and permitted according to the requirement of tax law
that can be offset against taxable income in future periods. The criteria for recognising deferred tax
assets arising from the carryforward of unused tax losses and tax credits are the same as the criteria
for recognising deferred tax assets arising from deductible temporary differences. The Company
recognises a deferred tax asset arising from unused tax losses or tax credits only to the extent that
there is convincing other evidence that sufficient taxable profit will be available against which the
unused tax losses or unused tax credits can be utilised by the Company. Income taxes in current
profit or loss shall be deducted as well.Unused tax losses and unused tax credits arising from a business combination
Under a business combination the acquiree’s deductible temporary differences which do not satisfy
the criteria at the acquisition date for recognition of deferred tax asset shall not be recognised.Within 12 months after the acquisition date if new information regarding the facts and
circumstances exists at the acquisition date and the economic benefit of the acquiree’s deductible
temporary differences at the acquisition is expected to be realised the Company shall recognise
acquired deferred tax benefits and reduce the carrying amount of any goodwill related to this
acquisition. If goodwill is reduced to zero any remaining deferred tax benefits shall be recognised
in profit or loss. All other acquired deferred tax benefits realised shall be recognised in profit or
loss.(iv) Temporary difference generated in consolidation elimination
When preparing consolidated financial statements if temporary difference between carrying value
of the assets and liabilities in the consolidated financial statements and their taxable bases is
generated from elimination of inter-company unrealized profit or loss deferred tax assets or
deferred tax liabilities shall be recognised in the consolidated financial statements and income taxes
expense in current profit or loss shall be adjusted as well except for deferred tax related to
transactions or events recognised directly in equity and business combination.(v) Share-based payment settled by equity
~ 164 ~Annual Report 2024
If tax authority permits tax deduction that relates to share-based payment during the period in
which the expenses are recognised according to the accounting standards the Company estimates
the tax base in accordance with available information at the end of the accounting period and the
temporary difference arising from it. Deferred tax shall be recognised when criteria of recognition
are satisfied. If the amount of estimated future tax deduction exceeds the amount of the cumulative
expenses related to share-based payment recognised according to the accounting standards the tax
effect of the excess amount shall be recognised directly in equity.(vi)Dividends arising from financial instruments classified as equity instruments
For financial instruments classified as equity instruments by the Company as the issuer where
related dividend payments are deductible for income tax purposes under applicable tax regulations
the Company recognises the associated income tax effects when dividends payable are recognised.The income tax effects are recognised in profit or loss if the distributed profits arise from
transactions or events previously recognised in profit or loss. Conversely if the distributed profits
arise from transactions or events previously recognised in equity the corresponding income tax
effects are recognised directly in equity items.(d) Basis for deferred income tax assets and deferred income tax liabilities presented on a net
basis
The Company shall offset deferred tax assets and deferred tax liabilities if and only if:
(i) the Company has a legally enforceable right to set off current tax assets against current tax
liabilities; and
(ii) the deferred tax assets and the deferred tax liabilities relate to income taxes levied by the same
taxation authority on either:
? the same taxable entity; or
? different taxable entities which intend either to settle current tax liabilities and assets on a net basis or to
realise the assets and settle the liabilities simultaneously in each future period in which significant
amounts of deferred tax liabilities or assets are expected to be settled or recovered.
3.30 Leases
(a) 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
~ 165 ~Annual Report 2024
the economic benefits from use of the identified asset and to direct the use of the identified asset.(b) 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.(c) The Company as a lessee
At the commencement date the Company identifies the lease that has a lease term of 12 months or
less and does not contain a purchase option as a short-term lease. A lease qualifies as a lease of a
low-value asset if the nature of the asset is such that when new the asset is typically of low value.If the Company subleases an asset or expects to sublease an asset the head lease does not qualify
as a lease of a low-value asset.For all the short-term leases or leases for which the underlying asset is of low value the Company
shall recognise the lease payments associated with those leases as cost of relevant asset or expenses
in current profit or loss on a straight-line basis over the lease term.Except for the election of simple treatment as short-term lease or lease of a low-value asset as
mentioned above at the commencement date the Company shall recognise a right-of-use asset and
a lease liability.(i) Right-of-use asset
A right-of-use asset is an asset that represents a lessee’s right to use an underlying asset for the lease
term.At the commencement date the Company shall initially measure the right-of-use asset at cost. The
cost of the right-of-use asset shall comprise:
? the amount of the initial measurement of the lease liability；
? any lease payments made at or before the commencement date less any lease incentives received;
? any initial direct costs incurred by the lessee; and
? an estimate of costs to be incurred by the lessee in dismantling and removing the underlying asset restoring
the site on which it is located or restoring the underlying asset to the condition required by the terms and
conditions of the lease. The Company recognises and measures the cost in accordance with the recognition
criteria and measurement method for estimated liabilities details please refer to Notes 3.26. Those costs
incurred to produce inventories shall be included in the cost of inventories.~ 166 ~Annual Report 2024
The right-of-use asset shall be depreciated according to the categories using straight‐line method.If it is reasonably certain that the ownership of the underlying asset shall be transferred to the lessee
by the end of the lease term the depreciation rate shall be determined based on the classification of
the right-of- use asset and estimated residual value rate from the commencement date to the end of
the useful life of the underlying asset. Otherwise the depreciation rate shall be determined based on
the classification of the right-of-use asset from the commencement date to the earlier of the end of
the useful life of the right-of-use asset or the end of the lease term.The depreciation method estimated useful life residual rates and annual depreciation rates which
are determined according to the categories of right-of-use asset are listed as followings:
Depreciation Estimated useful Annual depreciation rates
Category Residualrates (%)
method life (year) (%)
Buildings and straight‐line
3.00-10.000.0010.00-33.33
constructions method
straight‐line
Machinery equipment 3.00 0.00 33.33
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 recognised as unrecognised financing charges calculated bases on the discount rate of the
present value of the lease payments in each period within the lease term and recorded as interest
expense in current profit or loss. Variable lease payments not included in the measurement of lease
liabilities shall be recognised in current profit or loss when incurred.After the commencement date the Company shall remeasure the lease liability based on the revised
present value of the lease payments and adjust the carrying amount of the right-of-use asset if there
~ 167 ~Annual Report 2024
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.(d) The Company as a lessor
At the commencement date the Company shall classify a lease as a finance lease if it transfers
substantially all the risks and rewards incidental to ownership of an underlying asset otherwise it
shall be classified as an operating lease.(i) Operating leases
The Company shall recognise lease payments from operating leases as income on a straight-line
basis over the term of the relevant lease and the initial direct costs incurred in obtaining an
operating lease shall be capitalised and recognised as an expense over the lease term on the same
basis as the lease income. The Company shall recognise the variable lease payments relating to the
operating lease but not included in the measurement of the lease receivables into current profit or
loss when incurred.(ii) Finance leases
At the commencement date the Company shall recognise the lease receivables at an account equal
to the net investment in the lease (the sum of the present value of the unguaranteed residual values
and the lease payment that are not received at the commencement date discounted at the interest rate
implicit in the lease) and derecognise the asset relating to the finance lease. The Company shall
recognise interest income using the interest rate implicit in the lease over the lease term.The Company shall recognise the variable lease payments relating to the finance lease but not
included in the measurement of the net investment in the lease into current profit or loss when
incurred.(e) 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:
? the modification increases the scope of the lease by adding the right to use one or more underlying assets;
and
? 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
~ 168 ~Annual Report 2024
The Company as a lessee
At the effective date of the lease modification the Company shall redetermine the lease term of the
modified lease and remeasure the lease liability by discounting the revised lease payments using a
revised discount rate. The revised discount rate is determined as the interest rate implicit in the lease
for the remainder of the lease term if that rate can be readily determined or the incremental
borrowing rate at the effective date of the modification if the interest rate implicit in the lease
cannot be readily determined.The Company shall account for the remeasurement of the lease liability by:
? decreasing the carrying amount of the right-of-use asset to reflect the partial or full termination of the lease
for lease modifications that decrease the scope of the lease or shorten the lease term. The Company shall
recognise in profit or loss any gain or loss relating to the partial or full termination of the lease.? Making a corresponding adjustment to the carrying amount of the right-of-use asset for all other lease
modifications.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.(f) 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.(i) The Company as a seller (lessee)
If the transfer of the asset is not a sale the Company shall continue to recognise the transferred
asset and shall recognise a financial liability equal to the transfer proceeds. It shall account for the
financial liability according to Note 3.10. If the transfer of the asset is a sale the Company shall
~ 169 ~Annual Report 2024
measure the right-of-use asset arising from the leaseback at the proportion of the previous carrying
amount of the asset that relates to the right of use retained by the Company. Accordingly the
Company shall recognise only the amount of any gain or loss that relates to the rights transferred to
the buyer-lessor.(ii) The Company as a buyer (lessor)
If the transfer of the asset is not a sale the Company shall not recognise the transferred asset and
shall recognise a financial asset equal to the transfer proceeds. It shall account for the financial asset
according to Note 3.10. If the transfer of the asset is a sale the Company shall account for the
purchase of the asset applying applicable Accounting Standards of Business Enterprises and for the
lease applying the lessor accounting requirements.
3.31 Changes in Significant Accounting Policies and Accounting Estimates
(a) Changes in accounting polices
(i) Reclassification of assurance-type warranty expenses
The Compilation 2024 of Application Guidance for Enterprise Accounting Standards issued by
the Ministry of Finance in March 2024 and Interpretation of Accounting Standards for Business
Enterprises No.18 issued on 6 December 2024 require that expenses related to assurance-type
warranties be recognised in cost of sales. The implementation of these provisions had no material
impact on the Company’s financial statements for the reporting period.(ii) Implementation of Interpretation of Accounting Standards for Business Enterprises No.17
On 25 October 2023 the Ministry of Finance issued Interpretation of Accounting Standardsfor Business Enterprises No.17 (Cai Kuai [2023] No. 21) (hereinafter referred to as “InterpretationNo. 17”) which was effective from January 1 2024. The Company has adopted Interpretation No.
17 since 1 January 2024.
A. Classification between Current and Non-Current Liabilities
The Company has adopted Interpretation No. 17 on the classification of current liabilities and
non-current liabilities on 1 January 2024. This regulation did not have a significant impact on the
Company's financial position and operating results.B. Disclosure of Supplier Financing Arrangements
The Company has adopted the disclosure regarding the financing arrangements for suppliers
on 1 January 2024. This regulation did not have a significant impact on the Company's financial
position and operating results.C. Accounting Treatment of Sale-and-leaseback Transaction
The Company has adopted the accounting treatment regulations on sale and leaseback
transactions as stipulated in Interpretation No. 17 on 1 January 2024. This regulation did not have a
~ 170 ~Annual Report 2024
significant impact on the Company's financial position and operating results.(b) Significant changes in accounting estimates
The Company has no significant changes in accounting estimates for the reporting period.
4. TAXATION
4.1Major Categories of Tax and Tax Rates Applicable to the Company
Categories of tax Basis of tax assessment Tax rate
Valur added in the course of sales of goods and
Value added tax (VAT) 13% 9% 6%
rendering of services
Tax by quantity: CNY 1.00 per
kilogram or litre of distrilled
wine sold;
Consumption duty Taxable revenue
Tax by revenue: 20% on
taxable revenue from sale of
distrilled wine
Urban maintenance and construction
Transaction tax payable 7% 5%
tax
Education surcharge Transaction tax payable 3%
Local education surcharge Transaction tax payable 2%
Corporate income tax (CIT) Taxable income 25%
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 Abbreviation Rate of Income Tax
Anhui Longrui Glass Co. Ltd. Longrui Glass 15.00%
Anhui Ruisi Weier Technology Co. Ltd. Ruisi Weier 15.00%
Anhui Runan Xinke Testing Technology
Runan Xinke 15.00%
Co. Ltd.Anhui Gujing Distillery Wine Theme
Theme Hotel 20.00%
Hotel Management Co. Ltd
Anhui Gu Qi Distillery Co. Ltd. Anhui Gu Qi Distillery 20.00%
Baozhou Gujing Guest House Co. Ltd. GJ Guest House 20.00%
Anhui Jiuhao ChinaRail Construction
Jiuhao ChinaRail 20.00%
Engineering Co. Ltd.Anhui Guge Culture Media Co. LTD. Guge Culture 20.00%
Hubei Junlou Culture Travel Co. Ltd. Junlou Culture 20.00%
Hubei HHL Beverage Co. Ltd. HHL Beverage 20.00%
Wuhan Yashibo Technology Co. Ltd. Yashibo 20.00%
~ 171 ~Annual Report 2024
Name of Taxpayer Abbreviation Rate of Income Tax
Hubei Xinjia Testing Technology Co.Xinjia Testing 20.00%
Ltd.Ezhou Junya Trading Co. Ltd. Ezhou Junya Trading 20.00%
Wuhan Juntai Trading Co. Ltd. Wuhan Juntai Trading 20.00%
Wuhan Gulou Junhe Trading Co. Ltd. Wuhan Gulou Junhe 20.00%
Wuhan Gulou Juntai Trading Co. Ltd. Wuhan Gulou Juntai 20.00%
Anhui Gujing Health Technology Co.GJ Health Technology 15.00%
Ltd
4.2Tax Preference
(i) Ruisi Weier’s High-Tech Enterprise Status was approved by the Anhui Science and Technology
Department (Anhui STD)bthrough WanKeQiMi [2022] No. 482 and was issued the High-Tech
Enterprise Certificate (GR202234000476) with the validity term of 3 years. In accordance with the
Corporate Income Tax Law of the People’s Republic of China the CIT rate applicable to Ruisi
Weier for the period from 1 January 2022 to 31 Decmeber 2024 is 15%.(ii) Longrui Glass’s High-Tech Enterprise Status was jointly approved by the Anhui STD Anhui
Finance Department (Anhui FiD) and Anhui Tax Office (Anhui PAT) through the "Notice on the
Filing and Publicity of the First Batch of High-tech Enterprises Recognized by the Anhui Province
Certification Body in 2022" and was issued the High-Tech Enterprise Certificate
(GR202234004359) with the validity term of 3 years. In accordance with the Corporate Income Tax
Law of the People’s Republic of China the CIT rate applicable to Longrui Glass for the period from
1 January 2022 to 31 Decemeber 2024 is 15%.
(iii) Runan Xinke’s High-Tech Enterprise Status was approved by the relevant provisions of the
"Administrative Measures for the Recognition of High-tech Enterprises" (Guo Ke Fa Huo [2016]
No. 32) and the "Guidelines for the Administration of the Recognition of High-tech Enterprises"
(Guo Ke Fa Huo [2016] No. 195) and was issued the High-Tech Enterprise Certificate
(GR202434002657) with the validity term of 3 years. In accordance with the Corporate Income Tax
Law of the People’s Republic of China the CIT rate applicable to Runan Xinke for the period from
1 January 2024 to 31 Decmeber 2026 is 15%.
(iv) GJ Health Technology’s High-Tech Enterprise Status was approved by the relevant provisions
of the "Administrative Measures for the Recognition of High-tech Enterprises" (Guo Ke Fa Huo
[2016] No. 32) and the "Guidelines for the Administration of the Recognition of High-tech
Enterprises" (Guo Ke Fa Huo [2016] No. 195) and was issued the High-Tech Enterprise Certificate
(GR202434002983) with the validity term of 3 years. In accordance with the Corporate Income Tax
Law of the People’s Republic of China the CIT rate applicable to GJ Health Technology for the
period from 1 January 2024 to 31 Decmeber 2026 is 15%.~ 172 ~Annual Report 2024
(v) Announcement on Preferential Income Tax Policies for Small and Micro Enterprises and
Individual Industrial and Commercial Households (Announcement No. 12 of 2023 by the General
Administration of Taxation of the Ministry of Finance) from 1 January 2023 to 31 December 2027
the part of the annual taxable income of small and micro profit enterprises that does not exceed 3
million yuan shall be included in the taxable income at a reduced rate of 25%. Pay corporate income
tax at a rate of 20%. Theme Hotel GJ Guest House Gu Qi Distillery Hubei Junlou Cultural HHL
Beverage Yashibo Xinjia Testing Ezhou Junya Trading Wuhan Juntai Trading Wuhan Gulou
Junhe Wuhan Gulou Juntai Anhui Guge Culture and Jiuhao ChinaRail comply with the relevant
provisions of small small profit enterprise income tax preferential policy.
5. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
5.1 Monetary funds
Items 31 December 2024 31 December 2023
Cash on hand 62770.67 78223.44
Cash at bank 15830320147.70 15674993088.76
Other monetary funds 63721548.16 291300431.99
Total 15894104466.53 15966371744.19
Notes: At the end of 2024 the bank deposits were used to pledge the
bank acceptance bill of 690.00 million other restricted funds of cash at
bank were 377800 yuan. 10.59 million of other monetary funds were
used as collateral for the issuance of bank acceptance drafts that could
not be withdrawn in advance and 0.0019 million yuan of other restricted
funds were in other monetary funds. Except for the pre-mentioned
monetary funds as of the statement date was not subject to limitation
on usage such as pledging or freezing or risk on recovery.
5.2 Financial Assets Held-for-trading
Items 31 December 2024 31 December 2023
~ 173 ~Annual Report 2024
Items 31 December 2024 31 December 2023
Financial assets at fair value through profit or loss 60184353.81 719987547.42
Including: Structural financial products 60184353.81 719987547.42
Total 60184353.81 719987547.42
5.3 Accounts Receivable
(a) Accounts receivable by aging
Aging 31 December 2024 31 December 2023
Within one year 65651524.19 68276125.36
Including: Within 6 months 62227176.82 65998078.79
7 months to 1 years 3424347.37 2278046.57
1-2 years 5240767.08 1209303.29
2-3 years 490019.14 7827391.86
Over 3 years 7921327.52 173492.54
Subtotal 79303637.93 77486313.05
Less: provision for bad debt 9483902.94 8878393.78
Total 69819734.99 68607919.27
(b) Accounts receivable by bad debt provision method
31 December 2024
Book balance Provision for bad debt
Category Carrying
Proportion Provision
Amount Amount amount
(%) ratio (%)
Provision for bad debt recognised
7792783.729.837792783.72100.00-
individually
Provision for bad debt recognised by
71510854.2190.171691119.222.3669819734.99
groups
Including: Group1 - - - - -
Group2 71510854.21 90.17 1691119.22 2.36 69819734.99
Total 79303637.93 100.00 9483902.94 11.96 69819734.99
(Continued)
31 December 2023
Book balance Provision for bad debt
Category Carrying
Proportion Provision
Amount Amount amount
(%) ratio (%)
~ 174 ~Annual Report 2024
Provision for bad debt recognised
7792783.7210.067792783.72100.00-
individually
Provision for bad debt recognised by
69693529.3389.941085610.061.5668607919.27
groups
Including: Group1 - - - - -
Group2 69693529.33 89.94 1085610.06 1.56 68607919.27
Total 77486313.05 100.00 8878393.78 11.46 68607919.27
As at 31 December 2024 accounts receivable with bad debt provision recognised by group 2
31 December 2024
Aging
Accounts receivable Provision for bad debt Provision ratio (%)
Within one year 65651524.19 793489.14 1.21
Including: Within 6 months 62227176.82 622271.77 1.00
T/o: 7 months to 1 years 3424347.37 171217.37 5.00
1-2 years 5240767.08 524076.71 10.00
2-3 years 490019.14 245009.57 50.00
Over 3 years 128543.80 128543.80 100.00
Total 71510854.21 1691119.22 2.36
(Continued)
31 December 2023
Aging
Accounts receivable Provision for bad debt Provision ratio (%)
Within one year 68276125.36 773883.12 1.13
Including: Within 6 months 65998078.79 659980.79 1.00
T/o: 7 months to 1 years 2278046.57 113902.33 5.00
1-2 years 1209303.29 120930.33 10.00
2-3 years 34608.14 17304.07 50.00
Over 3 years 173492.54 173492.54 100.00
Total 69693529.33 1085610.06 1.56
Note: For details of recognition criteria and explanation for provision of bad debt by groups please
refer to Notes 3.10.(c) Changes of provision for bad debt during the reporting period
Category 31 December Changes during the reporting period 31 December
~ 175 ~Annual Report 2024
2023 Business 2024
combination
Recovery or Elimination or
Provision not under
reversal write-off
common
control
Individually
significant
receivables
subject to 7792783.72 - - - - 7792783.72
individual
impairment
assessment
Individually
insignificant
receivables
subject to - - - - - -
individual
impairment
assessment
Group 2 1085610.06 741364.58 - 135855.42 - 1691119.22
Total 8878393.78 741364.58 - 135855.42 - 9483902.94
(d) Accounts receivable written off during the reporting period
Not applicable.(e) Top five closing balances by entity
Proportion of the
Balance of Balance of Balance of accounts Provision for bad
balance to the total
accounts contract assets as receivable and debt of accounts
Entity name accounts receivable
receivable as at 31 at 31 December contract assets as at receivable and
and contract assets
December 2024 2024 31 December 2024 contract assets
(%)
Top 1 13565594.78 - 13565594.78 17.11 135655.95
Top 2 9669331.99 - 9669331.99 12.19 96693.32
Top 3 7792783.72 - 7792783.72 9.83 7792783.72
Top 4 6804266.61 - 6804266.61 8.58 68042.67
Top 5 4041150.58 - 4041150.58 5.10 40411.51
Total 41873127.68 - 41873127.68 52.81 8133587.17
5.4 Accounts Receivable Financing
(a) Accounts receivable financing by category
~ 176 ~Annual Report 2024
31 December 2024
Type
Book balance Provision for bad debt Carrying amount
Bank acceptance bills 2966732807.75 - 2966732807.75
Commercial acceptance bills - - -
Total 2966732807.75 - 2966732807.75
(Continued)
31 December 2023
Type
Book balance Provision for bad debt Carrying amount
Bank acceptance bills 957560115.73 - 957560115.73
Commercial acceptance bills -
Total 957560115.73 - 957560115.73
(b) Pledged accounts receivable financing at 31 December 2024
Not applicable.(c) Accounts receivable financing which were discounted or endorsed but not due at 31
December 2024
Items Amount derecognised Amount not derecognised
Bank acceptance bills 7588771057.82 -
Commercial acceptance bills - -
Total 7588771057.82 -
(d) Accounts receivable financing by loss allowance provision method
31 December 2024
Book balance Provision for bad debt
Category
Proportion Provision Carrying amount
Amount Amount
(%) ratio (%)
Provision for loss allowance
-----
recognised individually
Provision for loss allowance
2966732807.75100.00--2966732807.75
recognised by groups
Including:Group1 - - - - -
Group2 2966732807.75 100.00 - - 2966732807.75
Total 2966732807.75 100.00 - - 2966732807.75
~ 177 ~Annual Report 2024
(Continued)
31 December 2023
Book balance Provision for bad debt
Category
Proportion Provision Carrying amount
Amount Amount
(%) ratio (%)
Provision for loss allowance
-----
recognised individually
Provision for loss allowance
957560115.73100.00--957560115.73
recognised by groups
Including:Group1 - - - - -
Group2 957560115.73 100.00 - - 957560115.73
Total 957560115.73 100.00 - - 957560115.73
(e) Movement of impairment allowance
Not applicable.(f) Accounts receivable financing written off during the reporting period
Not applicable.
5.5 Advances to Suppliers
(a) Advances to suppliers by aging
31 December 2024 31 December 2023
Aging
Amount Proportion (%) Amount Proportion (%)
Within one year 276817824.51 99.41 90144117.89 98.40
1 to 2 years 1651976.53 0.59 995545.31 1.09
2 to 3 years 2475.24 - 467678.98 0.51
Over 3 years - - - -
Total 278472276.28 100.00 91607342.18 100.00
Note: The book balance of advance payments at the end of 2024 increased by 203.98% compared
with that at the end of 2023 mainly due to higher prepayments for advertising in 2024.(b) Top five closing balances by entity
Proportion of the balance to the
Entity name Balance as at 31 December 2024
total advances to suppliers (%)
Top 1 206759093.44 74.25
Top 2 16850000.00 6.05
~ 178 ~Annual Report 2024
Proportion of the balance to the
Entity name Balance as at 31 December 2024
total advances to suppliers (%)
Top 3 4873157.22 1.75
Top 4 4425816.07 1.59
Top 5 3100000.00 1.11
Total 236008066.73 84.75
5.6 Other Receivables
(a) Other receivables by category
Items 31 December 2024 31 December 2023
Interest receivable - -
Dividend receivable - -
Other receivables 86894981.69 49178194.70
Total 86894981.69 49178194.70
(b) Other Receivables
(i) Other receivables by aging
Aging 31 December 2024 31 December 2023
Within one year 85852603.45 46992878.99
Including: Within 6 months 83972284.84 40097431.00
7 months to 1 years 1880318.61 6895447.99
1-2 years 1935988.11 2308597.13
2-3 years 467455.41 1706650.01
Over 3 years 7525037.31 34652068.31
Subtotal 95781084.28 85660194.44
Less: provision for bad debt 8886102.59 36481999.74
Total 86894981.69 49178194.70
(ii) Other receivables by nature
Nature 31 December 2024 31 December 2023
Security investments - 28635660.22
Margin deposits 22576214.35 7558471.55
Platform promotion fee 21949424.87 17850424.80
Rentals and utilities receivable 12656104.33 8593773.81
Others 38599340.73 23021864.06
Subtotal 95781084.28 85660194.44
~ 179 ~Annual Report 2024
Nature 31 December 2024 31 December 2023
Less: provision for bad debt 8886102.59 36481999.74
Total 86894981.69 49178194.70
(iii) Other receivables by bad debt provision method
A. As at 31 December 2024 provision for bad debt recognised based on three stages model
Stages Book balance Provision for bad debt Carrying acount
Stage 1 95781084.28 8886102.59 86894981.69
Stage 2 - - -
Stage 3 - - -
Total 95781084.28 8886102.59 86894981.69
As at 31 December 2024 provision for bad debt at stage 1:
Expected credit
loss rate in the Provision for bad
Category Book balance Carrying amount
next 12 months debt
(%)
Provision for bad debt recognised
----
individually
Provision for bad debt recognised by
95781084.289.288886102.5986894981.69
groups
Including: Group 1
Group 2 95781084.28 9.28 8886102.59 86894981.69
Total 95781084.28 9.28 8886102.59 86894981.69
Details of Group 2 receivables as of the statement date
31 December 2024
Age group
Gross Impairment allowance Provision ratio (%)
Within 1 year 85852603.45 933738.76 1.09
Including: Within 6 months 83972284.84 839722.83 1.00
T/ o: 7 months to 1 years 1880318.61 94015.93 5.00
1 to 2 years 1935988.11 193598.81 10.00
2 to 3 years 467455.41 233727.71 50.00
Over 3 years 7525037.31 7525037.31 100.00
Total 95781084.28 8886102.59 9.28
~ 180 ~Annual Report 2024
B．As at 31 December 2023 provision for bad debt recognised based on three stages model
Stages Book balance Provision for bad debt Carrying amount
Stage 1 57024534.22 7846339.52 49178194.70
Stage 2 - - -
Stage 3 28635660.22 28635660.22 -
Total 85660194.44 36481999.74 49178194.70
As at 31 December 2023 provision for bad debt at stage 1:
Expected credit
loss rate in the Provision for bad
Category Book balance Carrying amount
next 12 months debt
(%)
Provision for bad debt recognised
----
individually
Provision for bad debt recognised by
57024534.2213.767846339.5249178194.70
groups
Including: Group 1 - - - -
Group 2 57024534.22 13.76 7846339.52 49178194.70
Total 57024534.22 13.76 7846339.52 49178194.70
Details of Group 2 receivables as of the statement date
31 December 2023
Age group
Gross Impairment allowance Provision ratio (%)
Within 1 year 46992878.99 745746.71 1.59
Including: Within 6 months 40097431.00 400974.31 1.00
T/ o: 7 months to 1 years 6895447.99 344772.40 5.00
1 to 2 years 2308597.13 230859.71 10.00
2 to 3 years 1706650.01 853325.01 50.00
Over 3 years 6016408.09 6016408.09 100.00
Total 57024534.22 7846339.52 13.76
As at 31 December 2023 provision for bad debt at stage 3:
Expected credit
loss ratio (%) Provision for bad
Category Book balance Carrying amount
over the entire debt
duration
~ 181 ~Annual Report 2024
Expected credit
loss ratio (%) Provision for bad
Category Book balance Carrying amount
over the entire debt
duration
Provision for bad debt recognised
28635660.22100.0028635660.22-
individually
Provision for bad debt recognised by
----
groups
Including: Group 1 - - - -
Group 2 - - - -
Total 28635660.22 100.00 28635660.22 -
Details of receivables subject to individual assessment as of 31 December 2023
31 December 2023
Entity name Provision for bad Reason for
Book balance Provision ratio (%)
debt impairment
Hengxin Securities Co. Ltd. 28635660.22 28635660.22 100.00 In bankruptcy
Total 28635660.22 28635660.22 100.00 -
(iv) Changes of provision for bad debt during the reporting period
Changes during the reporting period
Business
31 December combination 31 December
Category Recovery or Elimination or
2023 Provision not under 2024
reversal write-off
common
control
Individual
28635660.22---28635660.22-
assessment
Portfolio
7846339.521337035.77-297272.70-8886102.59
assessment
Total 36481999.74 1337035.77 - 297272.70 28635660.22 8886102.59
(v) Other receivables written off during the reporting period
Items Amount
Hengxin Securities Co. Ltd. 28635660.22
Including: Significant write-off of other receivables:
~ 182 ~Annual Report 2024
Incurred from
related party
Entity name Nature Amount Reason
transaction or
not
The bankruptcy
Securities
Hengxin Securities Co. Ltd. 28635660.22 proceedings have No
investment
been concluded.Total — 28635660.22 — —
(vi) Top five closing balances by entity
Proportion of the
Entity Balance as at 31 Provision for
Nature Aging balance to the total
name December 2024 bad debt
other receivables (%)
Within 6
Top 1 Platform promotion fee 14579201.88 15.22 145792.02
months
Within 6
Top 2 Deposit and guarantee 14119000.00 14.74 141190.00
months
Rent and charges for water Within 6
Top 3 6974423.05 7.28 69744.23
electricity gas and oil months
Within 6
Top 4 Platform promotion fee 4109477.83 4.29 41094.78
months
Within 6
Top 5 Other 3831335.00 4.00 38313.35
months
Total 43613437.76 45.53 436134.38
5.7 Inventories
(a) Inventories by category
31 December 2024
Items Provision for
Book balance Carrying amount
impairment
Raw materials and packaging 381830528.63 25390458.86 356440069.77
Semi-finished goods and work in progress 7473416416.09 - 7473416416.09
Finished goods 1448501178.10 14136827.38 1434364350.72
Total 9303748122.82 39527286.24 9264220836.58
(Continued)
31 December 2023
Items Provision for
Book balance Carrying amount
impairment
~ 183 ~Annual Report 2024
31 December 2023
Items Provision for
Book balance Carrying amount
impairment
Raw materials and packaging 351787097.55 20527645.11 331259452.44
Semi-finished goods and work in progress 5811584229.52 - 5811584229.52
Finished goods 1396536633.32 19697778.77 1376838854.55
Total 7559907960.39 40225423.88 7519682536.51
(b) Provision for impairment
Increase during the reporting Decrease during the
period reporting period
Business
31 December 31 December
Items combination
2023 Reversal or 2024
Provision not under Others
elimination
common
control
Raw materials and
20527645.1117019537.19-12156723.44-25390458.86
packaging
Finished goods 19697778.77 6566072.80 - 12127024.19 - 14136827.38
Total 40225423.88 23585609.99 - 24283747.63 - 39527286.24
5.8 Other Current Assets
Items 31 December 2024 31 December 2023
Pledged Treasury bond reverse repurchase - 25199000.00
Interests on deposits 100070417.52 26696206.46
Deductible taxes and tax allowance 91433444.45 83176048.90
Total 191503861.97 135071255.36
5.9 Long-term Equity Investments
(a) Details of Long-term Equity Investments
Changes during the reporting period
Investment Adjustments of
31 December Changes in
Investees Additional Decrease in income/(losses) other
2023 other
investment investment recognised under comprehensive
equity
equity method income
I. Associates
Beijing Guge 5511537.65 - - 2169.42
~ 184 ~Annual Report 2024
Changes during the reporting period
Investment Adjustments of
31 December Changes in
Investees Additional Decrease in income/(losses) other
2023 other
investment investment recognised under comprehensive
equity
equity method income
Trading Co.Ltd. (Guge
Trading)
Anhui
Xunfeijiuzhi
4855540.61--1363393.76
Technology Co.Ltd
Total 10367078.26 - - 1365563.18
(Continued)
Changes during the reporting period
Declaration of cash
31 December Provision for
Investees dividends or Provision for
Others 2024 impairment
distribution of impairment
profit
I. Associates
Guge Trading - - - 5513707.07 -
Xunfeijiuzhi - - - 6218934.37 -
Total - - - 11732641.44 -
5.10 Other equity instrument investment
Changes during the reporting period
Gaines
Losses recognised
31 December recognised in 31 December
Items Additional Decrease in in other
2023 other Others 2024
investment investment comprehensive
comprehensive
income
income
Anhui Mingguang
Village
Commercial Bank 63105658.07 - - 6395172.75 - - 69500830.82
(Mingguang
VCB)
Total 63105658.07 - - 6395172.75 - - 69500830.82
(Continued)
~ 185 ~Annual Report 2024
Dividend
Cumulative gains Cumulative Amount of other
income
recognised in losses recognised comprehensive Reason for designated as
recognised
Items other in other income transfer fair value through other
during the
comprehensive comprehensive to retained comprehensive income
reporting
income income earnings
period
For management holding
Anhui Mingguang
purposes it is specified as
Village Commercial
769616.25 15652133.02 measured at fair value and
Bank (Mingguang
changes in it are included in
VCB)
other comprehensive income
5.11 Investment Properties
(a) Investment properties accounted for using cost model
Items Houses and buildings Land use rights Total
Initial cost:
Balance as at 31 December 2023 84177952.61 2644592.00 86822544.61
Increase during the reporting period 5042432.33 - 5042432.33
(i) Reclassification from Fixed assets 5042432.33 - 5042432.33
Decrease during the reporting period 146888.55 - 146888.55
(i) Reclassification to Fixed assets 146888.55 - 146888.55
Balance as at 31 December 2023 89073496.39 2644592.00 91718088.39
Accumulated depreciation and amortisation:
Balance as at 31 December 2023 39275828.32 923806.10 40199634.42
Increase during the reporting period 7638423.48 62739.19 7701162.67
(i) Recognition 3927219.18 62739.19 3989958.37
(ii) Reclassification from Fixed assets 3711204.30 3711204.30
Decrease during the reporting period 76368.58 - 76368.58
(i) Reclassification to Fixed assets 76368.58 - 76368.58
Balance as at 31 December 2024 46837883.22 986545.29 47824428.51
Provision for impairment
Balance as at 31 December 2023 - - -
Increase during the reporting period - - -
Decrease during the reporting period - - -
Balance as at 31 December 2024 - - -
Carrying amount:
Balance as at 31 December 2024 42235613.17 1658046.71 43893659.88
~ 186 ~Annual Report 2024
Items Houses and buildings Land use rights Total
Balance as at 31 December 2023 44902124.29 1720785.90 46622910.19
5.12 Fixed Assets
(a) Fixed assets by category
Items 31 December 2024 31 December 2023
Fixed assets 7896995404.62 4596044056.92
Disposal of fixed assets - -
Total 7896995404.62 4596044056.92
(b) Fixed assets
(i) Details of fixed assets
Houses and Machinery Transportation Administrative and
Items Total
buildings equipment vehicles other devices
Initial cost:
Balance as at 31
3792284000.882594999842.8680850726.07514466499.766982601069.57
December 2023
Increase during the
1963807861.891234152184.718298401.14575277098.973781535546.71
reporting period
(i) Purchase - 21267253.13 8298401.14 31842622.41 61408276.68
(ii)Transfer from
construction in 1963660973.34 1212884931.58 - 543434476.56 3719980381.48
progress
(iii)Transfer from
Investment 146888.55 - - - 146888.55
Properties
Decrease during
the reporting 9611617.01 21892564.82 4673601.68 6435989.30 42613772.81
period
(i) Disposal 4569184.68 21892564.82 4673601.68 6435989.30 37571340.48
(ii)
Reclassification to
5042432.33---5042432.33
Investment
properties
Balance as at 31
5746480245.763807259462.7584475525.531083307609.4310721522843.47
December 2024
Accumulated
depreciation:
~ 187 ~Annual Report 2024
Houses and Machinery Transportation Administrative and
Items Total
buildings equipment vehicles other devices
Balance as at 31
1079567698.80952856539.1267485170.84282097904.022382007312.78
December 2023
Increase during the
181691468.66232101638.985746083.7354546132.21474085323.58
reporting period
(i) Recognition 181615100.08 232101638.98 5746083.73 54546132.21 474008955.00
(ii) Transfer from
Investment 76368.58 - - - 76368.58
Properties
Decrease during
the reporting 5522515.41 19831286.86 3838054.69 5502545.44 34694402.40
period
(i) Disposal 1811311.11 19831286.86 3838054.69 5502545.44 30983198.10
(ii)
Reclassification to
3711204.30---3711204.30
Investment
properties
Balance as at 31
1255736652.051165126891.2469393199.88331141490.792821398233.96
December 2024
Provision for
impairment:
Balance as at 31
2596209.901375189.67-578300.304549699.87
December 2023
Increase during the
-----
reporting period
(i) Recognition - - - - -
Decrease during
the reporting 17030.55 825164.13 - 578300.30 1420494.98
period
(i) Disposal 17030.55 825164.13 - 578300.30 1420494.98
Balance as at 31
2579179.35550025.54--3129204.89
December 2024
Carrying amount:
Balance as at 31
4488164414.362641582545.9715082325.65752166118.647896995404.62
December 2024
Balance as at 31
2710120092.181640768114.0713365555.23231790295.444596044056.92
December 2023
(ii) Fixed assets leasing out under operating leases
~ 188 ~Annual Report 2024
Items Carrying amount at 31 December 2024
Houses and buildings 42235613.17
Total 42235613.17
(iii) Fixed assets without certificate of title
Items Carrying amount Reason
Houses and buildings 3154259933.45 Registration in progress
Total 3154259933.45
(iv) At the end of the period there were no fixed assets with limited use due to mortgage.
5.13 Construction in Progress
(a) Construction in progress by category
Items 31 December 2024 31 December 2023
Construction in progress 1038780764.86 2910735155.39
Construction materials - -
Total 1038780764.86 2910735155.39
(b) Construction in progress
(i) Details of construction in progress
31 December 2024 31 December 2023
Items Provision for Provision for
Book balance Carrying amount Book balance Carrying amount
impairment impairment
Smart Zone 936206415.94 - 936206415.94 2564788149.93 - 2564788149.93
Theme Hotel - - - 225797376.40 - 225797376.40
GJ Plant #12
---25626044.87-25626044.87
Wine Cellar
Suizhou Plant - - - 29094832.88 - 29094832.88
Whisky Project 33493322.27 - 33493322.27
Other projects 69081026.65 - 69081026.65 65428751.31 - 65428751.31
Total 1038780764.86 - 1038780764.86 2910735155.39 - 2910735155.39
(ii) Changes in significant projects of construction in progress
Decrease during
Budget Increase during the Transfer to fixed
Projects 31 December 2023 the reporting 31 December 2024
(million) reporting period asset
period
Smart Zone 8289.66 2564788149.93 1773345209.36 3276733763.33 125193180.02 936206415.94
Theme Hotel 625.00 225797376.40 43607044.69 111408877.11 157995543.98 -
~ 189 ~Annual Report 2024
Decrease during
Budget Increase during the Transfer to fixed
Projects 31 December 2023 the reporting 31 December 2024
(million) reporting period asset
period
GJ Plant #12
190.0025626044.872705828.8528331873.72--
Wine Cellar
Suizhou Plant 600.00 29094832.88 36730011.13 61468512.05 4356331.96 -
Whisky Project 155.39 - 33493322.27 - - 33493322.27
Other projects 1048.08 65428751.31 292529036.62 242037355.27 46839406.01 69081026.65
Total 10908.13 2910735155.39 2182410452.92 3719980381.48 334384461.97 1038780764.86
(Continued)
Proportion of Cumulative Interest
Including: interest
project input Rate of amount of capitalisation rate
Projects capitalised during the Source of funds
to budgets progress interest during the reporting
reporting period
(%) capitalisation period (%)
Self-funded
Smart Zone 75.99 95.00 - - -
public financing
Theme Hotel 87.69 100.00 - - - Self-funded
GJ Plant #12 Wine
94.86 100.00 - - - Self-funded
Cellar
Suizhou Plant 96.52 100.00 8803572.05 879034.72 3.35 Self-funded loans
Whisky Project 21.55 46.00 - - - Self-funded
Other projects 37.84 37.84 - - - Self-funded
Total 8803572.05 879034.72
Note: The book value of construction in progress at the end of 2024 decreased by 64.31% compared
with that at the end of 2023 mainly due to the conversion of each construction in progress project
into fixed assets.
5.14 Right-of-use Assets
(a) General information of right-of-use assets
Houses and
Items Machinery equipment Total
buildings
Initial cost:
Balance as at 31 December 2023 108271565.09 - 108271565.09
Increase during the reporting period 27349531.89 9723022.59 37072554.48
Decrease during the reporting period 21418333.62 - 21418333.62
Balance as at 31 December 2024 114202763.36 9723022.59 123925785.95
~ 190 ~Annual Report 2024
Houses and
Items Machinery equipment Total
buildings
Accumulated depreciation:
Balance as at 31 December 2023 27233464.85 - 27233464.85
Increase during the reporting period 16182302.71 567176.32 16749479.03
Decrease during the reporting period 20350658.66 - 20350658.66
Balance as at 31 December 2024 23065108.90 567176.32 23632285.22
Provision for impairment:
Balance as at 31 December 2023 - - -
Increase during the reporting period - - -
Decrease during the reporting period - - -
Balance as at 31 December 2024 - - -
Carrying amount:
Balance as at 31 December 2024 91137654.46 9155846.27 100293500.73
Balance as at 31 December 2023 81038100.24 - 81038100.24
5.15 Intangible Assets
(a) General information of intangible assets
Patents and
Items Land use rights Software Total
trademarks
Initial cost:
Balance as at 31 December
1136647237.75131841013.57254972753.561523461004.88
2023
Increase during the reporting
20360169.9631450508.04-51810678.00
period
(i) Purchase 5225439.06 2300411.09 - 7525850.15
(ii) Reclassification from
-29150096.95-29150096.95
construction in progress
(iii) Shareholder investment 15134730.90 - - 15134730.90
Decrease during the reporting
203806.932386888.92300000.002890695.85
period
(i) Disposal 203806.93 2386888.92 300000.00 2890695.85
Balance as at 31 December
1156803600.78160904632.69254672753.561572380987.03
2024
Accumulated amortisation:
Balance as at 31 December
226089125.23101093879.4072924291.21400107295.84
2023
Increase during the reporting 24484542.43 20151762.31 215026.52 44851331.26
~ 191 ~Annual Report 2024
Patents and
Items Land use rights Software Total
trademarks
period
(i) Provision 24484542.43 20151762.31 215026.52 44851331.26
Decrease during the reporting
49617.991815158.45152500.002017276.44
period
(i) Disposal 49617.99 1815158.45 152500.00 2017276.44
Balance as at 31 December
250524049.67119430483.2672986817.73442941350.66
2024
Provision for impairment:
Balance as at 31 December
-166872.39-166872.39
2023
Increase during the reporting
----
period
(i) Provision - - - -
Decrease during the reporting
----
period
(i) Disposal - - - -
Balance as at 31 December
-166872.39-166872.39
2024
Carrying amount:
Balance as at 31 December
906279551.1141307277.04181685935.831129272763.98
2024
Balance as at 31 December
910558112.5230580261.78182048462.351123186836.65
2023
Note: The increased land use rights contributed by shareholders in this period refer to the land use
rights contributed by the minority shareholders of the subsidiary Anhui Longrui Glass Co. Ltd. to
fulfill their capital contribution obligations.(b) Intangible assets pledged as of the statement date
Cumulative Provision for
Items Initial cost Carrying amount Note
amortisation impairment
Trademark rights 79236528.71 3370821.95 - 75865706.76 Loan pledge
Total 79236528.71 3370821.95 - 75865706.76
5.16 Goodwill
(a) Initial recognition
~ 192 ~Annual Report 2024
Increase during the Decrease during the
Investees or matters that 31 December reporting period reporting period 31 December
goodwill arising from 2023 Business 2024
Other Disposal Other
combination
HHL Distillery 478283495.29 - - - - 478283495.29
Mingguang Distillery 60686182.07 - - - - 60686182.07
Treasure Distillery 22394707.65 - - - - 22394707.65
Total 561364385.01 - - - - 561364385.01
(b) Provision for impairment
Following the impairment test and with reference to the Appraisal Reports
(ZhongshuiZhiyuanPingBaoZi [2025] No. 220041 and ZhongshuiZhiyuanPingBaoZi [2025] No.
220042) issued by Beijing Zhongshui Zhiyuan Assets Appraisal Co. Ltd. the recoverable amounts
of the asset groups were not lower than their respective value inclusive of goodwill as of the
statement date，so no impairment provision was required.(c) Asset groups associated with significant goodwill
Asset group CNY million Whether
there has
Unrecognised
been any
Composition goodwill
Investee Book Allocated Determination change in
of asset group attributable to Total
value goodwill the
non-controlling
current
interest
period
Active markets are available for
the products of the asset group to
Operating
which goodwill is allocated and
HHL Distillery assets of HHL 1366.38 478.28 459.53 2304.19 No
hence the asset group is capable
Distillery
of generating identifiable
separate cash flows.Active markets are available for
Operating the products of the asset group to
Mingguang assets of which goodwill is allocated and
305.36 60.68 40.46 406.5 No
Distillery Mingguang hence the asset group is capable
Distillery of generating identifiable
separate cash flows.(d) Specific determination method of recoverable amount
~ 193 ~Annual Report 2024
Recoverable amount of an asset group: determined at the present value of the asset group's
projected future cash flows. Future cash flows are projected on the basis of the financial budget
approved by management for the above asset group for a five-year period with sustainable cash
flows beyond five years determined at the level of the last year of the detailed forecast period. The
present value is calculated at a discount rate that appropriately reflects the current time value of
money in the market and the specific risks of the asset group. Other key assumptions used in cash
flow forecasting for asset groups include projected operating income operating costs growth rates
and related expenses which are based on the company's operating results from prior years growth
rates industry levels and management's expectations for market developments. The discount rate
adopted by the Company for 2024 ranges from 15.02% to 17.40% and the growth rate ranges from
1.24% to 7.71%.
(e) Completion of performance commitments and corresponding goodwill impairment
The company's goodwill asset group has no performance commitment this year which has no
impact on the goodwill impairment test.
5.17 Long-term Deferred Expenses
Increase during Decrease during the reporting period
31 December
Items 31 December 2023 the reporting
Amortisation Other decrease 2024
period
Experience Centre 5414614.07 - 4625338.07 - 789276.00
Waste Water Plant 76885.25 - 76885.25 - -
Outdoor Plant 24727266.52 165091.02 2924097.47 - 21968260.07
Pottery jar 16479992.73 50272589.41 5149922.94 - 61602659.20
Theme hotel
-170857424.458153974.28-162703450.17
project
Public lines and
pipelines of the
-102306204.833689790.69-98616414.14
Smart Park
project
Other projects
with smaller 12403825.41 23026215.75 6504712.85 - 28925328.31
amounts
Total 59102583.98 346627525.46 31124721.55 - 374605387.89
5.18 Deferred Tax Assets and Deferred Tax Liabilities
(a) Deferred tax assets before offsetting
Items 31 December 2024 31 December 2023
~ 194 ~Annual Report 2024
Deductible Deductible
temporary Deferred tax assets temporary Deferred tax assets
differences differences
Provision for impairment loss 42823363.52 10444314.97 44941996.14 10848316.56
Provision for credit
18370005.534535436.9445360393.5211292126.66
impairment
Unrealised intragroup profit 76363176.92 19090794.23 74347126.84 18586781.71
Deferred income 122142913.25 29876832.66 100811404.82 24492497.96
Deductible losses 305845891.22 67329794.66 356467985.56 82136692.17
Accrued employee benefits 1218851.79 182827.77 8433254.65 1264988.20
Accrued expenses and rebates 1588898781.16 395609562.74 1229968568.55 306212224.03
Fair value change of accounts
22244006.885560090.433029905.06754940.17
receivable financing
Lease liabilities 97799819.03 24449954.76 79152693.07 19788173.27
Accelerated depreciation
3416031.63512404.74--
variance of fixed assets
Total 2279122840.93 557592013.90 1942513328.21 475376740.73
(b) Deferred tax liabilities before offsetting
31 December 2024 31 December 2023
Deductible Deductible
Items Deferred tax
temporary Deferred tax liabilities temporary
liabilities
differences differences
Accelerated depreciation
417629233.07101296567.82348420771.6384243324.54
variance of fixed assets
Assets appreciation arising
from business combination 659325823.37 159742363.83 677082342.46 163643316.42
not under common control
Fair value change of financial
184353.8146088.4619987547.424996886.86
asset held for trading
Unrealised profit 223927678.28 55981919.57 264217579.52 66054394.88
Fair value change of Other
15652133.023913033.269256960.272314240.07
equity instrument investments
Right-of-use assets 100293500.73 25073375.18 81038100.24 20259525.06
Total 1417012722.28 346053348.12 1400003301.54 341511687.83
(c) Net balance of deferred tax liabilities and deferred tax assets after offsetting
Net balance after Net balance after
Offset amount at 31 Offset amount at 31
Items offsetting at 31 offsetting at 31
December 2024 December 2023
December 2024 December 2023
~ 195 ~Annual Report 2024
Net balance after Net balance after
Offset amount at 31 Offset amount at 31
Items offsetting at 31 offsetting at 31
December 2024 December 2023
December 2024 December 2023
Deferred tax assets -74258323.14 483333690.76 -19788173.27 455588567.46
Deferred tax liabilities -74258323.14 271795024.98 -19788173.27 321723514.56
(d) Unrecognized deferred tax assets
Items 31 December 2024 31 December 2023
Deductible losses 16314472.33 25075547.34
Total 16314472.33 25075547.34
(e) Deductible losses not recognised as deferred tax assets will expire in the following periods: due
in one to two years at 18386.62 in two to three years at 9664609.24 and in three to four years at
6631476.47.
5.19 Other Non-current Assets
Items 31 December 2024 31 December 2023
Prepayment for construction and
707352.505685287.46
machinery
Total 707352.50 5685287.46
5.20 Short-term Borrowings
Items 31 December 2024 31 December 2023
Mortgage loans - -
Guarantee loans 50038194.44 --
Total 50038194.44
5.21 Notes Payable
(a) Disclosure by type
Category 31 December 2024 31 December 2023
Bank acceptance bills 571864409.55 1332031679.44
Commercial acceptance bills 17500000.00 21156044.00
Total 589364409.55 1353187723.44
Note: As at 31 December 2024 the Company had no notes payable matured but not yet paid.
5.22 Accounts Payable
~ 196 ~Annual Report 2024
(a) Accounts payable by nature
Items 31 December 2024 31 December 2023
Payables for materials 1148583810.63 1352488385.40
Payables for constructions and machinery 1293302536.42 980033062.83
Others 500452835.08 481670623.01
Total 2942339182.13 2814192071.24
(b) Significant accounts payable with aging of over one year
Not applicable.
5.23 Contract liabilities
Items 31 December 2024 31 December 2023
Advances for goods 3514800038.80 1401122249.53
Total 3514800038.80 1401122249.53
5.24 Employee Benefits Payable
(a) Details of employee benefits payable
31 December Increase during the Decrease during the
Items 31 December 2024
2023 reporting period reporting period
Short-term employee benefits 1180454095.44 3899173941.76 3958564996.73 1121063040.47
Post-employment benefits-defined
151677.85260686920.99260676857.03161741.81
contribution plans
Termination benefits - 458728.27 458728.27 -
Other benefits due within one year - - - -
Total 1180605773.29 4160319591.02 4219700582.03 1121224782.28
(b) Short-term employee benefits
31 December Increase during the Decrease during the
Items 31 December 2024
2023 reporting period reporting period
Salaries bonuses allowances and
1102959306.933335628327.243391098579.131047489055.04
subsidies
Employee benefits - 115860438.39 115860438.39 -
Social insurance 481283.18 132515881.75 132596190.31 400974.62
Medical insurance 478930.09 123011372.69 123091837.37 398465.41
Work-place injury insurance 2353.09 9504509.06 9504352.94 2509.21
Housing accumulation fund 8189307.02 140057268.56 139013157.75 9233417.83
~ 197 ~Annual Report 2024
31 December Increase during the Decrease during the
Items 31 December 2024
2023 reporting period reporting period
Labour union funds and employee
64598761.7744315802.6649713874.3959200690.04
education funds
Enterprise annuity 4225436.54 130796223.16 130282756.76 4738902.94
Total 1180454095.44 3899173941.76 3958564996.73 1121063040.47
(c) Defined contribution plans
Increase during the Decrease during the
Items 31 December 2023 31 December 2024
reporting period reporting period
Basic endowment insurance 147081.53 248879680.84 248869921.81 156840.56
Unemployment insurance 4596.32 11807240.15 11806935.22 4901.25
Total 151677.85 260686920.99 260676857.03 161741.81
(d) Termination benefits
Increase during the Decrease during the
Items 31 December 2023 31 December 2024
reporting period reporting period
Termination benefits - 458728.27 458728.27 -
Total - 458728.27 458728.27 -
Note: If the company terminates the labor relationship with the employee before the expiration of
the labor contract it shall take one-time compensation and the amount of compensation for
dismissal shall be included in the current profit and loss.
5.25 Taxes Payable
Items 31 December 2024 31 December 2023
Value added tax (VAT) 284337340.10 357332008.07
Consumption tax 390378274.62 434932478.09
Enterprise income tax 353803556.51 280172679.93
Individual income tax 39693677.73 4436736.14
City construction tax 35169659.48 40651189.20
Stamp duty 4231886.04 4531195.41
Educational surcharge 34333818.77 39534935.75
Others 21223630.24 17777633.10
Total 1163171843.49 1179368855.69
5.26 Other Payables
(a) Other payables by category
~ 198 ~Annual Report 2024
Items 31 December 2024 31 December 2023
Interest payable - -
Dividend payable - -
Other payables 3146672513.57 3267292222.01
Total 3146672513.57 3267292222.01
(i) Other payables by nature
Items 31 December 2024 31 December 2023
Margin deposits 2545554135.19 2567100177.13
Quality warranty 142353842.60 77264459.45
Withheld housing fund payable 7439116.19 6231182.41
Others 451325419.59 616696403.02
Total 3146672513.57 3267292222.01
Note: Other payables aged over 1 year as of the statement date mainly comprised pre-mature
margin deposits and quality warranty.
5.27 Non-current Liabilities Maturing within One Year
Items 31 December 2024 31 December 2023
Lease liabilities due within one year 13346230.73 10771925.29
Long-term borrowings due within one year 76489969.84 70053097.22
Total 89836200.57 80825022.51
5.28 Other Current Liabilities
Items 31 December 2024 31 December 2023
Accrued expenses 1236420776.30 951949301.38
Pre-mature output VAT 454767511.10 180069149.72
Total 1691188287.40 1132018451.10
5.29 Long-term Borrowings
Items 31 December 2024 31 December 2023
Credit loans - -
Guarantee loans 41600000.00 107000000.00
Interests - 106256.94
Total 41600000.00 107106256.94
5.30 Lease liabilities
~ 199 ~Annual Report 2024
Items 31 December 2024 31 December 2023
Lease payments 112025467.10 94538857.20
Less: Unrealised finance expenses 14225648.07 15386164.13
Subtotal 97799819.03 79152693.07
Less: lease liabilities due within one year 13346230.73 10771925.29
Total 84453588.30 68380767.78
5.31 Deferred Income
Increase during Decrease during
31 December 31 December
Items the reporting the reporting Reason
20232024
period period
Receipt of
asset-related
Government grants 100811404.82 28974000.00 7642491.57 122142913.25
government
grants
Total 100811404.82 28974000.00 7642491.57 122142913.25
5.32 Share Capital
Changes during the reporting period (+-)
31 December 31 December
Items New Bonus Capitalisation of
2023 Others Subtotal 2024
issues issues reserves
Number of
528600000.00-----528600000.00
total shares
5.33 Capital Reserves
Increase during the Decrease during the
Items 31 December 2023 31 December 2024
reporting period reporting period
Capital premium (share
6191894530.904363539.12-6196258070.02
premium)
Other capital reserves 32853136.20 - - 32853136.20
Total 6224747667.10 4363539.12 - 6229111206.22
Note: The capital reserve increased by RMB 4.3635 million in this period. This was mainly due to
the introduction of minority shareholders in the subsidiary Anhui Longrui Glass Co. LTD. The
shareholding ratio of our company decreased from 100.00% to 97.69%. The change in the net asset
share resulting from equity dilution was included in the capital reserve.
5.34 Other Comprehensive Income
~ 200 ~Annual Report 2024
Changes during the reporting period
Less: Items
previously
recognized in
31 December other Attributable to Attributable to 31 December
Items Amount before Less: Income
2023 comprehensive owners of the non-controlling 2024
tax tax expenses
income being Company interest
reclassified to
current profit or
loss
(a)Items will not be
reclassified to profit or 4165632.12 6395172.75 - 1598793.18 2877827.74 1918551.83 7043459.86
loss
Including: Changes in
fair value of other
4165632.126395172.75-1598793.182877827.741918551.837043459.86
equity instrument
investments
(b)Items will be
reclassified to profit or -2569309.39 -22244006.88 -2706076.57 -5560090.43 -14078270.21 100430.33 -16647579.60
loss
Including:
Reclassification of
-2569309.39-22244006.88-2706076.57-5560090.43-14078270.21100430.33-16647579.60
financial assets to other
comprehensive income
Total 1596322.73 -15848834.13 -2706076.57 -3961297.25 -11200442.47 2018982.16 -9604119.74
5.35 Surplus Reserves
Increase during
Decrease during the
Items 31 December 2023 the reporting 31 December 2024
reporting period
period
Statutory surplus reserves 269402260.27 - - 269402260.27
Total 269402260.27 - - 269402260.27
Note: Pursuant to the Company Law of the People's Republic of China and Articles of Association
the Company appropriates 10% of net profit to the statutory surplus reserves. If the accumulative
amount of legal surplus reserve is more than 50% of the registered capital of the Company it may
no longer be withdrawn.
5.36 Retained Earnings
Items 2024 2023
~ 201 ~Annual Report 2024
Items 2024 2023
Balance as at the end of last period before adjustments 14500963359.34 11497599306.54
Adjustments for the opening balance (increase /(decrease))
Balance as at the beginning of the reporting period after
14500963359.3411497599306.54
adjustments
Add: net profit attributable to owners of the parent company
5517251073.104589164052.80
for the reporting period
Less: Transfer to statutory surplus reserves
Declaration of ordinary share dividends 2378700000.00 1585800000.00
Balance as at the end of the reporting period 17639514432.44 14500963359.34
5.37 Revenue and costs of sales
(a) General information
20242023
Items
Revenue Costs of sales Revenue Costs of sales
Principal activities 23472061731.98 4696076309.74 20153237192.18 4202683854.02
Other activities 105866334.01 41978219.60 100289405.84 37167052.89
Total 23577928065.99 4738054529.34 20253526598.02 4239850906.91
(b) Disaggregated information of revenue and costs of sales from Principal operating activities
20242023
Items
Revenue Costs of sales Revenue Costs of sales
Revenue by product type:
Distilled wine business 22865058713.55 4176030484.99 19638756672.91 3768057699.29
Others 712869352.44 562024044.35 614769925.11 471793207.62
Total 23577928065.99 4738054529.34 20253526598.02 4239850906.91
Revenue by operating area:
North China 1979406985.66 402020125.25 1842994377.93 373249635.06
Central China 20150945972.42 4073567182.41 17106718631.38 3637568886.44
South China 1425975566.51 257106035.61 1282816365.91 224324231.97
Internation 21599541.40 5361186.07 20997222.80 4708153.44
Total 23577928065.99 4738054529.34 20253526598.02 4239850906.91
Revenue by distribution
channel:
Online 771686684.39 182936340.33 729306974.15 188844601.39
Offline 22806241381.60 4555118189.01 19524219623.87 4051006305.52
Total 23577928065.99 4738054529.34 20253526598.02 4239850906.91
~ 202 ~Annual Report 2024
5.38 Taxes and Surcharges
Items 2024 2023
Consumption tax 3083395273.17 2501645974.47
City construction tax and educational
549706175.70458794010.60
surcharges
Property tax 24650465.85 23724880.08
Land use tax 37609044.30 26384275.09
Stamp duty 20660554.84 18766563.10
Others 24312015.13 20785958.55
Total 3740333528.99 3050101661.89
5.39 Selling and Distribution Expenses
Items 2024 2023
Personnel costs 1280868189.84 1230880423.44
Travel 257167425.19 223518669.30
Advertisement 1309141466.48 1101364892.63
Comprehensive promotion 2563283912.38 2089071299.15
Services 658399995.56 656190943.27
Others 112902006.05 135746829.46
Total 6181762995.50 5436773057.25
5.40 General and Administrative Expenses
Items 2024 2023
Personnel costs 907530864.24 933829716.03
Office costs 92329482.71 74060539.94
Repairs 42176635.49 52193470.08
Depreciation 118160773.51 74338166.89
Amortisation 48881999.66 35453212.98
Sewage 27937204.39 23269601.56
Travel 14684044.79 14824041.89
Utilities 12045020.09 13289220.75
Others 178652901.43 145888497.77
Total 1442398926.31 1367146467.89
5.41 Research and Development Expenses
~ 203 ~Annual Report 2024
Items 2024 2023
Personnel costs 53428629.50 46310706.51
Direct costs 9409848.37 12146049.05
Depreciation 4326031.48 3102642.32
Other related expenses 11077703.23 9387798.61
Total 78242212.58 70947196.49
5.42 Finance Costs
Items 2024 2023
Interest expenses 6145816.53 3289772.96
Including: Interest expenses for lease
3659750.151748169.19
liabilities
Less: Interest income 367977768.88 169297052.44
Net interest expenses -361831952.35 -166007279.48
Net foreign exchange losses 11645040.10 2682871.29
Bank charges and others 1362705.80 1080383.31
Total -348824206.45 -162244024.88
5.43 Other Income
Items 2024 2023 Related to assets /income
(i) Government grant
59697910.8742104956.65
recognised in other income
Including: Government
grant related to deferred 7642491.57 8106974.13 Related to assets
income
Government grant directly
recognised in current profit 52055419.30 33997982.52 Related to income
or loss
(ii) Others related to daily
operation activities and 4248829.61 5948371.72
recognised in other income
Total 63946740.48 48053328.37
5.44 Investment Income/(Losses)
Items 2024 2023
Investment income from long-term equity
1365563.18212842.28
investments under equity method
~ 204 ~Annual Report 2024
Items 2024 2023
Gains on disposal of long-term equity
160169.9330015.47
investments
Gains on disposal of held-for-trading
2060910.4531441783.21
financial assets
Gains from other equity instrument
769616.25747200.50
investment income during holding period
Gains from disposal of financial assets at
fair value through other comprehensive -39278043.50 -38914035.00
income
Others 434296.02 144063.85
Total -34487487.67 -6338129.69
5.45 Gains/(Losses) from Changes in Fair Values
Sources of gains on changes in fair value 2024 2023
Financial assets held-for-trading 184353.81 19987547.42
Including: Changes in fair value of
--
derivatives
Total 184353.81 19987547.42
5.46 Credit Impairment Losses
Items 2024 2023
Bad debt of notes receivable - -
Bad debt of accounts receivable -605509.16 244557.52
Bad debt of other receivables -1039763.07 647052.88
Total -1645272.23 891610.40
5.47 Asset Impairment Losses
Items 2024 2023
Impairment of inventories -23585609.99 -30863140.12
Impairment of fixed assets - -190056.75
Impairment of intangible assets - -
Total -23585609.99 -31053196.87
5.48 Gains/ (losses) from Disposal of Assets
Items 2024 2023
Gains/(losses) from disposal of fixed -192200.99 437622.67
~ 205 ~Annual Report 2024
Items 2024 2023
assets construction in progress
productive biological assets and intangible
assets not classified as held for sale
Including: Fixed assets -192200.99 437622.67
Total -192200.99 437622.67
5.49 Non-operating Income
Recognised in current
Items 2024 2023 non-recurring profit or
loss
Gains from damage or scrapping
143168.86389908.44143168.86
of non-current asset
Fine and compensation 35902710.13 56452237.38 35902710.13
Sale of scrap 4895677.27 5694719.36 4895677.27
Release of payables 18278847.61 20475919.42 18278847.61
Others 1585687.39 2054059.52 1585687.39
Total 60806091.26 85066844.12 60806091.26
5.50 Non-operating Expenses
Recognised in current
Items 2024 2023 non-recurring profit or
loss
Loss from damage or scrapping
6947007.872890802.016947007.87
of non-current assets
Donations 4624000.00 24281767.24 4624000.00
Others 3828477.12 8678557.09 3828477.12
Total 15399484.99 35851126.34 15399484.99
5.51 Income Tax Expenses
(a) Details of income tax expenses
Items 2024 2023
Current tax expenses 2163442886.40 1596955748.41
Deferred tax expenses -74467255.81 8920263.25
Total 2088975630.59 1605876011.66
(b) Reconciliation of accounting profit and income tax expenses
~ 206 ~Annual Report 2024
Items 2024 2023
Profit before tax 7795587209.40 6332145832.55
Income tax expense at the statutory /applicable tax rate 1948896802.35 1583036458.14
Effect of different tax rate of subsidiaries -12939119.34 -10664943.74
Adjustments of impact from prior period income tax 126256652.21 21264002.52
Effect of income that is exempt from taxation -533794.86 -240010.70
Effect of non-deductible costs expenses or losses 41785366.02 27197917.99
Effect of previously unrecognised deductible losses recognised as
--
deferred tax assets
Effect of deductible temporary differences and deductible losses
--
not recognised as deferred tax assets
R&D expenses plus deduction -14490275.79 -14717412.55
Impact of tax rate changes - -
Exemption - -
Income tax expenses 2088975630.59 1605876011.66
5.52 Notes to the Statement of Cash Flow
(a) Other cash received relating to operating activities
Items 2024 2023
Margin deposits and quality warranty 393976242.15 464744709.38
Government grants received 81029419.30 41653669.06
Bank interests received 367977768.88 169297052.44
Release of restricted cash 1290204326.83 667187706.08
Others 47136714.16 80809234.08
Total 2180324471.32 1423692371.04
(b) Other cash payments relating to operating activities
Items 2024 2023
Paid expenses 3251430533.10 2797006317.12
Margin deposits and quality warranty 14973516.51 3763254.60
Cash restricted for bank acceptance and
700969772.341290204326.83
guarantee letters
Others 235192813.59 110600772.48
Total 4202566635.54 4201574671.03
(c) Other cash payments relating to financing activities
Items 2024 2023
~ 207 ~Annual Report 2024
Items 2024 2023
Payment of minority shareholder equity - 5878415.17
Rentals paid 21939585.66 16976402.11
Total 21939585.66 22854817.28
(i) Changes in liabilities arising from financing activities
Increase in the current period Decrease in the current period
Items 31 December 2023 Changes in Changes in 31 December 2024
Changes in cash Changes in cash
non-cash non-cash
Short-term
-70000100.00606000.1520567905.71-50038194.44
Borrowings
Long-term
107106256.9450000000.00422537.1939438824.2976489969.8441600000.00
Borrowings
Lease
68380767.78-44206279.18-28133458.6684453588.30
liabilities
lease
liabilities due
10771925.29-28133458.6620967044.394592108.8313346230.73
within one
year
Long-term
Borrowings
70053097.22-76489969.8470053097.22-76489969.84
due within
one year
Total 256312047.23 120000100.00 149858245.02 151026871.61 109215537.33 265927983.31
5.53 Supplementary Information to the Statement of Cash Flows
(a) Supplementary information to the statement of cash flows
Supplementary information 2024 2023
(i) Adjustments of net profit to cash flows from
operating activities:
Net profit 5706611578.81 4726269820.89
Add: Provisions for impairment of assets 23585609.99 31053196.87
Impairment Loss of Credit 1645272.23 -891610.40
Depreciation of fixed assets Investment Properties oil
477998913.37301390656.72
and gas asset and productive biological assets
Depreciation of right to use assets 16749479.03 15069255.81
Amortisation of intangible assets 44851331.26 44249725.47
Amortisation of long-term deferred expenses 31124721.55 28717241.10
~ 208 ~Annual Report 2024
Supplementary information 2024 2023
Losses /(gains) on disposal of fixed assets intangible
192200.99-437622.67
assets and other long-term assets
Losses /(gains) on scrapping of fixed assets 6803839.01 2500893.57
Losses /(gains) on changes in fair value -184353.81 -19987547.42
Finance costs /(income) 17621571.61 3289772.96
Investment losses /(income) -4790555.83 6338129.69
Decreases /(increases) in deferred tax assets -22939973.04 -30468340.09
Increases /(decreases) in deferred tax liabilities -51527282.77 40550359.86
Decreases /(increases) in inventories -1768123910.06 -1479764803.69
Decreases /(increases) in operating receivables -2337026097.81 -1914106758.28
Increases /(decreases) in operating payables 1995825974.83 2075245957.95
Others 589234554.49 667187706.08
Net cash flows from operating activities 4727652873.85 4496206034.42
(ii) Significant activities not involving cash receipts and
payments:
Conversion of debt into capital
Convertible corporate bonds maturing within one year
Fixed asset acquired through financial leasing
(iii) Net increases in cash and cash equivalents:
Cash at the end of the reporting period 15193134694.19 14676167417.36
Less: Cash at the beginning of the reporting period 14676167417.36 13105373435.22
Add: Cash equivalents at the end of the reporting period
Less: Cash equivalents at the beginning of the reporting
period
Net increase in cash and cash equivalents 516967276.83 1570793982.14
Note: Others represented impact of withdraw restricted cash on the net cash flows from operating
activities for the period.(b) The components of cash and cash equivalents
Items 31 December 2024 31 December 2023
(i) Cash 15193134694.19 14676167417.36
Including: Cash on hand 62770.67 78223.44
Cash in bank available for immediate
15139942337.0514404178940.29
use
Other monetary funds available for
53129586.47271910253.63
immediate use
~ 209 ~Annual Report 2024
Items 31 December 2024 31 December 2023
(ii) Cash equivalents
Including: Bond investments maturing within
three months
(iii) Cash and cash equivalents at the end of the
15193134694.1914676167417.36
reporting period
Including: Restricted cash and cash equivalents
of the parent company and the subsidiaries of - -
the group
5.54 Assets with restricted ownership or use rights
Items 2024 Reason
Fixed term deposits and margin
Monetary funds 700969772.34
deposits for bank acceptance etc.Intangible Assets 75865706.76 Loan pledge
Total 776835479.10 ——
5.55 Leases
(a) The Company as a lessee
Items 2024
Expenses for short-term lease under simplified method 5392317.51
Expenses for lease of low value asset (except for short-term lease)
-
under simplified method
Interest expense of lease liabilities 3659750.15
Variable lease payments not included in lease liabilities recognised
-
in current profit or loss
Income from subleasing the right-of-use assets -
Cash outflows related to leases 93534830.31
Profit or loss in sale and leaseback transaction -
(b) The Company as a lessor
Operating lease
Items 2024
Lease income 11564402.81
Including: income related to variable lease payments not included
-
in lease receivables
~ 210 ~Annual Report 2024
6. RESEARCH AND DEVELOPMENT EXPENDITURES
6.1 R&D expenditures by nature
Items 2024 2023
Labor costs 53428629.50 46310706.51
Material costs 9409848.37 12146049.05
Depreciation costs 4326031.48 3102642.32
Others 11077703.23 9387798.61
Total 78242212.58 70947196.49
Including：Expensed R&D expenditures 78242212.58 70947196.49
Capitalized R&D expenditures - -
7. CHANGES IN THE SCOPE OF CONSOLIDATION
7.1 Other Reasons of Changes in the Scope of Consolidation
Compared with the previous period the company set up new subsidiaries "Anhui Guge Culture
Media Co. Ltd.." "Anhui Gujing Suhuai Wine Sales Co. Ltd.." "Ezhou Junya Trading Co. Ltd.."
and "Wuhan Juntai Trading Co. Ltd." This period the liquidated subsidiaries are "Wuhan Yashi Bo
Technology Co. Ltd." "Hubei Xinjia Testing Technology Co. Ltd." "Hubei Junlou Cultural
Tourism Co. Ltd." " Hubei HHL Beverage Co. Ltd.." " Fengyang Xiaogangcun Mingjiu Distillery
Co. Ltd.." and "Anhui Yangshengtianxia Brand Operation Co. Ltd."
8. INTERESTS IN OTHER ENTITIES
8.1 Interests in Subsidiaries
(a) Composition of corporate group
Percentage of equity
Principal place Registered Nature of interests by the Company Ways of
Name of subsidiary Abbreviation
of business Address business (%) acquisition
Direct Indirect
Bozhou Gujing
GJ Sales Bozhou Anhui Bozhou Anhui Trading 100.00 —— Incorporation
Sales Co. Ltd.Anhui Longrui Glass
Longrui Glass Bozhou Anhui Bozhou Anhui Production 97.69 —— Incorporation
Co. Ltd.~ 211 ~Annual Report 2024
Percentage of equity
Principal place Registered Nature of interests by the Company Ways of
Name of subsidiary Abbreviation
of business Address business (%) acquisition
Direct Indirect
Anhui Jiuan Electric
Machinery
Equipments Co. Jiuan Electric Bozhou Anhui Bozhou Anhui 100.00 —— Incorporation
production
Ltd.Anhui Jinyunlai
Culture Media Co. Jinyunlai Hefei Anhui Hefei Anhui Advertising 100.00 —— Incorporation
Ltd.Anhui Ruisi Weier
Technology Co. Ruisi Weier Bozhou Anhui Bozhou Anhui R&D 100.00 —— Incorporation
Ltd.Shanghai Gujing Business
Jinhao Hotel Hotel combination
Jinhao Hotel Shanghai Shanghai 100.00 ——
Management Co. management under common
Ltd. control
Business
Baozhou Gujing
Hotel combination
Guest House Co. GJ Guest House Bozhou Anhui Bozhou Anhui 100.00 ——
management under common
Ltd.control
Anhui Yuanqing
YQ Environment Sewage
Environment Bozhou Anhui Bozhou Anhui 100.00 —— Incorporation
Protection processing
Protection Co. Ltd.Anhui Gujing
Yunshang
GJ E-Commerce Hefei Anhui Hefei Anhui E-commerce 100.00 —— Incorporation
E-Commerce Co.Ltd.Anhui Runan Xinke
Testing Technology Runan Xinke Bozhou Anhui Bozhou Anhui Food testing 100.00 —— Incorporation
Co. Ltd.Anhui Jiudao
Culture Media Co. Jiudao Media Hefei Anhui Hefei Anhui Advertising 100.00 —— Incorporation
Ltd.Anhui Gujing
Distillery Wine
Hotel
Theme Hotel Theme Hotel Bozhou Anhui Bozhou Anhui 100.00 —— Incorporation
management
Management Co.Ltd
Anhui Gu Qi Anhui Gu Qi
Bozhou Anhui Bozhou Anhui Production 60.00 —— Incorporation
Distillery Co. Ltd. Distillery
Anhui Guge Culture Guge Culture Bozhou Anhui Bozhou Anhui Advertising and 100 —— Incorporation
~ 212 ~Annual Report 2024
Percentage of equity
Principal place Registered Nature of interests by the Company Ways of
Name of subsidiary Abbreviation
of business Address business (%) acquisition
Direct Indirect
Media Co. LTD. marketing
Anhui Gujing
Commercial
Suhuai Wine Sales Gujing Suhuai Suzhou Anhui Suzhou Anhui 100 —— Incorporation
trade
Co. LTD.Business
Huanghelou combination not
HHL Distillery Wuhan Hubei Wuhan Hubei Production 51.00 ——
Distillery Co. Ltd. under common
control
Business
HHL Distillery combination not
HHL Xianning Xianning Hubei Xianning Hubei Production —— 51.00
(Xianning) Co. Ltd. under common
control
Business
HHL Distillery combination not
HHL Suizhou Suizhou Hubei Suizhou Hubei Production —— 51.00
(Suizhou) Co. Ltd. under common
control
Business
Hubei Junlou
combination not
Culture Travel Co. Junlou Culture Wuhan Hubei Wuhan Hubei Advertising —— 51.00
under common
Ltd.control
Hubei HHL
HHL Beverage Xianning Hubei Xianning Hubei Production —— 51.00 Incorporation
Beverage Co. Ltd.Wuhan Yashibo
Technology Co. Yashibo Wuhan Hubei Wuhan Hubei R&D —— 51.00 Incorporation
Ltd.Hubei Xinjia Testing
Technology Co. Xinjia Testing Xianning Hubei Xianning Hubei Food testing —— 51.00 Incorporation
Ltd.Wuhan Tianlong Business
Jindi Technology combination not
Tianlong Jindi Wuhan Hubei Wuhan Hubei Trading —— 51.00
Development Co. under common
Ltd. control
Business
Xianning Junhe combination not
Xianning Junhe Xianning Hubei Xianning Hubei Trading —— 51.00
Sales Co. Ltd. under common
control
Wuhan Junya Sales
Junya Sales Wuhan Hubei Wuhan Hubei Trading —— 51.00 Incorporation
Co. Ltd.~ 213 ~Annual Report 2024
Percentage of equity
Principal place Registered Nature of interests by the Company Ways of
Name of subsidiary Abbreviation
of business Address business (%) acquisition
Direct Indirect
Suizhou Junhe
Suizhou Junhe Suizhou Hubei Suizhou Hubei Trading —— 51.00 Incorporation
Trading Co. Ltd.Huanggang Junya
Huanggang Junya Huanggang Hubei Huanggang Hubei Trading —— 51.00 Incorporation
Trading Co. Ltd.Wuhan Gulou Junhe Wuhan Gulou
Wuhan Hubei Wuhan Hubei Trading —— 51.00 Incorporation
Trading Co. Ltd. Junhe
Wuhan Gulou Juntai Wuhan Gulou
Wuhan Hubei Wuhan Hubei Trading —— 51.00 Incorporation
Trading Co. Ltd. Juntai
Xiaogan Gulou
Xiaogan Gulou
Tiancheng Trading Xiaogan Hubei Xiaogan Hubei Trading —— 51.00 Incorporation
Tiancheng
Co. Ltd.Ezhou Junya Ezhou Junya
Ezhou Hubei Ezhou Hubei Trading —— 51.00 Incorporation
Trading Co. Ltd. Trading
Wuhan Juntai Wuhan Juntai
Wuhan Hubei Wuhan Hubei Trading —— 51.00 Incorporation
Trading Co. Ltd. Trading
Business
Anhui Mingguang Mingguang combination not
Chuzhou Anhui Chuzhou Anhui Production 60.00 ——
Distillery Co. Ltd. Distillery under common
control
Business
Mingguang
combination not
Tiancheng Mingjiu Tiancheng Sales Chuzhou Anhui Chuzhou Anhui Trading —— 60.00
under common
Sales Co. Ltd.control
Fengyang Business
Xiaogangcun combination not
FY Xiaogangcun Chuzhou Anhui Chuzhou Anhui Production —— 42.00
Mingjiu Distillery under common
Co. Ltd. control
Anhui Jiuhao
ChinaRail
Construction Jiuhao ChinaRail Bozhou Anhui Bozhou Anhui Construction 52.00 —— Incorporation
Engineering Co.Ltd.Anhui Zhenrui
Construction Zhenrui
Bozhou Anhui Bozhou Anhui Construction —— 52.00 Incorporation
Engineering Co. Construction
Ltd.Guizhou Renhuai Business
Treasure Distillery Guizhou Renhuai Guizhou Renhuai Production 60.00 ——
Maotai Treasure combination not
~ 214 ~Annual Report 2024
Percentage of equity
Principal place Registered Nature of interests by the Company Ways of
Name of subsidiary Abbreviation
of business Address business (%) acquisition
Direct Indirect
Distillery Co. Ltd. under common
control
Guizhou Renhuai
Maotai Treasure Treasure Distillery
Guizhou Renhuai Guizhou Renhuai Trading —— 60.00 Incorporation
Distillery Sales Sales
CO.Ltd.Business
Anhui Gujing Health GJ Health combination not
Bozhou Anhui Bozhou Anhui Production 60.00 ——
Technology Co. Ltd Technology under common
control
Business
Anhui Maiqi
Maiqi combination not
Biotechnology Co. Bozhou Anhui Bozhou Anhui R&D —— 60.00
Biotechnology under common
Ltd
control
Anhui Business
Yangshengtianxia combination not
Brand Operation Hefei Anhui Hefei Anhui Advertising —— 60.00
Brand Operation under common
Co. Ltd. control
Hainan
Business
Yangshengtianxia
combination not
Biotechnology Biotechnology Lingshui Hainan Lingshui Hainan Trading —— 60.00
under common
Development Co.control
Ltd
(b) Significant non-wholly owned subsidiaries
Proportion of Profit or loss Dividends declared to
ownership interest attributable to non- distribute to Non-controlling
Name of subsidiary held by non- controlling interests non-controlling interests at the end of
controlling during the reporting interests during the the reporting period
interests period reporting period
HHL Distillery 49.00 113197360.63 65186961.86 650378400.13
(c) Main financial information of significant non-wholly owned subsidiaries
31 December 2024
Name of
Non-current
subsidiary Current assets Non-current assets Total assets Current liabilities Total liabilities
liabilities
HHL
1178956874.641127047720.082306004594.72789759669.36188942067.96978701737.32
Distillery
~ 215 ~Annual Report 2024
(Continued)
31 December 2023
Name of
Non-current
subsidiary Current assets Non-current assets Total assets Current liabilities Total liabilities
liabilities
HHL
1269187978.691167449470.702436637449.39939863270.35267657052.441207520322.79
Distillery
2024
Total
Name of subsidiary Net cash flows from
Revenue Net profit/(loss) comprehensive
operating activities
income
HHL Distillery 2139845657.49 231015021.69 231220346.85 216773671.76
(Continued)
2023
Total
Name of subsidiary Net cash flows from
Revenue Net profit/(loss) comprehensive
operating activities
income
HHL Distillery 1827457484.53 216726429.40 216471589.84 181674168.21
8.2 Interests in Joint Arrangements or Associates
(a) Significant joint ventures or associates
The Company had no significant joint venture or associate.(b) Summarized financial information about insignificant joint ventures and associates
31 December 2024/2024 31 December 2023/2023
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：
~ 216 ~Annual Report 2024
31 December 2024/2024 31 December 2023/2023
Total carrying amount of investments 11732641.44 10367078.26
The aggregate amount of below items
calculated based on proportion of equity
interests:
—Net profit/(loss) 1365563.18 212842.28
—Other comprehensive income
—Total comprehensive income 1365563.18 212842.28
9. GOVERNMENT GTRANTS
9.1 Government grants recognised as receivables
As at 31 December 2024 the amount of government grants recognised as receivables is RMB 0.
9.2 Liability items that involve government grants
Items Amount
Amount
presented Increase in recognised in Other
recognised in Related
in the government non-operating changes
Balance as at 31 other income Balance as at 31 to assets
statement grants during income during the
December 2023 during the December 2024 or
of the reporting during the reporting
reporting income
financial period reporting period
period
position period
Deferred Related
100811404.8228974000.00-7642491.57-122142913.25
income to assets
Total 100811404.82 28974000.00 - 7642491.57 - 122142913.25
9.3 Government grants recognised in current profit or loss
Items presented in income statement 2024 2023
Other income 59697910.87 42104956.65
Finance costs -2329500.00 -928125.00
10. 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
~ 217 ~Annual Report 2024
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.
10.1 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
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 cancelling their credit terms so as to ensure the overall credit risk of the Company is controllable.(i) 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
~ 218 ~Annual Report 2024
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.(ii) Definition of credit-impaired financial assets
The criteria adopted by the Company for determination of credit impairment are consistent with
internal credit risk management objectives of relevant financial instruments in considering both
quantitative and qualitative indicators.When the Company assesses whether the debtor has incurred the credit impairment the main
factors considered are as following: Significant financial difficulty of the issuer or the borrower; a
breach of contract e.g. default or past-due event; a lender having granted a concession to the
borrower for economic or contractual reasons relating to the borrower’s financial difficulty that the
lender would not otherwise consider; the probability that the borrower will enter bankruptcy or
other financial re-organisation; the disappearance of an active market for the financial asset because
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.(iii) 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
~ 219 ~Annual Report 2024
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 52.81% of the
total; for the other receivables the amount of the top five entities represents 45.53% of the total.
10.2 Liquidity Risk
Liquidity risk is the risk of shortage of funds when fulfilling the obligation of settlement by
delivering cash or other financial assets. The Company is responsible for the capital management of
all of its subsidiaries including short-term investment of cash surplus and dealing with forecasted
cash demand by raising loans. The Company’s policy is to monitor the demand for short-term and
long-term floating capital and whether the requirement of loan contracts is satisfied so as to ensure
to maintain adequate cash and cash equivalents.As at 31 December 2024 the maturity profile of the Company’s financial liabilities is as follows:
31 December 2024
Items
Within -1 year 1-2 years 2-3 years Above 3 years
Short-term loans 51250000.00
Notes payable 589364409.55
Accounts payable 2942339182.13
Other payables 3146672513.57
Non-current liabilities
97742493.42
maturing within one year
Other current liabilities 1691188287.40
Long-term loans 22231962.50 21100825.00
Lease liabilities 19162597.68 16968848.91 61492196.07
Total 8518556886.07 41394560.18 38069673.91 61492196.07
(Continued)
31 December 2023
Items
Within -1 year 1-2 years 2-3 years Above 3 years
Short-term loans
Notes payable 1353187723.44
Accounts payable 2814192071.24
Other payables 3267292222.01
~ 220 ~Annual Report 2024
31 December 2023
Items
Within -1 year 1-2 years 2-3 years Above 3 years
Non-current liabilities
85333845.39
maturing within one year
Other current liabilities 1132018451.10
Long-term loans 68342975.00 22231962.50 21100825.00
Lease liabilities 9767250.93 10702071.52 64279515.29
Total 8652024313.18 78110225.93 32934034.02 85380340.29
10.3 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.(a) 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.(b) 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 the
statement date the Company had no bank loan with a floating interest rate.(c) Other price risk
Investments held for trading were measured at fair value. As such these investments are subject to
the risk brought by the change of security prices. The Company controls this risk to the acceptable
level by utilising multiple investment mix.
11. 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.~ 221 ~Annual Report 2024
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
11.1 Assets and Liabilities Measured at Fair Value at 31 December 2024
Fair value at 31 December 2024
Items
Level 1 Level 2 Level 3 Total
Recurring fair value measurements
(a) financial assets held-for-trading - - 60184353.81 60184353.81
(i) Financial assets at fair value through
--60184353.8160184353.81
profit or loss
1.Debt instruments - - - -
2.Structural financial products - - 60184353.81 60184353.81
(b) Financial assets at fair value through
--3036233638.573036233638.57
other comprehensive income
1.Accounts receivable financing - - 2966732807.75 2966732807.75
2.Other equity instrument investment - - 69500830.82 69500830.82
Total assets measured at fair value on a
--3096417992.383096417992.38
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 discount for lack of liquidity.
11.2 Fair Value of Financial Assets or Financial Liabilities which are not Measured at Fair
Value
The financial assets and financial liabilities of the Company measured at amortised cost mainly
include: cash and cash equivalents notes receivable accounts receivable other receivables debt
investments short-term borrowings notes payable accounts payable other payables long-term
borrowings maturing within one year long-term payables long-term borrowings and bonds
payable.
12. RELATED PARTIES AND RELATED PARTY TRANSACTIONS
Recognition of related parties: The Company has control or joint control of or exercise significant
~ 222 ~Annual Report 2024
influence over another party; or the Company and another party are controlled or jointly controlled
by the same third party.
12.1 General Information of the Parent Company
Percentage of equity Voting rights in
Registered Nature of the Registered
Name of the parent interests in the the Company
address business capital
Company (%) (%)
Production of
beverage
construction
GJ Group Bozhou Anhui 1000 million 51.34 51.34
materials
plastic
products.The Company’s ultimate controller is the State-owned Asset Management Commission of the
People's Government of Baozhou Anhui
12.2 General Information of Subsidiaries
Details of the subsidiaries please refer to Notes 8 INTERESTS IN OTHER ENTITIES.
12.3 Joint Ventures and Associates of the Company
(a) General information of significant joint ventures and associates
Details of significant joint ventures and associates please refer to Notes 8 INTERESTS IN OTHER
ENTITIES
12.4 Other Related Parties of the Company
Name Relationship with the Company
Nanjing Suning Property Development Co. Ltd.(Suning Controlled by ZHANG Guiping the non-executive director
Property Development) of the Company
Controlled by the Company's controlling shareholder or
Anhui Ruijing Shanglv (Group) Co. Ltd. (RJSL Group)
ultimate controller
Anhui Ruijing Shanglv (Group) Co. Ltd. Hefei Gujing Controlled by the Company's controlling shareholder or
Holiday Inn (RJSL Holiday Inn) ultimate controller
Bozhou Gujing Huishenglou Catering Co. Ltd.(GJ Controlled by the Company's controlling shareholder or
Huishenglou Catering) ultimate controller
Anhui Haochidian Catering Co. Ltd. (Haochidian Controlled by the Company's controlling shareholder or
Catering) ultimate controller
Controlled by the Company's controlling shareholder or
Anhui Ruijing Catering Co. Ltd. (Ruijing Catering)
ultimate controller
~ 223 ~Annual Report 2024
Controlled by the Company's controlling shareholder or
Shanghai Beihai Hotel Co. Ltd. (Beihai Hotel)
ultimate controller
Anhui Gujing Hotel Development Co. Ltd.(GJ Hotel Controlled by the Company's controlling shareholder or
Development) ultimate controller
Anhui Huixin Financial Investment Group Co. Ltd.(Huixin Controlled by the Company's controlling shareholder or
Financial Investment) ultimate controller
Controlled by the Company's controlling shareholder or
Bozhou Anxin Small Loan Co. Ltd. (Anxin Small Loan)
ultimate controller
Controlled by the Company's controlling shareholder or
Anhui Hengxin Pawnshop Co. Ltd. (Hengxin Pawnshop)
ultimate controller
Controlled by the Company's controlling shareholder or
Anhui Ruixin Pawnshop Co. Ltd. (Ruixin Pawnshop)
ultimate controller
Anhui Zhongxin Financial Leasing Co. Ltd.(Zhongxin Controlled by the Company's controlling shareholder or
Financial Leasing) ultimate controller
Controlled by the Company's controlling shareholder or
Anhui Lixin E-Commerce Co. Ltd. (Lixin E-Commerce)
ultimate controller
Anhui Youxin Financing Guarantee Co Ltd. (Youxin Controlled by the Company's controlling shareholder or
Guarantee) ultimate controller
Hefei Longxin Corporate Management Advisory Co. Ltd. Controlled by the Company's controlling shareholder or
(Longxin Advisory) ultimate controller
Anhui Chuangxin Equity Investment Co. Ltd.(Chuangxin Controlled by the Company's controlling shareholder or
Equity Investment) ultimate controller
Anhui Lejiu Jiayuan Travel Management Co. Ltd. (Lejiu Controlled by the Company's controlling shareholder or
Jiayuan) ultimate controller
Controlled by the Company's controlling shareholder or
Anhui Shenglong Trading Co. Ltd. (Shenglong Trading)
ultimate controller
Controlled by the Company's controlling shareholder or
Anhui Gujing Health Industry Co. Ltd. (Health Industry)
ultimate controller
Controlled by the Company's controlling shareholder or
Bozhou Guest House Co. Ltd. (Bozhou Guest House)
ultimate controller
Dongfang Ruijing Enterprise Investment Co. Controlled by the Company's controlling shareholder or
Ltd.(Dongfang Ruijing) ultimate controller
Anhui Gujing International Development Co. Ltd.(GJ Controlled by the Company's controlling shareholder or
International) ultimate controller
Dazhongyuan Jiugu Cultural Tourism Development Co. Controlled by the Company's controlling shareholder or
Ltd. (Dazhongyuan Jiugu Cultural) ultimate controller
Anhui Jiuan Construction Management Advisory Co. Controlled by the Company's controlling shareholder or
Ltd.(Jiuan Advisory) ultimate controller
12.5 Related Party Transactions
~ 224 ~Annual Report 2024
(a) Purchases or sales of goods rendering or receiving of services
Purchases of goods receiving of services:
Related parties Nature of the transaction(s) 2024 2023
Bozhou Guest House Purchases of materials 8070.80
Bozhou Guest House Receiving catering and accommodation 8790826.60 9206704.05
GJ Huishenglou Catering Receiving catering and accommodation 5112486.87 6731462.40
GJ Hotel Development Receiving catering and accommodation 917799.50 1459825.47
GJ Hotel Development Purchases of materials 593096.00 43893.81
RJSL Group Purchase of materials and services 1061.95 54513.27
RJSL Group Receiving catering and accommodation 8678.00 10358.79
RJSL Holiday Inn Receiving catering and accommodation 369617.40 224485.38
RJSL Holiday Inn Purchase of materials and services 1553686.56 620370.39
Dazhongyuan Jiugu Cultural Purchases of materials - 10399.15
Youxin Guarantee Receiving services 186613.69 47169.81
Jiuan Advisory Advisory and assurance 16399697.94 8471196.45
Total —— 33933564.51 26888449.77
Sales of goods and rendering of services:
Related parties Nature of the transaction(s) 2024 2023
Shenglong Trading Sales of distilled wine 881579.63 2525957.53
Shenglong Trading Provision of catering and accommodation 12363.04 11626.00
Shenglong Trading Sales of small materials 1987.61 17778.77
RJSL Group Sales of distilled wine 1868853.84 31460.18
RJSL Group Provision of catering and accommodation 8893.39 12299.54
RJSL Group Sales of small materials 2946.90 7962.83
RJSL Holiday Inn Sales of small materials 178315.91 19928.17
RJSL Holiday Inn Provision of catering and accommodation - 1276.02
RJSL Holiday Inn Sales of distilled wine 140628.33 17690.27
GJ Hotel Development Sales of distilled wine 1459070.75 474538.92
GJ Hotel Development Sales of water and electricity 195354.91 165580.57
GJ Hotel Development Provision of catering and accommodation 94339.62 2153.31
GJ Hotel Development Sales of small materials 34713.45 58004.73
GJ Group Provision of catering and accommodation 330327.68 367493.10
GJ Group Sales of small materials 166629.10 363835.13
Bozhou Guest House Sales of small materials 131208.76 95301.17
Bozhou Guest House Sales of distilled wine 243911.51 24371.68
~ 225 ~Annual Report 2024
Related parties Nature of the transaction(s) 2024 2023
Bozhou Guest House Provide labor services 10905.21 707.55
Huixin Financial Investment Sales of distilled wine 17734.51 2309.73
Huixin Financial Investment Sales of small materials - 3716.81
Huixin Financial Investment Provision of catering and accommodation 2243.40 -
GJ Huishenglou Catering Sales of distilled wine 54716.81 15929.20
GJ Huishenglou Catering Sales of small materials 46791.16 18017.72
Anxin Small Loan Sales of distilled wine 28353.98 3504.42
Anxin Small Loan Sales of small materials - 15752.21
Haochidian Catering Provision of catering and accommodation 72376.00 -
Haochidian Catering Sales of distilled wine 1632557.51 8123.89
Haochidian Catering Sales of small materials 62092.93 13538.02
Zhongxin Financial Leasing Sales of distilled wine 4991.15 637.17
Zhongxin Financial Leasing Sales of small materials - 1061.95
Hengxin Pawnshop Sales of distilled wine 9530.98 1274.34
Hengxin Pawnshop Sales of small materials - 2123.89
Jiuan Advisory Sales of distilled wine 44920.35 75212.40
Jiuan Advisory Provision of catering and accommodation 800.00 4597.00
Jiuan Advisory Sales of small materials 20693.37 74286.24
Beihai Hotel Sales of distilled wine 133568.15 5575.22
Beihai Hotel Sales of small materials - 354.00
Lejiu Jiayuan Sell water and electricity - 1346.46
Ruixin Pawnshop Sales of distilled wine 4991.15 637.17
Ruixin Pawnshop Sales of small materials - 1061.95
Youxin Guarantee Sales of distilled wine 4991.15 637.17
Youxin Guarantee Sales of small materials - 1061.95
Longxin Advisory Sales of small materials 2150.44 159.29
Longxin Advisory Sales of distilled wine - 265.49
Dongfang Ruijing Provision of catering and accommodation 34061.79 66037.74
Total —— 7939594.47 4515186.90
(b) Leases
The Company as lessor:
The lessee Type of assets 2024 2023
GJ Hotel Development Houses and buildings 1095101.19 1392871.94
Total —— 1095101.19 1392871.94
~ 226 ~Annual Report 2024
The Company as lessee:
2024
Expenses for
short-term
Variable lease
lease and lease Lease payment Interest Increase in
The lessor Type of assets payments not
of low value for current expense of right-of-use
included in
asset under period lease liabilities assets
lease liabilities
simplified
method
Houses and
GJ Group 310396.56 - 1429123.73 70810.69 4914466.32
buildings
Suning
Houses and
Property - - 1157625.00 252549.47 -
buildings
Development
Dazhongyuan Houses
Jiugu Cultural buildings and - - 6999238.82 521646.90 31179563.79
land
Total —— 310396.56 - 9585987.55 845007.06 36094030.11
(Continued)
2023
Expenses for
short-term
Variable lease
lease and lease Lease payment Interest Increase in
The lessor Type of assets payments not
of low value for current expense of right-of-use
included in
asset under period lease liabilities assets
lease liabilities
simplified
method
Houses and
GJ Group 931328.78 - 981843.88 - -
buildings
Suning
Houses and
Property - - 2152500.00 558931.43 -
buildings
Development
Total —— 931328.78 - 3134343.88 558931.43 -
(d) Key management personnel compensation
Items 2024 2023
Key management personnel
26.79million 27.67million
compensation
12.6 Receivables and Payables with Related Parties
~ 227 ~Annual Report 2024
Items Related parties 31 December 2024 31 December 2023
Contract liabilities Bozhou Guest House 16131.81 15988.44
Contract liabilities GJ Huishenglou Catering 5070.80 5070.80
Contract liabilities RJSL Group 1529729.09 221.12
Contract liabilities RJSL Holiday Inn 566.37 -
Accounts payable Jiuan Advisory 172318.90 4711062.24
Accounts payable GJ Hotel Development 15558.00 6500.00
Accounts payable Bozhou Guest House 155845.44 29768.32
Accounts payable RJSL Holiday Inn 381170.20 -
Other payables RJSL Group 305533.60 -
Other payables GJ Hotel Development 100000.00 50000.00
Other payables Jiuan Advisory 47877.00 18000.00
13. COMMITMENTS AND CONTINGENCIES
13.1 Significant Commitments
As at 31 December 2024 the Company has no significant commitments need to be disclosed.
13.2 Contingencies
As at 31 December 2024 the Company has no significant contingencies need to be disclosed.
14. EVENTS AFTER THE REPORTING PERIOD
14.1 Profit Distribution
The company intends to take the total share capital of 528600000 shares at the end of 2024 as the
base distribute a cash dividend of 50.00 yuan (including tax) for every 10 shares to all shareholders
issue no bonus shares (including tax) and not increase the share capital by converting reserve
funds.Other than the above as at April 25 2025 the Company had no other post-balance sheet events that
required disclosure.
15. OTHER SIGNIFICANT MATTERS
15.1 Segment Information
In accordance with the Company’s internal management and reporting structure segment reporting
is not applicable.~ 228 ~Annual Report 2024
16. NOTES TO THE MAIN ITEMS OF THE FINANCIAL STATEMENTS OF THE
PARENT COMPANY
16.1 Accounts Receivable
(a) No account receivable as of 31 December 2024.(b) No account receivable as of 31 December 2024.(c) Impairment movement for the period was not applicable for accounts receivable.
16.2 Other Receivables
(a) Other receivables by category
Items 31 December 2024 31 December 2023
Interest receivable - -
Dividend receivable - -
Other receivables 505111096.18 384878020.29
Total 505111096.18 384878020.29
(b) Other Receivables
(i) Other receivables by aging
Aging 31 December 2024 31 December 2023
Within one year 312820191.46 384298400.37
Including: Within 6 months 222819167.02 384283297.37
7 months to 1 years 90001024.44 15103.00
1-2 years 192491023.18 24380.80
2-3 years 20500.00 1303136.00
Over 3 years 2408794.09 29741318.31
Subtotal 507740508.73 415367235.48
Less: provision for bad debt 2629412.55 30489215.19
Total 505111096.18 384878020.29
(ii) Other receivables by nature
Nature 31 December 2024 31 December 2023
Due from related party within the scope of
497697675.07374969732.31
consolidation
Security investments - 28635660.22
Margin deposits 3763589.17 3693589.17
~ 229 ~Annual Report 2024
Nature 31 December 2024 31 December 2023
Rentals and utilities receivable 1002533.40 1135726.76
Others 5276711.09 6932527.02
Subtotal 507740508.73 415367235.48
Less: Provision for bad debt 2629412.55 30489215.19
Total 505111096.18 384878020.29
(iii) Other receivables by bad debt provision method
A. As at 31 December 2024 provision for bad debt recognised based on three stages model
Stages Book balance Provision for bad debt Carrying acount
Stage 1 507740508.73 2629412.55 505111096.18
Stage 2 - - -
Stage 3 - - -
Total 507740508.73 2629412.55 505111096.18
As at 31 December 2024 provision for bad debt at stage 1:
Expected credit
loss rate in the Provision for bad
Category Book balance Carrying amount
next 12 months debt
(%)
Provision for bad debt recognised
----
individually
Provision for bad debt recognised by
507740508.730.522629412.55505111096.18
groups
Including: Group 1 497697675.07 - - 497697675.07
Group 2 10042833.66 26.18 2629412.55 7413421.11
Total 507740508.73 0.52 2629412.55 505111096.18
Details of Group 2 receivables as of the statement date
31 December 2024
Age group
Book balance Provision for bad debt Provision ratio (%)
Within 1 year 6122516.39 61266.14 1.00
Including: Within 6 months 6121491.95 61214.92 1.00
7 months to 1 years 1024.44 51.22 5.00
1 to 2 years 1491023.18 149102.32 10.00
~ 230 ~Annual Report 2024
31 December 2024
Age group
Book balance Provision for bad debt Provision ratio (%)
2 to 3 years 20500.00 10250.00 50.00
Over 3 years 2408794.09 2408794.09 100.00
Total 10042833.66 2629412.55 26.18
B. As at 31 December 2023 provision for bad debt recognised based on three stages model
Stages Book balance Provision for bad debt Carrying amount
Stage 1 386731575.26 1853554.97 384878020.29
Stage 2 - - -
Stage 3 28635660.22 28635660.22 -
Total 415367235.48 30489215.19 384878020.29
As at 31 December 2023 provision for bad debt at stage 1:
Expected credit
loss rate in the Provision for bad
Category Book balance Carrying amount
next 12 months debt
(%)
Provision for bad debt recognised
individually
Provision for bad debt recognised by
386731575.260.481853554.97384878020.29
groups
Including: Group 1 374969732.31 - - 374969732.31
Group 2 11761842.95 15.76 1853554.97 9908287.98
Total 386731575.26 0.48 1853554.97 384878020.29
Details of Group 2 receivables as of the statement date
31 December 2023
Age group
Book balance Provision for bad debt Provision ratio (%)
Within 1 year 9328668.06 93890.80 1.01
Including: Within 6 months 9313565.06 93135.65 1.00
7 months to 1 years 15103.00 755.15 5.00
1 to 2 years 24380.80 2438.08 10.00
2 to 3 years 1303136.00 651568.00 50.00
~ 231 ~Annual Report 2024
31 December 2023
Age group
Book balance Provision for bad debt Provision ratio (%)
Over 3 years 1105658.09 1105658.09 100.00
Total 11761842.95 1853554.97 15.76
As at 31 December 2023 provision for bad debt at stage 3:
Expected credit
loss ratio (%) Provision for bad
Category Book balance Carrying amount
over the entire debt
duration
Provision for bad debt recognised
28635660.22100.0028635660.22-
individually
Provision for bad debt recognised by
-
groups
Including: Group 1 -
Group 2 -
Total 28635660.22 100.00 28635660.22 -
Details of receivables subject to individual assessment as of 31 December 2023
31 December 2023
Entity name Provision for bad Reason for
Book balance Provision ratio (%)
debt impairment
Hengxin Securities Co. Ltd. 28635660.22 28635660.22 100.00 In bankruptcy
Total 28635660.22 28635660.22 100.00 -
(iv) Changes of provision for bad debt during the reporting period
Changes during the reporting period
31 December 31 December
Category Elimination or
2023 Provision Recovery or reversal 2024
write-off
Individual
28635660.22--28635660.22-
assessment
Portfolio
1853554.97775857.58--2629412.55
assessment
Total 30489215.19 775857.58 - 28635660.22 2629412.55
(v) Other receivables written off during the reporting period
~ 232 ~Annual Report 2024
Items Amount
Hengxin Securities Co. Ltd. 28635660.22
Including: Significant write-off of other receivables:
Incurred from
related party
Entity name Nature Amount Reason
transaction or
not
The bankruptcy
Securities
Hengxin Securities Co. Ltd. 28635660.22 proceedings have No
investment
been concluded.Total — 28635660.22 — —
(vi) Top five closing balances by entity
Proportion of the
Balance as at 31 Provision for bad
Entity name Nature Aging balance to the total
December 2023 debt
other receivables (%)
Due from related
party within the Within 2
Top 1 380000000.00 74.84 -
scope of years
consolidation
Due from related
party within the
Top 2 71000000.00 1 to 2 years 13.98 -
scope of
consolidation
Due from related
party within the Within 6
Top 3 46197675.07 9.10 -
scope of months
consolidation
Within 6
Top 4 Other 2919311.25 0.57 29193.11
months
Top 5 Security investment 1303136.00 Over 3 years 0.26 1303136.00
Total 501420122.32 98.75 1332329.11
16.3 Long-term Equity Investments
31 December 2024 31 December 2023
Items Provision for Provision for
Book balance Carrying amount Book balance Carrying amount
impairment impairment
Subsidiaries 1642079903.43 - 1642079903.43 1598079903.43 - 1598079903.43
Associates 6218934.37 - 6218934.37 4855540.61 - 4855540.61
~ 233 ~Annual Report 2024
31 December 2024 31 December 2023
Items Provision for Provision for
Book balance Carrying amount Book balance Carrying amount
impairment impairment
Total 1648298837.80 - 1648298837.80 1602935444.04 - 1602935444.04
(a) Investments in subsidiaries
Provision for
Decrease Provision for
Increase during impairment
during the impairment
Investees 31 December 2023 the reporting 31 December 2024 at 31
reporting during the
period December
period reporting period
2023
GJ Sales 68949286.89 - - 68949286.89 - -
Longrui Glass 85267453.06 - - 85267453.06 - -
Jinhao Hotel 49906854.63 - - 49906854.63 - -
GJ Guest House 648646.80 - - 648646.80 - -
Ruisi Weier 40000000.00 - - 40000000.00 - -
YQ Environment Protection 16000000.00 - - 16000000.00 - -
GJ E-Commerce 5000000.00 - - 5000000.00 - -
HHL Distillery 816000000.00 - - 816000000.00 - -
Jinyunlai 15000000.00 - - 15000000.00 - -
Runan Xinke 10000000.00 - - 10000000.00 - -
Jiuan Electric 10000000.00 - - 10000000.00 - -
Mingguang Distillery 200200000.00 - - 200200000.00 - -
Treasure Distillery 224723400.00 - - 224723400.00 - -
Jiuhao ChinaRail 5720000.00 - - 5720000.00 - -
GJ Health Technology 34664262.05 - - 34664262.05 - -
Theme Hotel 10000000.00 - 10000000.00 - -
Anhui Gu Qi Distillery 6000000.00 39000000.00 - 45000000.00 - -
Guge Culture - 5000000.00 - 5000000.00
Total 1598079903.43 44000000.00 - 1642079903.43 - -
(b) Investments in associates
Changes during the reporting period
Increase Decrease Gains /(losses) Adjustments of
31 December
Investees during the during the on investments other Changes in
2023
reporting reporting under the comprehensive other equity
period period equity method income
(i) Associates - -
~ 234 ~Annual Report 2024
Changes during the reporting period
Increase Decrease Gains /(losses) Adjustments of
31 December
Investees during the during the on investments other Changes in
2023
reporting reporting under the comprehensive other equity
period period equity method income
Xunfeijiuzhi 4855540.61 - - 1363393.76 - -
Total 4855540.61 - - 1363393.76 - -
(Continued)
Changes during the reporting period
Declaration of Provision for
31 December
Investees cash dividends or Provision for impairment at 31
Others 2024
distribution of impairment December 2024
profit
(i)Associates
Xunfeijiuzhi - - - 6218934.37 -
Total - - - 6218934.37 -
16.4 Revenue and Cost of Sales
20242023
Items
Revenue Costs of sales Revenue Costs of sales
Principal activities 12868400539.49 4152790888.94 10501446923.20 3628280247.93
Other activities 142911297.56 87611396.02 123590833.53 79803499.54
Total 13011311837.05 4240402284.96 10625037756.73 3708083747.47
Note: The company's main business income is distilled wine sales revenue.
16.5 Investment Income
Items 2024 2023
Investment income from long-term equity
2699374783.34151685778.22
investments under cost method
Investment income from long-term equity
1363393.76185830.36
investments under equity method
Gains from disposal of financial assets
1330123.8131140435.80
held-for-trading
Gains from disposal of financial assets at fair
-39112659.61-39556318.53
value through other comprehensive income
Others 151618.54 15155.26
~ 235 ~Annual Report 2024
Items 2024 2023
Total 2663107259.84 143470881.11
17. SUPPLEMENTARY INFORMATION
17.1 Details of current non-recurring profit or loss
Items 2024 2023
Gains /(losses) on disposal of non-current assets -6996040.00 -2063270.90
Government grants (except for government grants which are closely
related to the ordinary course of business of the Company in compliance
with national policies and regulations granted in accordance with the 47217316.71 39946354.24
determined standards; and influence the profit and loss on an ongoing
basis) charged to gains or losses for the period
Non-financial business’s gains or losses from fair value change arising
from financial assets and financial liabilities held and gains or losses from
disposal of financial assets and financial liabilities other than effective 2316575.85 51603409.95
value protection hedges relating to the Company’s ordinary course of
business
Reversal of provision for impairment of individually tested receivables 0.00 98239.02
Other non-operating income/expenses except for items mentioned above 52210445.28 51716611.35
Total non-recurring profit /(loss) 94748297.84 141301343.66
Less: Income tax effect 23534161.55 34596052.57
Less: net non-recurring profit /(loss) attributable to non-controlling interest 11118339.31 12760425.86
Net non-recurring profit /(loss) attributable to ordinary shareholders 60095796.98 93944865.23
17.2 Return on Net Assets and Earnings Per Share (‘EPS’)
(a) 2024
Weighted average EPS
Profit for the reporting period return on net assets
Basic Diluted
(%)
Net profit attributable to ordinary shareholders 23.89 10.44 10.44
Net profit attributable to ordinary shareholders
23.6310.3210.32
after non-recurring profit or losses
(b) 2023
Weighted average EPS
Profit for the reporting period return on net assets
Basic Diluted
(%)
~ 236 ~Annual Report 2024
Weighted average EPS
Profit for the reporting period return on net assets
Basic Diluted
(%)
Net profit attributable to ordinary shareholders 22.92 8.68 8.68
Net profit attributable to ordinary shareholders
22.458.508.50
after non-recurring profit or loss
Chairman of the Board:
Anhui Gujing Distillery Company Limited
25 April 2025
~237~
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