Anhui Gujing Distillery Company Limited
Annual Report 2025
April 2026Part I Important Notes Table of Contents and Definitions
The Board of Directors (or the “Board”) as well as the directors and senior management of
Anhui Gujing Distillery Company Limited (hereinafter referred to as the “Company”) hereby
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 Discussion andAnalysis”.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 RMB34.00 (tax inclusive) per 10 shares is to be
distributed to the shareholders with no bonus issue from either profit or capital reserves.Annual Report 2025
Table of Contents
Part I Important Notes Table of Contents and Definitions 2
Part II Corporate Information and Key Financial Information 6
Part III Management Discussion and Analysis 10
Part IV Corporate Governance and Environmental and Social Responsibility 33
Part V Significant Events 51
Part VI Share Changes and Shareholder Information 55
Part VII Corporate Bonds 61
Part VIII Financial Statements 62
~ 3 ~Annual Report 2025
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 2025
Definitions
Term Refers to Definition
Anhui Gujing Distillery Company Limited inclusive of its
The “Company” “Gu Jing” or “we” Refers to
consolidated subsidiaries except where the context otherwise requires
Gujing Sales Refers to Bozhou Gujing Sales Co. Ltd.Anhui Gujing Distillery Company Limited exclusive of subsidiaries
The Company as the parent Refers to
except where the context otherwise requires
Gujing Group Refers to Anhui Gujing Group Co. Ltd.Yellow Crane Tower Refers to Yellow Crane Tower Distillery Co. Ltd.Mingguang Refers to Anhui Mingguang Distillery Co. Ltd.Longrui Glass Refers to Anhui Longrui Glass Co. Ltd.Intelligent Park Refers to The Baijiu Production Intelligent Transformation Project
~ 5 ~Annual Report 2025
Part II Corporate Information and Key Financial Information
I Corporate Information
Stock name Gujing Distillery Gujing Distillery-B Stock code 000596200596
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
Address Gujing Town Bozhou City Anhui Gujing Town Bozhou City Anhui
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)
disclosed
China Securities Journal Shanghai Securities News Ta Kung Pao (HK)
Media and website where this Report is disclosed
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)
~ 6 ~Annual Report 2025
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 Han Songliang Zeng Ziqi
The independent sponsor hired by the Company to exercise constant supervision over the Company
in the Reporting Period:
□Applicable □Not applicable
The independent financial advisor hired by the Company to exercise constant supervision over the
Company in the Reporting Period:
□Applicable □Not applicable
VI Key Financial Information
Indicate by tick mark whether there is any retrospectively restated datum in the table below.□Yes □No
2025-
2025 2024 over-2024 2023
change
Operating
18831982591.2423577928065.99-20.13%20253526598.02
revenue (RMB)
Net profit
attributable to the
listed company’s 3549108530.34 5517251073.10 -35.67% 4589164052.80
shareholders
(RMB)
Net profit
attributable to the
listed company’s
shareholders
3489463594.305457155276.12-36.06%4495219187.57
before
exceptional gains
and losses
(RMB)
Net cash
generated
from/used in 1947212977.00 4727652873.85 -58.81% 4496206034.42
operating
activities (RMB)
Basic earnings
per share 6.71 10.44 -35.73% 8.68
(RMB/share)
Diluted earnings
per share 6.71 10.44 -35.73% 8.68
(RMB/share)
Weighted average
return on equity 14.28% 23.89% -9.61% 22.92%
(%)
December 31 2025 December 31 2024 Change December 31 2023
of
~ 7 ~Annual Report 2025
December
312025
over
December
312024
Total assets
38197033001.7840522413702.09-5.74%35420907274.99
(RMB)
Equity
attributable to the
listed company’s 25050216942.36 24657023779.19 1.59% 21525309609.44
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
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 revenues 9146061070.75 4733791132.00 2544788530.16 2407341858.33
Net profit attributable to the listed
2329843939.991331741845.95298617577.53-411094833.13
company’s shareholders
Net profit attributable to the listed
company’s shareholders before 2311791509.93 1314597484.07 281518555.27 -418443954.97
exceptional gains and losses
Net cash generated from/used in
1845180171.282309371883.32-1527498577.59-679840500.01
operating activities
~ 8 ~Annual Report 2025
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 2025 2024 2023 Note
Gain or loss on disposal of non-current
assets (inclusive of impairment allowance -3255352.82 -6996040.00 -2063270.90
write-offs)
Government grants recognized in profit or
loss (exclusive of those that are closely
related to the Company’s normal business
operations and given in accordance with 49068936.93 47217316.71 39946354.24
defined criteria and in compliance with
government policies and have a continuing
impact on the Company’s profit or loss)
Gain or loss on fair-value changes in
financial assets and liabilities held by a non-
financial enterprise as well as on disposal of
financial assets and liabilities (exclusive of 5782198.92 2316575.85 51603409.95
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 0.00
98239.02
for impairment
Non-operating income and expense other
47388726.2052210445.2851716611.35
than the above
Less: Income tax effects 24237194.74 23534161.55 34596052.57
Non-controlling interests effects (net of tax) 15102378.45 11118339.31 12760425.86
Total 59644936.04 60095796.98 93944865.23 --
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.~ 9 ~Annual Report 2025
Part III Management Discussion and Analysis
I 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 Categorization
Guide for Listed Companies (Revised in 2012) issued by the CSRC baijiu making belongs to the
“liquor beverage and refined tea making industry” (C15). The Company’s principal operations
remained unchanged in the Reporting Period.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 change
YoY change YoY change
Operating Gross profit in gross
By Cost of sales in operating in cost of
revenues margin profit margin
revenue (%) sales (%)
(%)
Channel
Online 1008226469.68 328994529.83 67.37% 30.65% 79.84% -8.92%
Offline 17823756121.56 3577505260.34 79.93% -21.85% -21.46% -0.10%
Total 18831982591.24 3906499790.17 79.26% -20.13% -17.55% -0.64%
YoY change
YoY change YoY change
Operating Gross profit in gross
By Cost of sales in operating in cost of
revenues margin profit margin
revenue (%) sales (%)
(%)
Product series
Original
Vintage 14592360910.26 2209956226.79 84.86% -19.32% -11.99% -1.26%
Series
Gujinggong
1921514468.31961522857.0049.96%-14.25%1.08%-7.59%
Baijiu Series
Yellow Crane
Tower and 2025848688.54 637210475.00 68.55% -20.19% -10.73% -3.33%
other
Total 18539724067.11 3808689558.79 79.46% -18.92% -8.80% -2.28%
~ 10 ~Annual Report 2025
2. Number of Distributors by Geographical Segment
Segment Ending number Change in the Reporting Period
North China 1325 -35
South China 656 -5
Central China 2856 -185
Overseas 28 1
Total 4865 -224
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 Baijiu 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.Purchase contents
Purchase contents Purchase model Amount (RMB10000)
Strategic purchasing 91051.53
1 Raw materials
Tendering purchasing 154870.08
2 Packing materials Tendering purchasing 188532.25
Total 434453.86
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
~ 11 ~Annual Report 2025
Control Center is responsible for coordinating the implementation of production plans release of
material production plans and delivery and tracking of products and prepares balanced production
plans on a quarterly basis according to the product inventory. The logistics distribution system is
coordinated according to the production schedule and inventory with a view to ensuring timely
delivery of products.Commissioned production
□Applicable □Not applicable
Breakdown of cost of sales
20252024
Item As % of As % of Change (%)
Cost of sales (RMB) total cost Cost of sales (RMB) total cost
of sales of sales
Direct
2974882788.4276.15%3413392362.8672.04%-12.85%
materials
Direct labor
401560143.7010.28%410226875.378.66%-2.11%
cost
Manufacturing
321802047.388.24%248318564.495.24%29.59%
expenses
Fuels 110444579.29 2.83% 104092682.27 2.20% 6.10%
Total 3808689558.79 97.50% 4176030484.99 88.14% -8.80%
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 output of sales of inventory
volume
Original Vintage Series 54288.42 63714.49 15350.23 -23.76% -10.37% -38.04%
Gujinggong Baijiu Series 31108.64 33550.28 2742.87 -2.33% 3.79% -47.09%
Yellow Crane Tower and
22147.5322106.004362.02-11.35%-11.19%0.96%
other
2. Ending inventory of finished liquor and semi-product
Category Ending quantity (ton)
Finished liquor 22455.12
Semi-product (including base liquor) 370631.68
~ 12 ~Annual Report 2025
3. Capacity
Unit: ton
Main product Designed capacity Actual capacity Capacity in progress
Finished liquor 180000 107545 0.00
II Industry Overview for the Reporting Period
1. Status of the Baijiu Industry
The baijiu industry is at a crucial turning point in its deep adjustment period. In 2025 the industryfundamentals are under pressure showing three characteristics of “reduced volume and price drophigh inventory pressure and consumption differentiation.” According to data from the National
Bureau of Statistics from January to December 2025 the output of baijiu enterprises above
designated size (converted to 65 degrees) was 3549000 kiloliters a year-on-year decline of 12.10%
marking the seventh consecutive year of decline since 2019. The terminal market has sluggish sales
high channel inventory widespread phenomenon of inverted prices reduced demand for business
banquets with banquets and mass consumption scenarios relatively stable the industry has entered a
stage of stock competition and the mid-to-low price band has become the main force for de-stocking.In 2026 the industry will accelerate differentiation in the “stock competition” pattern. In terms of
market structure the Matthew effect intensifies with leading companies further squeezing the space
for small and medium-sized baijiu companies by relying on brand momentum and channel control.In terms of consumption structure there is an obvious “dumbbell-shaped” distribution: the growth
rate of the high-end market (above 1000 yuan) is slowing the mass market (50-200 yuan price range)
has become the fastest-growing ballast and the sub-high-end range (300-800 yuan) is caught in the
most intense price competition. In terms of consumer behavior rational and pragmatic consumption
becomes mainstream the consensus of “drinking less but drinking better” is strengthened and the
consumption scene shifts from government and business-led to diversified modes such as family
gatherings self-drinking and social circles. In terms of product innovation trends of low-alcohol
lightweight and health-conscious products are prominent with strong demand for light bottle wine
and small packaging and new categories like fruit and herb wines breaking through against the trend.In terms of channel reform digital construction has upgraded from an efficiency tool to a survival
infrastructure and the scale of the instant retail market continues to rise. In terms of the policyenvironment the brewing industry has been explicitly included in the category of “historical classicindustries” gaining policy dividends while facing stricter industry regulation promoting the market
to develop towards standardization and centralization.
2. Position of the Company in the Industry
China has a long history of baijiu. There are a large number of baijiu production enterprises in the
country but the regional distribution of baijiu consumers is particularly evident. The baijiu industry
is characterized by full competition with a high degree of marketization. The market competition is
fierce and the industry adjustments are constantly deepening. In the national market the competitive
edges of the enterprises come from their brand influence product style and marketing & operation
models. In a single regional market the competitive strengths of the enterprises depend on their brand
influence in the region the recognition of the companies by regional consumers and comprehensive
marketing capacity.As one of China’s traditional top eight liquor brands the Company is the first listed baijiu company
with both A and B stocks. It is located in Bozhou City Anhui Province in China the hometown of
historic figures Cao 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
~ 13 ~Annual Report 2025
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 flavor and a lingering aftertaste the
Gujing spirit has helped the Company win four national baijiu golden awards a golden award at the
13th SIAL Paris the title of China’s “Geographical Indication Product” the recognition as a “KeyCultural Relics Site under the State Protection” the recognition with a “National Intangible CulturalHeritage Protection Project” a Quality Award from the Anhui provincial government a title of
“National Quality Benchmark” among other honors.In April 2016 Gujing Distillery signed a strategic cooperation agreement with Yellow Crane Tower
Distillery opening a new era of cooperation in China’s famous baijiu industry. Yellow Crane TowerBaijiu is the only famous Chinese baijiu in Hubei. Its unique style is “soft mellow elegant and cooland has a long lingering fragrance”. It won the two China gold medal in baijiu appreciation in 1984
and 1989. At present Yellow Crane Tower Distillery has three bases: Wuhan Xianning and Suizhou.Among them Yellow Crane Tower Baijiu Culture Expo Park in Wuhan base has been approved as
national AAA scenic spot and Yellow Crane Tower Forest Baijiu Town in Xianning base has been
approved as national AAAA scenic spot.In January 2021 Gujing Distillery and Mingguang signed a strategic cooperation agreement. The
unique mung bean flavor adds to the famous baijiu 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.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
In 2025 the Company adheres to Xi Jinping’s Thought on Socialism with Chinese Characteristics for
a New Era as its guide thoroughly studying and implementing the spirit of the 20th National Congress
of the Communist Party of China and the successive plenary sessions of the 20th CPC CentralCommittee as well as the new development philosophy. Focusing on the Company’s “Year of WorkStyle Development and Management” and annual task objectives the Company upholds the
principles of prioritizing stability seeking progress while maintaining stability improving quality and
efficiency and long-termism and has united and led all employees tackled difficulties head-on and
upheld fundamental principles while pursuing innovation. During the industry adjustment period the
Company has consolidated the fundamentals strengthened competitiveness optimized the
governance structure and made every effort to ensure its sustained healthy and steady development.During the Reporting Period the Company achieved operating revenue of RMB 18832 million and
net profit attributable to the parent company of RMB 3549 million. As at the end of the Reporting
Period the Company’s total assets were RMB 38197 million and the net assets attributable to
shareholders of the listed company were RMB 25050 million.(I) Brand momentum building: The four-season IPs strung together into a chain with dual-
track communication resonating at home and abroad
Through the cultural matrix of “one festival one season one ceremony one annual event” (Peach
~ 14 ~Annual Report 2025
Blossom Spring Qu Festival Raw Grain Harvest Season Autumn Brewing Opening Ceremony
Annual Culture Festival) the Company achieves uninterrupted year-round brand communication.Domestically the Company continues to focus on high-speed rail special trains CCTV Spring
Festival Gala and social interaction which have brought the image of Gujing into ordinary
households. Internationally the six World Expos and global liquor culture tours have spread the
fragrance of Gujing baijiu far and wide.(II) Quality foundation consolidation: Safeguarded by a comprehensive quality control system
with digital-intelligent brewing enhancing quality
The Company strictly adheres to process standards and has established a unified scheduling
mechanism for production capacity aroma profiles and processes. The Company practices the
concept of “green brewing intelligent manufacturing” and deepens the “1+1 production model”
making tradition more authentic and modernity more intelligent. The Company also uses digital
technology to foster baijiu aroma promoting the steady improvement of the quality and output of
base liquor.(III) Sci-tech innovation quality enhancement: Full-chain value control and multi-dimensional
patent breakthroughs
The quality chain integrating “field-workshop-laboratory-market” is to be established and the orderly
advancement of intelligent management platform construction for raw grain planting bases is
promoted. The Company has established intelligent production models and taken multiple measures
to improve the quality of base liquor. The Company implements pre-positioned management of
packaging material quality and strengthens the quality control system of the supply chain. A total of
46 patents were applied for throughout the year (10 invention patents and 36 utility model patents)
and six invention patents were granted empowering quality upgrades through technological
innovation.(IV)Digital intelligence foundation: In-depth AI private domain deployment with
comprehensive safety system foundation
The Company has privately deployed the DeepSeek-R1 inference model and built a baijiu + AI
application matrix serving employees and distributors. The Company improves digital construction
operation and maintenance and service standards has launched the three major platforms of endpoint
security situational awareness and host security management; and achieved early warning of security
risks and timely handling of hidden dangers.(V) Management efficiency enhancement: Precise empowerment and support for the grassroots
with digital assessment reaching the front lines
The Company implements an empowerment program for grassroots managers and cultivates new-quality talent in intelligent manufacturing. The Company has established a dual mechanism of “tasklist + outcome performance” implemented quantitative management of job responsibilities and
piloted a new digital performance evaluation system in frontline workshops to stimulate
organizational vitality through precise assessment.(VI) Forging the soul with Party building: The Eight-Point Regulations unite hearts and minds
and coordinated supervision enforces discipline
The Company integrates “study inspection and remediation” as one and deepens the implementation
of the spirit of the Central Eight-Point Regulations. The Company strengthens the overall planning
of the Party building leading group consolidates responsibility for strictly governing the Party
advances the “Year of Work Style Development and Management” implements the “three listening~ 15 ~Annual Report 2025and three systems” promotes coordination between discipline inspection and audit supervision and
unites the strength to forge ahead with excellent work style.(VII) In the Reporting Period the Company was still under pressure and had deficiencies as
follows.
1. The industry is under pressure from deep adjustment consumer demand and consumption scenarios
have changed dramatically competition in the existing market has intensified and market sales are
moving slowly;
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
20252024
As % of total As % of total Change (%)
Amount operating revenue Amount operating revenue
(%)(%)
Total 18831982591.24 100% 23577928065.99 100% -20.13%
By operating division
Manufacturing 18831982591.24 100% 23577928065.99 100% -20.13%
By product category
Baijiu 18539724067.11 98.45% 22865058713.55 96.98% -18.92%
Hotel services 88636179.44 0.47% 86256197.47 0.36% 2.76%
Other 203622344.69 1.08% 626613154.97 2.66% -67.50%
By operating segment
North China 1058108918.58 5.62% 1979406985.66 8.40% -46.54%
Central China 16647874031.21 88.40% 20150945972.42 85.46% -17.38%
South China 1113246819.50 5.91% 1425975566.51 6.05% -21.93%
Overseas 12752821.95 0.07% 21599541.40 0.09% -40.96%
By sales model
Online 1008226469.68 5.35% 771686684.39 3.27% 30.65%
Offline 17823756121.56 94.65% 22806241381.60 96.73% -21.85%
(2) Operating Division Product Category Operating Segment or Sales Model Contributing
over 10% of Operating Revenue or Operating Profit
□Applicable □Not applicable
~ 16 ~Annual Report 2025
Unit: RMB
YoY change in YoY change in
Gross profit YoY change in
Operating revenues Cost of sales operating revenue gross profit
margin cost of sales (%)
(%) margin (%)
By operating division
Manufacturing 18831982591.24 3906499790.17 79.26% -20.13% -17.55% -0.64%
By product category
Baijiu 18539724067.11 3808689558.79 79.46% -18.92% -8.80% -2.28%
Hotel services 88636179.44 44226299.66 50.10% 2.76% 1.53% 0.60%
Other 203622344.69 53583931.72 73.68% -67.50% -89.66% 56.42%
By operating segment
North China 1058108918.58 299925598.86 71.65% -46.54% -25.40% -8.04%
Central China 16647874031.21 3370253577.23 79.76% -17.38% -17.27% -0.02%
South China 1113246819.50 231817795.24 79.18% -21.93% -9.84% -2.79%
Overseas 12752821.95 4502818.84 64.69% -40.96% -16.01% -10.49%
By sales model
Online 1008226469.68 328994529.83 67.37% 30.65% 79.84% -8.92%
Offline 17823756121.56 3577505260.34 79.93% -21.85% -21.46% -0.10%
Core business data of the prior year restated according to the changed statistical caliber for the
Reporting Period:
□Applicable □Not applicable
(3) Whether Revenue from Physical Sales is Higher than Service Revenue
□Yes □No
Operating division Item Unit 2025 2024 Change (%)
Sales volume Ton 119370.77 128301.64 -6.96%
Baijiu brewage Output Ton 107544.59 128045.48 -16.01%
Inventory Ton 22455.12 34281.30 -34.50%
Any over 30% YoY movements in the data above and why:
□Applicable □Not applicable
Inventory decreased by 34.50% compared with 2024 mainly because inventory was sold in the early
stage of 2025 resulting in reduced production volume.
(4) Execution Progress of Major Signed Sales and Purchase Contracts in the Reporting Period
□Applicable □Not applicable
~ 17 ~Annual Report 2025
(5) Breakdown of Cost of Sales
Operating division
Unit: RMB
20252024
Operating As % of As % of
Item Change (%)
division total cost total cost Amount Amount
of sales of sales
(%)(%)
Food Direct
2974882788.4276.15%3413392362.8672.04%-12.85%
manufacturing materials
Food Direct labor
401560143.7010.28%410226875.378.66%-2.11%
manufacturing cost
Food Manufacturi
321802047.388.24%248318564.495.24%29.59%
manufacturing ng expenses
Food
Fuels 110444579.29 2.83% 104092682.27 2.20% 6.10%
manufacturing
(6) Changes in the Scope of Consolidated Financial Statements for the Reporting Period
□Yes □No
Compared with the prior year Anhui Guqi Distillery Co. Ltd. was added to the consolidated financial
statements of the Reporting Period. This period also saw the liquidation of Hainan Yangshengtianxia
Biotechnology Development Co. Ltd.
(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) 2224927541.14
Total sales to top five customers as % of total sales of the
11.81%
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
No. Customer As % of total sales revenue (%)
the Reporting Period (RMB)
1 Distributor A 1427124660.51 7.57%
2 Distributor B 245864930.53 1.31%
3 Distributor C 221991467.24 1.18%
4 Distributor D 167090742.91 0.89%
5 Distributor E 162855739.95 0.86%
Total -- 2224927541.14 11.81%
Other information about major customers:
□Applicable □Not applicable
~ 18 ~Annual Report 2025
Major suppliers
Total purchases from top five suppliers (RMB) 911923688.94
Total purchases from top five suppliers as % of total purchases
20.99%
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 273719673.20 6.30%
2 Supplier B 204440278.53 4.70%
3 Supplier C 157094652.09 3.62%
4 Supplier D 142085620.66 3.27%
5 Supplier E 134583464.46 3.10%
Total -- 911923688.94 20.99%
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
2025 2024 Change (%) Reason for any significant change
Selling expense 5458012676.27 6181762995.50 -11.71%
Administrative expense 1454681864.68 1442398926.31 0.85%
The main reason is the increase in
Finance costs -524281825.11 -348824206.45 -50.30%
interest income
R&D expense 88190543.64 78242212.58 12.71%
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 2025 2024 Change (%) Reason
Employment
1146851003.951280868189.84-10.46%
benefits
Travel fees 275138085.38 257167425.19 6.99%
~ 19 ~Annual Report 2025
Advertisement
1353000071.251309141466.483.35%
fees
Comprehensive
1860952300.872563283912.38-27.40%
promotion costs
Service fees 701337170.61 658399995.56 6.52%
Others 120734044.21 112902006.05 6.94%
Total 5458012676.27 6181762995.50 -11.71%
Details about advertisement
No. Main way Amount (RMB10000)
1 TV 42675.76
2 Offline 62608.85
3 Online 30015.40
Total 135300.01
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
The optimization of
the intelligent quinoa
The Company aims to By improving work efficiency
room management
The intelligent control of monitor and adjust quinoa- and strengthening quality
Research on key platform and the
the quinoa cultivation related parameters online control in the cultivation
technologies for the setup of the
process is achieved to establish quality standards for process the Company is
intelligent control environmental
establish a high-quality key control points in expected to further enhance
of quinoa parameter monitoring
large quinoa fermentation intelligent cultivation and the quality of large quinoa
cultivation system are
model. achieve intelligent control of and the level of digital and
completed and the
the cultivation process. intelligent management.system is operating
stably.Research on the Key parameters such as Intelligent predictive models
The deployment and
construction of an steamer loading height for parameters such as grain The Company’s production
operation verification
intelligent and the temperature and loading height is established efficiency is improved
of the fermented
prediction model humidity of fermented providing data support for supporting the intelligent
grain loading height
system for grains are predicted subsequent process development of the
prediction model is
fermented grain based on big data and adjustments and production Company’s baijiu distilling.completed.height machine learning. decision-making.The development of
the monitoring and
control system
interface is The level of intelligence in
The Company aims to
Research on key A basic model for quinoa completed achieving labor-intensive links of
improve the quality of its
technologies for cultivation is established data preprocessing traditional industries is
intelligent quinoa cultivation
intelligent quinoa to explore its impact on model training and improved helping enhance
and assist in its intelligent
cultivation large quinoa quality. prediction of the Company’s intelligent
development.temperature and brewing technology.humidity acidity and
moisture content for
the next eight hours.Research on The critical points for The correlation
distillation quality segmented baijiu picking are The project is expected to The correlation of flavor analysis of indicators
improvement identified providing improve the quality of components during the such as intelligent
technologies of theoretical support for intelligent liquor picking and distillation process is liquor cut point and
strongly fragrant intelligent liquor picking and the standardization of raw explored. distillation duration
baijiu and standardization of raw liquor liquor quality. is completed.intelligent quality.~ 20 ~Annual Report 2025
distillation rules of
baijiu
The quality and fermentation
Fermentation efficiency and
By optimizing the performance of pit mud is
baijiu quality stability in
cultivation process of improved and while
Research on the Minglvye baijiu production is
artificial pit mud the controlling the structure of the
preparation of improved thereby enhancing
flavor aroma and liquor pit mud microbial community
efficient artificial product consistency and
yield of the base liquor is Concluded. its support for fermentation
pit mud and its meeting the requirements of
improved ultimately performance during the
application in modern baijiu production for
enhancing the overall brewing process of Minglvye
Minglvye baijiu high efficiency
quality of Mingluvye baijiu is enhanced thereby
controllability and quality
baijiu. strengthening the aroma and
stability.mouthfeel of the liquor.The sampling of
summer workshop
The Company aims to
environmental
systematically study the The microbial community
The changes in microbial samples and
changes in microbial regulation strategy will
Research on the communities during the fermented grain
communities during the provide guidance for
intelligent brewing intelligent park samples at different
fermentation process of improving raw liquor quality
process and fermentation process are time sequences in the
intelligent parks and compare and lay the foundation for the
environmental explored to conduct trace Smart Park and
them with traditional brewing stable upgrading of the
microbial analysis of environmental Industrial Park and
production workshops to quality of raw liquor
communities microbial communities microbial DNA
analyze the differences in the produced in the intelligent
during fermentation. extraction and high-
quality of raw liquor in park.throughput
different factory areas.sequencing etc. are
completed.Yeast strains from
Mingguang Daqu with Yeast strains with relatively
high fermentative high fermentative capacity
Research on
capacity as well as good and good tolerance are
technology for The taste of the base liquor is
tolerance and adaptability obtained. After applying the
improving the improved bringing economic
are isolated and Concluded. yeast to the production of
quality of medium- and social benefits to the
identified. Their culture medium-temperature large
temperature large Company.conditions are optimized quinoa the fermentative
quinoa
and then they are applied capacity of large quinoa is
to the production of high- improved.quality large quinoa.Details about R&D personnel:
2025 2024 Change (%)
Number of R&D personnel 1170 1061 10.27%
R&D personnel as % of total
8.61%7.89%0.72%
employees
Educational background of
——————
R&D personnel
Master’s degree 100 89 12.36%
Bachelor 298 203 46.80%
Other 772 769 0.39%
Age structure of R&D
——————
personnel
Below 30 285 259 10.04%
30~4055847716.98%
Over 40 327 325 0.62%
Details about R&D investments:
2025 2024 Change (%)
~ 21 ~Annual Report 2025
R&D investments (RMB) 403794911.63 435332086.16 -7.24%
R&D investments as % of
2.14%1.85%0.29%
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
Reason for any sharp variation in the percentage of capitalized R&D investments and rationale
□Applicable □Not applicable
5. Cash Flows
Unit: RMB
Item 2025 2024 Change (%)
Subtotal of cash generated from
21777865903.2825419226220.25-14.33%
operating activities
Subtotal of cash used in operating
19830652926.2820691573346.40-4.16%
activities
Net cash generated from/used in
1947212977.004727652873.85-58.81%
operating activities
Subtotal of cash generated from
7056484196.30979361059.90620.52%
investing activities
Subtotal of cash used in investing
8809849672.792712403146.80224.80%
activities
Net cash generated from/used in
-1753365476.49-1733042086.90-1.17%
investing activities
Subtotal of cash generated from
467719589.94146000100.00220.36%
financing activities
Subtotal of cash used in financing
3360449966.072623643610.1228.08%
activities
Net cash generated from/used in
-2892730376.13-2477643510.12-16.75%
financing activities
Net increase in cash and cash
-2698882875.62516967276.83-622.06%
equivalents
Explanation of why any of the data above varies significantly:
□Applicable □Not applicable
(1) The net cash flow from operating activities during the Reporting Period was RMB
1947212977.00 a decrease of 58.81% compared with the same period last year mainly due to the
decrease in cash received from sales of goods;
(2) The net increase in cash and cash equivalents during the Reporting Period was RMB -
2698882875.62 representing a decrease of 622.06% compared with the same period last year
mainly due to a decrease in cash received from the sale of goods.~ 22 ~Annual Report 2025
Reason 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
December 31 2025 January 1 2025 Reason for
Change in any
As % of As % of
Amount Amount percentage (%) significant
total assets total assets change
Monetary
14187463729.8137.14%-2.08%
assets 15894104466.53 39.22%
Accounts
53996692.680.14%-0.03%
receivable 69819734.99 0.17%
Inventories 10739794676.82 28.12% 9264220836.58 22.86% 5.26%
Investment
16036411.820.04%-0.07%
property 43893659.88 0.11%
Long-term
equity 11574463.54 0.03% 0.00%
investments 11732641.44 0.03%
Fixed assets 9121969040.94 23.88% 7896995404.62 19.49% 4.39%
Constructio
n in 160290473.75 0.42% -2.14%
progress 1038780764.86 2.56%
Right-of-
92161801.760.24%-0.01%
use assets 100293500.73 0.25%
Short-term
184830263.450.48%0.36%
borrowings 50038194.44 0.12%
Contract
1519882489.703.98%-4.69%
liabilities 3514800038.80 8.67%
Long-term
260199589.940.68%0.58%
borrowings 41600000.00 0.10%
Lease
76138828.430.20%-0.01%
liabilities 84453588.30 0.21%
Indicate whether overseas assets account for a high proportion of total assets.□Applicable □Not applicable
2. Assets and Liabilities at Fair Value
□Applicable □Not applicable
Unit: RMB
~ 23 ~Annual Report 2025
Gain/loss
on fair- Cumulative Impairment
value fair value allowance
Beginning Purchased in the Sold in the Reporting Other
Item changes changes for the Ending amount
amount Reporting Period Period changes
in the charged to Reporting
Reportin equity Period
g Period
Financial
assets
1. Held-for-
trading
financial
assets
60184353.811116000000.001176184353.810.00
(excluding
derivative
financial
assets)
2. Derivative
financial
assets
3. Other debt
investments
4. Other
equity 69500830.82 4025186.90 73526017.72
investments
5. Other
non-current
financial
assets
Subtotal of
financial 129685184.63 4025186.90 1116000000.00 1176184353.81 73526017.72
assets
Total of the
129685184.634025186.901116000000.001176184353.8173526017.72
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
Unit: RMB
Item Ending carrying value Reason for restriction
Time deposits and cash deposits that are pledged for issuing bank acceptance
Monetary assets 1693211911.24
bills and other margins.Intangible assets 16531830.55 Loan mortgage.Total 1709743741.79 --
~ 24 ~Annual Report 2025
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
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
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
~ 25 ~Annual Report 2025
Unit: RMB10000
Proportion
of closing
Actual
Purchased in investment
Relationship Initial Beginning Sold in the Impairment Ending gain/loss in
Connected Type of the amount in
Operator with the investment Starting date Ending date investment Reporting provision (if investment the
transaction derivative Reporting the
Company amount amount Period any) amount Reporting
Period Company’s
Period
ending net
assets
Reverse
Reverse
repurchase January 16 June 25
Naught No repurchase of 603072.40 587279.40 0.00 15793.00 0.61% 329.35
of national 2025 2026
national debt
debt
Total -- -- 603072.40 587279.40 0.00 15793.00 0.61% 329.35
Capital source for derivative investment Company’s own funds
Lawsuits involved (if applicable) N/A
Disclosure date of board announcement approving
April 26 2025
derivative investment (if any)
Disclosure date of shareholders’ meeting announcement
N/A
approving derivative investment (if any)
Analysis of risks and control measures associated with
derivative investments held in the Reporting Period
N/A
(including but not limited to market risk liquidity risk
credit risk operational risk legal risk etc.)
Changes in market prices or fair value of derivative
investments during the Reporting Period (fair value
N/A
analysis should include measurement method and
related assumptions and parameters)
Explanation of whether there have been significant
changes in the Company’s accounting policies and
N/A
specific accounting principles for derivatives compared
to the previous Reporting Period
VIII Sale of Major Assets and Equity Interests
1. Sale of Major Assets
□Applicable □Not applicable
~ 26 ~Annual Report 2025
No such cases in the Reporting Period.
2. Sale of Major Equity Interests
□Applicable □Not applicable
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 Operating
Company name Main business scope Registered capital Total assets Net assets Operating profit Net profit
Company revenues
Wholesales of baijiu
Bozhou Gujing construction materials
Subsidiary 84864497.89 8061983891.36 1888397322.97 17710795621.53 1088760381.56 682834499.86
Sales Co. Ltd. feeds assistant
materials etc.Subsidiaries obtained or disposed during the Reporting Period:
□Applicable □Not applicable
Company name How subsidiary was obtained or disposed Effects on overall operations and performance
Optimizing internal operation structure and enhancing
Anhui Guqi Distillery Co. Ltd. Incorporated with investment
endogenous impetus
Hainan Yangshengtianxia Biotechnology Development Co.De-registered and liquidated
Ltd.Notes to main controlled and joint stock companies:
N/A
~ 27 ~Annual Report 2025
X Structured Bodies Controlled by the Company
□Applicable □Not applicable
XI Prospects
(I) Development Prospect of the Industry the Company is in
1. Short-term pressure with strong long-term development resilience of premium baijiu
The baijiu industry still faces considerable pressure in the short term and the downward trend may
continue. As the impact of policies continues to weaken and social inventory is cleared in a rational
manner the industry’s fundamentals are reaching a turning point and the revenue and profits of baijiu
companies are expected to stop declining and recover. In the long term the market size of the baijiu
industry will gradually shrink. In the competition amid declining volumes the polarization among
operators will intensify. The increase in industry concentration is expected to enable leading famous
baijiu enterprises to maintain strong development resilience.
2. Product innovation driven by youthfulness- and scenario-based strategies
Youthfulness and scenario-based design will become the core keywords of product innovation.Driven rigidly by the generational shift of the main consumer force youthfulness is no longer an
exploratory strategy for baijiu companies but a core strategy concerning future market discourse
power. Youthfulness is no longer simply about lowering product alcohol content or innovating
packaging but a systematic reconstruction spanning brand culture consumption scenarios and
marketing methods. Using low-alcohol products as touchpoints the brand’s cultural genes should be
implanted into the lives of young consumer groups so as to precisely adapt to diverse needs achieve
the intergenerational transmission of baijiu consumption promote baijiu’s shift from a “gift attribute”
to a “lifestyle” and drive the baijiu industry from “product youthfulness” toward “brandyouthfulness”.
3. Channel restructuring with omnichannel retail and digital empowerment
Channel flattening and digital transformation will accelerate. The traditional baijiu channel model isundergoing disruptive transformation. The previous production-sales logic of “manufacturers pushinginventory and channels bearing the pressure” is difficult to sustain in an environment of weakening
demand. Leading enterprises increase the proportion of direct sales and establish new retail stores
compressing intermediate links to expand profit margins while small and medium-sized baijiu
companies rely on regional advantages to deeply cultivate community group buying. The core of
channel restructuring lies in achieving deep integration of “marketing + sales” and improving
channel efficiency through digital tools. The rise of instant retail and livestream e-commerce has
provided a new engine for channel transformation.
4. Culture empowerment representing the rise of national trends and the exploration of
internationalization
Cultural marketing will enter a new stage of “youth-oriented expression”. As a distilled liquor
category unique to China baijiu’s cultural heritage and social attributes are irreplaceable but the
traditional narrative approach of “a long history and complex craftsmanship” struggles to resonate
with younger groups. In the future brands need to combine traditional craftsmanship with modern
aesthetics enabling consumers to transition from “drinking” to “understanding wine” establishing
emotional resonance. Internationalization is another major strategic direction. Although baijiu is still
viewed as a “niche spirit” in the international market its globalization potential is being unleashed as
Chinese cultural influence increases and consumption upgrades.~ 28 ~Annual Report 2025
(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 optimize services and promote healthy 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 2026
In 2026 the company will comprehensively strengthen management expand the market center on
customers and promote high-quality operation of the company.(IV) Operating Risk of the Company
1. Uncertainty in the external environment;
2. Industry competition has intensified entering a period of deep adjustment;
3. Consumption scenarios have changed consumer demand remains sluggish and sales turnover has
further slowed.(V) Operating Measures
1.Brand leadership: Anchoring the “four transformations” trend and building a lifestyle brand
The Company will adhere to high-end leadership and deepen cooperation with mainstream media. It
will keep pace with changing consumer trends innovate consumption scenarios around lower alcohol
content health individuality and youthfulness. On the product side the Company will promote
“Mild Gu 20” to target the younger customer segment rely on the “Gujing Shenli Baijiu” series to
establish a presence in the health track and use the “Han Tang Song Ming” Chinese trendy productline to advance internationalization. On the channel side it will build the “Gujing Light WellnessClub” experiential scenario strengthen instant retail and drive the leap from “selling products” to
“leading lifestyles.”
2.Deep marketing cultivation: Deeply advancing the dual strategy of “nationwide expansion +sub-high-end”The Company will firmly implement the strategy of “national expansion sub-high-end Gu 20+strong foundation” and coordinate the baijiu and “baijiu+” businesses. With the core focus of
“boosting sell-through reducing inventory expanding channels stabilizing prices” the Companywill strengthen terminal execution. It will also build a three-dimensional framework of “consolidatingAnhui leading the Yangtze River Delta and achieving breakthroughs in border areas and economiccultural and tourism zones” while simultaneously advancing internationalization and e-commerce
deployment forming a dual-engine drive of “stable domestic performance and overseas growth”.~ 29 ~Annual Report 2025
3.Building a quality foundation: Systematically upgrading product strength and strengthening
the food safety defense line
The Company will comprehensively optimize product quality taste and sensory experience creating
a cost-effective product matrix. It will improve the dual mechanisms of quality accountability and
market information feedback and strengthen research on quality and safety risks and support for
production technology. It will also use big data to continuously optimize processes scientifically plan
production capacity and dynamically optimize production cycles and shifts.
4.Digital-intelligence empowerment: Four-in-one operations and maintenance with AI
transformation across all businesses
The Company will build a four-in-one collaborative innovation service digital operations andmaintenance model integrating “requirements review agile development platform operations andmaintenance and intelligent services” with “proactive embrace deep application andcomprehensive integration” as the strategic orientation for AI. It will promote the deep integration of
AI with business advance the AI transformation of business systems across the entire process
reconstruct distinctive AI application scenarios suited to the Company’s needs and comprehensively
empower business development through intelligent transformation.
5.Governance upgrade: Three-in-one risk control with deepening talent mechanism reform
The Company will improve and fully cover the integrated compliance internal control and risk
“three-in-one” collaborative supervision mechanism across all businesses and the entire process and
strengthen supervision auditing and disciplinary inspection efforts in key areas. It will deepen the
reform of talent systems and mechanisms build a scientific and standardized talent development
system create a strategic talent team of appropriate scale rational structure and excellent quality
and ensure the standardized transparent and efficient operation of the enterprise.
6.Safety and environmental protection as a strong foundation: Company-wide and end-to-end
control with green and low-carbon development
The Company will build a safety management system involving all personnel the entire process and
all aspects and promote the implementation of safety responsibilities at every level. It will strengthen
the food safety risk control system and achieve closed-loop management throughout the entire process
strengthen industrial host security protection and cybersecurity strictly uphold the environmental
protection baseline and promote the iterative upgrading of the development model toward green and
low-carbon.
7.Forging the soul with culture: Innovative dissemination of Baijiu culture and telling the
brand's story well
The Company will deepen the construction of the Gujing Distillery Original Vintage Culture Research
Institute cultivate younger consumer groups reconstruct drinking culture for the new era and
promote the formulation of a global spirits culture evaluation system. It will jointly develop cultural
and creative products and digital collectibles advance innovation in the expression of the new
national trends innovate dissemination methods such as short videos and livestreaming and vividly
tell the story of Chinese baijiu.In 2025 in the face of a profound industry adjustment the Company forged ahead under pressure
stabilized its fundamentals and delivered an answer sheet full of resilience. This achievement stems
from the trust and entrustment of all shareholders the Board of Directors’ scientific guidance the
Audit Committee’s strict oversight and the management team’s diligence and dedication. It also
embodies the hard work and sweats of all employees.~ 30 ~Annual Report 2025
The year 2026 is the “Year of Gujing’s Strive and Breakthrough”. We must take root downward and
grow upward consolidating our foundation through meticulous cultivation and facing changing
circumstances with steadfast perseverance. Strategically we should maintain steadfast resolve
without wavering. In terms of quality we should strive for excellence without relaxation. In the
market we should charge forward with momentum to overcome obstacles. In management we should
innovate and renew with vitality. We will traverse cycles amid striving accumulate momentum
through innovation anchor on value break through against the trend and achieve the Company’s
steady and healthy development.On the new journey the Company will closely unite around the Party Central Committee with
Comrade Xi Jinping at its core and under the leadership of the Bozhou Municipal Party Committee
and Municipal Government with firmer determination more pragmatic measures and more
innovative thinking promote the enterprise to seize opportunities and make steady long-term
progress amid industry changes create more substantial returns for shareholders and contribute
Gujing’s strength to the high-quality development of the baijiu industry.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 a valuation enhancement 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 standardize market value
management practices 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 Market Value Management System of Anhui Gujing Distillery Company
Limited disclosed by the Company 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 andProfitability”.□Yes □NoIn order to implement the guiding ideology of “to activate the capital market and boost investorconfidence” proposed by the meeting of the Political Bureau of the CPC Central Committee and “tovigorously improve the quality and investment value of listed companies and to take more effective
~ 31 ~Annual Report 2025and effective measures to stabilize the market and stabilize confidence” proposed by the National
Standing Committee combined with the company’s development strategy operating conditions and
financial conditions in 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 policies under the Company Law the Articles
of Association and other relevant regulations and in light of the Company’s actual circumstances
and development needs in order to fully reward shareholders the Company’s proposed profit
distribution plan for 2025 is as follows: Based on a total share capital of 528600000 shares a cash
dividend of RMB 34 (tax included) will be distributed for every 10 shares to all shareholders for a
total proposed cash distribution of RMB 1797240000.00 (tax included). Combined with the 2025
interim dividend plan the Company’s total dividend amount for 2025 accounts for 65.53% of the net
profit attributable to shareholders of the listed company in the consolidated financial statements for
the year representing an increase of 8.04% from 57.49% in 2024 thereby enabling a broad base of
investors to fully share in the Company’s development achievements.~ 32 ~Annual Report 2025
Part IV Corporate Governance and Environmental and Social
Responsibility
I General Information of Corporate Governance
The Company has enabled the General Meeting of Shareholders the directors and the management
to form a standardized 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 standardized 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 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 behaviors 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 and ESG Committee which perform
their normal duties to provide scientific and professional comments and references for decision-
making of the Board of Directors.~ 33 ~Annual Report 2025
4.The Mechanism of Performance Appraisal and Incentive and Constraint
The procedures for appointment and removal of directors 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 and senior
managers.
5.Fulfillment 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.
6.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.
7.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 Organization and Financial Affairs
The Company and the controlling shareholder Anhui Gujing Group Co. Ltd. realized five
~ 34 ~Annual Report 2025
independences in terms of business personnel assets organizations 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.
2.Independence of Personnel
The Company has independent management systems of labor 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 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
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 Organization
The Company has established a sound and integral governance structure of General Meeting of
Shareholders and the Board of Directors 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.~ 35 ~Annual Report 2025
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 fulfills tax
payment obligations independently according to law and does not pay taxes together with its
shareholding entities.III Horizontal Competition
□Applicable □Not applicable
IV.Directors and Senior Management
1.Basic Information
Ot En
Incre Decr her din
ase ease inc g
Reaso
Beginni in the in the rea sh
ns for
ng Repo Repo se/ are
Office Incumbent Start of End of chang
Name Gender Age shareho rting rting de hol
title /Former tenure tenure es in
lding Perio Perio cre din
shareh
(share) d d ase g
olding
(shar (shar (sh (sh
e) e) are are
))
Chairman April
Liang June 29
Male 60 of the Incumbent 23
Jinhui 2026
Board 2014
August
June 29
Li Peihui Male 53 Director Incumbent 23
2026
2016
April
Zhou Director June 29
Male 52 Incumbent 23
Qingwu GM 2026
2014
Director
Yan Executive August June 29
Male 53 Incumbent
Lijun Deputy 5 2016 2026
GM
Director August
June 29
Xu Peng Male 56 Deputy Incumbent 23
2026
GM 2016
Ye Decem
June 29
Changqi Male 52 Director Incumbent ber 15
2026
ng 2011
June
Xu Independe June 29
Male 50 Incumbent 19
Zhihao nt director 2026
2020
June
Independe June 29
Li Jing Female 58 Incumbent 29
nt director 2026
2023
January
Zhang Independe June 29
Male 42 Incumbent 15
Bin nt director 2026
2025
~ 36 ~Annual Report 2025
Zhang Deputy August June 29
Male 58 Incumbent
Lihong GM 5 2016 2026
Septem
Deputy June 29
Kang Lei Male 48 Incumbent ber 23
GM 2026
2022
August
Gao Deputy June 29
Male 56 Incumbent 28
Jiakun GM 2026
2020
Deputy August
June 29
Li Anjun Male 56 GM chief Incumbent 28
2026
engineer 2020
Zhu August
Deputy June 29
Xiangho Male 52 Incumbent 28
GM 2026
ng 2020
Deputy
GM chief
Septem
Zhu accountan June 29
Male 49 Incumbent ber 23
Jiafeng t and 2026
2022
Board
Secretary
Wang Independe
Male 64 Resigned
Ruihua nt director
Total -- -- -- -- -- -- --
Indicate by tick mark whether any directors or supervisors left or any senior management were
disengaged during the Reporting Period
□Yes □No
Mr. Wang Ruihua the Company’s independent director resigned from his position as independent
director for personal reasons. The Company held the first extraordinary general meeting of
shareholders in 2025 on January 15 2025 and elected Mr. Zhang Bin as an independent director.Changes in directors and senior executives personnel
□Applicable □Not applicable
Name Office title Type Date Reason
Wang Ruihua Independent director Resigned January 15 2025 Personal reasons
2.Biographical Information
The professional backgrounds main work experience and current primary responsibilities of the
Company’s existing directors and senior executives
(1). Mr. Liang Jinhui male born in 1966 member of CPC is Political Engineer a deputy to the 13th
National People’s Congress a deputy to the 14thNational 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 4th 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) 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
~ 37 ~Annual Report 2025
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 professor-level 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 Center Vice GM and
director of the 7th 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. Secretary of CPC and president of Yellow Crane Tower Distillery Co. Ltd. Chairman of
the 7th Board of Supervisors and Director of the 7th 8th and 9th Board of Directors of the Company.
(6) Mr. Ye Changqing male born in October 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) Mr. Xu Zhihao male born in 1976 is a senior economist who holds a doctor’s degree. He received
the national May 1 Labor Medal. Currently serves as an independent director of the company and the
Chief Executive Officer (CEO) of Geely Technology Group Co. Ltd. while also serving as Qianjiang
Motorcycle (000913.SZ) Chairman of Qianjiang Motorcycle (000913.HK) Chairman of the Board.He is currently Independent Director of the Company CEO of Geely Technology Group Co. Ltd.Chairman of QJMOTOR (Stock Code: 000913.SZ) and Chairman of the Board of Honbridge
Holdings Limited.
(8) Ms. 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 Center Manager of Audit and Internal Control Department and Director of the Settlement
Center at Beijing District Heating Group Co. Ltd.
(9) Mr. Zhang Bin male born in 1983 member of CPC is a professor-level senior engineer with a
doctor’s degree. He currently serves as a senior expert researcher in global core technologies at
Siemens China Research Institute recipient of the 2024 Siemens China Top Inventor award
Secretary of the Second Party Branch of Siemens expert included in the expert database of the
Ministry of Science and Technology technical expert of the China-Germany Intelligent
Manufacturing Science and Technology Innovation Cooperation Alliance and corporate mentor of
~ 38 ~Annual Report 2025
the China Development Research Foundation.
(10) 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 Center of Bozhou Gujing Sales Co. Ltd. Director of HR Department and Administrative
Service Center and GM Assistant of the Company.
(11) Mr. Kang Lei male born in 1978 is a member of CPC and senior accountant with a bachelor’s
degree. He is currently a member of the Party Committee Deputy GM and Director of the Enterprise
Management Center of the Company. He served as Deputy Director of the Financial Management
Center of Bozhou Gujing Sales Company Director and Assistant to General Manager of the
Company’s Administrative Service Center and Deputy Director of the President’s Executive Office
of Gujing Group.
(12) Mr. Gao Jiakun male born in 1970 member of CPC is a professor-level senior engineer with
a bachelor’s 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
Center of the Company Chairman of the Board and GM of Bozhou Pairuite Packing Products Co.Ltd. Director of Finished Products Filling Center and Production Management Center and assistant
to GM of the Company.
(13) Mr. 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 Center.
(14) 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 Chairman 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 Center executive Deputy GM of Sales Company and
assistant to GM of the Company.
(15) Mr. 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 Center of the Company. He served as the
Manager Deputy Director assistant to General Manager and Deputy Chief Accountant of the
Financial Management Center of the Company.Offices held concurrently in shareholding entities:
□Applicable □Not applicable
Office held in
Remuneration or
the
Name Shareholding entity Start of tenure End of tenure allowance from the
shareholding
shareholding entity
entity
Chairman of
Liang Jinhui Anhui Gujing Group Co. Ltd. May 1 2014 Yes
the Board
October 31
Li Peihui Anhui Gujing Group Co. Ltd. President Yes
2017
August 13
Ye Changqing Anhui Gujing Group Co. Ltd. CFO Yes
2021
~ 39 ~Annual Report 2025
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
Director and
Geely Technology Group Co. Ltd. November 2023 Yes
general manager
Chairman of the
Xu Zhihao Zhejiang Qjiang Motorcycle Co. Ltd. May 2024 May 2027 No
Board
Chairman of the
Honbridge Holdings Limited October 2024 Yes
Board
Independent
Kingsignal Technology Co. Ltd. October 2024 October 2027 Yes
director
Li Jing
Independent
Anhui Shunyu Water Co. Ltd. December 2023 August 2028 Yes
director
Senior Expert
Zhang Bin Siemens China Research Institute December 2021 Yes
Researcher
Notes None.The situation of penalties imposed by the Securities Regulation Institute on current and former
directors and senior management personnel of the Reporting Period in the past three years
□Applicable □Not applicable
3.Remuneration of Directors and Senior Management
Decision-making procedure determination basis and actual payments of remuneration for directors
and senior management:
(1) Decision-making procedure of remuneration for directors and senior management
The remuneration of independent directors is decided through the general meeting of shareholders
and the remuneration of the directors 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 and senior management
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 situation of remuneration for directors and senior management
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.~ 40 ~Annual Report 2025
Remuneration of directors and senior management for the Reporting Period
Unit: RMB10000
Total before-tax Any
Incumbent/For remuneration remuneration
Name Gender Age Office title
mer from the from related
Company party
Chairman of
Liang Jinhui Male 60 Incumbent Yes
the Board
Li Peihui Male 53 Director Incumbent Yes
Zhou Qingwu Male 52 Director GM Incumbent 85.29 No
Director
Yan Lijun Male 53 Executive Incumbent 82.33 No
Deputy GM
Director
Xu Peng Male 56 Incumbent 80.28 No
Deputy GM
Ye Changqing Male 52 Director Incumbent Yes
Independent
Xu Zhihao Male 50 Incumbent 20.00 No
director
Independent
Li Jing Female 58 Incumbent 20.00 No
director
Independent
Zhang Bin Male 42 Incumbent 8.33 No
director
Zhang Lihong Male 58 Deputy GM Incumbent 79.88 No
Kang Lei Male 48 Deputy GM Incumbent 72.75 No
Gao Jiakun Male 56 Deputy GM Incumbent 72.09 No
Deputy GM
Li Anjun Male 56 Incumbent 72.46 No
chief engineer
Zhu Xianghong Male 52 Deputy GM Incumbent 81.29 No
Deputy GM
chief
Zhu Jiafeng Male 49 accountant and Incumbent 72.57 No
Board
Secretary
Independent
Wang Ruihua Male 64 Resigned 11.67 No
director
Total -- -- -- -- 758.94 --
The remuneration of the Company’s directors and senior
Performance evaluation basis for actual remuneration of all
management is determined upon review in accordance with
directors and senior management at the end of the Reporting
specific rules and regulations and the Company disburses it in
Period
accordance with the relevant provisions.In 2025 the independent director allowances received by
independent directors were not subject to performance
evaluation. Some non-independent directors and senior
Performance completion status for actual remuneration of all management personnel of the Company received corresponding
directors and senior management at the end of the Reporting remuneration in accordance with the Company’s performance
Period evaluation regulations. The performance evaluation work was
reviewed and determined in accordance with the Company’s
specific systems and was effectively implemented and
completed.Deferred payment arrangements for directors and senior
Deferred payment arrangements for the remuneration actually
management are reviewed and determined in accordance with
received by all directors and senior management at the end of
specific rules and regulations and the Company distributes
the Reporting Period
them in accordance with relevant provisions.Payment suspension or recourse for the remuneration actually N/A
~ 41 ~Annual Report 2025
received by all directors and senior management at the end of
the Reporting Period
Other notes
□Applicable □Not applicable
V. Performance of Duty by Directors in the Reporting Period
1.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
of board Board Board
Board meetings meetings attend 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 3
Zhou Qingwu 4 1 3 0 0 No 3
Yan Lijun 4 1 3 0 0 No 3
Xu Peng 4 1 3 0 0 No 3
Ye Changqing 4 1 3 0 0 No 3
Xu Zhihao 4 1 3 0 0 No 3
Li Jing 4 1 3 0 0 No 3
Zhang Bin 4 1 3 0 0 No 2
2.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.
3.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.~ 42 ~Annual Report 2025
VI Performance of Duty by Special Committees under the Board in the Reporting Period
Details
Other
Number about
information
of Convening Important opinions and issues
Committee Members Content about the
meetings date suggestions raised with
performance
convened objections
of duty
(if any)
Review of the
Company’s 2024 annual
audit report and
communication letter Upon full
Meeting of the Li Jing Xu
with the governance communication and
Audit Zhihao Zhang February
1 team 2024 internal audit discussion all
Committee of Bin Li Peihui 24 2025
work summary and 2025 proposals were
the Board Ye Changqing
work plan review report unanimously approved.on the use and placement
of raised funds in the
fourth quarter of 2024.Review of the
Company’s 2024 Annual
Internal Control Self-
Assessment Report the
Company’s 2024 Annual
Report and its Summary
the Company’s 2025
First Quarter Report the Upon full
Meeting of the Li Jing Xu
proposal on the communication and
Audit Zhihao Zhang April 24
1 Company’s appointment discussion all
Committee of Bin Li Peihui 2025
of the 2025 audit proposals were
the Board Ye Changqing
institution the unanimously approved.Company’s special report
on the deposit and use of
raised funds in 2024 and
the Company’s 2024
financial final accounts
report.Review of the
Company’s 2025 Semi-
Upon full
Meeting of the Li Jing Xu annual Report and its
communication and
Audit Zhihao Zhang August 27 Summary and the
1 discussion all
Committee of Bin Li Peihui 2025 Proposal on Revising the
proposals were
the Board Ye Changqing Implementation Rules of
unanimously approved.the Company’s Audit
Committee of the Board.Upon full
Meeting of the Li Jing Xu
Review of the communication and
Audit Zhihao Zhang October 29
1 Company’s 2025 Third discussion all
Committee of Bin Li Peihui 2025
Quarter Report proposals were
the Board Ye Changqing
unanimously approved.Review of the
Xu Zhihao Li Upon full
Remuneration Company’s directors’
Jing Zhang communication and
and Appraisal April 25 and senior management’s
Bin Zhou 1 discussion all
Committee of 2025 2024 remuneration and
Qingwu Yan proposals were
the Board performance appraisal
Lijun unanimously approved.status
Review and formulate
Xu Zhihao Li
Remuneration the performance
Upon full
Jing Zhang evaluation measures for communication and and Appraisal August 28
Bin Zhou 1
Committee of 2025 the Company’s directors
discussion all
Qingwu Yan
the Board and senior management
proposals were
Lijun and review and revise the unanimously approved.implementation rules of
~ 43 ~Annual Report 2025
the Remuneration and
Appraisal Committee of
the Board
Review of the proposal
on the Company’s use of
idle self-owned funds for
entrusted wealth
management the
Upon full
Strategy and Liang Jinhui Company’s 2025 annual
communication and
ESG Xu Zhihao Li April 25 financial budget report
1 discussion all
Committee of Jing Zhang 2025 the Company’s 2024
proposals were
the Board Bin Li Peihui annual financial final
unanimously approved.accounts report and the
Company’s 2024
Environmental Social
and Governance (ESG)
report.Review and revise the Upon full
Strategy and Liang Jinhui
detailed rules for the communication and
ESG Xu Zhihao Li August 26
1 implementation of the discussion all
Committee of Jing Zhang 2025
Strategy and ESG proposals were
the Board Bin Li Peihui
Committee of the Board unanimously approved.Liang Jinhui Review of the revised Upon full
Nomination Xu Zhihao Li implementing rules of communication and
August 27
Committee of Jing Zhang 1 the Company’s discussion all
2025
the Board Bin Zhou Nomination Committee proposals were
Qingwu of the Board unanimously approved.VII Performance of Duty by the Audit Committee
Indicate by tick mark whether the Audit Committee found any risk to the Company during its
supervision in the Reporting Period.□Yes □No
The Audit Committee raised no objections in the Reporting Period.VIII Employees
1.Number Functions and Educational Backgrounds of Employees
Number of in-service employees of the Company as the parent at
6643
the period-end
Number of in-service employees of major subsidiaries at the
6953
period-end
Total number of in-service employees 13596
Total number of paid employees in the Reporting Period 13596
Number of retirees to whom the Company as the parent or its
1987
major subsidiaries need to pay retirement pensions
Functions
Function Employees
Production 6702
~ 44 ~Annual Report 2025
Sales 3843
Technical 575
Financial 229
Administrative 1168
Other 1079
Total 13596
Educational backgrounds
Educational background Employees
Master or above 260
Bachelor 4634
Junior college 3452
High school or below 5250
Total 13596
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 pays 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 realize a win-win
situation and progress between the Company and the employees.
4.Labor Outsourcing
□Applicable □Not applicable
Total man-hours (hour) 5762122.46
Total remuneration paid (RMB) 122971638.40
IX Profit Distributions (in the Form of Cash and/or Stock)
How the profit distribution policy especially the cash dividend policy for ordinary shareholders was
formulated executed or revised in the Reporting Period:
~ 45 ~Annual Report 2025
□Applicable □Not applicable
The Company convened the first extraordinary general meeting of shareholders of 2025 on January
15 2025 and deliberated and approved the 2024 interim profit distribution plan. It is based on the
total shares of 528600000 of the Company on September 30 2024 cash dividends were distributed
at RMB10.00 per 10 shares (tax inclusive) and the total cash dividends distributed was
RMB528600000.00 (tax inclusive) which has been carried out completely in February 2025.The 2024 Annual General Meeting held on May 29 2025 reviewed and approved the Company’s
Interest Distribution Scheme in 2024. It is based on the total shares of 528600000 of the Company
on December 31 2023 cash dividends were distributed at RMB50.00 per 10 shares (tax inclusive)
and the total cash dividends distributed was RMB2643000000.00 (tax inclusive) which has been
carried out completely in June 2025.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
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 N/A
in 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 distribution
policy the conditions and procedures involved are in No adjustments or changes
compliance with 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) 34.00
Bonus issue from capital reserves (share/10 shares) 0
Total shares as the basis for the profit distribution
528600000
proposal (share)
Total cash dividends (RMB) (tax inclusive) 1797240000.00
Cash dividends in other ways (such as share
0.00
repurchase) (RMB)
Total cash bonus (including other methods) (RMB) 1797240000.00
Distributable profit (RMB) 15109309830.46
Percentage of cash dividends (including other
100.00%
methods) to the total distributed profits
Particulars about the cash dividends
~ 46 ~Annual Report 2025
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 RMB34.00 (tax included) per 10 shares based on the total shares of 528600000 at the end of
the year totaling RMB1797240000.00. In this year there is no bonus issue from either profit or capital reserves.X Equity Incentive Plans Employee Stock Ownership Plans or Other Incentive Measures for
Employees
□Applicable □Not applicable
No such cases in the Reporting Period.XI 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 realization of internal control objectives.
2.Material Internal Control Weaknesses Identified for the Reporting Period
□Yes □No
XII 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 to subsidiary companies to participate in the daily operation of their board of directors the
Company realized 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.Abnormalities in the management and control of subsidiaries
□Yes □No
XIII 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 self-
April 29 2026
evaluation report
Index to the disclosed internal control self- See www.cninfo.com.cn for the Self-assessment Report of Internal Control of Anhui
evaluation report Gujing Distillery Company Limited.Evaluated entities’ combined assets as % of
97.66%
consolidated total assets
Evaluated entities’ combined operating 99.71%
~ 47 ~Annual Report 2025
revenue as % of consolidated operating
revenue
Identification standards for internal control weaknesses
Weaknesses in internal control over financial Weaknesses in internal control not related
Type
reporting to financial statements
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
the environment; (2) Malpractice of directors
and senior management officers; (3) Any of the following circumstances shall
According to external auditing there’s major be deemed as a critical defect and other
wrong reporting in current financial report circumstances shall be deemed as major or
which fails to be found by the Company in its minor defects according to their degree of
operating process; (4) Critical defects found impact. (1) Violate national laws
and reported to the top management fail to be regulations or standardized documents;
Nature standard
corrected within a reasonable period of time; (2) Major decision making procedure is
(5) The supervision of the Audit Committee of not scientific; (3) Lack of systems results
the Company and its internal audit department in systematic failure; (4) Critical or major
for internal control is ineffective; (6) Other defects fail to be rectified; (5) Other
defects that may affect correct judgment of circumstances that have major impact on
users of statements. Major defect: Separate the Company.defect or other defects that result in failure in
preventing finding out and correcting wrong
reporting in financial report in time which
shall be noted by the top management despite
not attaining or exceeding critical level. Minor
defect: Other internal control defects not
constituting critical or major defects.Critical defect: The defect with direct
Critical defect: (1) Wrong reporting ≥0.5% of
property loss amounting to over RMB10
total operating revenue; (2) Wrong reporting
million has great negative impact on the
≥5% of total profit; (3) Wrong reporting
Company and is disclosed in public in the
≥0.5% of total assets; (4) Wrong reporting
form of announcement. Major defect: The
≥0.5% of total owner’s equity. Major defect:
defect with direct property loss amounting
(1) Wrong reporting ≥0.2% but <0.5% of total
to RMB1 million to RMB10 million
operating revenue; (2) Wrong reporting ≥2%
(included) or is penalized by
Quantitative standard but <5% of total profit; (3) Wrong reporting
governmental authority of the country but
≥0.2% but <0.5% of total assets; (4) Wrong
has not resulted in negative impact on the
reporting ≥0.2% but <0.5% of total owner’s
Company. Minor defect: The defect with
equity. Minor defect: (1) Wrong reporting
direct property loss no more than RMB1
<0.2% of total operating revenue; (2) Wrong
million (included) or is penalized by
reporting <2% of total profit; (3) Wrong
governmental authority of the provincial-
reporting <0.2% of total assets; (4) Wrong
level or below but has not resulted in
reporting <0.2% of total owner’s equity.negative impact on the Company.Number of material weaknesses in internal
0
control over financial statement
Number of material weaknesses in internal
0
control not related to financial statements
Number of serious weaknesses in internal
0
control over financial statements
Number of serious weaknesses in internal
0
control not related to financial statements
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
~ 48 ~Annual Report 2025
Basic Code for Internal Control of Enterprises and relevant regulations on December 31 2025.Independent auditor’s report on
Disclosed
internal control disclosed or not
Disclosure date April 29 2026
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 No
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 of Directors.□Yes □No
XIV Rectifications of Problems Identified by Self-inspection in the Special Action for Listed
Company Governance
N/A
XV Environmental Information Disclosure
Whether the listed company and its major subsidiaries are included in the list of enterprises legally
required to disclose environmental information
□Yes □No
Number of enterprises included in the list of enterprises
7
legally required to disclose environmental information
Reference for statutory environmental information disclosure
No. Company name
report
Enterprise Environmental Information Legal Disclosure System
Anhui Gujing Distillery Company Limited
1 (Anhui)
(Gujing Plant Area)
https://39.145.37.16:8081/zhhb/yfplpub_html/#/home
Enterprise Environmental Information Legal Disclosure System
Anhui Gujing Distillery Co. Ltd. (Zhangji
2 (Anhui)
Plant Area)
https://39.145.37.16:8081/zhhb/yfplpub_html/#/home
Enterprise Environmental Information Legal Disclosure System
Anhui Gujing Distillery Company Limited
3 (Anhui)
(Headquarters Plant Area)
https://39.145.37.16:8081/zhhb/yfplpub_html/#/home
Enterprise Environmental Information Legal Disclosure System
4 Anhui Longrui Glass Co. Ltd. (Anhui)
https://39.145.37.16:8081/zhhb/yfplpub_html/#/home
Enterprise Environmental Information Legal Disclosure System
5 Anhui Mingguang Distillery Co. Ltd. (Anhui)
https://39.145.37.16:8081/zhhb/yfplpub_html/#/home
Enterprise Environmental Information Disclosure System
Yellow Crane Tower Distillery (Xianning) Co.
6 According to Law (Hubei)
Ltd.http://219.140.164.18:8007/hbyfpl/frontal/index.html#/home/index
Yellow Crane Tower Distillery (Suizhou) Co. Enterprise Environmental Information Disclosure System
7
Ltd. According to Law (Hubei)
~ 49 ~Annual Report 2025
http://219.140.164.18:8007/hbyfpl/frontal/index.html#/home/index
XVI Social Responsibility
For details please refer to the Corporate Environmental Social and Governance (ESG) Report for
2025 disclosed by the Company on the website Cninfo dated April 29 2026.
XVII Consolidation and Expansion of Poverty Alleviation Outcomes and Rural Revitalization
For details please refer to the Corporate Environmental Social and Governance (ESG) Report for
2025 disclosed by the Company on the website Cninfo dated April 29 2026.
~ 50 ~Annual Report 2025
Part V Significant Events
I Fulfillment 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 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
VII YoY Changes to the Scope of the Consolidated Financial Statements
□Applicable □Not applicable
Compared with the previous period the scope of the Company’s consolidation for the current period
added Anhui Guqi Distillery Co. Ltd. and deregistered the subsidiary Hainan Yangshengtianxia
Biotechnology Development Co. Ltd.VIII Engagement and Disengagement of Independent Auditor
Current independent auditor
Name of the domestic independent auditor RSM China
Remuneration for the domestic accounting firm (Unit: 195.00
~ 51 ~Annual Report 2025
RMB10000)
How many consecutive years the domestic independent
7
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 Zeng Ziqi
auditor’s report
How many consecutive years the certified public
5 years for Zhang Liping 5 years for Han Songliang and 1 year for Zeng
accountants have provided audit service for the
Ziqi
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 2025 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 Reorganization
□Applicable □Not applicable
XI Major Legal and Arbitration Matters
□Applicable □Not applicable
XII Punishments and Rectifications
□Applicable □Not applicable
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
~ 52 ~Annual Report 2025
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
(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 Use of Raised Funds
□Applicable □Not applicable
No such cases in the Reporting Period.XVII Other Significant Events
□Applicable □Not applicable
~ 53 ~Annual Report 2025
XVIII Significant Events of Subsidiaries
□Applicable □Not applicable
~ 54 ~Annual Report 2025
Part VI Share Changes and Shareholder Information
I Share Changes
1.Share changes
Unit: share
Before Increase/decrease in the Reporting Period (+/-) After
Shares Shares as
New
Shares Percentage (%) as dividend Other Subtotal Shares Percentage (%)
issues
dividen converted
I. Restricted d from
shares convert capital
ed reserves
1 Shares held from
by the state
profit
2. Shares held
by state-
o3w. Snheadr es held
cboyr optohreart ions
dAommoensgti c
winhviecshto: rSsh ares
hSehladr ebsy h eld by
ddoomeessttiicc
ic4no. drSpihvoairdraeutsiao lhsne sl d
by foreign
Ainmveosntogr s
which: Shares
hSehladr ebsy h eld by
ffoorreeiiggnn
IicnIo.d rNpivooirdnau-tiaolsn s 528600000 100.00% 528600000 100.00%
restricted
s1h. aRreMs B 408600000 77.30% 408600000 77.30%
ordinary
s2h. ares 120000000 22.70% 120000000 22.70%
Domestically
3li.s tOedv efrosreeaisg n
slihsatereds f oreign
shares
4. Other
III. Total
528600000100.00%528600000100.00%
shares
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 earnings per share (EPS) 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:
~ 55 ~Annual Report 2025
□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 preferred preferred
ordinary shareholders with shareholders with
Number of
shareholders at the restored voting rights resumed voting
ordinary 53135 62145 0 0
month-end prior to at the end of the rights at the month-
shareholders
the disclosure of Reporting Period (if end prior to the
this Report any) disclosure of this
Report (if any)
5% or greater shareholders or top 10 shareholders
Increase/de Shares in pledge marked or frozen
Restric
Total shares crease in
Nature of Shareholding ted Non-restricted
Name of shareholder held at the the
shareholder percentage shares shares held
period-end Reporting Status Shares
held
Period
ANHUI GUJING
GROUP State-owned
51.34% 271404022 271404022 In pledge 30000000
COMPANY legal person
LIMITED
BANK OF CHINA-
CHINA
MERCHANTS
CHINA
SECURITIES
Other 3.17% 16754467 4023026 16754467 N/A
BAIJIU INDEX
CLASSIFICATION
SECURITIES
INVESTMENT
FUND
CHINA
INTERNATIONAL Foreign legal
CAPITAL 1.67% 8804585 -130268 8804585 N/A person
CORPORATION
HONGKONG
~ 56 ~Annual Report 2025
SECURITIES LTD
AGRICULTURAL
BANK OF CHINA－
E FUND
CONSUMPTION
Other 1.24% 6528693 -1449315 6528693 N/A
SECTOR STOCK
SECURITIES
INVESTMENT
FUND
UBS (LUX)
EQUITY
Foreign legal
FUND - CHINA 1.23% 6523345 -599600 6523345 N/A person
OPPORTUNITY
(USD)
GREENWOODS
CHINA Foreign legal
1.14% 6049760 6049760 N/A
ALPHA MASTER person
FUND
CHINA
CONSTRUCTION
BANK
CORPORATION -
PENGHUA
LOFEXCHANGE Other 1.06% 5609460 2404178 5609460 N/A
TRADED OPEN-
ENDED INDEX
SECURITIES
INVESTMENT
FUND
INDUSTRIAL AND
COMMERCIAL
BANK OF CHINA
LIMITED-
INVESCO GREAT
Other 1.02% 5400000 -4221200 5400000 N/A
WALL EMERGING
GROWTH HYBRID
SECURITIES
INVESTMENT
FUND
HONG KONG
SECURITIES
Overseas legal
CLEARING 0.93% 4914105 -1433566 4914105 N/A
entity
COMPANY
LIMITED
Foreign legal
3W GLOBAL FUND 0.79% 4169528 118000 4169528 N/A
person
Strategic investor or general legal
person becoming a top-10 ordinary
N/A
shareholder 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 concert as defined in the
Related or acting-in-concert parties Administrative Measures on Information Disclosure of Changes in Shareholding of Listed Companies. As
among the shareholders above for the other shareholders the Company does not know whether they are related parties or whether they
belong to parties acting in concert as defined in the Administrative Measures on Information Disclosure of
Changes in Shareholding of Listed Companies.Explain if any of the shareholders
above was involved in entrusting/being
N/A
entrusted with voting rights or waiving
voting rights
Special account for share repurchases
(if any) among the top 10 shareholders N/A
(see note 10)
Top 10 non-restricted shareholders
Shares by type
Name of shareholder Non-restricted shares held at the period-end
Shares by type Shares
~ 57 ~Annual Report 2025
ANHUI GUJING GROUP RMB ordinary
271404022271404022
COMPANY LIMITED shares
BANK OF CHINA-CHINA
MERCHANTS CHINA SECURITIES RMB ordinary
1675446716754467
BAIJIU INDEX CLASSIFICATION shares
SECURITIES INVESTMENT FUND
CHINA
INTERNATIONAL CAPITAL Domestically listed 8804585 8804585
CORPORATION HONGKONG foreign shares
SECURITIES LTD
AGRICULTURAL BANK OF CHINA
－E FUND CONSUMPTION RMB ordinary
65286936528693
SECTOR STOCK SECURITIES shares
INVESTMENT FUND
UBS (LUX) EQUITY
Domestically listed
FUND - CHINA OPPORTUNITY 6523345 6523345 foreign shares
(USD)
GREENWOODS CHINA Domestically listed
60497606049760
ALPHA MASTER FUND foreign shares
CHINA CONSTRUCTION BANK
CORPORATION - PENGHUA
RMB ordinary
LOFEXCHANGE TRADED OPEN- 5609460 5609460
shares
ENDED INDEX SECURITIES
INVESTMENT FUND
INDUSTRIAL AND COMMERCIAL
BANK OF CHINA LIMITED-
RMB ordinary
INVESCO GREAT WALL 5400000 5400000
shares
EMERGING GROWTH HYBRID
SECURITIES INVESTMENT FUND
HONG KONG SECURITIES RMB ordinary
49141054914105
CLEARING COMPANY LTD. shares
Domestically listed
3W GLOBAL FUND 4169528 4169528
foreign shares
Among the shareholders above the Company’s controlling shareholder—Anhui Gujing Group Company
Related or acting-in-concert parties
Limited—is not a related party of other shareholders; nor are they parties acting in concert as defined in the
among top 10 unrestricted public
Administrative Measures on Information Disclosure of Changes in Shareholding of Listed Companies. As
shareholders as well as between top
for the other shareholders the Company does not know whether they are related parties or whether they
10 unrestricted public shareholders and
belong to parties acting in concert as defined in the Administrative Measures on Information Disclosure of
top 10 shareholders
Changes in Shareholding of Listed Companies.Top 10 ordinary shareholders involved
in securities margin trading (if any) N/A
(see note 4)
5% or greater shareholders top 10 shareholders and top 10 unrestricted shareholders involved in
refinancing shares lending
□Applicable □Not applicable
Changes occurred in the top 10 shareholders and the top 10 shareholders of unrestricted tradable
shares compared with the previous period due to shares loan through refinancing/return
□Applicable □Not applicable
Indicate by tick mark whether any of the top 10 ordinary shareholders or the top 10 unrestricted
ordinary shareholders of the Company conducted any promissory repo during the Reporting Period.□Yes □No
No such cases in the Reporting Period.~ 58 ~Annual Report 2025
2.Controlling Shareholder
Nature of the controlling shareholder: controlled by a local state-owned legal person
Type of the controlling shareholder: legal person
Legal
Name of controlling Unified social credit
representative/person Date of establishment Principal activity
shareholder code
in charge
Anhui Gujing Group Co. Ltd. Liang Jinhui 16 January 1995 91341600151947437P Commercial trade
Controlling shareholder’s
As of December 31 2025 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 2.78%.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:
~ 59 ~Annual Report 2025
State-owned Assets Supervision and Administration Commission of Bozhou
Municipal People’s Government
Bozhou Industrial Capital Investment and Operation Holding Group Co. Ltd.Anhui Gujing Group Co. Ltd.Anhui Gujing Distillery Company Limited
Indicate by tick mark whether the actual controller controls the Company via trust or other ways of
asset management.□Applicable □Not applicable
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 Reorganizer 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 centralized bidding
□Applicable □Not applicable
V Preference Shares
□Applicable □Not applicable
No preference shares in the Reporting Period.~ 60 ~Annual Report 2025
Part VII Corporate Bonds
□Applicable □Not applicable
~ 61 ~Annual Report 2025
Part VIII Financial Statements
I.Independent Auditor’s Report
Type of the audit opinion Unmodified unqualified opinion
Date of signing the auditor’s report April 28 2026
Name of the auditor RSM China
No. of the auditor’s report RSM Auditor’s Report No. [2026] 518Z0013
Name of CPA Zhang Liping Han Songliang Zeng Ziqi
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 December 31 2025 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 December 31 2025 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 the Auditing Standards for Certified Public Accountantsof China. Our responsibilities under those standards are further described in the “Responsibilities ofthe Certified Accountants for the Audit of the Financial Statements” section of our report. According
to the Code of Ethics for Professional Accountants we are independent of Anhui Gujing 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
~ 62 ~Annual Report 2025
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 Costof Sales”.In 2025 the Company achieved baijiu sales revenue of RMB18540 million accounting for 98.45%
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 recognized in an appropriate
accounting period. Therefore we regard baijiu sales revenue recognition as a key audit matter.
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 analyzed the overall rationality of revenue and
gross margin;
(5) For the baijiu sales revenue recognized 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.~ 63 ~Annual Report 2025
(II) Existence and Completeness Of Monetary Assets
1.Description
Refer to notes to the financial statements “3. 9. Cash and Cash Equivalents” and “5. 1. MonetaryAssets”.As of December 31 2025 the balance of monetary assets for Anhui Gujing was RMB14187 million
accounting for 37.14% of total assets. Due to the material amount of monetary assets and the
significant impact of their existence and completeness on the overall fairness of the financial
statements we regard the audit of the existence and completeness of monetary assets as a key audit
matter.
2.Audit response
The procedures we performed to verify the existence 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.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 2025 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 thereon.~ 64 ~Annual Report 2025
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 the
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 Audit of Financial Statements
Our objectives are to obtain reasonable assurance about whether these financial statements as a whole
are free from material misstatement whether due to fraud or error and to issue an independent
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 the Auditing Standards we exercise professional judgment and
maintain professional skepticism throughout the audit. We also:
~ 65 ~Annual Report 2025
(1) Identify and assess the risks of material misstatement of the financial statements whether due to
fraud or error design and perform audit procedures responsive to those risks and obtain audit
evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting
a material misstatement resulting from fraud is higher than for one resulting from error as fraud may
involve collusion forgery intentional omissions misrepresentations or the override of internal
control.
(2) Obtain an understanding of internal control relevant to the audit in order to design audit procedures
that are appropriate in the circumstances.
(3) Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by the Management.
(4) Conclude on the appropriateness of the Management’s application of the going-concern
assumption. 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. If we conclude that a material uncertainty exists we are required
to draw attention in our independent auditor’s report to the related disclosures in these financial
statements or; and if such disclosures are inadequate we shall express non-unqualified opinions. Our
conclusions are based on the audit evidence obtained up to the date of our independent auditor’s
report.
(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 are responsible for
the direction supervision and performance of the group audit. We remain solely responsible for our
audit opinion.We communicate with those charged with the governance members 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.~ 66 ~Annual Report 2025
We have also provided those charged with the governance members with a statement on observing
the professional ethics related to independence and communicated with those charged with
governance on all the relationships and other matters that might be reasonably deemed to affect our
independence and relevant preventative measures (if applicable).From the matters communicated with those charged with the governance members 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 Independent 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 audit 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
China·Beijing [Name of CPA]：Han Songliang
[Name of CPA]：Zeng Ziqi
28 April 2026
~ 67 ~Annual Report 2025
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
December 31 2025
Unit: RMB
Item Closing balance Opening balance
Current assets:
Monetary assets 14187463729.81 15894104466.53
Settlement reserve
Interbank loans granted
Held-for-trading financial assets 0.00 60184353.81
Derivative financial assets
Notes receivable
Accounts receivable 53996692.68 69819734.99
Accounts receivable financing 895658760.56 2966732807.75
Prepayments 115292227.12 278472276.28
Premiums receivable
Reinsurance receivable
Receivable reinsurance contract
reserve
Other receivables 45651277.81 86894981.69
Including: Interest receivable
Dividends receivable
Financial assets purchased under resale
agreements
Inventories 10739794676.82 9264220836.58
Including: Data resources
Contract assets
Assets held for sale
Non-current assets maturing within one
year
Other current assets 392926614.98 191503861.97
Total current assets 26430783979.78 28811933319.60
Non-current assets:
Loans and advances to customers
Investments in debt obligations
Investments in other debt obligations
Long-term receivables
Long-term equity investments 11574463.54 11732641.44
Investments in other equity instruments 73526017.72 69500830.82
Other non-current financial assets
Investment property 16036411.82 43893659.88
~ 68 ~Annual Report 2025
Fixed assets 9121969040.94 7896995404.62
Construction in progress 160290473.75 1038780764.86
Productive living assets
Oil and gas assets
Right-of-use assets 92161801.76 100293500.73
Intangible assets 1133507983.04 1129272763.98
Including: Data resources
Development expenses
Including: Data resources
Goodwill 246753998.67 561364385.01
Long-term prepaid expenses 417315747.85 374605387.89
Deferred income tax assets 487647921.96 483333690.76
Other non-current assets 5465160.95 707352.50
Total non-current assets 11766249022.00 11710480382.49
Total assets 38197033001.78 40522413702.09
Current liabilities:
Short-term borrowings 184830263.45 50038194.44
Borrowings from the central bank
Interbank loans obtained
Held-for-trading financial liabilities
Derivative financial liabilities
Notes payable 1472240813.01 589364409.55
Accounts payable 2302888169.15 2942339182.13
Advances from customers
Contract liabilities 1519882489.70 3514800038.80
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 1276935454.81 1121224782.28
Taxes payable 605968561.52 1163171843.49
Other payables 2816680849.01 3146672513.57
Including: Interest payable
Dividends payable
Handling charges and commissions
payable
Reinsurance payables
Liabilities directly associated with
assets held for sale
Non-current liabilities maturing within
61253882.8189836200.57
one year
Other current liabilities 1043957560.69 1691188287.40
Total current liabilities 11284638044.15 14308635452.23
~ 69 ~Annual Report 2025
Non-current liabilities:
Insurance contract reserve
Long-term borrowings 260199589.94 41600000.00
Bonds payable
Including: Preference shares
Perpetual bonds
Lease liabilities 76138828.43 84453588.30
Long-term payables
Long-term employee benefits payable
Provisions
Deferred income 162588721.38 122142913.25
Deferred income tax liabilities 309468453.80 271795024.98
Other non-current liabilities
Total non-current liabilities 808395593.55 519991526.53
Total liabilities 12093033637.70 14828626978.76
Owners’ equity:
Share capital 528600000.00 528600000.00
Other equity instruments
Including: Preference shares
Perpetual bonds
Capital reserves 6229111206.22 6229111206.22
Less: Treasury stock
Other comprehensive income 6080513.09 -9604119.74
Specific reserve
Surplus reserves 269402260.27 269402260.27
General reserve
Retained earnings 18017022962.78 17639514432.44
Total equity attributable to owners of the
25050216942.3624657023779.19
Company as the parent
Non-controlling interests 1053782421.72 1036762944.14
Total owners’ equity 26103999364.08 25693786723.33
Total liabilities and owners’ equity 38197033001.78 40522413702.09
Legal representative: Liang Jinhui
Person in charge of accounting work: Zhu Jiafeng
Head of the accounting institution: Zhu Jiafeng
2.Balance Sheet of the Company as the Parent
Unit: RMB
Item Closing balance Opening balance
Current assets:
Monetary assets 7979883062.94 7578634079.50
Held-for-trading financial assets
Derivative financial assets
Notes receivable
~ 70 ~Annual Report 2025
Accounts receivable
Accounts receivable financing 632125262.72 1692337127.64
Prepayments 4065495.42 6440878.02
Other receivables 464796849.41 505111096.18
Including: Interest receivable
Dividends receivable
Inventories 8366144014.46 7258975398.24
Including: Data resources
Contract assets
Assets held for sale
Non-current assets maturing within one
year
Other current assets 248702382.76 132970178.96
Total current assets 17695717067.71 17174468758.54
Non-current assets:
Investments in debt obligations
Investments in other debt obligations
Long-term receivables
Long-term equity investments 1700140064.98 1648298837.80
Investments in other equity instruments
Other non-current financial assets
Investment property 10645751.19 42562431.85
Fixed assets 7185826793.21 6079767997.96
Construction in progress 44553565.47 928920528.47
Productive living assets
Oil and gas assets
Right-of-use assets 83282060.85 100293500.73
Intangible assets 497663089.70 498603502.55
Including: Data resources
Development expenses
Including: Data resources
Goodwill
Long-term prepaid expenses 351903723.39 305453097.21
Deferred income tax assets
Other non-current assets
Total non-current assets 9874015048.79 9603899896.57
Total assets 27569732116.50 26778368655.11
Current liabilities:
Short-term borrowings
Held-for-trading financial liabilities
Derivative financial liabilities
Notes payable
Accounts payable 1621073084.29 2092055042.44
Advances from customers
Contract liabilities 1578437253.01 794714253.43
~ 71 ~Annual Report 2025
Employee benefits payable 482418372.32 325195369.96
Taxes payable 423719386.37 735214837.75
Other payables 901711126.03 882504197.38
Including: Interest payable
Dividends payable
Liabilities directly associated with
assets held for sale
Non-current liabilities maturing within
15522863.9413346230.73
one year
Other current liabilities 214184954.21 125309809.42
Total current liabilities 5237067040.17 4968339741.11
Non-current liabilities:
Long-term borrowings
Bonds payable
Including: Preference shares
Perpetual bonds
Lease liabilities 69519331.58 84453588.30
Long-term payables
Long-term employee benefits payable
Provisions
Deferred income 102101500.46 59582910.44
Deferred income tax liabilities 84088864.24 49348636.55
Other non-current liabilities
Total non-current liabilities 255709696.28 193385135.29
Total liabilities 5492776736.45 5161724876.40
Owners’ equity:
Share capital 528600000.00 528600000.00
Other equity instruments
Including: Preference shares
Perpetual bonds
Capital reserves 6176504182.20 6176504182.20
Less: Treasury stock
Other comprehensive income -1758632.61 -7249242.08
Specific reserve
Surplus reserves 264300000.00 264300000.00
Retained earnings 15109309830.46 14654488838.59
Total owners’ equity 22076955380.05 21616643778.71
Total liabilities and owners’ equity 27569732116.50 26778368655.11
3.Consolidated Income Statement
Unit: RMB
Item 2025 2024
1. Revenue 18831982591.24 23577928065.99
Including: Operating revenue 18831982591.24 23577928065.99
Interest revenue
~ 72 ~Annual Report 2025
Insurance premium
income
Handling charge and
commission income
2. Costs and expenses 13503921447.08 15831967986.27
Including: Cost of sales 3906499790.17 4738054529.34
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 3120818397.43 3740333528.99
Selling expense 5458012676.27 6181762995.50
Administrative expense 1454681864.68 1442398926.31
R&D expense 88190543.64 78242212.58
Finance costs -524281825.11 -348824206.45
Including: Interest
10592597.936145816.53
costs
Interest
538057668.12367977768.88
revenue
Add: Other income 80490907.68 63946740.48
Return on investment (“-” for
-24297400.85-34487487.67
loss)
Including: Share of profit or
loss of joint
-158177.901365563.18
ventures and
associates
Income from the
derecognition of
financial assets at
amortized cost
Exchange gain
(“-” for loss)
Net gain on
exposure hedges
(“-” for loss)
Gain on changes
in fair value(“-” 0.00 184353.81
for loss)
Credit impairment
665865.22-1645272.23
loss (“-” for loss)
Asset impairment
-344905656.44-23585609.99
loss (“-” for loss)
Asset disposal
income (“-” for 306237.27 -192200.99
loss)
~ 73 ~Annual Report 2025
3. Operating profit (“-” for loss) 5040321097.04 7750180603.13
Add: Non-operating revenue 58145311.50 60806091.26
Less: Non-operating expense 14318175.39 15399484.99
4. Profit before tax (“-” for loss) 5084148233.15 7795587209.40
Less: Income tax expense 1443626752.67 2088975630.59
5. Net profit (“-” for net loss) 3640521480.48 5706611578.81
5.1 By operation continuity
5.1.1 Net profit from continuing
3640521480.485706611578.81
operations (“-” for net loss)
5.1.2 Net profits from discontinued
operations (“-” for net loss)
5.2 By ownership
5.2.1 Net profit attributable to
shareholders of the Company as the 3549108530.34 5517251073.10
parent
5.2.2 Net profit attributable to non-
91412950.14189360505.71
controlling interests
6. Other comprehensive income net of
16912233.91-9181460.31
tax
Attributable to owners of the
15684632.83-11200442.47
Company as the parent
6.1 Items that will not be
1811334.112877827.74
reclassified to profit or loss
6.1.1 Changes caused by re-
measurements 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
investments in other equity 1811334.11 2877827.74
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
13873298.72-14078270.21
to 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
13873298.72-14078270.21
reclassification of financial
assets
6.2.4 Credit impairment
allowance for investments in
other debt obligations
6.2.5 Reserve for cash flow
~ 74 ~Annual Report 2025
hedges
6.2.6 Differences arising from
the translation of foreign
currency-denominated financial
statements
6.2.7 Other
Attributable to non-controlling interests 1227601.08 2018982.16
7. Total comprehensive income 3657433714.39 5697430118.50
Attributable to owners of the
3564793163.175506050630.63
Company as the parent
Attributable to non-controlling
92640551.22191379487.87
interests
8. Earnings per share
8.1 Basic earnings per share 6.71 10.44
8.2 Diluted earnings per share 6.71 10.44
Legal representative: Liang Jinhui
Person in charge of accounting work: Zhu Jiafeng
Head of the accounting institution: Zhu Jiafeng
4.Income Statement of the Company as the Parent
Unit: RMB
Item 2025 2024
1. Operating revenue 11387389991.73 13011311837.05
Less: Cost of sales 3949056759.80 4240402284.96
Taxes and surcharges 2780957497.84 3125649960.09
Selling expense 46593703.51 53576677.10
Administrative expense 981487026.53 877833183.04
R&D expense 35100520.53 29707498.92
Finance costs -166619026.20 -130747593.73
Including: Interest expense 3764170.86 7534658.55
Interest revenue 172735184.88 149932201.32
Add: Other income 21188913.07 14365502.63
Return on investment (“-” for
730720927.732663107259.84
loss)
Including: Share of profit or
loss of joint ventures and -158772.82 185830.36
associates
Income from the
derecognition of
financial assets at
amortized cost (“-” for
loss)
Net gain on exposure hedges
(“-” for loss)
Gain on changes in fair value
(“-” for loss)
Credit impairment losses (“-”
83919.60-775857.58
for loss)
~ 75 ~Annual Report 2025
Asset impairment loss (“-”
-18063630.73-16281050.12
for loss)
Asset disposal income (“-”
153779.641897869.11
for loss)
2. Operating profit (“-” for loss) 4494897419.03 7477203550.55
Add: Non-operating revenue 39115439.04 36460849.92
Less: Non-operating expense 11757816.25 7006919.47
3. Profit before tax (“-” for loss) 4522255041.82 7506657481.00
Less: Income tax expense 895834049.95 1257270831.19
4. Net profit (“-” for net loss) 3626420991.87 6249386649.81
4.1 Net profit from going-concern
3626420991.876249386649.81
(“-” for net loss)
4.2 Net profit from discontinued
operations (“-” for net loss)
5. Other comprehensive income net of
5490609.47-5255929.99
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
5490609.47-5255929.99
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 5490609.47 -5255929.99
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 3631911601.34 6244130719.82
7. Earnings per share
7.1 Basic earnings per share 6.86 11.82
~ 76 ~Annual Report 2025
7.2 Diluted earnings per share 6.86 11.82
5.Consolidated Cash Flow Statement
Unit: RMB
Item 2025 2024
1. Cash flows from operating activities:
Proceeds from sale of commodities
20263400471.6423210865893.05
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 61976006.43 28035855.88
Cash generated from other operating
1452489425.212180324471.32
activities
Subtotal of cash generated from
21777865903.2825419226220.25
operating activities
Payments for commodities and
3605540318.884085891932.48
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 3888741554.22 4166336969.08
Taxes paid 7315872052.14 8236777809.30
Cash used in other operating
5020499001.044202566635.54
activities
Subtotal of cash used in operating
19830652926.2820691573346.40
activities
~ 77 ~Annual Report 2025
Net cash generated from/used in
1947212977.004727652873.85
operating activities
2. Cash flows from investing activities:
Proceeds from disinvestment 7048794000.00 950199000.00
Return on investment 7210750.03 23252370.14
Net proceeds from the disposal of
fixed assets intangible assets and 479446.27 5909689.76
other 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
7056484196.30979361059.90
investing activities
Payments for the acquisition of fixed
assets intangible assets and other 1663125672.79 2427403146.80
long-lived assets
Payments for investments 7146724000.00 285000000.00
Net increase in pledge loans granted
Net proceeds from acquisition of
subsidiaries and other business units
Cash used in other investing
activities
Subtotal of cash used in investing
8809849672.792712403146.80
activities
Net cash generated from/used in
-1753365476.49-1733042086.90
investing activities
3. Cash flows from financing activities:
Capital contributions received 18000000.00 26000000.00
Including: Capital contributions by
non-controlling interests to 18000000.00 26000000.00
subsidiaries
Borrowings raised 449719589.94 120000100.00
Cash generated from other financing
activities
Subtotal of cash generated from
467719589.94146000100.00
financing activities
Repayment of borrowings 129390000.00 129000100.00
Interest and dividends paid 3211684718.91 2472703924.46
Including: Dividends paid by
subsidiaries to non-controlling 31325643.24 79865320.11
interests
Cash used in other financing
19375247.1621939585.66
activities
Subtotal of cash used in financing
3360449966.072623643610.12
activities
Net cash generated from/used in
-2892730376.13-2477643510.12
financing activities
4. Effect of foreign exchange risks
changes on cash and cash equivalents
5. Net increase in cash and cash
-2698882875.62516967276.83
equivalents
~ 78 ~Annual Report 2025
Add: Cash and cash equivalents
15193134694.1914676167417.36
beginning of the period
6. Cash and cash equivalents end of the
12494251818.5715193134694.19
period
6.Cash Flow Statement of the Company as the Parent
Unit: RMB
Item 2025 2024
1. Cash flows from operating activities:
Proceeds from sale of commodities
13959173176.3212549758616.03
and rendering of services
Tax rebates 53950577.54 5160883.87
Cash generated from other operating
1667939953.001627480751.47
activities
Subtotal of cash generated from
15681063706.8614182400251.37
operating activities
Payments for commodities and
2742829488.943066423348.26
services
Cash paid to and for employees 1238959364.89 1451425508.82
Taxes paid 4848583897.26 5352859334.13
Cash used in other operating
1700207422.891975173936.80
activities
Subtotal of cash used in operating
10530580173.9811845882128.01
activities
Net cash generated from/used in
5150483532.882336518123.36
operating activities
2. Cash flows from investing activities:
Proceeds from disinvestment 4972313000.00 710199000.00
Return on investment 64852092.88 1657498129.72
Net proceeds from the disposal of
fixed assets intangible assets and 855792.18 193207592.28
other 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
5038020885.062560904722.00
investing activities
Payments for the acquisition of fixed
assets intangible assets and other 1465785033.22 2293434362.35
long-lived assets
Payments for investments 5129236000.00 44000000.00
Net proceeds from acquisition of
subsidiaries and other business
entities
Cash used in other investing
activities
Subtotal of cash used in investing
6595021033.222337434362.35
activities
Net cash generated from/used in
-1557000148.16223470359.65
investing activities
~ 79 ~Annual Report 2025
3. Cash flows from financing activities:
Capital contributions received
Borrowings raised
Cash generated from other financing
activities
Subtotal of cash inflows from financing
activities
Repayment of borrowings
Interest and dividends paid 3174991314.12 2390321348.09
Cash used in other financing
17243087.1621939585.66
activities
Subtotal of cash used in financing
3192234401.282412260933.75
activities
Net cash generated from/used in
-3192234401.28-2412260933.75
financing activities
4. Effect of foreign exchange risks
changes on cash and cash equivalents
5. Net increase in cash and cash
401248983.44147727549.26
equivalents
Add: Cash and cash equivalents
7578634079.507430906530.24
beginning of the period
6. Cash and cash equivalents end of the
7979883062.947578634079.50
period
~ 80 ~Annual Report 2025
7. Consolidated Statements of Changes in Owners’ Equity
2025
Unit: RMB
2025
Equity attributable to owners of the Company as the parent
Other equity instruments
Item Other
Less: Non-controlling
Share Capital Compreh Specific Surplus General Retained Total owners’ equity interests
capital Preferred Perpetual
Treasury Other Subtotal
Other reserves ensive reserve reserves reserve earnings
shares bonds stock income
1. Balance
-
as at the end 528600 622911 2694022 17639514432 24657023779.
96041191036762944.1425693786723.33
of the prior 000.00 1206.22 60.27 .44 19.74
year
Add:
Adjustment
for change in
accounting
policy
Adjustment
for
correction of
previous
error
Other
adjustments
2. Balance
-
as at the 528600 622911 2694022 17639514432 24657023779.
96041191036762944.1425693786723.33
beginning of 000.00 1206.22 60.27 .44 19.74
the year
~ 81 ~Annual Report 2025
3. Increase/
decrease in
156846
the period 377508530.34 393193163.17 17019477.58 410212640.75
32.83
(“-” for
decrease)
3.1 Total
1568463549108530.3564793163.1
comprehensi 92640551.22 3657433714.39
32.83347
ve income
3.2 Capital
increased
18000000.0018000000.00
and reduced
by owners
3.2.1
Ordinary
shares 18000000.00 18000000.00
increased by
owners
3.2.2 Capital
increased by
holders of
other equity
instruments
3.2.3 Share-
based
payments
included in
owners’
equity
3.2.4 Other
--
3.3 Profit
3171600000.3171600000.0-93621073.64-3265221073.64
distribution
000
3.3.1
Appropriatio
n to surplus
reserves
3.3.2
Appropriatio
n to general
reserve
~ 82 ~Annual Report 2025
3.3.3
Appropriatio
--
n to owners
3171600000.3171600000.0-93621073.64-3265221073.64
(or
000
shareholders
)
3.2.4 Other
3.4 Transfers
within
owners’
equity
3.4.1
Increase in
capital (or
share
capital) from
capital
reserves
3.4.2
Increase in
capital (or
share
capital) from
surplus
reserves
3.4.3 Loss
offset by
surplus
reserves
3.4.4
Changes in
defined
benefit
schemes
transferred
to retained
earnings
3.4.5 Other
comprehensi
ve income
transferred
~ 83 ~Annual Report 2025
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
52860062291160805126940221801702296225050216942.
as at the end 1053782421.72 26103999364.08
000.001206.223.0960.27.7836
of the period
2024
Unit: RMB
2024
Equity attributable to owners of the Company as the parent
Other equity instruments
Less
Item :
Other Non-controlling
Share Capital Trea Specific Surplus General Retained Total owners’ equity
Preferred Perpetual comprehensive Other Subtotal
interests
capital Other reserves sury reserve reserves reserve earnings
shares bonds income stoc
k
1. Balance as
52860062247472694022145009633521525309
at the end of 1596322.73 888963352.64 22414272962.08
000.00667.1060.279.34609.44
the prior year
Add:
Adjustment
for change in
accounting
~ 84 ~Annual Report 2025
policy
Adjustment
for
correction of
previous
error
Other
adjustments
2. Balance as
at the 528600 6224747 2694022 1450096335 21525309
1596322.73888963352.6422414272962.08
beginning of 000.00 667.10 60.27 9.34 609.44
the year
3. Increase/
decrease in
436353931385510733131714
the period -11200442.47 147799591.50 3279513761.25.12.10169.75
(“-” for
decrease)
3.1 Total
55172510735506050
comprehensi -11200442.47 191379487.87 5697430118.50.10630.63
ve income
3.2 Capital
increased 4363539 4363539.
36285423.7440648962.86
and reduced .12 12
by owners
3.2.1
Ordinary
shares 28050000.00 28050000.00
increased by
owners
3.2.2 Capital
increased by
holders of
other equity
instruments
~ 85 ~Annual Report 2025
3.2.3 Share-
based
payments
included in
owners’
equity
43635394363539.
3.3.4 Other 8235423.74 12598962.86.1212
--
3.3 Profit
23787000002378700-79865320.11-2458565320.11
distribution.00000.00
3.3.1
Appropriatio
n to surplus
reserves
3.3.2
Appropriatio
n to general
reserve
3.3.3
Appropriatio - -
n to owners 2378700000 2378700 -79865320.11 -2458565320.11
(or .00 000.00
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
~ 86 ~Annual Report 2025
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
comprehensi
ve 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
52860062291112694022176395144324657023
at the end of -9604119.74 1036762944.14 25693786723.33
000.00206.2260.272.44779.19
the period
8. Statements of Changes in Owners’ Equity of the Company as the Parent
2025
Unit: RMB
~ 87 ~Annual Report 2025
2025
Other equity instruments
Item Less: Other Share Capital Specific Retained
capital Preferred Perpetual
Treasury comprehensive Surplus reserves Other Total owners’ equity
Other reserves reserve earnings
shares bonds stock income
1. Balance as
5286006176501465448883
at the end of -7249242.08 264300000.00 21616643778.71
000.004182.208.59
the prior year
Add:
Adjustment for
change in
accounting
policy
Adjustment for
correction of
previous error
Other
adjustments
2. Balance as
at the 528600 617650 1465448883
-7249242.08264300000.0021616643778.71
beginning of 000.00 4182.20 8.59
the year
3. Increase/
decrease in the 454820991.8
5490609.47460311601.34
period (“-” for 7
decrease)
3.1 Total
3626420991
comprehensive 5490609.47 3631911601.34.87
income
3.2 Capital
increased and
reduced by
owners
3.2.1 Ordinary
shares
~ 88 ~Annual Report 2025
increased by
owners
3.2.2 Capital
increased by
holders of
other equity
instruments
3.2.3 Share-
based
payments
included in
owners’ equity
3.2.4 Other
-
3.3 Profit
3171600000-3171600000.00
distribution.00
3.3.1
Appropriation
to surplus
reserves
3.3.2
-
Appropriation
3171600000-3171600000.00
to owners (or.00
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
~ 89 ~Annual Report 2025
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
Withdrawal in
the period
3.5.2 Used in
the period
3.6 Other
4. Balance as
5286006176501510930983
at the end of -1758632.61 264300000.00 22076955380.05
000.004182.200.46
the period
2024
Unit: RMB
2024
Item
Share Other equity instruments Capital reserves Less: Other Specific Surplus reserves Retained Other Total owners’ equity
~ 90 ~Annual Report 2025
capital Treasury comprehensi reserve earnings
stock ve income
Preferred Perpetual
Other
shares bonds
1. Balance as -
52860006176504182.210783802188.
at the end of 1993312.0 264300000.00 17751213058.89
00.00078
the prior year 9
Add:
Adjustment for
change in
accounting
policy
Adjustment for
correction of
previous error
Other
adjustments
2. Balance as
-
at the 5286000 6176504182.2 10783802188.
1993312.0264300000.0017751213058.89
beginning of 00.00 0 78
9
the year
3. Increase/
-
decrease in the 3870686649.8
5255929.93865430719.82
period (“-” for 1
9
decrease)
3.1 Total -
6249386649.8
comprehensive 5255929.9 6244130719.82
income 9
3.2 Capital
increased and
reduced by
owners
3.2.1 Ordinary
shares
increased by
owners
3.2.2 Capital
~ 91 ~Annual Report 2025
increased by
holders of
other equity
instruments
3.2.3 Share-
based
payments
included in
owners’ equity
3.2.4 Other
-
3.3 Profit
2378700000.0-2378700000.00
distribution
0
3.3.1
Appropriation
to surplus
reserves
3.3.2
-
Appropriation
2378700000.0-2378700000.00
to owners (or
0
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
~ 92 ~Annual Report 2025
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
Withdrawal in
the period
3.5.2 Used in
the period
3.6 Other
4. Balance as -
52860006176504182.214654488838.
at the end of 7249242.0 264300000.00 21616643778.71
00.00059
the period 8
~ 93 ~Annual Report 2025
Anhui Gujing Distillery Company Limited
Notes to the Financial Statements
（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
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%
~ 94 ~Annual Report 2025
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 2025 total number of the Company’s shares stood at 528.6 million. See Note
5.32 for further details.
The company's headquarters is located in Bozhou City Anhui Province Gujing town. Legal
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.~ 95 ~Annual Report 2025
These financial statements are approved on 28 April 2026 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 2025 and its operating results changes in shareholders' equity cash flows and
other related information for the year then ended.
3.2 Accounting Period
The accounting year of the Company is from 1 January to 31 December in calendar year.~ 96 ~Annual Report 2025
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
Net profit and net assets account for more than 5% of the
Significant non-wholly owned subsidiaries 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.For the accounting treatment of business combination under common control by step acquisitions
please refer to Note 3.7 (6).~ 97 ~Annual Report 2025
(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 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.~ 98 ~Annual Report 2025
Subsidiaries are the entities that controlled by the Company (including enterprise a divisible part of
the investee and structured entity controlled by the enterprise). A structured entity (sometimes called
a Special Purpose Entity) is an entity that has been designed so that voting or similar rights are not
the dominant factor in deciding who controls the entity.(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
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.~ 99 ~Annual Report 2025
(i) Like items of assets liabilities equity income expenses and cash flows of the parent are combined
with those of the subsidiaries.(ii) The carrying amount of the parent’s investment in each subsidiary is eliminated (off-set) against
the parent’s portion of equity of each subsidiary.(iii) Eliminate the impact of intragroup transactions between the Company and the subsidiaries or
between subsidiaries and when intragroup transactions indicate an impairment of related assets the
losses shall be recognised in full.(iv) Make adjustments to special transactions from the perspective of the group.(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.(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.~ 100 ~Annual Report 2025
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 as
treasury stock of the Company which is offset with the owner’s equity represented as “treasury stock”
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 assets
to its subsidiaries shall be eliminated against “net profit attributed to the owners of the parent company”
in full. Unrealized inter-company transactions profit or loss generated from the subsidiaries sellingassets to the Company shall be eliminated between “net profit attributed to the owners of the parentcompany” and “non-controlling interests” pursuant to the proportion of the Company in the related
subsidiaries. Unrealized inter-company transactions profit or loss generated from the assets salesbetween the subsidiaries shall be eliminated between “net profit attributed to the owners of the parentcompany” and “non-controlling interests” pursuant to the proportion of the Company in the selling
subsidiaries.(v) If loss attributed to the minority shareholders of a subsidiary in current period is more than the
proportion of non-controlling interest in this subsidiary at the beginning of the period non-controlling
interest is still to be written down.(f) Accounting for Special Transactions
(i) Purchasing of non-controlling interests
~ 101 ~Annual Report 2025
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 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
~ 102 ~Annual Report 2025
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 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
~ 103 ~Annual Report 2025
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 “a singletransaction” 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 financial statements thedisposal transaction should be accounted for according to related policy in “Disposal of long-termequity 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.? 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.~ 104 ~Annual Report 2025
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
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.~ 105 ~Annual Report 2025
(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.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
~ 106 ~Annual Report 2025
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.(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
~ 107 ~Annual Report 2025
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.(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).~ 108 ~Annual Report 2025
(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
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).~ 109 ~Annual Report 2025
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
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
~ 110 ~Annual Report 2025
For each group the Company calculates expected credit losses through default exposure and the
lifetime expected credit losses rate taking reference to historical experience for credit losses and
considering current condition and expectation for the future economic situation.Determination basis of accounts receivable is as following:
Group 1: Related parties within the scope of consolidation
Group 2: Receivables due from third parties
For each group the Company calculates expected credit losses through preparing an aging analysis
schedule with the lifetime expected credit losses rate taking reference to historical experience for
credit losses and considering current condition and expectation for the future economic situation.Determination basis of other receivables is as following:
Group 1: Related parties within the scope of consolidation
Group 2: Receivables due from third parties
For each group the Company calculates expected credit losses through default exposure and the 12-
months or lifetime expected credit losses rate taking reference to historical experience for credit
losses and considering current condition and expectation for the future economic situation.Determination basis of accounts receivable financing is as following:
Group 1: Commercial acceptance bills
Group 2: Bank acceptance bills
For each group the Company calculates expected credit losses through default exposure and the
lifetime expected credit losses rate taking reference to historical experience for credit losses and
considering current condition and expectation for the future economic situation.Determination basis of contract assets is as following:
Group 1: Project construction
Group 2: Undue warranty
For each group the Company calculates expected credit losses through default exposure and the
lifetime expected credit losses rate taking reference to historical experience for credit losses and
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
~ 111 ~Annual Report 2025
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
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；
~ 112 ~Annual Report 2025
? 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 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
~ 113 ~Annual Report 2025
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;
? 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:
~ 114 ~Annual Report 2025
? 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
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
~ 115 ~Annual Report 2025
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
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
~ 116 ~Annual Report 2025
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
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.~ 117 ~Annual Report 2025
Net realizable value of the inventory should be determined on the basis of reliable evidence obtained
and factors such as purpose of holding the inventory and impact of post balance sheet event shall be
considered.(i) In normal operation process finished goods products and materials for direct sale their net
realizable values are determined at estimated selling prices less estimated selling expenses and
relevant taxes and surcharges; for inventories held to execute sales contract or service contract their
net realizable values are calculated on the basis of contract price. If the quantities of inventories
specified in sales contracts are less than the quantities held by the Company the net realizable value
of the excess portion of inventories shall be based on general selling prices. Net realizable value of
materials held for sale shall be measured based on market price.(ii) For materials in stock need to be processed in the ordinary course of production and business
net realisable value is determined at the estimated selling price less the estimated costs of completion
the estimated selling expenses and relevant taxes. If the net realisable value of the finished products
produced by such materials is higher than the cost the materials shall be measured at cost; if a decline
in the price of materials indicates that the cost of the finished products exceeds its net realisable value
the materials are measured at net realisable value and differences shall be recognised at the provision
for impairment.(iii) Provisions for inventory impairment are generally determined on an individual basis. For
inventories with large quantity and low unit price the provisions for inventory impairment are
determined on group basis.(iv) If any factor rendering write-downs of the inventories has been eliminated at the reporting date
the amounts written down are recovered and reversed to the extent of the inventory impairment which
has been provided for. The reversal shall be included in profit or loss.(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.~ 118 ~Annual Report 2025
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
(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.~ 119 ~Annual Report 2025
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 expected
duration of one year (or a normal operating cycle) or less or in the account “Other non-current assets”
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 “Other non-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.(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
~ 120 ~Annual Report 2025
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 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
~ 121 ~Annual Report 2025
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 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
~ 122 ~Annual Report 2025
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 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
~ 123 ~Annual Report 2025
(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
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 (%)
straight-line-
Buildings and constructions 8.00-35.00 3.00-5.00 2.71-12.13
method
~ 124 ~Annual Report 2025
Depreciation Estimated useful Annual depreciation
Category Residual rates (%)
method life (year) rates (%)
straight-line-
Machinery equipment 8.00-10.00 3.00-5.00 9.50-12.13
method
straight-line-
Transportation vehicles 4.00 3.00 24.25
method
Administrative and other straight-line-
3.00-20.003.004.85-32.33
devices method
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
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:
~ 125 ~Annual Report 2025
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 time and the production equipment can produce qualified products stably in a period of
Equipment to be installed and
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:
(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
~ 126 ~Annual Report 2025
(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
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:
~ 127 ~Annual Report 2025
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 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.~ 128 ~Annual Report 2025
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 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
~ 129 ~Annual Report 2025
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”.（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
~ 130 ~Annual Report 2025
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
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
~ 131 ~Annual Report 2025
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 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:
When the Company cannot unilaterally withdraw the offer of termination benefits because of an
employment termination plan or a curtailment proposal.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
~ 132 ~Annual Report 2025
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
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.~ 133 ~Annual Report 2025
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 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
~ 134 ~Annual Report 2025
based on the expected value or the most likely amount and include in the transaction price only to the
extent that it is highly probable that a significant reversal in the amount of cumulative revenue
recognised will not occur when the uncertainty associated with the variable consideration is
subsequently resolved. If the contract contains a significant financing component the Company shall
determine the transaction price at an amount that reflects the price that a customer would have paid
for the promised goods or services if the customer had paid cash for those goods or services when (or
as) they transfer to the customer. The difference between the transaction price and the promised
consideration shall be amortised using the effective interest method within the contract period. The
Company need not consider the effects of a significant financing component if the period between
when the Company transfers control of a good or service to a customer and when the customer pays
for that good or service will be one year or less.The Company satisfies a performance obligation over time if one of the following criteria is met;
otherwise a performance obligation is satisfied at a point in time:
(i) The customer simultaneously receives and consumes the benefits provided by the Company’s
performance as the Company performs;
(ii) The Company’s performance creates or enhances an asset (for example work in progress) that
the customer controls as the asset is created or enhanced;
(iii) The Company’s performance does not create an asset with an alternative use to the Company and
the Company has an enforceable right to payment for performance completed to date.For each performance obligation satisfied over time the Company shall recognise revenue over time
by measuring the progress towards complete satisfaction of that performance obligation unless those
progress cannot be reasonably measured. The Company measures the progress of a performance
obligation for the service rendered using input methods (or output methods). In some circumstances
the Company cannot be able to reasonably measure the progress of a performance obligation but the
Company expects to recover the costs incurred in satisfying the performance obligation. In those
circumstances the Company shall recognise revenue only to the extent of the costs incurred until
such time that it can reasonably measure the progress of the performance obligation.The Company shall recognise revenue at the point in which a customer obtains control of a promised
good or service if a performance obligation is satisfied at a point in time. To determine the point in
time at which a customer obtains control of a promised good or service the Company shall consider
indicators of the transfer of control which include but are not limited to the followings:
(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;
~ 135 ~Annual Report 2025
(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
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
~ 136 ~Annual Report 2025
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
(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
~ 137 ~Annual Report 2025
down related expenses).For government grants comprised of part related to assets as well as part related to income each part
is accounted for separately; if it is difficult to identify different part the government grants are
accounted for as government grants related to income as a whole.Government grants related to daily operation activities are recognised in other income (or write down
related expenses) in accordance with the nature of the activities and government grants irrelevant to
daily operation activities are recognised in non-operating income.(iii) Loan interest subsidy
When loan interest subsidy is allocated to the bank and the bank provides a loan at lower-market rate
of interest to the Company the loan is recognised at the actual received amount and the interest
expense is calculated based on the principal of the loan and the lower-market rate of interest.When loan interest subsidy is directly allocated to the Company the subsidy shall be recognised as
offsetting the relevant borrowing cost.(iv) Repayment of the government grants
Repayment of the government grants shall be recorded by increasing the carrying amount of the asset
if the book value of the asset has been written down or reducing the balance of relevant deferred
income if deferred income balance exists any excess will be recognised into current profit or loss; or
directly recognised into current profit or loss for other circumstances.
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)
~ 138 ~Annual Report 2025
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:
(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
~ 139 ~Annual Report 2025
(i) Deferred tax liabilities or assets related to business combination
For the taxable temporary difference or deductible temporary difference arising from a business
combination not under common control a deferred tax liability or a deferred tax asset shall be
recognised and simultaneously goodwill recognised in the business combination shall be adjusted
based on relevant deferred tax expense (income).(ii) Items directly recognised in equity
Current tax and deferred tax related to items that are recognised directly in equity shall be recognised
in equity. Such items include: other comprehensive income generated from fair value fluctuation of
other debt investments; an adjustment to the opening balance of retained earnings resulting from
either a change in accounting policy that is applied retrospectively or the correction of a prior period
(significant) error; amounts arising on initial recognition of the equity component of a compound
financial instrument that contains both liability and equity component.(iii) Unused tax losses and unused tax credits
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
~ 140 ~Annual Report 2025
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
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
~ 141 ~Annual Report 2025
At inception of a contract the Company shall assess whether the contract is or contains a lease. A
contract is or contains a lease if the contract conveys the right to control the use of one or more
identified assets for a period of time in exchange for consideration. To assess whether a contract
conveys the right to control the use of an identified asset for a period of time the Company shall
assess whether throughout the period of use the customer has the right to obtain substantially all of
the economic benefits from use of the identified asset and to direct the use of the identified asset.(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
~ 142 ~Annual Report 2025
an estimate of costs to be incurred by the lessee in dismantling and removing the underlying asset restoring
the site on which it is located or restoring the underlying asset to the condition required by the terms and
conditions of the lease. The Company recognises and measures the cost in accordance with the recognition
criteria and measurement method for estimated liabilities details please refer to Notes 3.26. Those costs
incurred to produce inventories shall be included in the cost of inventories.The right-of-use asset shall be depreciated according to the categories using straight‐line method.If it is reasonably certain that the ownership of the underlying asset shall be transferred to the lessee
by the end of the lease term the depreciation rate shall be determined based on the classification of
the right-of- use asset and estimated residual value rate from the commencement date to the end of
the useful life of the underlying asset. Otherwise the depreciation rate shall be determined based on
the classification of the right-of-use asset from the commencement date to the earlier of the end of
the useful life of the right-of-use asset or the end of the lease term.The depreciation method estimated useful life residual rates and annual depreciation rates which are
determined according to the categories of right-of-use asset are listed as followings:
Depreciation Estimated useful Annual depreciation rates
Category Residualrates (%)
method life (year) (%)
Buildings and straight‐line
3.00-10.000.0010.00-33.33
constructions method
straight‐line
Land use right 5.00 0.00 20.00
method
(ii) Lease liability
At the commencement date the lease liability shall be measured at the present value of the lease
payments that are not paid at that date. The lease payments included in the measurement of the lease
liability comprise the following 5 items:
fixed payments and in-substance fixed payments less any lease incentives receivable;
variable lease payments that depend on an index or a rate；
the exercise price of a purchase option if the lessee is reasonably certain to exercise that option；
payments of penalties for terminating the lease if the lease term reflects the lessee exercising an option to
terminate the lease；
amounts expected to be payable by the lessee under residual value guarantees.In order to calculate the present value of the lease payments interest rate implicit in the lease shall be
used as the discount rate. If that rate cannot be readily determined the Company shall use the
incremental borrowing rate. The difference between the lease payments and its present value shall be
recognised as unrecognised financing charges calculated bases on the discount rate of the present
~ 143 ~Annual Report 2025
value of the lease payments in each period within the lease term and recorded as interest expense in
current profit or loss. Variable lease payments not included in the measurement of lease liabilities
shall be recognised in current profit or loss when incurred.After the commencement date the Company shall remeasure the lease liability based on the revised
present value of the lease payments and adjust the carrying amount of the right-of-use asset if there
is a change in the in-substance fixed payments or change in the amounts expected to be payable
under a residual value guarantee or change in an index or a rate used to determine lease payments
or change in the assessment or exercising of an option to purchase the underlying asset or an option
to extend or terminate the lease.(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.~ 144 ~Annual Report 2025
(ii) A lease modification not accounted for as a separate lease
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
~ 145 ~Annual Report 2025
and shall recognise a financial liability equal to the transfer proceeds. It shall account for the financial
liability according to Note 3.10. If the transfer of the asset is a sale the Company shall measure the
right-of-use asset arising from the leaseback at the proportion of the previous carrying amount of the
asset that relates to the right of use retained by the Company. Accordingly the Company shall
recognise only the amount of any gain or loss that relates to the rights transferred to the buyer-lessor.(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
The Company has no significant changes in accounting polices for the reporting period.(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:
~ 146 ~Annual Report 2025
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 Health Technology Co.GJ Health Technology 15.00%
Ltd
Wuhan Gulou Junhe Trading Co. Ltd. Wuhan Gulou Junhe 20.00%
Wuhan Gulou Juntai Trading Co. Ltd. Wuhan Gulou Juntai 20.00%
Xiaogan Gulou Tiancheng Trading Co.Xiaogan Gulou Tiancheng 20.00%
Ltd.Ezhou Junya Trading Co. Ltd. Ezhou Junya Trading 20.00%
Bozhou Hotel Co. Ltd. Bozhou Hotel 20.00%
Anhui Jiudao Culture Media Co. Ltd. Jiudao Media 20.00%
Anhui Jiuhao ChinaRail Construction
Jiuhao ChinaRail 20.00%
Engineering Co. Ltd.Anhui Gujing Qingyangshe Supply Chain
GJ Qingyangshe Supply 20.00%
Management Co. Ltd.Anhui Gujing Distillery Wine Theme
Theme Hotel 20.00%
Hotel Management Co. Ltd
Anhui Gu Qi Distillery Sales Co. Ltd. Anhui Gu Qi Distillery Sales 20.00%
Anhui Guge Culture Media Co. LTD. Guge Culture 20.00%
4.2Tax Preference
(i) Ruisi Weier’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 (GR202534002124)
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 2025 to 31
Decmeber 2027 is 15%.(ii) Longrui Glass’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 (GR202534000671)
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 2025 to 31
Decmeber 2027 is 15%..~ 147 ~Annual Report 2025
(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%.
(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%. Wuhan Gulou Junhe Wuhan Gulou Juntai Xiaogan Gulou Tiancheng Ezhou
Junya Trading Bozhou Hotel Jiudao Media Jiuhao ChinaRail GJ Qingyangshe Supply Theme
Hotel Gu Qi Distillery Sales and Anhui Guge Culture 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 2025 31 December 2024
Cash on hand 12138.91 62770.67
Cash at bank 14151437751.62 15830320147.70
Other monetary funds 36013839.28 63721548.16
Total 14187463729.81 15894104466.53
Notes: At the end of 2025 the bank deposits were used to pledge the bank acceptance bill of 1660.00
million yuan other restricted funds of cash at bank were 14.95 million yuan. 18.26 million yuan of
other monetary funds were used as collateral for the issuance of bank acceptance drafts that could not
be withdrawn in advance and 0.0015 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
~ 148 ~Annual Report 2025
limitation on usage such as pledging or freezing or risk on recovery.
5.2 Financial Assets Held-for-trading
Items 31 December 2025 31 December 2024
Financial assets at fair value through profit or loss - 60184353.81
Including: Structural financial products - 60184353.81
Total - 60184353.81
5.3 Accounts Receivable
(a) Accounts receivable by aging
Aging 31 December 2025 31 December 2024
Within one year 52330202.23 65651524.19
Including: Within 6 months 49936716.22 62227176.82
7 months to 1 years 2393486.01 3424347.37
1-2 years 2350559.67 5240767.08
2-3 years 340056.43 490019.14
Over 3 years 8391314.57 7921327.52
Subtotal 63412132.90 79303637.93
Less: provision for bad debt 9415440.22 9483902.94
Total 53996692.68 69819734.99
(b) Accounts receivable by bad debt provision method
31 December 2025
Book balance Provision for bad debt
Category Carrying
Proportion Provision
Amount Amount amount
(%) ratio (%)
Provision for bad debt recognised
7792783.7212.297792783.72100.00-
individually
Provision for bad debt recognised by
55619349.1887.711622656.502.9253996692.68
groups
Including: Group1 - - - - -
Group2 55619349.18 87.71 1622656.50 2.92 53996692.68
Total 63412132.90 100.00 9415440.22 14.85 53996692.68
(Continued)
31 December 2024
Book balance Provision for bad debt
Category Carrying
Proportion Provision
Amount Amount amount
(%) ratio (%)
~ 149 ~Annual Report 2025
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
As at 31 December 2025 accounts receivable with bad debt provision recognised by group 2
31 December 2025
Aging
Accounts receivable Provision for bad debt Provision ratio (%)
Within one year 52330202.23 619041.46 1.18
Including: Within 6 months 49936716.22 499367.16 1.00
T/o: 7 months to 1 years 2393486.01 119674.30 5.00
1-2 years 2350559.67 235055.97 10.00
2-3 years 340056.43 170028.22 50.00
Over 3 years 598530.85 598530.85 100.00
Total 55619349.18 1622656.50 2.92
(Continued)
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
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
Changes during the reporting period
Business
31 December 31 December
Category combination Recovery or Elimination or
2024 Provision 2025
not under reversal write-off
common
~ 150 ~Annual Report 2025
control
Individually
significant
receivables
subject to 7792783.72 - - - - 7792783.72
individual
impairment
assessment
Individually
insignificant
receivables
subject to - - - - - -
individual
impairment
assessment
Group 2 1691119.22 446482.89 - 514945.61 - 1622656.50
Total 9483902.94 446482.89 - 514945.61 - 9415440.22
(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 2025 2025 31 December 2025 contract assets
(%)
Top 1 7792783.72 7792783.72 12.29 7792783.72
Top 2 7193739.70 7193739.70 11.34 71937.40
Top 3 7179733.12 7179733.12 11.32 71797.33
Top 4 6025191.68 6025191.68 9.50 60251.92
Top 5 5108248.57 5108248.57 8.06 51082.48
Total 33299696.79 33299696.79 52.51 8047852.85
5.4 Accounts Receivable Financing
(a) Accounts receivable financing by category
31 December 2025
Type
Book balance Provision for bad debt Carrying amount
Bank acceptance bills 895658760.56 - 895658760.56
Commercial acceptance bills - - -
Total 895658760.56 - 895658760.56
~ 151 ~Annual Report 2025
(Continued)
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
(b) Pledged accounts receivable financing at 31 December 2025
Not applicable.(c) Accounts receivable financing which were discounted or endorsed but not due at 31
December 2025
Items Amount derecognised Amount not derecognised
Bank acceptance bills 3047181381.30 -
Commercial acceptance bills - -
Total 3047181381.30 -
(d) Accounts receivable financing by loss allowance provision method
31 December 2025
Book balance Provision for bad debt
Category
Proportion Provision Carrying amount
Amount Amount
(%) ratio (%)
Provision for loss allowance
-----
recognised individually
Provision for loss allowance
895658760.56100.00--895658760.56
recognised by groups
Including:Group1 - - - - -
Group2 895658760.56 100.00 - - 895658760.56
Total 895658760.56 100.00 - - 895658760.56
(Continued)
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 2966732807.75 100.00 - - 2966732807.75
~ 152 ~Annual Report 2025
31 December 2024
Book balance Provision for bad debt
Category
Proportion Provision Carrying amount
Amount Amount
(%) ratio (%)
recognised by groups
Including:Group1 - - - - -
Group2 2966732807.75 100.00 - - 2966732807.75
Total 2966732807.75 100.00 - - 2966732807.75
(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 2025 31 December 2024
Aging
Amount Proportion (%) Amount Proportion (%)
Within one year 115101663.42 99.83 276817824.51 99.41
1 to 2 years 190563.70 0.17 1651976.53 0.59
2 to 3 years - - 2475.24 -
Over 3 years - - - -
Total 115292227.12 100.00 278472276.28 100.00
Note: The book balance of advance payments at the end of 2025 decreased by 58.60% compared with
that at the end of 2024 mainly due to the reduction in prepaid advertising expenses in 2025.(b) Top five closing balances by entity
Proportion of the balance to the
Entity name Balance as at 31 December 2025
total advances to suppliers (%)
Top 1 43803321.57 37.99
Top 2 19760751.36 17.14
Top 3 6299826.46 5.46
Top 4 2761016.12 2.39
Top 5 2640831.64 2.29
Total 75265747.15 65.27
~ 153 ~Annual Report 2025
5.6 Other Receivables
(a) Other receivables by category
Items 31 December 2025 31 December 2024
Interest receivable - -
Dividend receivable - -
Other receivables 45651277.81 86894981.69
Total 45651277.81 86894981.69
(b) Other Receivables
(i) Other receivables by aging
Aging 31 December 2025 31 December 2024
Within one year 43611222.28 85852603.45
Including: Within 6 months 40912955.81 83972284.84
7 months to 1 years 2698266.47 1880318.61
1-2 years 1911890.68 1935988.11
2-3 years 1726793.61 467455.41
Over 3 years 6690071.33 7525037.31
Subtotal 53939977.90 95781084.28
Less: provision for bad debt 8288700.09 8886102.59
Total 45651277.81 86894981.69
(ii) Other receivables by nature
Nature 31 December 2025 31 December 2024
Deposits and Margins 8831605.18 22576214.35
Platform promotion fee 2283469.36 21949424.87
Rentals and utilities receivable 14058900.80 12656104.33
Others 28766002.56 38599340.73
Subtotal 53939977.90 95781084.28
Less: provision for bad debt 8288700.09 8886102.59
Total 45651277.81 86894981.69
(iii) Other receivables by bad debt provision method
A. As at 31 December 2025 provision for bad debt recognised based on three stages model
Stages Book balance Provision for bad debt Carrying acount
Stage 1 53939977.90 8288700.09 45651277.81
Stage 2 - - -
Stage 3 - - -
~ 154 ~Annual Report 2025
Stages Book balance Provision for bad debt Carrying acount
Total 53939977.90 8288700.09 45651277.81
As at 31 December 2025 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
53939977.9015.378288700.0945651277.81
groups
Including: Group 1 - - - -
Group 2 53939977.90 15.37 8288700.09 45651277.81
Total 53939977.90 15.37 8288700.09 45651277.81
Details of Group 2 receivables as of the statement date
31 December 2025
Age group
Gross Impairment allowance Provision ratio (%)
Within 1 year 43611222.28 544042.88 1.25
Including: Within 6 months 40912955.81 409129.56 1.00
T/ o: 7 months to 1 years 2698266.47 134913.32 5.00
1 to 2 years 1911890.68 191189.07 10.00
2 to 3 years 1726793.61 863396.81 50.00
Over 3 years 6690071.33 6690071.33 100.00
Total 53939977.90 8288700.09 15.37
B．As at 31 December 2024 provision for bad debt recognised based on three stages model
Stages Book balance Provision for bad debt Carrying amount
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:
~ 155 ~Annual Report 2025
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
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
(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
2024 Provision not under 2025
reversal write-off
common
control
Individual
------
assessment
Portfolio
8886102.59197004.10-794406.60-8288700.09
assessment
Total 8886102.59 197004.10 - 794406.60 - 8288700.09
(v) Other receivables written off during the reporting period
Not applicable.~ 156 ~Annual Report 2025
(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 (%)
Rent and charges for water Within 6
Top 1 8791746.90 16.30 87917.47
electricity gas and oil months
Within 6
Top 2 Other 6286640.94 11.65 62866.41
months
Within 6
Top 3 Other 1372500.97 2.54 13725.01
months
Over 3
Top 4 Deposit and guarantee 1303136.00 2.42 1303136.00
years
Top 5 Deposit and guarantee 1284295.08 2 to 3 years 2.38 642147.54
Total 19038319.89 35.29 2109792.43
5.7 Inventories
(a) Inventories by category
31 December 2025
Items Provision for
Book balance Carrying amount
impairment
Raw materials and packaging 442840504.16 24858443.56 417982060.60
Semi-finished goods and work in progress 9347360970.25 - 9347360970.25
Finished goods 992737057.36 18285411.39 974451645.97
Total 10782938531.77 43143854.95 10739794676.82
(Continued)
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
(b) Provision for impairment
Increase during the reporting Decrease during the
31 December period reporting period 31 December
Items
2024 Business Reversal or 2025
Provision Others
combination elimination
~ 157 ~Annual Report 2025
not under
common
control
Raw materials and
25390458.8613599282.15-14131297.45-24858443.56
packaging
Finished goods 14136827.38 11671545.87 - 7522961.86 - 18285411.39
Total 39527286.24 25270828.02 - 21654259.31 - 43143854.95
5.8 Other Current Assets
Items 31 December 2025 31 December 2024
Pledged Treasury bond reverse repurchase 157930000.00 -
Interests on deposits 127463099.31 100070417.52
Deductible taxes and tax allowance 107533515.67 91433444.45
Total 392926614.98 191503861.97
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
2024 other
investment investment recognised under comprehensive
equity
equity method income
I. Associates
Beijing Guge
Trading Co.
5513707.07--594.92
Ltd. (Guge
Trading)
Anhui
Xunfeijiuzhi
6218934.37---158772.82
Technology Co.Ltd
Total 11732641.44 - - -158177.90
(Continued)
Changes during the reporting period
Declaration of cash
31 December Provision for
Investees dividends or Provision for
Others 2025 impairment
distribution of impairment
profit
I. Associates
Guge Trading - - - 5514301.99 -
~ 158 ~Annual Report 2025
Changes during the reporting period
Declaration of cash
31 December Provision for
Investees dividends or Provision for
Others 2025 impairment
distribution of impairment
profit
Xunfeijiuzhi - - - 6060161.55 -
Total - - - 11574463.54 -
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
2024 other Others 2025
investment investment comprehensive
comprehensive
income
income
Anhui Mingguang
Village
Commercial Bank 69500830.82 - - 4025186.90 - - 73526017.72
(Mingguang
VCB)
Total 69500830.82 - - 4025186.90 - - 73526017.72
(Continued)
Dividend
Cumulative gains Amount of other
income
recognised in comprehensive Reason for designated as
recognised
Items other income transfer fair value through other
during the
comprehensive to retained comprehensive income
reporting
income earnings
period
For management holding
Anhui Mingguang Village purposes it is specified as
Commercial Bank (Mingguang 792704.73 19677319.92 measured at fair value and
VCB) changes in it are included in
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 2024 89073496.39 2644592.00 91718088.39
Increase during the reporting period 7640575.71 - 7640575.71
~ 159 ~Annual Report 2025
Items Houses and buildings Land use rights Total
(i) Reclassification from Fixed assets 7640575.71 - 7640575.71
Decrease during the reporting period 69931666.23 - 69931666.23
(i) Reclassification to Fixed assets 69931666.23 - 69931666.23
Balance as at 31 December 2025 26782405.87 2644592.00 29426997.87
Accumulated depreciation and amortisation:
Balance as at 31 December 2024 46837883.22 986545.29 47824428.51
Increase during the reporting period 5881147.37 62739.19 5943886.56
(i) Recognition 2637937.19 62739.19 2700676.38
(ii) Reclassification from Fixed assets 3243210.18 - 3243210.18
Decrease during the reporting period 40377729.02 - 40377729.02
(i) Reclassification to Fixed assets 40377729.02 - 40377729.02
Balance as at 31 December 2025 12341301.57 1049284.48 13390586.05
Provision for impairment
Balance as at 31 December 2024 - - -
Increase during the reporting period - - -
Decrease during the reporting period - - -
Balance as at 31 December 2025 - - -
Carrying amount:
Balance as at 31 December 2025 14441104.30 1595307.52 16036411.82
Balance as at 31 December 2024 42235613.17 1658046.71 43893659.88
5.12 Fixed Assets
(a) Fixed assets by category
Items 31 December 2025 31 December 2024
Fixed assets 9121969040.94 7896995404.62
Disposal of fixed assets - -
Total 9121969040.94 7896995404.62
(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
5746480245.763807259462.7584475525.531083307609.4310721522843.47
December 2024
Increase during
746816350.35841928207.288252241.13375181830.511972178629.27
the reporting
~ 160 ~Annual Report 2025
Houses and Machinery Transportation Administrative and
Items Total
buildings equipment vehicles other devices
period
(i) Purchase - 17967680.12 7247649.98 45584922.58 70800252.68
(ii)Transfer from
construction in 676884684.12 823960527.16 1004591.15 329596907.93 1831446710.36
progress
(iii)Transfer from
Investment 69931666.23 - - - 69931666.23
Properties
Decrease during
the reporting 7640575.71 20226248.74 5235190.22 14675102.91 47777117.58
period
(i) Disposal - 20226248.74 5235190.22 14675102.91 40136541.87
(ii)
Reclassification to
7640575.71---7640575.71
Investment
properties
Balance as at 31
6485656020.404628961421.2987492576.441443814337.0312645924355.16
December 2025
Accumulated
depreciation:
Balance as at 31
1255736652.051165126891.2469393199.88331141490.792821398233.96
December 2024
Increase during
the reporting 295370808.12 329446742.70 6200970.16 103029865.27 734048386.25
period
(i) Recognition 254993079.10 329446742.70 6200970.16 103029865.27 693670657.23
(ii) Transfer from
Investment 40377729.02 - - - 40377729.02
Properties
Decrease during
the reporting 3243210.18 17174771.15 5163811.01 14054649.81 39636442.15
period
(i) Disposal - 17174771.15 5163811.01 14054649.81 36393231.97
(ii)
Reclassification to
3243210.18---3243210.18
Investment
properties
Balance as at 31
1547864249.991477398862.7970430359.03420116706.253515810178.06
December 2025
~ 161 ~Annual Report 2025
Houses and Machinery Transportation Administrative and
Items Total
buildings equipment vehicles other devices
Provision for
impairment:
Balance as at 31
2579179.35550025.54--3129204.89
December 2024
Increase during
the reporting 841423.42 4012604.02 - 170414.64 5024442.08
period
(i) Recognition 841423.42 4012604.02 - 170414.64 5024442.08
Decrease during
the reporting - 8510.81 - - 8510.81
period
(i) Disposal - 8510.81 - - 8510.81
Balance as at 31
3420602.774554118.75-170414.648145136.16
December 2025
Carrying amount:
Balance as at 31
4934371167.643147008439.7517062217.411023527216.149121969040.94
December 2025
Balance as at 31
4488164414.362641582545.9715082325.65752166118.647896995404.62
December 2024
(ii) Fixed assets leasing out under operating leases
Items Carrying amount at 31 December 2025
Houses and buildings 14441104.30
Total 14441104.30
(iii) Fixed assets without certificate of title
Items Carrying amount Reason
Houses and buildings 3656589960.64 Registration in progress
Total 3656589960.64
(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 2025 31 December 2024
Construction in progress 160290473.75 1038780764.86
Construction materials - -
Total 160290473.75 1038780764.86
~ 162 ~Annual Report 2025
(b) Construction in progress
(i) Details of construction in progress
31 December 2025 31 December 2024
Items Provision for Provision for
Book balance Carrying amount Book balance Carrying amount
impairment impairment
Smart Zone 49297972.30 - 49297972.30 936206415.94 - 936206415.94
Whisky Project 17504569.28 - 17504569.28 33493322.27 - 33493322.27
Other projects 93487932.17 - 93487932.17 69081026.65 - 69081026.65
Total 160290473.75 - 160290473.75 1038780764.86 - 1038780764.86
(ii) Changes in significant projects of construction in progress
Decrease during
Budget Increase during the Transfer to fixed
Projects 31 December 2024 the reporting 31 December 2025
(million) reporting period asset
period
Smart Zone 828965.74 936206415.94 626797081.72 1470780950.79 42924574.57 49297972.30
Whisky Project 15539.56 33493322.27 50127150.96 66115903.95 - 17504569.28
Other projects 88431.85 69081026.65 355658095.92 294549855.62 36701334.78 93487932.17
Total 932937.15 1038780764.86 1032582328.60 1831446710.36 79625909.35 160290473.75
(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 83.55 99.00 - - -
public financing
Self-funded
Whisky Project 53.81 88.00 13251.07 13251.07 2.71
public financing
Self-funded
Other projects 47.81 47.81 1285861.10 1285861.10 2.80
public financing
Total —— —— 1299112.17 1299112.17 ——
Note: The book value of construction in progress at the end of 2025 decreased by 84.57% compared
with that at the end of 2024 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
~ 163 ~Annual Report 2025
Houses and
Items Machinery equipment Total
buildings
Initial cost:
Balance as at 31 December 2024 114202763.36 9723022.59 123925785.95
Increase during the reporting period 10724723.11 - 10724723.11
Decrease during the reporting period 6333643.88 - 6333643.88
Balance as at 31 December 2025 118593842.59 9723022.59 128316865.18
Accumulated depreciation:
Balance as at 31 December 2024 23065108.90 567176.32 23632285.22
Increase during the reporting period 16783400.28 2073021.80 18856422.08
Decrease during the reporting period 6333643.88 - 6333643.88
Balance as at 31 December 2025 33514865.30 2640198.12 36155063.42
Provision for impairment:
Balance as at 31 December 2024 - - -
Increase during the reporting period - - -
Decrease during the reporting period - - -
Balance as at 31 December 2025 - - -
Carrying amount:
Balance as at 31 December 2025 85078977.29 7082824.47 92161801.76
Balance as at 31 December 2024 91137654.46 9155846.27 100293500.73
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
1156803600.78160904632.69254672753.561572380987.03
2024
Increase during the reporting
14731376.2128133373.02319761.3243184510.55
period
(i) Purchase 14731376.21 4368408.08 319761.32 19419545.61
(ii) Reclassification from
-23764964.94-23764964.94
construction in progress
Decrease during the reporting
119621.21381706.17-501327.38
period
(i) Disposal 119621.21 381706.17 - 501327.38
Balance as at 31 December
1171415355.78188656299.54254992514.881615064170.20
2025
Accumulated amortisation:
~ 164 ~Annual Report 2025
Patents and
Items Land use rights Software Total
trademarks
Balance as at 31 December
250524049.67119430483.2672986817.73442941350.66
2024
Increase during the reporting
24858710.8713854446.49236134.1338949291.49
period
(i) Provision 24858710.87 13854446.49 236134.13 38949291.49
Decrease during the reporting
119621.21381706.17-501327.38
period
(i) Disposal 119621.21 381706.17 - 501327.38
Balance as at 31 December
275263139.33132903223.5873222951.86481389314.77
2025
Provision for impairment:
Balance as at 31 December
-166872.39-166872.39
2024
Increase during the reporting
----
period
(i) Provision - - - -
Decrease during the reporting
----
period
(i) Disposal - - - -
Balance as at 31 December
-166872.39-166872.39
2025
Carrying amount:
Balance as at 31 December
896152216.4555586203.57181769563.021133507983.04
2025
Balance as at 31 December
906279551.1141307277.04181685935.831129272763.98
2024
(b) Intangible assets pledged as of the statement date
Cumulative Provision for
Items Initial cost Carrying amount Note
amortisation impairment
Trademark rights 17362400.00 830569.45 - 16531830.55 Loan pledge
Total 17362400.00 830569.45 - 16531830.55
5.16 Goodwill
(a) Initial recognition
Increase during the Decrease during the
Investees or matters that 31 December 31 December
reporting period reporting period
goodwill arising from 2024 2025
Business Other Disposal Other
~ 165 ~Annual Report 2025
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
Increase during the Decrease during the
Investees or matters that 31 December reporting period reporting period 31 December
goodwill arising from 2024 Business 2025
Other Disposal Other
combination
HHL Distillery 314610386.34 - - - 314610386.34
Mingguang Distillery - - - -
Treasure Distillery - - - -
Total 314610386.34 - - - 314610386.34
Following the impairment test and with reference to the Appraisal Reports (ZhongshuiZhiyuanPingBaoZi [2026]
No. 220088 and ZhongshuiZhiyuanPingBaoZi [2026] No. 220091) issued by Beijing Zhongshui Zhiyuan Assets
Appraisal Co. Ltd. the recoverable amounts of the asset groups were lower than their respective value inclusive of
goodwill as of the statement date，so the impairment provision was required.(c) Asset groups associated with significant goodwill
Asset group CNY million
Whether
Unrecognised
there has
goodwill
Composition been any
Investee Book Allocated attributable to Determination
of asset group Total change in
value goodwill non-
the current
controlling
period
interest
Active markets are available for
the products of the asset group to
Operating
which goodwill is allocated and
HHL Distillery assets of HHL 1904.46 163.67 157.25 2225.38 No
hence the asset group is capable of
Distillery
generating identifiable separate
cash flows.Operating Active markets are available for
Mingguang
assets of 504.93 60.69 40.45 606.07 the products of the asset group to No
Distillery
Mingguang which goodwill is allocated and
~ 166 ~Annual Report 2025
Asset group CNY million
Whether
Unrecognised
there has
goodwill
Composition been any
Investee Book Allocated attributable to Determination
of asset group Total change in
value goodwill non-
the current
controlling
period
interest
Distillery hence the asset group is capable of
generating identifiable separate
cash flows.(d) Specific determination method of recoverable amount
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 2025 ranges from 13.09% to 15.85% and the growth rate ranges from -17.36% to 7.83%.(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 2024 the reporting
Amortisation Other decrease 2025
period
Experience Centre 789276.00 9821533.21 1182580.50 - 9428228.71
Outdoor Plant 21968260.07 12451.09 2896386.31 - 19084324.85
Pottery jar 61602659.20 21971579.65 8479697.94 - 75094540.91
Theme hotel
162703450.174637042.7211240306.79-156100186.10
project
Public lines and
98616414.141912319.9410419017.49-90109716.59
pipelines of the
~ 167 ~Annual Report 2025
Increase during Decrease during the reporting period
31 December
Items 31 December 2024 the reporting
Amortisation Other decrease 2025
period
Smart Park
project
Other projects
with smaller 28925328.31 49160511.02 10587088.64 - 67498750.69
amounts
Total 374605387.89 87515437.63 44805077.67 - 417315747.85
5.18 Deferred Tax Assets and Deferred Tax Liabilities
(a) Deferred tax assets before offsetting
31 December 2025 31 December 2024
Deductible Deductible
Items
temporary Deferred tax assets temporary Deferred tax assets
differences differences
Provision for impairment loss 51455863.50 12064909.50 42823363.52 10444314.97
Provision for credit
17704140.314354735.9518370005.534535436.94
impairment
Unrealised intragroup profit 66184882.61 16238669.35 76363176.92 19090794.23
Deferred income 162588721.38 39981747.79 122142913.25 29876832.66
Deductible losses 477604563.77 110144230.44 305845891.22 67329794.66
Accrued employee benefits 19360961.32 2904144.20 1218851.79 182827.77
Accrued expenses and rebates 1428151143.51 355229599.23 1588898781.16 395609562.74
Fair value change of accounts
3720390.75929818.0422244006.885560090.43
receivable financing
Lease liabilities 93721254.88 23430313.72 97799819.03 24449954.76
Accelerated depreciation
2130902.30319635.353416031.63512404.74
variance of fixed assets
Total 2322622824.33 565597803.57 2279122840.93 557592013.90
(b) Deferred tax liabilities before offsetting
31 December 2025 31 December 2024
Deductible Deductible
Items Deferred tax
temporary Deferred tax liabilities temporary
liabilities
differences differences
Accelerated depreciation
570927623.31140112080.23417629233.07101296567.82
variance of fixed assets
Assets appreciation arising
from business combination 643406829.93 156022685.09 659325823.37 159742363.83
not under common control
~ 168 ~Annual Report 2025
31 December 2025 31 December 2024
Deductible Deductible
Items Deferred tax
temporary Deferred tax liabilities temporary
liabilities
differences differences
Fair value change of financial
--184353.8146088.46
asset held for trading
Unrealised profit 253295158.64 63323789.66 223927678.28 55981919.57
Fair value change of Other
19677319.924919329.9915652133.023913033.26
equity instrument investments
Right-of-use assets 92161801.76 23040450.44 100293500.73 25073375.18
Total 1579468733.56 387418335.41 1417012722.28 346053348.12
(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 2025 December 2024
December 2025 December 2024
Deferred tax assets -77949881.61 487647921.96 -74258323.14 483333690.76
Deferred tax liabilities -77949881.61 309468453.80 -74258323.14 271795024.98
(d) Unrecognized deferred tax assets
Items 31 December 2025 31 December 2024
Deductible losses 14286361.99 16314472.33
Total 14286361.99 16314472.33
(e) Deductible losses not recognised as deferred tax assets will expire in the following periods: due
in two to three years at 7655813.89 and in three to four years at 6630548.10.
5.19 Other Non-current Assets
Items 31 December 2025 31 December 2024
Prepayment for construction and
5465160.95707352.50
machinery
Total 5465160.95 707352.50
5.20 Short-term Borrowings
Items 31 December 2025 31 December 2024
Guarantee loans 184830263.45 50038194.44
Total 184830263.45 50038194.44
5.21 Notes Payable
(a) Disclosure by type
Category 31 December 2025 31 December 2024
~ 169 ~Annual Report 2025
Bank acceptance bills 1472240813.01 571864409.55
Commercial acceptance bills - 17500000.00
Total 1472240813.01 589364409.55
Note: As at 31 December 2025 the Company had no notes payable matured but not yet paid.
5.22 Accounts Payable
(a) Accounts payable by nature
Items 31 December 2025 31 December 2024
Payables for materials 820539496.01 1148583810.63
Payables for constructions and machinery 1154367384.76 1293302536.42
Others 327981288.38 500452835.08
Total 2302888169.15 2942339182.13
(b) Significant accounts payable with aging of over one year
Not applicable.
5.23 Contract liabilities
Items 31 December 2025 31 December 2024
Advances for goods 1519882489.70 3514800038.80
Total 1519882489.70 3514800038.80
5.24 Employee Benefits Payable
(a) Details of employee benefits payable
Increase during the Decrease during the
Items 31 December 2024 31 December 2025
reporting period reporting period
Short-term employee benefits 1116324137.53 3579320313.53 3424514336.48 1271130114.58
Post-employment benefits-
4900644.75440178627.06439273931.585805340.23
defined contribution plans
Termination benefits - 2068448.12 2068448.12 -
Other benefits due within one
----
year
Total 1121224782.28 4021567388.71 3865856716.18 1276935454.81
(b) Short-term employee benefits
Increase during the Decrease during the
Items 31 December 2024 31 December 2025
reporting period reporting period
Salaries bonuses allowances
1047489055.043145549860.442974268197.031218770718.45
and subsidies
Employee benefits - 109288746.83 109288746.83 -
Social insurance 400974.62 142581117.33 142580521.39 401570.56
~ 170 ~Annual Report 2025
Increase during the Decrease during the
Items 31 December 2024 31 December 2025
reporting period reporting period
Medical insurance 398465.41 131926004.90 131926035.36 398434.95
Work-place injury insurance 2509.21 10655112.43 10654486.03 3135.61
Housing accumulation fund 9233417.83 144910734.75 145573056.84 8571095.74
Labour union funds and
59200690.0436989854.1852803814.3943386729.83
employee education funds
Total 1116324137.53 3579320313.53 3424514336.48 1271130114.58
(c) Defined contribution plans
Increase during the Decrease during the
Items 31 December 2024 31 December 2025
reporting period reporting period
Basic endowment insurance 156840.56 280014949.21 280015003.43 156786.34
Unemployment insurance 4901.25 8997701.60 8997703.26 4899.59
Enterprise annuity 4738902.94 151165976.25 150261224.89 5643654.30
Total 4900644.75 440178627.06 439273931.58 5805340.23
(d) Termination benefits
Increase during the Decrease during the
Items 31 December 2024 31 December 2025
reporting period reporting period
Termination benefits - 2068448.12 2068448.12 -
Total - 2068448.12 2068448.12 -
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 2025 31 December 2024
Value added tax (VAT) 195978427.07 284337340.10
Consumption tax 286358430.39 390378274.62
Enterprise income tax 35880443.94 353803556.51
Individual income tax 10891290.58 39693677.73
City construction tax 26138067.76 35169659.48
Stamp duty 3028436.79 4231886.04
Educational surcharge 24980400.49 34333818.77
Others 22713064.50 21223630.24
Total 605968561.52 1163171843.49
5.26 Other Payables
(a) Other payables by category
~ 171 ~Annual Report 2025
Items 31 December 2025 31 December 2024
Interest payable - -
Dividend payable - -
Other payables 2816680849.01 3146672513.57
Total 2816680849.01 3146672513.57
(i) Other payables by nature
Items 31 December 2025 31 December 2024
Deposits and Margins 1902947859.54 2545554135.19
Quality warranty 196511550.86 142353842.60
Withheld housing fund payable 6563300.45 7439116.19
Others 710658138.16 451325419.59
Total 2816680849.01 3146672513.57
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 2025 31 December 2024
Lease liabilities due within one year 17582426.45 13346230.73
Long-term borrowings due within one year 43671456.36 76489969.84
Total 61253882.81 89836200.57
5.28 Other Current Liabilities
Items 31 December 2025 31 December 2024
Accrued expenses 846698519.42 1236420776.30
Pre-mature output VAT 197259041.27 454767511.10
Total 1043957560.69 1691188287.40
5.29 Long-term Borrowings
Items 31 December 2025 31 December 2024
Guarantee loans - 41600000.00
Credit loans 197600000.00 -
Mortgage loans 62599589.94 -
Total 260199589.94 41600000.00
5.30 Lease liabilities
Items 31 December 2025 31 December 2024
Lease payments 104845973.69 112025467.10
Less: Unrealised finance expenses 11124718.81 14225648.07
~ 172 ~Annual Report 2025
Items 31 December 2025 31 December 2024
Subtotal 93721254.88 97799819.03
Less: lease liabilities due within one year 17582426.45 13346230.73
Total 76138828.43 84453588.30
5.31 Deferred Income
Increase during Decrease during
31 December 31 December
Items the reporting the reporting Reason
20242025
period period
Receipt of
asset-related
Government grants 122142913.25 55067000.00 14621191.87 162588721.38
government
grants
Total 122142913.25 55067000.00 14621191.87 162588721.38
5.32 Share Capital
Changes during the reporting period (+-)
31 December 31 December
Items New Bonus Capitalisation of
2024 Others Subtotal 2025
issues issues reserves
Number of
528600000.00-----528600000.00
total shares
5.33 Capital Reserves
Increase during the Decrease during the
Items 31 December 2024 31 December 2025
reporting period reporting period
Capital premium (share
6196258070.02--6196258070.02
premium)
Other capital reserves 32853136.20 - - 32853136.20
Total 6229111206.22 - - 6229111206.22
5.34 Other Comprehensive Income
Changes during the reporting period
Less: Items
previously
recognized in
Attributable to
31 December other Attributable to 31 December
Items Amount before Less: Income non-
2024 comprehensive owners of the 2025
tax tax expenses controlling
income being Company
interest
reclassified to
current profit or
loss
(a)Items will not be
7043459.864025186.901006296.731811334.111207556.068854793.97
reclassified to profit or
~ 173 ~Annual Report 2025
Changes during the reporting period
Less: Items
previously
recognized in
Attributable to
31 December other Attributable to 31 December
Items Amount before Less: Income non-
2024 comprehensive owners of the 2025
tax tax expenses controlling
income being Company
interest
reclassified to
current profit or
loss
loss
Including: Changes in
fair value of other
7043459.864025186.901006296.731811334.111207556.068854793.97
equity instrument
investments
(b)Items will be
reclassified to profit or -16647579.60 -3720390.75 -16683916.45 -929818.04 13873298.72 20045.02 -2774280.88
loss
Including:
Reclassification of
-16647579.60-3720390.75-16683916.45-929818.0413873298.7220045.02-2774280.88
financial assets to other
comprehensive income
Total -9604119.74 304796.15 -16683916.45 76478.69 15684632.83 1227601.08 6080513.09
5.35 Surplus Reserves
Increase during
Decrease during the
Items 31 December 2024 the reporting 31 December 2025
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 2025 2024
Balance as at the end of last period before adjustments 17639514432.44 14500963359.34
Adjustments for the opening balance (increase /(decrease))
Balance as at the beginning of the reporting period after 17639514432.44 14500963359.34
~ 174 ~Annual Report 2025
Items 2025 2024
adjustments
Add: net profit attributable to owners of the parent company
3549108530.345517251073.10
for the reporting period
Less: Transfer to statutory surplus reserves
Declaration of ordinary share dividends 3171600000.00 2378700000.00
Balance as at the end of the reporting period 18017022962.78 17639514432.44
5.37 Revenue and costs of sales
(a) General information
20252024
Items
Revenue Costs of sales Revenue Costs of sales
Principal activities 18708880790.70 3865116860.18 23472061731.98 4696076309.74
Other activities 123101800.54 41382929.99 105866334.01 41978219.60
Total 18831982591.24 3906499790.17 23577928065.99 4738054529.34
(b) Disaggregated information of revenue and costs of sales from Principal operating activities
20252024
Items
Revenue Costs of sales Revenue Costs of sales
Revenue by product type:
Distilled wine business 18539724067.11 3808689558.79 22865058713.55 4176030484.99
Others 292258524.13 97810231.38 712869352.44 562024044.35
Total 18831982591.24 3906499790.17 23577928065.99 4738054529.34
Revenue by operating area:
North China 1058108918.58 299925598.86 1979406985.66 402020125.25
Central China 16647874031.21 3370253577.23 20150945972.42 4073567182.41
South China 1113246819.50 231817795.24 1425975566.51 257106035.61
Internation 12752821.95 4502818.84 21599541.40 5361186.07
Total 18831982591.24 3906499790.17 23577928065.99 4738054529.34
Revenue by distribution
channel:
Online 1008226469.68 328994529.83 771686684.39 182936340.33
Offline 17823756121.56 3577505260.34 22806241381.60 4555118189.01
Total 18831982591.24 3906499790.17 23577928065.99 4738054529.34
5.38 Taxes and Surcharges
Items 2025 2024
Consumption tax 2538246632.45 3083395273.17
~ 175 ~Annual Report 2025
Items 2025 2024
City construction tax and educational
464718958.67549706175.70
surcharges
Property tax 25730810.83 24650465.85
Land use tax 51785583.07 37609044.30
Stamp duty 18337419.77 20660554.84
Others 21998992.64 24312015.13
Total 3120818397.43 3740333528.99
5.39 Selling and Distribution Expenses
Items 2025 2024
Personnel costs 1146851003.95 1280868189.84
Travel 275138085.38 257167425.19
Advertisement 1353000071.25 1309141466.48
Comprehensive promotion 1860952300.87 2563283912.38
Services 701337170.61 658399995.56
Others 120734044.21 112902006.05
Total 5458012676.27 6181762995.50
5.40 General and Administrative Expenses
Items 2025 2024
Personnel costs 888766979.07 907530864.24
Office costs 89249127.40 92329482.71
Repairs 46381724.22 42176635.49
Depreciation 161135060.24 118160773.51
Amortisation 57552857.66 48881999.66
Sewage 21757898.23 27937204.39
Travel 14287803.22 14684044.79
Utilities 12357075.75 12045020.09
Others 163193338.89 178652901.43
Total 1454681864.68 1442398926.31
5.41 Research and Development Expenses
Items 2025 2024
Personnel costs 58013977.80 53428629.50
Direct costs 12923802.87 9409848.37
Depreciation 4550252.31 4326031.48
Other related expenses 12702510.66 11077703.23
Total 88190543.64 78242212.58
~ 176 ~Annual Report 2025
5.42 Finance Costs
Items 2025 2024
Interest expenses 10592597.93 6145816.53
Including: Interest expenses for lease
3957920.803659750.15
liabilities
Less: Interest income 538057668.12 367977768.88
Net interest expenses -527465070.19 -361831952.35
Net foreign exchange losses 2323816.85 11645040.10
Bank charges and others 859428.23 1362705.80
Total -524281825.11 -348824206.45
5.43 Other Income
Items 2025 2024 Related to assets /income
(i) Government grant
71072833.2659697910.87
recognised in other income
Including: Government
grant related to deferred 14621191.87 7642491.57 Related to assets
income
Government grant directly
recognised in current profit 56451641.39 52055419.30 Related to income
or loss
(ii) Others related to daily
operation activities and 9418074.42 4248829.61
recognised in other income
Total 80490907.68 63946740.48
5.44 Investment Income/(Losses)
Items 2025 2024
Investment income from long-term equity
-158177.901365563.18
investments under equity method
Gains on disposal of long-term equity
-160169.93
investments
Gains on disposal of held-for-trading
2392296.452060910.45
financial assets
Gains from other equity instrument
792704.73769616.25
investment income during holding period
Gains from disposal of financial assets at
fair value through other comprehensive -31165619.17 -39278043.50
income
Others 3841395.04 434296.02
Total -24297400.85 -34487487.67
~ 177 ~Annual Report 2025
5.45 Gains/(Losses) from Changes in Fair Values
Sources of gains on changes in fair value 2025 2024
Financial assets held-for-trading - 184353.81
Including: Changes in fair value of
--
derivatives
Total - 184353.81
5.46 Credit Impairment Losses
Items 2025 2024
Bad debt of notes receivable - -
Bad debt of accounts receivable 68462.72 -605509.16
Bad debt of other receivables 597402.50 -1039763.07
Total 665865.22 -1645272.23
5.47 Asset Impairment Losses
Items 2025 2024
Impairment of inventories -25270828.02 -23585609.99
Impairment of fixed assets -5024442.08 -
Impairment of intangible assets - -
Impairment of goodwill -314610386.34 -
Total -344905656.44 -23585609.99
5.48 Gains/ (losses) from Disposal of Assets
Items 2025 2024
Gains/(losses) from disposal of fixed
assets construction in progress
306237.27-192200.99
productive biological assets and intangible
assets not classified as held for sale
Including: Fixed assets 306237.27 -192200.99
Total 306237.27 -192200.99
5.49 Non-operating Income
Recognised in current
Items 2025 2024 non-recurring profit or
loss
Gains from damage or scrapping
1731.90143168.861731.90
of non-current asset
Fine and compensation 42198994.94 35902710.13 42198994.94
Sale of scrap 5814591.91 4895677.27 5814591.91
Release of payables 9572452.97 18278847.61 9572452.97
~ 178 ~Annual Report 2025
Recognised in current
Items 2025 2024 non-recurring profit or
loss
Others 557539.78 1585687.39 557539.78
Total 58145311.50 60806091.26 58145311.50
5.50 Non-operating Expenses
Recognised in current
Items 2025 2024 non-recurring profit or
loss
Loss from damage or scrapping
3563321.996947007.873563321.99
of non-current assets
Donations 8626285.60 4624000.00 8626285.60
Others 2128567.80 3828477.12 2128567.80
Total 14318175.39 15399484.99 14318175.39
5.51 Income Tax Expenses
(a) Details of income tax expenses
Items 2025 2024
Current tax expenses 1415904124.17 2163442886.40
Deferred tax expenses 27722628.50 -74467255.81
Total 1443626752.67 2088975630.59
(b) Reconciliation of accounting profit and income tax expenses
Items 2025 2024
Profit before tax 5084148233.15 7795587209.40
Income tax expense at the statutory /applicable tax rate 1271037058.29 1948896802.35
Effect of different tax rate of subsidiaries -17452287.94 -12939119.34
Adjustments of impact from prior period income tax 43620852.15 126256652.21
Effect of income that is exempt from taxation -158631.71 -533794.86
Effect of non-deductible costs expenses or losses 164148399.77 41785366.02
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 -17568637.89 -14490275.79
Impact of tax rate changes - -
Exemption - -
Income tax expenses 1443626752.67 2088975630.59
~ 179 ~Annual Report 2025
5.52 Notes to the Statement of Cash Flow
(a) Other cash received relating to operating activities
Items 2025 2024
Margin deposits and quality warranty 244514713.00 393976242.15
Government grants received 111518641.39 81029419.30
Bank interests received 538057668.12 367977768.88
Release of restricted cash 410969772.34 1290204326.83
Others 147428630.36 47136714.16
Total 1452489425.21 2180324471.32
(b) Other cash payments relating to operating activities
Items 2025 2024
Paid expenses 3138339476.68 3251430533.10
Margin deposits and quality warranty 258161603.47 14973516.51
Cash restricted for bank acceptance and
1403211911.24700969772.34
guarantee letters
Others 220786009.65 235192813.59
Total 5020499001.04 4202566635.54
(c) Other cash payments relating to financing activities
Items 2025 2024
Rentals paid 19375247.16 21939585.66
Total 19375247.16 21939585.66
(i) Changes in liabilities arising from financing activities
Increase in the current period Decrease in the current period
Items 31 December 2024 Changes in non- Changes in non- 31 December 2025
Changes in cash Changes in cash
cash cash
Short-term
50038194.44184700000.003276447.1753184378.16184830263.45
Borrowings
Long-term
41600000.00265019589.945984146.0652404146.06260199589.94
Borrowings
Lease
84453588.3014682643.9122997403.7876138828.43
liabilities
lease
liabilities due
13346230.7322997403.7818445793.20315414.8617582426.45
within one
year
~ 180 ~Annual Report 2025
Increase in the current period Decrease in the current period
Items 31 December 2024 Changes in non- Changes in non- 31 December 2025
Changes in cash Changes in cash
cash cash
Long-term
Borrowings
76489969.8452404146.0685222659.5443671456.36
due within
one year
Total 265927983.31 449719589.94 99344786.98 156852830.90 75716964.70 582422564.63
5.53 Supplementary Information to the Statement of Cash Flows
(a) Supplementary information to the statement of cash flows
Supplementary information 2025 2024
(i) Adjustments of net profit to cash flows from
operating activities:
Net profit 3640521480.48 5706611578.81
Add: Provisions for impairment of assets 344905656.44 23585609.99
Impairment Loss of Credit -665865.22 1645272.23
Depreciation of fixed assets Investment Properties oil
696371333.61477998913.37
and gas asset and productive biological assets
Depreciation of right to use assets 18856422.08 16749479.03
Amortisation of intangible assets 38949291.49 44851331.26
Amortisation of long-term deferred expenses 44805077.67 31124721.55
Losses /(gains) on disposal of fixed assets intangible
-306237.27192200.99
assets and other long-term assets
Losses /(gains) on scrapping of fixed assets 3561590.09 6803839.01
Losses /(gains) on changes in fair value - -184353.81
Finance costs /(income) 12960552.00 17621571.61
Investment losses /(income) -6868218.32 -4790555.83
Decreases /(increases) in deferred tax assets -8944503.59 -22939973.04
Increases /(decreases) in deferred tax liabilities 36667132.09 -51527282.77
Decreases /(increases) in inventories -1500844668.26 -1768123910.06
Decreases /(increases) in operating receivables 2267017570.88 -2337026097.81
Increases /(decreases) in operating payables -2647531498.27 1995825974.83
Others -992242138.90 589234554.49
Net cash flows from operating activities 1947212977.00 4727652873.85
(ii) Significant activities not involving cash receipts and
payments:
Conversion of debt into capital
Convertible corporate bonds maturing within one year
~ 181 ~Annual Report 2025
Supplementary information 2025 2024
Fixed asset acquired through financial leasing 10724723.11
(iii) Net increases in cash and cash equivalents:
Cash at the end of the reporting period 12494251818.57 15193134694.19
Less: Cash at the beginning of the reporting period 15193134694.19 14676167417.36
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 -2698882875.62 516967276.83
Note: Others mainly 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 2025 31 December 2024
(i) Cash 12494251818.57 15193134694.19
Including: Cash on hand 12138.91 62770.67
Cash in bank available for immediate
12476488123.4815139942337.05
use
Other monetary funds available for
17751556.1853129586.47
immediate use
(ii) Cash equivalents
Including: Bond investments maturing within
three months
(iii) Cash and cash equivalents at the end of the
12494251818.5715193134694.19
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 2025 Reason
Fixed term deposits and margin
Monetary funds 1693211911.24
deposits for bank acceptance etc.Intangible Assets 16531830.55 Loan pledge
Total 1709743741.79 ——
5.55 Leases
(a) The Company as a lessee
~ 182 ~Annual Report 2025
Items 2025
Expenses for short-term lease under simplified method 7856208.63
Expenses for lease of low value asset (except for short-term lease)
-
under simplified method
Interest expense of lease liabilities 3957920.80
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 58226749.41
Profit or loss in sale and leaseback transaction -
(b) The Company as a lessor
Operating lease
Items 2025
Lease income 9846756.17
Including: income related to variable lease payments not included
-
in lease receivables
6. RESEARCH AND DEVELOPMENT EXPENDITURES
6.1 R&D expenditures by nature
Items 2025 2024
Labor costs 58013977.80 53428629.50
Material costs 12923802.87 9409848.37
Depreciation costs 4550252.31 4326031.48
Others 12702510.66 11077703.23
Total 88190543.64 78242212.58
Including：Expensed R&D expenditures 88190543.64 78242212.58
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 a new subsidiary "Anhui Gu Qi Distillery
Sales Co. Ltd." This period the liquidated subsidiary is " Hainan Yangshengtianxia Biotechnology
Development Co. Ltd."
8. INTERESTS IN OTHER ENTITIES
8.1 Interests in Subsidiaries
(a) Composition of corporate group
~ 183 ~Annual Report 2025
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.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
Bozhou Hotel Co. Hotel combination
Bozhou Hotel Bozhou Anhui Bozhou Anhui 100.00 ——
Ltd. management under common
control
Anhui Yuanqing
YQ Environment Sewage
Environment Bozhou Anhui Bozhou Anhui 100.00 —— Incorporation
Protection processing
Protection Co. Ltd.Anhui Gujing
Yunshang E- GJ E-Commerce Hefei Anhui Hefei Anhui E-commerce 100.00 —— Incorporation
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
~ 184 ~Annual Report 2025
Anhui Gu Qi Anhui Gu Qi
Bozhou Anhui Bozhou Anhui Production 60.00 —— Incorporation
Distillery Co. Ltd. Distillery
Anhui Gu Qi
Anhui Gu Qi
Distillery Sales Co. Bozhou Anhui Bozhou Anhui Trading —— 60.00 Incorporation
Distillery Sales
Ltd.Anhui Guge Culture Advertising and
Guge Culture Bozhou Anhui Bozhou Anhui 100 —— Incorporation
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
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.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
Xiaogan Hubei Xiaogan Hubei Trading —— 51.00 Incorporation
Tiancheng Trading Tiancheng
~ 185 ~Annual Report 2025
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
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.Business
Guizhou Renhuai
combination not
Maotai Treasure Treasure Distillery Guizhou Renhuai Guizhou Renhuai Production 60.00 ——
under common
Distillery Co. Ltd.control
Guizhou Treasure
Treasure Distillery
Distillery Sales Guizhou Renhuai Guizhou Renhuai Trading —— 60.00 Incorporation
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
Anhui Gujing Business
Qingyangshe Supply GJ Qingyangshe combination not
Bozhou Anhui Bozhou Anhui Trading —— 60.00
Chain Management Supply 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
~ 186 ~Annual Report 2025
(b) Significant non-wholly owned subsidiaries
No.
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 2025/2025 31 December 2024/2024
Joint venture：
Total carrying amount of investments
The aggregate amount of below items
calculated based on proportion of equity
interests:
—Net profit/(loss)
—Other comprehensive income
—Total comprehensive income
Associate：
Total carrying amount of investments 11574463.54 11732641.44
The aggregate amount of below items
calculated based on proportion of equity
interests:
—Net profit/(loss) -158177.90 1365563.18
—Other comprehensive income
—Total comprehensive income -158177.90 1365563.18
9. GOVERNMENT GTRANTS
9.1 Government grants recognised as receivables
As at 31 December 2025 the amount of government grants recognised as receivables is RMB 0.
9.2 Liability items that involve government grants
Items Increase in Amount Amount Other
Related
presented government recognised recognised in changes
Balance as at 31 Balance as at 31 to assets
in the grants during in non- other income during the
December 2024 December 2025 or
statement the reporting operating during the reporting
income
of period income reporting period
~ 187 ~Annual Report 2025
financial during the period
position reporting
period
Deferred Related
122142913.2555067000.00-14621191.87-162588721.38
income to assets
Total 122142913.25 55067000.00 - 14621191.87 - 162588721.38
9.3 Government grants recognised in current profit or loss
Items presented in income statement 2025 2024
Other income 71072833.26 59697910.87
Finance costs -2067900.00 -2329500.00
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 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
~ 188 ~Annual Report 2025
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
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.Credit impairment of financial assets may arise from the combined effect of multiple events rather
than a single individually identifiable event.(iii) The parameter of expected credit loss measurement
The company measures impairment provision for different assets with the expected credit loss of 12-
~ 189 ~Annual Report 2025
month or the lifetime based on whether there has been a significant increase in credit risk or credit
impairment has occurred. The key parameters for expected credit loss measurement include default
probability default loss rate and default risk exposure. The Company sets up the model of default
probability default loss rate and default risk exposure in considering the quantitative analysis of
historical statistics (such as counterparties’ ratings guarantee method and collateral type repayment
method etc.) and forward-looking information.Relevant definitions are as following:
Default probability refers to the probability of the debtor will fail to discharge the repayment
obligation over the next 12 months or the entire remaining lifetime;
Default loss rate refers to the Company's expectation of the loss degree of default risk exposure. The
default loss rate varies depending on the type of counterparty recourse method and priority and the
collateral. The default loss rate is the percentage of the risk exposure loss when default has occurred
and it is calculated over the next 12 months or the entire lifetime;
The default risk exposure refers to the amount that the company should be repaid when default has
occurred in the next 12 months or the entire lifetime. Both the assessment of significant increase in
credit risk of forward-looking information and the calculation of expected credit losses involve
forward-looking information. Through historical data analysis the Company identifies key economic
indicators that have impact on the credit risk and expected credit losses for each business.The maximum exposure to credit risk of the Company is the carrying amount of each financial asset
in the statement of financial position. The Company does not provide any other guarantees that may
expose the Company to credit risk.For the accounts receivable of the Company the amount of top 5 clients represents 52.51% of the
total; for the other receivables the amount of the top five entities represents 35.29% 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 2025 the maturity profile of the Company’s financial liabilities is as follows:
31 December 2025
Items
Within -1 year 1-2 years 2-3 years Above 3 years
Short-term loans 186934364.01
~ 190 ~Annual Report 2025
31 December 2025
Items
Within -1 year 1-2 years 2-3 years Above 3 years
Notes payable 1472240813.01
Accounts payable 2302888169.15
Other payables 2816680849.01
Non-current liabilities
73181317.74
maturing within one year
Other current liabilities 1043957560.69
Long-term loans 99209174.77 119042949.22 57269625.38
Lease liabilities 21677513.09 21760268.51 44507146.01
Total 7895883073.61 120886687.86 140803217.73 101776771.39
(Continued)
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
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.~ 191 ~Annual Report 2025
(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.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 2025
Fair value at 31 December 2025
Items
Level 1 Level 2 Level 3 Total
Recurring fair value measurements
(a) financial assets held-for-trading - -
(i) Financial assets at fair value through
--
profit or loss
1.Debt instruments - - - -
2.Structural financial products - -
(b) Financial assets at fair value through
--969184778.28969184778.28
other comprehensive income
1.Accounts receivable financing - - 895658760.56 895658760.56
2.Other equity instrument investment - - 73526017.72 73526017.72
Total assets measured at fair value on a
--969184778.28969184778.28
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
~ 192 ~Annual Report 2025
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
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.~ 193 ~Annual Report 2025
12.4 Other Related Parties of the Company
Name Relationship with 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
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
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
Anhui Lvyuan Ecological Agriculture Development Co. Controlled by the Company's controlling shareholder or
Ltd. （Lvyuan Ecological Agriculture） 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
Bozhou Hotel Co. Ltd.(Bozhou Hotel)
ultimate controller
~ 194 ~Annual Report 2025
Dongfang Ruijing Enterprise Investment Co. Controlled by the Company's controlling shareholder or
Ltd.(Dongfang Ruijing) 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
(a) Purchases or sales of goods rendering or receiving of services
Purchases of goods receiving of services:
Related parties Nature of the transaction(s) 2025 2024
Bozhou Hotel Receiving catering and accommodation 9534350.56 8790826.60
GJ Huishenglou Catering Receiving catering and accommodation 6322173.27 5112486.87
GJ Hotel Development Receiving catering and accommodation 1369836.86 917799.50
GJ Hotel Development Purchases of materials 294965.19 593096.00
RJSL Group Purchase of materials and services 285345.56 1061.95
RJSL Group Receiving catering and accommodation - 8678.00
RJSL Holiday Inn Receiving catering and accommodation 69343.33 369617.40
RJSL Holiday Inn Purchase of materials and services 979455.32 1553686.56
Youxin Guarantee Receiving services 24032.34 186613.69
Jiuan Advisory Advisory and assurance 5084386.99 16399697.94
Lvyuan Ecological
Purchase of materials 757483.33 -
Agriculture
Ruijing Catering Receiving catering and accommodation 11805.89 -
Total —— 24733178.64 33933564.51
Sales of goods and rendering of services:
Related parties Nature of the transaction(s) 2025 2024
Shenglong Trading Sales of distilled wine 419407.05 881579.63
Shenglong Trading Provision of catering and accommodation 11467.92 12363.04
Shenglong Trading Sales of small materials 49894.16 1987.61
RJSL Group Sales of distilled wine 2413493.81 1868853.84
RJSL Group Provision of catering and accommodation 4208.70 8893.39
RJSL Group Sales of small materials - 2946.90
RJSL Holiday Inn Sales of small materials 415198.29 178315.91
RJSL Holiday Inn Sales of distilled wine 45716.81 140628.33
GJ Hotel Development Sales of distilled wine 1042768.15 1459070.75
GJ Hotel Development Sales of water and electricity 161698.57 195354.91
~ 195 ~Annual Report 2025
Related parties Nature of the transaction(s) 2025 2024
GJ Hotel Development Provision of catering and accommodation 138360.44 94339.62
GJ Hotel Development Sales of small materials 1345.11 34713.45
GJ Group Provision of catering and accommodation 249647.52 330327.68
GJ Group Sales of small materials 144679.89 166629.10
Bozhou Hotel Sales of small materials 187319.25 131208.76
Bozhou Hotel Sales of distilled wine 334493.19 243911.51
Bozhou Hotel Provide labor services - 10905.21
Huixin Financial Investment Sales of distilled wine 6955.76 17734.51
Huixin Financial Investment Sales of small materials 584.07 -
Huixin Financial Investment Provision of catering and accommodation - 2243.40
GJ Huishenglou Catering Sales of distilled wine 55274.34 54716.81
GJ Huishenglou Catering Sales of small materials 91265.30 46791.16
GJ Huishenglou Catering Provide testing services 12849.06 -
Anxin Small Loan Sales of distilled wine 20761.06 28353.98
Anxin Small Loan Sales of small materials 8053.10 -
Anxin Small Loan Provide testing services 792.46 -
Haochidian Catering Provision of catering and accommodation - 72376.00
Haochidian Catering Sales of distilled wine 2600920.37 1632557.51
Haochidian Catering Sales of small materials 130968.44 62092.93
Zhongxin Financial Leasing Sales of distilled wine 3079.65 4991.15
Hengxin Pawnshop Sales of distilled wine 5389.37 9530.98
Jiuan Advisory Sales of distilled wine 8787.61 44920.35
Jiuan Advisory Provision of catering and accommodation 292.45 800
Jiuan Advisory Sales of small materials 1991.15 20693.37
Beihai Hotel Sales of distilled wine 3265.49 133568.15
Beihai Hotel Sales of small materials 1168.14 -
Ruixin Pawnshop Sales of distilled wine 3079.65 4991.15
Youxin Guarantee Sales of distilled wine 3079.65 4991.15
Youxin Guarantee Sales of small materials 292.03 -
Longxin Advisory Sales of small materials 2309.74 2150.44
Longxin Advisory Sales of distilled wine 292.03 -
Dongfang Ruijing Provision of catering and accommodation - 34061.79
Ruijing Catering Sales of small materials 33451.34 -
Total —— 8614601.12 7939594.47
~ 196 ~Annual Report 2025
(b) Leases
The Company as lessor:
The lessee Type of assets 2025 2024
GJ Hotel Development Houses and buildings 1109466.64 1095101.19
Total —— 1109466.64 1095101.19
The Company as lessee:
2025
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 - - 928357.41 123633.20 -
buildings
Dazhongyuan Houses
Jiugu Cultural buildings and - - 6999238.82 748757.06 -
land
Total —— - - 7927596.23 872390.26 -
(Continued)
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
~ 197 ~Annual Report 2025
(d) Key management personnel compensation
Items 2025 2024
Key management personnel
6.99million 26.79million
compensation
12.6 Receivables and Payables with Related Parties
Items Related parties 31 December 2025 31 December 2024
Contract liabilities Bozhou Hotel 38236.90 16131.81
Contract liabilities GJ Huishenglou Catering - 5070.80
Contract liabilities RJSL Group - 1529729.09
Contract liabilities RJSL Holiday Inn 102057.35 566.37
Accounts payable Jiuan Advisory 188322.34 172318.90
Accounts payable GJ Hotel Development 11444.00 15558.00
Accounts payable Bozhou Hotel - 155845.44
Accounts payable RJSL Holiday Inn - 381170.20
Other payables RJSL Group 300000.00 305533.60
Other payables GJ Hotel Development 100000.00 100000.00
Other payables Jiuan Advisory 6000.00 47877.00
Other payables Bozhou Hotel 10000.00 -
13. COMMITMENTS AND CONTINGENCIES
13.1 Significant Commitments
As at 31 December 2025 the Company has no significant commitments need to be disclosed.
13.2 Contingencies
As at 31 December 2025 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 2025 as the
base distribute a cash dividend of 34.00 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 28 2026 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
~ 198 ~Annual Report 2025
is not applicable.
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 2025.(b) No account receivable as of 31 December 2025.(c) Impairment movement for the period was not applicable for accounts receivable.
16.2 Other Receivables
(a) Other receivables by category
Items 31 December 2025 31 December 2024
Interest receivable - -
Dividend receivable - -
Other receivables 464796849.41 505111096.18
Total 464796849.41 505111096.18
(b) Other Receivables
(i) Other receivables by aging
Aging 31 December 2025 31 December 2024
Within one year 84117630.95 312820191.46
Including: Within 6 months 84019705.08 222819167.02
7 months to 1 years 97925.87 90001024.44
1-2 years 260071975.05 192491023.18
2-3 years 121459100.36 20500.00
Over 3 years 1693636.00 2408794.09
Subtotal 467342342.36 507740508.73
Less: provision for bad debt 2545492.95 2629412.55
Total 464796849.41 505111096.18
(ii) Other receivables by nature
Nature 31 December 2025 31 December 2024
Due from related party within the scope of
452998407.89497697675.07
consolidation
Deposits and Margins 3047931.08 3763589.17
Rentals and utilities receivable 1115067.27 1002533.40
Others 10180936.12 5276711.09
~ 199 ~Annual Report 2025
Nature 31 December 2025 31 December 2024
Subtotal 467342342.36 507740508.73
Less: Provision for bad debt 2545492.95 2629412.55
Total 464796849.41 505111096.18
(iii) Other receivables by bad debt provision method
A. As at 31 December 2025 provision for bad debt recognised based on three stages model
Stages Book balance Provision for bad debt Carrying acount
Stage 1 467342342.36 2545492.95 464796849.41
Stage 2 - - -
Stage 3 - - -
Total 467342342.36 2545492.95 464796849.41
As at 31 December 2025 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
467342342.360.542545492.95464796849.41
groups
Including: Group 1 452998407.89 - - 452998407.89
Group 2 14343934.47 17.75 2545492.95 11798441.52
Total 467342342.36 0.54 2545492.95 464796849.41
Details of Group 2 receivables as of the statement date
31 December 2025
Age group
Book balance Provision for bad debt Provision ratio (%)
Within 1 year 11119223.06 115109.26 1.04
Including: Within 6 months 11021297.19 110212.97 1.00
7 months to 1 years 97925.87 4896.29 5.00
1 to 2 years 71975.05 7197.51 10.00
2 to 3 years 1459100.36 729550.18 50.00
Over 3 years 1693636.00 1693636.00 100.00
Total 14343934.47 2545492.95 17.75
B. As at 31 December 2024 provision for bad debt recognised based on three stages model
~ 200 ~Annual Report 2025
Stages Book balance Provision for bad debt Carrying amount
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
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
(iv) Changes of provision for bad debt during the reporting period
Changes during the reporting period
31 December 31 December
Category Elimination or write-
2024 Provision Recovery or reversal 2025
off
Individual
-----
assessment
Portfolio
2629412.55-83919.60-2545492.95
assessment
Total 2629412.55 - 83919.60 - 2545492.95
~ 201 ~Annual Report 2025
(v) Other receivables written off during the reporting period
Not applicable.(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 2025 debt
other receivables (%)
Due from related
party within the
Top 1 380000000.00 1 to 3 years 81.31 -
scope of
consolidation
Due from related
party within the Within 6
Top 2 72206067.05 15.45 -
scope of months
consolidation
Within 6
Top 3 Others 6286640.94 1.35 62866.41
months
Deposits and
Top 4 1303136.00 Over 3 years 0.28 1303136.00
Margins
Deposits and
Top 5 1284295.08 2 to 3 years 0.27 642147.54
Margins
Total 461080139.07 98.66 2008149.95
16.3 Long-term Equity Investments
31 December 2025 31 December 2024
Items Provision for Provision for
Book balance Carrying amount Book balance Carrying amount
impairment impairment
Subsidiaries 1694079903.43 - 1694079903.43 1642079903.43 - 1642079903.43
Associates 6060161.55 - 6060161.55 6218934.37 - 6218934.37
Total 1700140064.98 - 1700140064.98 1648298837.80 - 1648298837.80
(a) Investments in subsidiaries
Provision for
Decrease Provision for
Increase during impairment
during the impairment
Investees 31 December 2024 the reporting 31 December 2025 at 31
reporting during the
period December
period reporting period
2025
GJ Sales 68949286.89 - - 68949286.89 - -
Longrui Glass 85267453.06 - - 85267453.06 - -
Jinhao Hotel 49906854.63 - - 49906854.63 - -
Bozhou Hotel 648646.80 - - 648646.80 - -
~ 202 ~Annual Report 2025
Provision for
Decrease Provision for
Increase during impairment
during the impairment
Investees 31 December 2024 the reporting 31 December 2025 at 31
reporting during the
period December
period reporting period
2025
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 45000000.00 27000000.00 - 72000000.00 - -
Guge Culture 5000000.00 - - 5000000.00 - -
Jiudao Media 15000000.00 - 15000000.00 - -
Gujing Suhuai 10000000.00 - 10000000.00 - -
Total 1642079903.43 52000000.00 - 1694079903.43 - -
(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
2024
reporting reporting under the comprehensive other equity
period period equity method income
(i) Associates - -
Xunfeijiuzhi 6218934.37 - - -158772.82 - -
Total 6218934.37 - - -158772.82 - -
(Continued)
Changes during the reporting period
Declaration of Provision for
31 December
Investees cash dividends or Provision for impairment at 31
Others 2025
distribution of impairment December 2025
profit
~ 203 ~Annual Report 2025
(i)Associates
Xunfeijiuzhi - - - 6060161.55 -
Total - - - 6060161.55 -
16.4 Revenue and Cost of Sales
20252024
Items
Revenue Costs of sales Revenue Costs of sales
Principal activities 11224198170.85 3856110217.20 12868400539.49 4152790888.94
Other activities 163191820.88 92946542.60 142911297.56 87611396.02
Total 11387389991.73 3949056759.80 13011311837.05 4240402284.96
Note: The company's main business income is distilled wine sales revenue.
16.5 Investment Income
Items 2025 2024
Investment income from long-term equity
758575992.652699374783.34
investments under cost method
Investment income from long-term equity
-158772.821363393.76
investments under equity method
Gains from disposal of financial assets held-for-
469722.231330123.81
trading
Gains from disposal of financial assets at fair
-31031320.83-39112659.61
value through other comprehensive income
Others 2865306.50 151618.54
Total 730720927.73 2663107259.84
17. SUPPLEMENTARY INFORMATION
17.1 Details of current non-recurring profit or loss
Items 2025 2024
Gains /(losses) on disposal of non-current assets -3255352.82 -6996040.00
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 49068936.93 47217316.71
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 5782198.92 2316575.85
value protection hedges relating to the Company’s ordinary course of
business
Reversal of provision for impairment of individually tested receivables - -
~ 204 ~Annual Report 2025
Items 2025 2024
Other non-operating income/expenses except for items mentioned above 47388726.20 52210445.28
Total non-recurring profit /(loss) 98984509.23 94748297.84
Less: Income tax effect 24237194.74 23534161.55
Less: net non-recurring profit /(loss) attributable to non-controlling interest 15102378.45 11118339.31
Net non-recurring profit /(loss) attributable to ordinary shareholders 59644936.04 60095796.98
17.2 Return on Net Assets and Earnings Per Share (‘EPS’)
(a) 2025
Weighted average EPS
Profit for the reporting period return on net assets
Basic Diluted
(%)
Net profit attributable to ordinary shareholders 14.28 6.71 6.71
Net profit attributable to ordinary shareholders
14.046.606.60
after non-recurring profit or losses
(b) 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 loss
Chairman of the Board:
Anhui Gujing Distillery Company Limited
April 28 2026
~205~
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