Wuliangye Yibin Co. Ltd.Interim Report 2024

Chairman of the Board: Zeng Congqin

29 August 2024Interim Report 2024 of Wuliangye Yibin Co. Ltd.

Part I Important Notes Table of Contents and Definitions

1. The Board of Directors (or the “Board”) the Supervisory Committee as well as the

directors supervisors and senior management of Wuliangye Yibin Co. Ltd. (hereinafter referred

to as the “Company”) hereby guarantee that the contents of this Report are true accurate and

complete and free of any misrepresentations misleading statements or material omissions and

collectively and individually accept legal responsibility for such contents.

2. Zeng Congqin the Company’s legal representative Zhang Xin the Company’s Chief

Financial Officer and Liu Hongxu head of the Company’s accounting department hereby

guarantee that the financial statements carried in this Report are true accurate and complete.

3. Eleven directors were supposed to attend the board meeting for the review of this Report.

Nine of them were present at the meeting in person while Mr. Jiang Wenge and Mr. Xie Zhihua

voted by way of telecommunication for they were unable to be present due to work reasons.

4. The Company has no interim dividend plan either in the form of cash or bonus issue.

5. This Report has been prepared in Chinese and translated into English. Should there be any

discrepancies or misunderstandings between the two versions the Chinese version shall prevail.

2Interim Report 2024 of Wuliangye Yibin Co. Ltd.

Table of Contents

Part I Important Notes Table of Contents and Defin... 2

Part II Corporate Information and Key Financial In... 6

Part III Management Discussion and Analysis ......... 9

Part IV Corporate Governance ....................... 22

Part V Environmental and Social Responsibility ..... 24

Part VI Significant Events ......................... 28

Part VII Share Changes and Shareholder Information.. 33

Part VIII Preference Shares ........................ 37

Part IX Bonds ...................................... 37

Part X Financial Statements ........................ 38

3Interim Report 2024 of Wuliangye Yibin Co. Ltd.

Documents Available for Reference

The following documents are available for shareholders at the Company’s Board Office:

1. The financial statements that have been signed and stamped by the legal representative

the Chief Financial Officer and the head of the accounting department.

2. All the Company’s documents and announcements that were disclosed on China Securities

Journal Shanghai Securities News and Securities Times during the Reporting Period.

3. The 2024 Interim Report of the Company.

4Interim Report 2024 of Wuliangye Yibin Co. Ltd.

Definitions

Term refers to Definitions

The “Company” “Wuliangye”

refers to Wuliangye Yibin Co. Ltd.“WLY” or “we”

Yibin Development Group refers to Yibin Development Holding Group Co. Ltd.Wuliangye Group refers to Sichuan Yibin Wuliangye Group Co. Ltd.Wuliang NongXiang Company refers to Sichuan Wuliangye NongXiang Baijiu Co. Ltd.Push Group refers to Sichuan Yibin Push Group Co. Ltd.Global Group refers to Sichuan Yibin Global Group Co. Ltd.Anji Logistic Group refers to Anji Logistic Group Co. Ltd. Sichuan

Wuliangye Group Finance refers to Sichuan Yibin Wuliangye Group Finance Co. Ltd.Creart refers to Yibin Wuliangye Creart Co. Ltd.

5Interim Report 2024 of Wuliangye Yibin Co. Ltd.

Part II Corporate Information and Key Financial Information

I Corporate Information

Stock name Wuliangye Stock code 000858

Stock exchange Shenzhen Stock Exchange

Company name in Chinese 宜宾五粮液股份有限公司

Abbr. (if any) 五粮液

Company name in English (if

WULIANGYE YIBIN CO.LTD.any)

Abbr. (if any) WLY

Legal representative Zeng Congqin

II Contact Information

Board Secretary Securities Representative

Name Zhang Xin Huang Hui

150 Minjiang West Road Cuiping 150 Minjiang West Road Cuiping

Office address District Yibin City Sichuan Province District Yibin City Sichuan Province

China China

Tel. （0831）3567000 （0831）3567000

Fax （0831）3555958 （0831）3555958

Email address 000858-wly@sohu.com 000858-wly@sohu.com

III Other Information

1. Contact Information of the Company

Indicate whether any change occurred to the registered address office address and their zip codes website

address email address and other contact information of the Company in the Reporting Period.□ Applicable □ Not applicable

No change occurred to the said information in the Reporting Period which can be found in the 2023

Annual Report.

2. Media for Information Disclosure and Place where this Report Is Lodged

Indicate whether any change occurred to the information disclosure media and the place for lodging the

Company’s periodic reports in the Reporting Period.□ Applicable □ Not applicable

The website of the stock exchange the media and other website where the Company’s periodic reports

are disclosed as well as the place for lodging such reports did not change in the Reporting Period. The said

information can be found in the 2023 Annual Report.

3. Other Information

Indicate whether any change occurred to other information in the Reporting Period.□ Applicable □ Not applicable

IV Key Financial Information

Indicate whether there is any retrospectively restated datum in the table below.

6Interim Report 2024 of Wuliangye Yibin Co. Ltd.

□ Yes □ No

H1 2024 H1 2023 Change (%)

Operating revenue (RMB) 50648026578.65 45506384818.37 11.30%

Net profit attributable to the listed

19056829528.8717036708791.1811.86%

company’s shareholders (RMB)

Net profit attributable to the listed

company’s shareholders before 18938813683.76 16941269701.10 11.79%

exceptional gains and losses (RMB)

Net cash generated from/used in

13427928655.6311329818886.3018.52%

operating activities (RMB)

Basic earnings per share (RMB/share) 4.910 4.389 11.87%

Diluted earnings per share (RMB/share) 4.910 4.389 11.87%

Down by 0.49

Weighted average return on equity (%) 13.70% 14.19%

percentage point

30 June 2024 31 December 2023 Change (%)

Total assets (RMB) 185984511884.61 165432981684.75 12.42%

Equity attributable to the listed

130487961186.03129558241040.510.72%

company’s shareholders (RMB)

V 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.VI Exceptional Gains and Losses

□ Applicable □ Not applicable

Unit: RMB

Item Amount Note

Gain or loss on disposal of non-current assets (inclusive of impairment allowance

-4657535.12

write-offs)

Government grants recognised in profit or loss (exclusive of those that are

closely related to the Company's normal business operations and given in

163594119.28

accordance with defined criteria and in compliance with government policies

and have a continuing impact on the Company's profit or loss)

Capital occupation charges on non-financial enterprises that are recognized in

426869.99

profit or loss

Non-operating income and expense other than the above 6080605.56

Less: Income tax effects 41341400.04

Non-controlling interests effects (net of tax) 6086814.56

7Interim Report 2024 of Wuliangye Yibin Co. Ltd.

Total 118015845.11

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.

8Interim Report 2024 of Wuliangye Yibin Co. Ltd.

Part III Management Discussion and Analysis

I Principal Operations of the Company during the Reporting Period

The Company is principally engaged in Baijiu production and sales. According to the Guidelines for the

Industry Classification of Listed Companies issued by the China Securities Regulatory Commission the Baijiu

industry falls into the category of the "liquor & wine beverage and refined tea production industry" (C15). No

change occurred to the principal operations of the Company during the Reporting Period. "Wuliangye" theprimary product of the Company is a classic strong-flavour Chinese Baijiu as well as a “GeographicalIndication of P.R. China” product. It is one of the first Chinese Geographical Indication products under the

protection of the European Union. Additionally the Company has developed based on different production

techniques and market needs Wuliang NongXiang Baijiu products such as Wuliang Chun (Spring) Wuliang

Chun (Rich Flavour) Wuliang Tetouqu and Mianrou Jianzhuang with complete categories and unique tastes to

meet the diverse needs of different consumers in pursuit of a better life.The Company is subject to the disclosure requirements for the food and wine & liquor production industry

in Guidelines No. 3 of the Shenzhen Stock Exchange for the Self-Regulation of Listed Companies—Industry-

specific Information Disclosure.

1. Brand Operation

(1) Wuliangye-branded Baijiu ProductsIn the first half of 2024 the Company adhered to the general principle of “seeking progress in stabilitymaintaining stability with progress improving quality and efficiency and making more contributions” and themarketing principle of “boosting sell-through stabilising prices improving cost-effectiveness and transformingworking styles”. As a result it successfully achieved more than half of the annual targets for revenue and net

profit.Firstly the operation of three major products delivered new results. Specifically the 8th-generation

Wuliangye saw steady increases in both price and sell-through. Since the Chinese New Year Wuliangye-

branded Baijiu products have shown a stable upward trend. For Wuliangye 1618 and Wuliangye (39% vol) a

combination of “banquet events + red pocket QR code + point of sale terminals ranking” drove increases in both

sell-through and banquet events.Secondly progress was made in channel development. The Company worked on market expansion by

focusing on the channel ecosystem and firmly supported its distributors in optimisation and enhancement. It

pushed ahead with the “Three Stores One House” project completed the 5th-generation storefront upgrade for

634 exclusive stores and the construction of 639 “Wuliang NongXiang·A World of Harmony” comprehensive

stores. Also it redoubled efforts at banquet events to seize business opportunities serving nearly three million

consumers through these events.Finally brand promotion was carried forward to shape a new image. In terms of branding the

Company has maintained high visibility through frequent hits. Specifically the Company once again partnered

with China Central Television (“CCTV”) to exclusively sponsor the “Harmony Gifts” lucky draw during the

Spring Festival Gala. It also launched the “Happy Chinese New Year” marketing event. In May the 3rd

Wuliangye Harmony Cultural Festival kicked off highlighted by the 520 Wuliangye Rose Wedding Ceremony.The Company also collaborated with Hunan TV to sponsor “Singer 2024” a Chinese singing competition show

sustaining a high-quality branding trend that ensured “daily buzz and monthly hits”.

(2) Wuliang NongXiang Baijiu products

9Interim Report 2024 of Wuliangye Yibin Co. Ltd.In the first half of 2024 Wuliang NongXiang Company persevered in “innovation with integrity whileexpanding territories and making more contributions”. Focusing on key tasks such as product sell-through

market segmentation and hierarchy construction the revaluation of brand brand culture promotion and market

foundation consolidation the Company made steady progress with hard work and determination.Firstly product sell-through saw rapid growth. Seizing opportunities during peak seasons such as theChinese New Year and the Dragon Boat Festival the Company launched events such as “Get into the FestiveSpirit Scan and Win More Prizes” with the daily average participants in the “crack a bottle scan the code andwin a prize” activities increasing by more than 70% year on year.Secondly the channel structure continued to improve. The market segmentation and hierarchy

construction moved forward in an orderly manner showing strong growth in key markets. Efforts to enhance

retail development resulted in greater quality and efficiency while channel control was steadily strengthened. E-

commerce key accounts (“KAs”) and exclusive channels developed in tandem further reinforcing the market

foundation.Thirdly the rejuvenation of brand value has borne fruit. Guided by a market management system that

integrates monitoring early warning inspection handling and accountability the Company launched the value

rejuvenation campaign for proprietary brands leading to a steady rise in the prices of main products.Finally cultural promotion has become more targeted. The Company continued to develop its “Get intothe Festive Spirit” IP hosting targeted brand events such as “A Date with Spring” for Wuliang Chun (Spring)

“Add a Touch of Fragrance to Every Moment” for Wuliang Chun (Rich Flavour). It also sponsored the “2024China Cup International City Orienteering Tour Match” through the brand “Wuliang Tetouqu” and rolled out

the event “A Tribute to Every Act of Perseverance” for the brand “Jianzhuang”. These events have steadily

boosted the brand image.

2. Major Sales Models of the Company

Distribution model: This includes the traditional channel operator model KA marketplace etc. mainly

sold offline.Direct-to-consumer model: This includes the group purchase model where products are sold directly to

groups of consumers the exclusive store model for the retail end and consumer groups and the online sales

model where products are sold through e-commerce platforms such as Tmall and JD.

3. Distribution Model

□ Applicable □ Not applicable

(1) Operating Revenues Costs of Sales and Gross Profit Margins of Different Sales Models and Product

Categories

Unit: RMB

YoY change in

Gross profit YoY change in YoY change in

Item Operating revenue Cost of sales gross profit

margin operating revenue cost of sales

margin

By sales model

Liquor products 47110718721.26 8203080533.11 82.59% 12.46% 12.63% -0.02%

Of which: Distribution

27593788277.695601755361.7879.70%13.51%12.46%0.19%

model

Direct-to-

19516930443.572601325171.3386.67%11.01%12.98%-0.23%

consumer model

By product category

Liquor products 47110718721.26 8203080533.11 82.59% 12.46% 12.63% -0.02%

Of which: Wuliangye-

39205013434.815217061192.7286.69%11.45%12.39%-0.11%

branded Baijiu

10Interim Report 2024 of Wuliangye Yibin Co. Ltd.

products

Other

7905705286.452986019340.3962.23%17.77%13.04%1.58%

liquor products

(2) Number of Distributors

Number of distributors of

Region Wuliangye-branded Baijiu YoY change (number) Reason for change (more than 30%)

products

East China 760 67

South China 445 7

West China 441 -7

N/A

North China 355 16

Central China 529 15

Subtotal 2530 98

Number of distributors of

Region Wuliang NongXiang Baijiu YoY change (number) Reason for change (more than 30%)

products

Wuliang NongXiang Company promoted

intensive market development and implemented China 950 268

a flat marketing system in markets where it had

no or a weak presence.Total 3480 366

Note: There is overlap between distributors of Wuliangye-branded Baijiu products and Wuliang NongXiang

Baijiu products.

(3) Main Settlement and Dealing Methods with Customers

A distribution model is mainly used with a "payment before delivery" settlement method. In the Reporting

Period the total sales revenue from the top five customers reached RMB10.698 billion accounting for 21.12% of

the total sales revenue.

4. Retail Store Sales Accounting for More Than 10% of Total Sales

□ Applicable □ Not applicable

Number of exclusive stores

Number of exclusive stores at Reason for change (more than

Region at the beginning of the

the end of the Reporting Period 30%)

Reporting Period

East China 475 513

South China 285 299

West China 280 279

N/A

North China 244 255

Central China 378 403

Total 1662 1749

5. Online Direct-to-consumer Sales

□ Applicable □ Not applicable

Product category Platform

Wuliangye-branded Baijiu products:

The 8th-generation Wuliangye Tmall JD and WeChat

Other liquor products:

Wuliang Chun (Spring) Wuliang Chun (Rich Flavour)

Tmall JD and WeChat

Wuliang Tequ and Jianzhuang

Indicate whether any of the major products that accounted for more than 10% of the total operating

revenue in the current period saw a 30% or greater change in its selling price compared to the prior reporting

period.

11Interim Report 2024 of Wuliangye Yibin Co. Ltd.

□ Applicable □ Not applicable

6. Purchase Model and Purchased Items

Unit: RMB

Purchase model Purchased items Amount

Market-based purchase Raw materials and auxiliary materials etc. 5067587907.82

Market-based purchase Packaging materials 1127156534.06

Market-based purchase Energy 348266345.32

Indicate whether the purchase of raw materials from cooperatives or farmers accounted for more than 30%

of the total purchase amount.□ Applicable □ Not applicable

Indicate whether the price of any of the major raw materials purchased externally changed by more than 30%

year-on-year.□ Applicable □ Not applicable

7. Main Production Models

The Company's Baijiu products are all produced by itself.Commissioned processing and production:

□ Applicable □ Not applicable

8. Breakdown of Cost of Sales

Unit: RMB

H1 2024 H1 2023

Operating Change in

Item

division As % of total cost of As % of total cost of Cost of sales Cost of sales percentage

sales (%) sales (%)

Raw materials 6367500886.67 55.53% 5616897534.41 53.15% 2.38%

Labour cost 3355054459.35 29.26% 3368194710.33 31.87% -2.61%

Manufacturing

Energy 666410145.73 5.81% 644974323.73 6.10% -0.29%

Production

1077173015.459.39%937893776.308.87%0.52%

cost

9. Production Volume and Inventory

(1) Production Volume Sales Volume and Inventory of Major Products

Opening inventory (ton) Production volume (ton) Sales volume (ton) Closing inventory (ton)

Product

H1 2024 YoY change H1 2024 YoY change H1 2024 YoY change H1 2024 YoY change

Wuliangye-

branded Baijiu 4437 49.85% (note 2) 22910 10.74% 24194 12.07% 3153 52.91% (note 2)

products

Other liquor

43885 115.47% (note 2) 47860 -35.16% (note 3) 54156 -23.86% 37589 63.05% (note 2)

products

Total 48322 107.14% 70770 -25.12% 78350 -15.50% 40742 62.22%

Note 1: The liquor referred to in the table above is all commercial liquor.Note 2: Mainly because the Company’s primary products performed well in terms of sell-through and the

Company actively stocked up for sales in the Spring Festival leading to a higher opening inventory base; and

due to a larger business size the Company took the initiative to increase the stock of liquor products resulting

in an increase in the closing inventory.Note 3: Mainly because Wuliang NongXiang Company continued to concentrate more on medium to high

priced products resulting in decreased production and sales volumes of low priced products.

(2) Finished Liquor and Semi-finished Liquor (Including Base Liquor)

12Interim Report 2024 of Wuliangye Yibin Co. Ltd.

Category Inventory (ton)

Finished liquor 40742

Semi-finished liquor (including base liquor in pottery jars) 180940

(3) Designed Actual and In-progress Production Capacity of Major Products by Production Entities

Actual production capacity in the

Designed production Production capacity in progress

Major product first half of the year (’0000

capacity (’0000 tons) (’0000 tons)

tons)

Liquor 17.5627 7.8024 6

Note: The liquor in the table above includes Baijiu and base liquor.II Core Competitiveness Analysis

The Company possesses five major competitive edges: the regions of production ancient fermentation pit

clusters high product quality a strong brand presence and a broad consumer base. During the Reporting Period

the Company's core competitiveness continued to strengthen.The first is the geographical competitiveness. The Yibin region of production where the Company is

situated boasts a uniquely favourable natural ecological distilling environment of "water soil air climate and

biology". It has been recognised by United Nations Educational Scientific and Cultural Organization

(UNESCO) and Food and Agricultural Organization (FAO) as "the most suitable region in the same latitude for

producing high-quality pure distilled Baijiu" making it one of the world's top ten regions of production of

spirits. In 2023 it was awarded the title of "China's Wuliang NongXiang Core Region of Production".The second competitive edge lies in the ancient fermentation pit clusters. The ancient fermentation pit

clusters of the Yuan and Ming dynasties represented by Changfasheng and Lichuanyong are the earliest and

largest cave-type ancient fermentation pits in China with uninterrupted production. These clusters were certified

as a “National Industrial Heritage” of China in 2018 and have a scarcity value that is unrepeatable and non-

reproducible.High product quality represents the third competitive edge. Wuliangye possesses the unique "1366"

traditional production technique that has been identified as a national intangible cultural heritage. It has as many

as 12 Chinese Baijiu Masters/Chinese Distilling Masters/Chinese Baijiu Technique Masters. Zhao Dong the

Company’s General Technical Consultant was selected as one of the sixth batch of representative bearers of

national intangible cultural heritages. A through-life quality management model "from seed to liquor" has been

established. In China Wuliangye is the only Baijiu producer with four "National Quality Awards" and the only

Baijiu producer that was nominated for the 5th China Quality Awards. During the Reporting Period in

collaboration with the research team led by Jiang Lei an academician with the Chinese Academy of Sciences

(“CAS”) the Company uncovered the optimal range of alcohol by volume for Baijiu products in the

prestigious international journal Matter. This paper the first of its kind proved that Wuliangye of different

alcohol volumes and relevant series of products all fall within this optimal range. This paper has been the

highest-impact research paper in China's Baijiu industry to date. Additionally the Company came first and

fourth at the 2nd China Baijiu NongXiang Liquor Body Design Competition.The fourth is a strong brand presence. Wuliangye's brand culture has profound historical roots with a

history of over a thousand years beginning in the Tang dynasty emerging in the Song dynasty refined in the

Yuan dynasty becoming famous in the Ming dynasty and establishing the brand name in the Qing dynasty. It

possesses a unique “Harmonious Culture” an ancient fermentation pit culture and a rich poetic and Baijiu

tradition. The advocacy of a harmonious culture of “harmonious common prosperity” continues to beprominently displayed. During the Reporting Period Wuliangye innovatively released the “Research Report onHarmony” to further clarify the value connotation of its “Harmonious Culture”. Its brand value has maintained

double-digit growth for seven consecutive years reaching RMB449.872 billion and ranking 15th on the list of

13Interim Report 2024 of Wuliangye Yibin Co. Ltd.

“2024 China's 500 Most Valuable Brands”. In terms of brand strength index Wuliangye received the highestglobal AAA+ rating again ranking first among Baijiu brands. Additionally it has been awarded the “Foreigners’Most Favourite Chinese Brands” for three years in a row.Finally a broad consumer base. Strong-flavoured Baijiu is the Baijiu category with the highest market

share and the largest consumer base. Being famous worldwide for its unique style of "lasting aroma mellow

pleasant and smooth taste and harmonious well-balanced and comprehensive flavours" Wuliangye has a wide

and solid consumer base. Notably the industry's pioneering low-alcohol Baijiu possesses a unique competitive

advantage in cultivating a young consumer demographic. During the Reporting Period Wuliangye (39% vol)

experienced a strong consumer demand while the popularity of Propitious Purple Wuliangye among specific

consumer groups continued to grow. Furthermore the Year of the Loong Baijiu became a highly sought-after

product.III Analysis of Principal OperationsOverview: please refer to the contents under the heading “I Principal Operations of the Company duringthe Reporting Period” above.

1. Year-on-year Changes in Key Financial Data

Unit: RMB

Main

H1 2024 H1 2023 Change (%) reason for

change

Operating revenue 50648026578.65 45506384818.37 11.30%

Cost of sales 11466138507.20 10567960344.77 8.50%

Selling expense 5366342173.42 4320445619.61 24.21%

Administrative expense 1738561638.52 1756898762.85 -1.04%

Finance costs -1400855109.46 -1250071396.41 N/A

Income tax expense 6563541257.72 5879733314.24 11.63%

Research and development expense 159760941.28 135677515.04 17.75%

Net cash generated from/used in

13427928655.6311329818886.3018.52%

operating activities

Net cash generated from/used in

-1069383823.78 -1344448683.36 N/A

investing activities

Net cash generated from/used in

-157849148.32 -10807912902.24 N/A Note

financing activities

Net increase in cash and cash

12200695683.53 -822542699.30 N/A Note

equivalents

Note: Mainly because the Company’s 2023 final dividend plan was implemented in this July.Indicate whether any significant change occurred to the profit structure or sources of the Company in the

Reporting Period.□ Applicable □ Not applicable

No such cases in the Reporting Period.

2. Breakdown of Operating Revenue

Unit: RMB

H1 2024 H1 2023

As % of total As % of Change (%)

Operating revenue operating Operating revenue total

revenue (%) operating

14Interim Report 2024 of Wuliangye Yibin Co. Ltd.

revenue (%)

Total 50648026578.65 100% 45506384818.37 100% 11.30%

By operating division

Manufacturing 50648026578.65 100.00% 45506384818.37 100.00% 11.30%

By product category

Liquor products 47110718721.26 93.02% 41891531380.50 92.06% 12.46%

Plastic products 1981033159.97 3.91% 1630576660.51 3.58% 21.49%

Printing 50553920.22 0.10% 74747681.17 0.16% -32.37% (note)

Glass bottles 48683476.63 0.10% 59030590.99 0.13% -17.53%

Others 1457037300.57 2.88% 1850498505.20 4.07% -21.26%

By operating segment

Liquor products 47110718721.26 93.02% 41891531380.50 92.06% 12.46%

Of which: East

13552135672.1726.76%11713625680.7325.74%15.70%

China

South China 3496256070.40 6.90% 3516633542.62 7.73% -0.58%

West China 16758820769.19 33.09% 14365783554.45 31.57% 16.66%

North China 4841310361.21 9.56% 4475867727.32 9.84% 8.16%

Central China 8462195848.29 16.71% 7819620875.38 17.18% 8.22%

Non-liquor

3537307857.396.98%3614853437.877.94%-2.15%

products

Note: Mainly because the presswork was affected by the market environment and product iteration.

3. Operating Division Product Category or Operating Segment Contributing over 10% of Operating

Revenue or Operating Profit

□ Applicable □ Not applicable

Unit: RMB

YoY change

Gross YoY change YoY change

in gross

Operating revenue Cost of sales profit in operating in cost of

profit

margin revenue (%) sales (%)

margin (%)

By operating division

Manufacturing

47110718721.268203080533.1182.59%12.46%12.63%-0.02%

(liquor production)

By product category

Liquor products 47110718721.26 8203080533.11 82.59% 12.46% 12.63% -0.02%

Of which:

Wuliangye-branded 39205013434.81 5217061192.72 86.69% 11.45% 12.39% -0.11%

Baijiu products

Other liquor

7905705286.452986019340.3962.23%17.77%13.04%1.58%

products

By operating segment

Liquor products 47110718721.26 8203080533.11 82.59% 12.46% 12.63% -0.02%

Of which: East

13552135672.172059657459.0684.80%15.70%14.63%0.14%

China

South China 3496256070.40 488121708.11 86.04% -0.58% 4.21% -0.64%

West China 16758820769.19 3728672761.25 77.75% 16.66% 14.75% 0.37%

North China 4841310361.21 668971370.38 86.18% 8.16% 8.81% -0.08%

15Interim Report 2024 of Wuliangye Yibin Co. Ltd.

Central

8462195848.291257657234.3185.14%8.22%8.97%-0.10%

China

Data of principal operations for the prior period adjusted according to the changed methods of

measurement that occurred in the Reporting Period (if any):

□ Applicable □ Not applicable

The Company is subject to the disclosure requirements for the food and wine & liquor production industry

in Guidelines No. 3 of the Shenzhen Stock Exchange for the Self-Regulation of Listed Companies—Industry-

specific Information Disclosure.

4. Breakdown of Selling Expense

Unit: RMB

H1 2024 H1 2023

Reason for

Item As % of selling As % of selling Change (%)

Amount Amount change

expense expense

Image promotion

932275200.4117.37%759134414.0817.57%22.81%

expense

Sales promotion

3440601772.58 64.11% 2612938992.07 60.48% 31.68% Note

expense

Warehousing

and logistics 272408237.24 5.08% 268515233.60 6.21% 1.45%

expense

Labor cost 455092791.02 8.48% 459063335.23 10.63% -0.86%

Other expenses 265964172.17 4.96% 220793644.63 5.11% 20.46%

Total 5366342173.42 4320445619.61 24.21%

Note: The Company's sales promotion expense covered three major categories: channel development team

development and customer development. In order to further boost the confidence of merchants the Company

increased its marketing investment.

5. Advertising Expense

During the Reporting Period the Company’s primary advertising means included TV broadcasting Internet

outdoor ads and exhibitions. The expenses on online offline and TV ads were RMB128 million RMB548 million

and RMB256 million respectively.IV Analysis of Non-Core Businesses

□ Applicable □ Not applicable

V Analysis of Assets and Liabilities

1. Significant Changes in Asset Composition

Unit: RMB

30 June 2024 31 December 2023 Reason

Change in for any

Item As % of total As % of total percentag significa

Amount Amount

assets assets e (%) nt

change

Monetary

128714842080.7469.21%115456300910.6469.79%-0.58%

assets

Accounts

84118689.500.05%42647461.480.03%0.02%

receivable

Inventories 16847018906.97 9.06% 17387841712.87 10.51% -1.45%

Long-term 2028290932.39 1.09% 2020366240.69 1.22% -0.13%

16Interim Report 2024 of Wuliangye Yibin Co. Ltd.

equity

investments

Fixed assets 5144267933.32 2.77% 5189917302.17 3.14% -0.37%

Construction

6809490371.993.66%5623356422.203.40%0.26%

in progress

Right-of-use

980047470.780.53%126810315.490.08%0.45%

assets

Contract

8157503632.654.39%6864383635.254.15%0.24%

liabilities

Lease

646160709.880.35%115722608.680.07%0.28%

liabilities

2. Major Assets Overseas

□ Applicable □ Not applicable

3. Assets and Liabilities Measured at Fair Value

□ Applicable □ Not applicable

Unit: RMB

Gain/l

Impair Purc

oss on Sold

Cumulativ ment hase

fair- in

e fair- allowa d in

value the

value nce for the

Item Opening amount change curr Other changes Closing amount

changes the curr

s in ent

recognized curren ent

the peri

in equity t peri

current od

period od

period

Financial assets

1. Held-for-trading

financial assets (exclusive

of derivative financial

assets)

2. Derivative financial

assets

3. Other debt investments

4. Other equity

investments

5. Other non-current

1200000.001200000.00

financial assets

6. Receivables financing 14086450565.79 5489979940.11 19576430505.90

Subtotal of financial

14087650565.795489979940.1119577630505.90

assets

Investment property

Productive living assets

Other

Total of the above 14087650565.79 5489979940.11 19577630505.90

17Interim Report 2024 of Wuliangye Yibin Co. Ltd.

Financial liabilities

Contents of other changes:

The Company classified the portion of bank acceptance bills received that were to be endorsed or

discounted as receivables financing and other changes during the current period represented the net amount

recognized and utilized during the current period.Indicate whether any significant change occurred to the measurement attributes of the major assets in the

Reporting Period.□ Yes □ No

4. Restricted Assets as at the Period-end

Unit: RMB

Item Closing carrying amount Reason for restriction

Security deposits for bank acceptance bills other security deposits and the balance

Monetary assets 234648885.56 in the securities trading account with the Yibin Business Department of Essence

Securities

Total 234648885.56

VI Investment Analysis

1. Total Investment Amount

□ Applicable □ Not applicable

2. Significant Equity Investments Acquired in the Reporting Period

□ Applicable □ Not applicable

3. Significant Ongoing Non-Equity Investments in the Reporting Period

□ Applicable □ Not applicable

4. Financial Investments

(1) Securities Investments

□ Applicable □ Not applicable

No such cases in the Reporting Period.

(2) Investments in Derivative Financial Instruments

□ Applicable □ Not applicable

No such cases in the Reporting Period.

5. Use of Raised Funds

□ Applicable □ Not applicable

No such cases in the Reporting Period.VII Sale of Major Assets and Equity Investments

1. Sale of Major Assets

□ Applicable □ Not applicable

No such cases in the Reporting Period.

2. Sale of Major Equity Investments

□ Applicable □ Not applicable

18Interim Report 2024 of Wuliangye Yibin Co. Ltd.

VIII Principal Subsidiaries and Joint Stock Companies

□ Applicable □ Not applicable

Principal subsidiaries and joint stock companies with an over 10% effect on the consolidated net profit:

Unit: RMB

Relationship

Principal

Name with the Registered capital Total assets Equity

activities

Company

Yibin Wuliangye Liquor Sales Co. Sale of liquor

Subsidiary 200000000.00 68041092862.64 46504177947.58

Ltd. etc.Unit: RMB

Relationshi

Principal

Name p with the Operating revenue Operating profit Net profit

activities

Company

Yibin Wuliangye Liquor Sales Co. Sale of liquor

Subsidiary 38924211000.09 16616194521.42 12460145152.08

Ltd. etc.Subsidiaries acquired or disposed of in the Reporting Period:

□ Applicable □ Not applicable

IX Structured Entities Controlled by the Company

□ Applicable □ Not applicable

X Risks Facing the Company and Countermeasures

Firstly there may be uncertainties in the environment at home and abroad; secondly valid demand may not

be recovering in an expected pace; and finally competition in the industry especially among the top players

may be increasingly intense. In response the Company will adhere to its strategic focus implement the “135”

strategy in depth and continue to strengthen its five major competitive edges. With ecological development as

the big picture quality as the key culture as the foundation digital transformation as the driver and sound

corporate governance as the support the Company will strive for sustainable solid and high-quality

development.XI Implementation of the Action Plan for "Dual Enhancement of Development Quality and

Investor Returns"Indicate whether the Company has disclosed its Action Plan for “Dual Enhancement of DevelopmentQuality and Investor Returns”.□ Yes □ No

In order to comprehensively implement the guiding principles of the Political Bureau meeting on

"activating the capital market and boosting investor confidence" and the State Council Executive Meeting on

"vigorously enhancing the quality and investment value of listed companies adopting more effective measures

focusing on stabilizing the market and confidence" the Company disclosed the Action Plan for "Dual

Enhancement of Development Quality and Investor Returns" (Announcement No.: 2024/No. 002) on 7 March

2024. The implementation of the action plan is as follows.

(I) Strengthen development and strive to accelerate the journey to become a world-leading

enterprise

Firstly the Company has maintained steady and robust growth in operating performance. The

19Interim Report 2024 of Wuliangye Yibin Co. Ltd.

Company adhered to the working principles of "seeking progress in stability maintaining stability with progress

improving quality and efficiency and making more contributions" solidly carried out its work and took

scientific actions achieving new heights in corporate development. In the first half of 2024 the Company

achieved operating revenue of RMB50.648 billion an increase of 11.30% year on year; and the net profit

attributable to its shareholders was RMB19.057 billion an increase of 11.86% year on year. The Company

maintained steady growth in operating performance.Secondly the driving force for innovative development continued to strengthen. The Company further

promoted supply-side structural innovation with liquor body innovation and production technique innovation as

the core. It launched Wuliangye (45% vol) and Wuliangye (68% vol) as well as the full range of Classic

Wuliangye (10% 20% 30% and 50% vol) making every effort to create new growth drivers. In collaboration

with the research team led by Jiang Lei an academician with the Chinese Academy of Sciences (“CAS”) the

Company uncovered the optimal range of alcohol by volume for Baijiu products in the prestigious international

journal Matter. This paper the first of its kind proved that Wuliangye of different alcohol volumes and relevant

series of products all fall within this optimal range. This paper has been the highest-impact research paper in

China's Baijiu industry to date which is of great significance to build a scientific system for sensory evaluation

of Wuliangye Baijiu and even all the products in the Baijiu industry.Thirdly the Company had a stronger brand presence. The Company was once again in the spotlight

by sponsoring CCTV's 2024 Spring Festival Gala. Additionally the Company was invited to participate in the

2024 New Year's Eve countdown celebrations in New York City's Times Square capturing the attention of

hundreds of millions of people worldwide. Its brand value has maintained double-digit growth for seven

consecutive years reaching RMB449.8 billion. In terms of brand strength index Wuliangye received the

highest global AAA+ rating again ranking first among Baijiu brands.Finally technological upgrade projects showed strong momentum. The Company continued to push

forward with major ongoing projects. Specifically the Ecological Distillery Project (Phase I) gradually

commenced production ensuring consistent output and high quality. The intelligent distilling demonstration

workshop is now up and running. Additionally the Company has successfully installed an automated packaging

line.(II) Strengthen compliance and continuously improve corporate governance

Firstly the information disclosure continued to be strengthened. The Company continued to strengthen

its learning of the Stock Listing Rules and other applicable regulations and strengthen information disclosure

management. It has won the highest level (A) assessment of information disclosure from the Shenzhen Stock

Exchange for nine consecutive years. Since 2024 the Company has compiled and disclosed 55 periodic reports

and current announcements conveying relevant information on its production and operation in a timely manner

with increasing transparency.Secondly the governance system continued to be optimised. The Company currently has eleven

directors including five internal directors and six outside directors. Major agenda items are subject to pre-

review and pre-study by the Party Committee continuously exerting the effectiveness of scientific decision-

making by the Board of Directors. During the first half of 2024 the Company convened seven Board meetings

deliberating on 24 proposals including matters related to profit distribution actively implementing the

functions of the Board of Directors and ensuring efficient and orderly management of the Company.Finally the supervision mechanism continued to be sound. Since 2024 the independent directors

attended one special meeting of independent directors and seven Meetings of the Board of Directors while

continuing to pay attention to the Company's information disclosure work objectively evaluating the timeliness

and accuracy of information disclosure and independently and prudently expressing opinions to ensure the

20Interim Report 2024 of Wuliangye Yibin Co. Ltd.

normative compliant and effective operation of the Board of Directors; the Company's Supervisory Committee

independently exercised its powers in accordance with the law supervised the Company's lawful operations

financial status related transactions external guarantees and actively safeguarded the legitimate rights and

interests of all shareholders the Company and employees.(III) Strengthen returns and continuously increase shareholder returns

The Company continued to uphold the core value of "creating returns for investors". While focusing on its

own development and improving performance it actively shared the yield of development with all shareholders.The Company’s total cash dividend amount for 2023 was RMB18.127 billion representing a cash dividend

payout ratio of 60%. Both the dividend amount and the dividend payout ratio were the highest since the

Company went public and the dividend payout was completed on 12 July 2024.(IV) Strengthen confidence with the largest shareholder increasing its shareholding in the Company

Wuliangye Group initiated a plan to increase its shareholding in the Company on 14 December 2023 and

has cumulatively purchased 3406668 additional shares with an amount of RMB500.0016 million accounting

for 0.09% of the Company’s total share capital. So far the implementation of the shareholding increase plan has

been completed.(V) Strengthen communication and continuously optimise investor relations management

The Company always adhered to the principles of "compliance equality proactivity and honesty and

trustworthiness" continuously optimised investor relations management and built various communication

platforms. During the Reporting Period the Company held the "2023 Annual and 2024 First Quarterly Results

Briefing" and the "2023 Annual General Meeting of Shareholders" actively listening to investors' opinions and

suggestions improving the effectiveness and pertinence of communication and ensuring the equal participation

of minority shareholders. During the Reporting Period the Company communicated with a total of more than

1300 investors through the annual general meeting of shareholders one-on-one meetings securities firms’

investment conferences conference calls and other forms.The Company will continue to implement relevant measures of the Action Plan for "Dual Enhancement ofDevelopment Quality and Investor Returns” strive to realise the concept of "investors first" through good

performance standardised corporate governance and active investment returns effectively fulfill the

responsibilities and obligations of a listed company enhance investor confidence and achieve sustained high-

quality development of the Company.

21Interim Report 2024 of Wuliangye Yibin Co. Ltd.

Part IV Corporate Governance

I Annual and Extraordinary General Meetings of Shareholders Convened during the

Reporting Period

1. General Meetings of Shareholders Convened during the Reporting Period

Investor

Meeting Type Date of the meeting Disclosure date Resolutions

participation ratio

See the

Announcement on

The 2023 Annual Annual General Resolutions of the

General Meeting of Meeting of 72.03% 28 June 2024 29 June 2024 2023 Annual

Shareholders Shareholders General Meeting of

Shareholders

(2024/No. 024)

2. Extraordinary General Meetings of Shareholders Convened at the Request of Preference Shareholders

with Resumed Voting Rights

□ Applicable □ Not applicable

II Change of Directors Supervisors and Senior Management

□ Applicable □ Not applicable

Name Office title Type of change Date Reason

Elected at a general meeting of

Han Chengke Director Elected 28 June 2024

shareholders

Elected at a general meeting of

Zhang Xin Director Elected 28 June 2024

shareholders

Elected at a general meeting of

Li Shuai Supervisor Elected 28 June 2024

shareholders

Elected at a general meeting of

Zhu Yongliang Supervisor Elected 28 June 2024

shareholders

Board Secretary 19 April 2024

Appointed by the Board of

Zhang Xin Chief Financial Appointed

25 June 2024 Directors

Officer

Deputy General Appointed by the Board of

Appointed 2 February 2024

Manager Directors

Jiang Jia Dismissed by the Board of

Chief Economist Former 2 February 2024 Directors for the reason of job

change

Dismissed by the Board of

Jiang Lin Board Secretary Former 19 April 2024 Directors for the reason of job

change

Dismissed by the Board of

Chief Financial

Xie Zhiping Former 2 February 2024 Directors for the reason of job

Officer change

Dismissed by the Board of

Deputy General

Liu Yang Former 2 February 2024 Directors for the reason of job

Manager change

III Profit Distributions in the Form of Cash and/or Bonus Issue

□ Applicable □ Not applicable

The Company has no interim dividend plan either in the form of cash or bonus issue.

22Interim Report 2024 of Wuliangye Yibin Co. Ltd.

IV Equity Incentive Plans Employee Stock Ownership Plans or Other Incentive Measures

for Employees

□ Applicable □ Not applicable

1. Equity Incentives

□ Applicable □ Not applicable

2. Employee Stock Ownership Plans

□ Applicable □ Not applicable

Outstanding employee stock ownership plans during the Reporting Period:

Total number of As % of the total

Scope of Number of

shares held under Change share capital of the Funding source

employees employees

the plans Company

Employees

covered by the 2428 23696280 None 0.61% Self-pooled

plans

Shareholdings of directors supervisors and senior management under employee stock ownership plans

during the Reporting Period:

In April 2018 the Company carried out an employee stock ownership plan through a private placement

and certain in-service directors supervisors and senior management participated in the employee stock

ownership plan. By the end of the Reporting Period non-transaction transfers had been completed.Change of the asset management agency during the Reporting Period:

□ Applicable □ Not applicable

Equity changes incurred by the disposal of shares by any holder etc. during the Reporting Period:

□ Applicable □ Not applicable

3. Exercise of Shareholder Rights during the Reporting Period

□ Applicable □ Not applicable

Other information about the employee stock ownership plans during the Reporting Period:

□ Applicable □ Not applicable

Changes to members of the management committees of employee stock ownership plans:

□ Applicable □ Not applicable

The financial impact of employee stock ownership plans on the Company and the relevant accounting

treatments during the Reporting Period:

□ Applicable □ Not applicable

Termination of employee stock ownership plans during the Reporting Period:

□ Applicable □ Not applicable

Other information: None.

4. Other Incentive Measures for Employees

□ Applicable □ Not applicable

23Interim Report 2024 of Wuliangye Yibin Co. Ltd.

Part V Environmental and Social Responsibility

I Major Environmental Issues

Indicate whether the Company or any of its subsidiaries was identified as a major polluter by

environmental authorities.□ Yes □ No

1. Policies and Industry Standards on Environmental Protection

The Company strictly complies with environmental protection laws regulations and relevant policies. In

line with the environmental management system the Company has compiled a list of updates in accordance

with environmental laws regulations standards and other requirements. In 2024 it identified and collected 186

relevant laws regulations and requirements. Meanwhile taking into account its realities the Company

formulated 17 policies on environmental protection and developed the internal control standard—Distilling

Wastewater Discharge Standard which is stricter than the national and Sichuan provincial requirements. And

the Company ensures that all environmental protection concepts and requirements are implemented into every

aspect of daily production and operation activities.

2. Administrative Licenses of Environmental Protection

The Company has adhered strictly to national administrative licence requirements for environmental

protection completed environmental impact assessments obtained discharge licenses for its projects as required

and conducted environmental compliance self-inspections upon project completion. In January 2024 it renewed

its discharge licence and the new discharge licence is valid until November 2024.

3. Industry Discharge Standards and Discharge of Pollutants in Production and Operation

Name Exc

Numb Approved

of the Type of Way Distribu Total essi

er of Discharge Governing total

Comp major Major of tion of discharge ve

discha concentration/ discharge discharge

any or pollutan pollutants discha discharg (metric disc

rge intensity standards (metric

subsid ts rge e outlets ton) harg

outlets ton)

iary e

Particulate

10.3 mg/m3 20 mg/ m3 / N/A /

matter

Coal to

Sulfur

9 Gas 21.4 mg/ m3 50 mg/ m3 / N/A /

dioxide

Phase I

Oxynitrid

100.7mg/ m3 150 mg/ m3 27 50.5 /

e

Particulate

2.9 mg/ m3 20 mg/ m3 0.1 4.8 /

matter

Coal to

Sulfur Organ

The Air 6 Gas 5.6 mg/ m3 50 mg/ m3 0.5 2 /

dioxide ized

Comp pollutan Phase II

Oxynitrid discha

any ts 99.6 mg/ m3 150 mg/ m3 19.4 27.4 /

e rge

Particulate

4.2 mg/ m3 20 mg/ m3 0.04 1.9 /

matter Coal to

Sulfur Gas

3 5.3 mg/ m3 50 mg/ m3 0.15 0.8 /

dioxide Phase

Oxynitrid III

95.7 mg/ m3 150 mg/ m3 6.72 10.96 /

e

Particulate Hot

10 / 20 mg/ m3 / N/A /

matter water

24Interim Report 2024 of Wuliangye Yibin Co. Ltd.

Sulfur boilers

/ 50 mg/ m3 0.0002 0.08 /

dioxide

Oxynitrid

105 mg/ m3 150 mg/ m3 0.1 0.89 /

e

COD 1 25.6mg/L 40 mg/L 44.8 72 /

Ammonia

1 Wuliang 0.3 mg/L 3 mg/L 0.8 5.4 /

Water nitrogen Direct ye

pollutan Total discha 1 Ecologi 7mg/L 15 mg/L 12.5 27 /

ts nitrogen rge cal

Total Wetland

phosphoru 1 0.1mg/L 0.5 mg/L 0.3 0.9 /

s

4. Treatments of Pollutants

The Company has three wastewater pretreatment stations and one wastewater advanced treatment zone in the

Jiangbei industrial park using biochemical treatment and Fenton treatment technology for wastewater treatment

with a daily capacity of 10000 tons. The advanced treated tailwater in compliance with the applicable standards is

discharged after being further purified by ecological wetlands. The system is functioning normally.At present the Company has built 18 20t/h natural gas boilers in the Jiangbei industrial park and put them

into operation which adopts the advanced low-NOx combustion technology from Germany. The system is

functioning normally. The leaven production line and the grain processing production line are equipped with bag-

type dust collectors and the wastewater treatment station is equipped with odour gas collection and treatment

facilities which are all functioning normally.

5. Contingency Plan for Environmental Emergencies

The Company has formulated and issued the Contingency Plan on Unexpected Environmental Events in

Yibin City Wuliangye Industrial Park Contingency Plan on Unexpected Environmental Events of Wuliangye

Yibin Co. Ltd. Contingency Plan on Unexpected Environmental Events of Wuliangye Yibin Co. Ltd. (Special

Plan for Baijiu Storage Tanks) and Contingency Plan on Unexpected Environmental Events of Wuliangye

Yibin Co. Ltd. (Special Plan for Wastewater). Concurrently updates have been made to the risk assessment

reports and environmental contingency resource survey reports for environmental emergencies.

6. Spending on Environmental Protection and Payment of Environmental Protection Tax

Pollution control costs attributable to the H1 2024 period totalled RMB139.38 million and environmental

protection tax payments were RMB0.23 million.

7. Environmental Self-Monitoring Plan

The Company has developed a self-monitoring plan in line with the requirements of the discharge licence

and completed self-monitoring strictly according to the prescribed monitoring frequency and the requirements

of monitoring projects. The results showed that the concentration and emission rate of air pollutants were within

the permissible limits; the concentration of air pollutants at the plant boundary met the limit requirements of

fugitive emission monitoring; the concentration of water pollutants discharged was within the permissible

discharge limit; and the noise levels at the plant boundary were within the permissible limits. Additionally it

conducted rainwater outlet monitoring as required.

8. Administrative Penalties Imposed for Environmental Issues during the Reporting Period

None.

9. Other Environmental Information that should Be Disclosed

None.

10. Measures Taken to Reduce Carbon Emissions in the Reporting Period and the Results

25Interim Report 2024 of Wuliangye Yibin Co. Ltd.

□ Applicable □ Not applicable

The existing biogas power generation facilities of the wastewater treatment stations generated

approximately 2.8 million kWh of electricity reducing greenhouse gas emissions by approximately 600 tons.And the biogas power generation facilities of the new centralised wastewater treatment plant are under

construction.

11. Other Environmental Information

The Company organised and conducted internal reviews and assessments of its energy management system

and environmental management system. In addition a third-party organisation was hired to conduct external

reviews of the Company's energy management system and environmental management system. The Company

passed these reviews and received the relevant certificates. The Company entrusted a third-party organisation to

carry out reviews of its greenhouse gas emissions in 2023 and received the relevant review statement.II Corporate Social Responsibility (CSR)

In the first half of 2024 the Company thoroughly studied and implemented General Secretary Xi Jinping's

important speeches and guiding principles on effectively connecting the consolidation and expansion of

achievements in poverty alleviation with rural revitalisation. In response to the provincial and municipal

decisions and arrangements for necessary and paired assistance it focused on addressing the major weaknesses

and shortcomings that hinder the development of assisted areas such as Litang and Pingshan counties. By

prioritising industrial and project-based assistance it revolved around key tasks of the year driving all

initiatives forward with a strong sense of mission responsibility and urgency. The Company's assistance model

and achievements were highlighted in the Daily Report submitted by the General Office of the CPC Sichuan

Provincial Committee to the leaders of the CPC Sichuan Provincial Committee. Additionally a special reporttitled “Wuliangye Supports High-Quality Development of Litang County's Distinctive Agriculture and AnimalHusbandry” was circulated across the province by the United Front Work Department of the CPC Sichuan

Provincial Committee.

1. Paired Assistance to Litang County

Firstly in terms of overall arrangements the Company has established an assistance steering group headed

by the Secretary of the CPC Committee and Chairman of the Board. This group includes a task force to provide

necessary paired assistance to four villages under four townships or towns in Litang County. Upon consultation

with Litang County the Company developed a 2024 assistance plan that outlines eight key tasks of the year and

a funding plan of RMB46.4 million. It also completed the “One Enterprise One Policy” necessary assistance

plan and executed the “Agreement on Guiding County-Enterprise Common Growth through Party Building”

with Litang County. According to this agreement both parties will continue to deepen cooperation and

exchanges in collaborative Party building the development of distinctive agricultural and cultural tourism

industries in the Tibetan Plateau market expansion education and talent projects. The Company has

undertaken to invest on an annual basis at least RMB10 million to support Litang County from 2024 to 2027.Secondly regarding visits and exchanges the Company has strictly implemented regular mechanisms for

county-enterprise interactions including regular visits special meetings and surveys. Several trips led by the

Company’s management have been made to Litang County for field surveys. Leaders from the subsidiaries

joining the “Three-level Assistance” programme have visited the four townships or towns and four villages that

receive paired assistance from the Company. The trip aimed to explore the Sacred Genie Mountain and its

surrounding tourism resources Cunge Township's rural collective industry-hot springs the Wuliangye

mushroom base and the Litang Logistics Industry Park. The Company held the Wuliangye-Litang County

“Three-level Assistance” Work Symposium where key officials from the People's Government of Litang

County and the CPC Litang County Committee were invited to the Company to discuss industrial assistance

26Interim Report 2024 of Wuliangye Yibin Co. Ltd.

directions project selection and the establishment of assistance mechanisms. Ultimately both sides reached a

consensus.Finally as to the progress of key projects particularly centralised procurement the Company proposes to

purchase agricultural and other distinctive products with a combined budget of RMB10 million from Litang

County in 2024. The procurement is expected to be fully completed by the Mid-Autumn Festival. In terms of

base upgrading the Company proposes to invest RMB3 million in 2024 to upgrade the winter warm-type

mushroom sheds in the mushroom base. A preliminary renovation plan has been developed and will be

implemented upon confirmation by the county. Concerning grassroots infrastructure development the Company

proposes to invest RMB2 million in supporting the construction of village-level Party building infrastructure in

Litang County's Mula Town including the construction of Mayan Village's Party service centre and Naisha

Village's community activity centre. The Company aims to continuously improve grassroots governance

facilities. The construction plans and sites have been determined. With respect to support for talent cultivationthe Company proposes to invest RMB0.4 million in 2024 in the “Wuliangye-Litang University StudentCultivation Programme” to provide a job practice platform for “jobless university graduates who have returnedto their hometown”. The first batch of ten graduates has been recruited and assigned to grassroots positions in

assisted villages. The Company will also provide 20 outstanding financially disadvantaged students with

RMB5000 each in student grants. Additionally it will implement the “Assist Disabled Students·Caring Project”

by donating two school libraries worth a total of RMB0.12 million to Litang County. These libraries are

expected to contain over 4000 books spanning categories such as history astronomy classic stories guides and

life knowledge.

2. Paired Assistance to Pingshan County

Firstly regarding new assistance efforts the Company has dispatched 11 staff members to the assisted

villages. All of them are CPC members including five members of middle ranks or higher. They have reported

for duty by the end of July.Finally regarding the progress of key projects particularly the development of industrial bases the

Company replanted 70000 tea seedlings on the 200-mu high-mountain selenium-rich organic tea base in

Yingxiong Village Qingping Yi Ethnic Township Pingshan County to ensure proper planting density.Additionally the Company has completed the construction of sightseeing platforms and roads and continued to

improve subsequent maintenance and operational support. In the 200-mu high-mountain edible bamboo shoot

base in Yingxiong Village land levelling was completed and 60000 bamboo seedlings were planted. This

initiative has encouraged surrounding communities to plant over 210000 bamboo seedlings. Concerning

assistance through product consumption during the Chinese New Year the Company made targeted and

centralised procurement of agricultural and distinctive products such as honey from Pingshan Countyamounting to RMB1.93 million. In terms of educational assistance the Company implemented the “AssistDisabled Students·Caring Project” by donating libraries to three schools in Pingshan County worth a total of

RMB0.18 million. These libraries are expected to contain over 6000 books in categories such as history

astronomy classic stories guides and life knowledge. It also conducted a “Warm Winter Action” donation

event at Starbase School in Qingping Yi Ethnic Township in Pingshan County. At this event daily supplies such

as down jackets scarves hats gloves and socks were donated to over 200 students with a total value of over

RMB60 thousand. The Company also provided student grants of RMB2000 each to 39 financially needed

families in Qingping Yi Ethnic Township in Pingshan County with university-bound students.

27Interim Report 2024 of Wuliangye Yibin Co. Ltd.

Part VI Significant Events

I Undertakings 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

Based on their confidence in the Company's prospects and recognition of its long-term investment value

Yibin Development Holding Group Co. Ltd. and Sichuan Yibin Wuliangye Group Co. Ltd. have voluntarily

undertaken not to reduce their shareholdings in the Company in any way within one year from 24 August 2023

and the undertakings are being honoured continuously.II Occupation of the Company’s Funds by the Controlling Shareholder or Any of Its

Related Parties for Non-Operating Purposes

□ Applicable □ Not applicable

No such cases in the Reporting Period.III Irregularities in the Provision of Guarantees for External Parties

□ Applicable □ Not applicable

No such cases in the Reporting Period.IV Appointment and Dismissal of CPA Firm

Indicate whether the interim financial statements are audited.□ Yes □ No

The interim financial statements are unaudited.V Statements Made by the Board of Directors and the Supervisory Committee Regarding

the Independent Auditor's “Modified Opinion” on the Financial Statements of the

Reporting Period

□ Applicable □ Not applicable

VI Statement Made by the Board of Directors Regarding the “Modified Opinion” of an

Independent Auditor on Financial Statements of Last Year

□ Applicable □ Not applicable

VII Insolvency and Reorganization

□ Applicable □ Not applicable

No such cases in the Reporting Period.VIII Legal Matters

Significant lawsuits and arbitrations:

□ Applicable □ Not applicable

No such cases in the Reporting Period.Other legal matters:

□ Applicable □ Not applicable

28Interim Report 2024 of Wuliangye Yibin Co. Ltd.

Index

Wheth Date

Amount Execu to

er any of

involved Result and tion of disclo

General information provis Progress discl

(RMB’0 impact judgm sed

ion is osur

000) ent inform

made e

ation

The

Contract dispute between enforc

Yibin Wuliangye Xianlin The court has ement

Ecological Liquor Co. ordered the has

The first-instance judgment has

Ltd. and Chengdu 492.68 No enforcement not

taken effect.Pomegranate Agricultural of an asset yet

Products Development auction. been

Co. Ltd. carrie

d out.Contract dispute between

The

Sichuan Yibin Global

enforc

Group Shenzhou Glass

ement

Co. Ltd. (hereinafter In June 2023 the court ruled that Yuxiang fails

has

referred to as Yuxiang should compensate to fulfil the

574.14 No not

“Shenzhou”) and Yibin Shenzhou a total of RMB5.7414 judgment on

yet

Yuxiang Packaging million. time.been

Materials Co. Ltd.carrie

(hereinafter referred to as

d out.“Yuxiang”)

In April 2023 the People's Court

of Cuiping District Yibin City

made the first-instance judgment

requiring Xi'an Construction

Xi'an

Construction contract Engineering Group to compensate

Construction

dispute between the the Company for various losses The

Engineering

Company and Xi'an totalling RMB7.5327 million. enforc

Group is

Construction Engineering After offsetting the outstanding ement

2162.33 No currently

Group Co. Ltd. project payments Xi'an is

paying the

(hereinafter referred to as Construction Engineering Group under

Company the“Xi'an Construction shall still pay the Company way.outstandingEngineering Group”) RMB1.7194 million. Both parties

payment.appealed against the first-instance

judgment. The second-instance

court dismissed the appeal and

upheld the original judgment.The

The “Phoenix Series” enforc

illustrations of the ementCompany's “Bainiao hasChaofeng” brand are 100.00 No Pre-litigation mediation. None for now. not

suspected to have yet

infringed upon Li Linxin's been

copyright. carrie

d out.Contract dispute between In October 2022 Yongbufenli The

Handan Yongbufenli filed a lawsuit with the judgm

Liquor Co. Ltd. Intermediate People's Court of The second- ent

(hereinafter referred to as 10049.2 Handan against Yuexin Liquor instance court has

No

“Yongbufenli”) and 8 requesting a) payment of session has not

Chengdu Yuexin Liquor RMB100.4928 million in been opened. yet

Co. Ltd. (hereinafter outstanding payments from the beenreferred to as “Yuexin defendant plus interest calculated made.

29Interim Report 2024 of Wuliangye Yibin Co. Ltd.Liquor”) at the Loan Prime Rate (“LPR”)

from 21 July 2020 to the date

when the payment is made in full;

and b) the defendant to bear all

litigation and appraisal fees. In

March 2023 the first-instance

judgment dismissed Yongbufenli's

claims. In April 2023

Yongbufenli filed a second-

instance appeal with the Supreme

People's Court of Hebei and the

case was reopened on 10 April

2024. The judgment has not yet

been made.The hearing was held on 27 April The second

2023 with the defendant absent. public

Case of Handan The

On 11 May a judgment was announcement

Yongbufenli Liquor Co. court

issued ordering the defendant to for

Ltd. suing Handan has

211.41 No pay the overdue payment. Due to enforcement

Yongbufenli Zaiyang issued

the inability to notify the has ended

Liquor Co. Ltd. for a final

judgment defaulter the and the court

overdue payment ruling.enforcement notice was served by has issued a

public announcement. final ruling.In January 2022 Yongbufenli

filed a lawsuit with the People's

Court of Linzhang County against

Baijiadi over a sales contract

dispute involving an amount of

RMB72.4635 million. The court

was requested to a) order the

Contract dispute between The

defendant to pay RMB72.4635

Handan Yongbufenli The case is judgm

million along with the interest

Liquor Co. Ltd. currently ent

calculated at the LPR published

(hereinafter referred to as under a has

7246.35 No by the National Interbank

“Yongbufenli”) and second- not

Funding Center from 16

Sichuan Baijiadi Liquor instance yet

September 2020 to the date when

Co. Ltd. (hereinafter hearing. been

the payment is made in full; and

referred to as “Baijiadi”) made.b) order the defendant to bear all

litigation and appraisal fees. The

first-instance judgment dismissed

Yongbufenli's claims. In April

2024 Yongbufenli filed an appeal

with the Intermediate People's

Court of Handan.IX Penalties and Rectifications

□ Applicable □ Not applicable

No such cases in the Reporting Period.X Credit Standings of the Company as well as Its Controlling Shareholder and Actual

Controller

□ Applicable □ Not applicable

XI Significant Related-Party Transactions

1. Continuing Related-Party Transactions

□ Applicable □ Not applicable

30Interim Report 2024 of Wuliangye Yibin Co. Ltd.

See “5. Related-Party Transactions” under “XIII Related Parties and Related-Party Transactions” of Part X.

2. Related-Party Transactions Regarding Purchase or Sales of Assets or Equity Investments

□ Applicable □ Not applicable

No such cases in the Reporting Period.

3. Related-Party Transactions Regarding Joint Investments in Third Parties

□ Applicable □ Not applicable

No such cases in the Reporting Period.

4. Amounts Due to and from Related Parties

□ Applicable □ Not applicable

No such cases in the Reporting Period.

5. Transactions with Related Finance Companies

□ Applicable □ Not applicable

Making deposits:

Amount incurred in the

Upper limit current period

of daily Opening Closing

Related Relationsh Range of Total

deposit balance

party ip interest rate Total amount amount

balance

(RMB’000 (RMB’0000) deposited withdrawn (RMB’0000)

0) (RMB’0000) (RMB’000

0)

Wuliangye

Group Associate 5500000 0.42%-3.5% 4029953.75 818109.62 673229.07 4174834.30

Finance

Note: The amount incurred in the current period is presented on a net basis which means such transactions

are eliminated as the same company withdrawing a deposit and making another deposit of a different kind or

companies included in the consolidated financial statements making transfers via Wuliangye Group Finance.Receiving loans:

The Company received no loans from Wuliangye Group Finance during the Reporting Period.Receiving credit (inclusive of discounting) or other financial services:

Amount incurred

Related party Relationship Type of business Line (RMB’0000)

(RMB’0000)

Wuliangye Group

Associate Receiving credit 1000000 1935.53

Finance

Note: On 28 June 2024 the Company and Wuliangye Group Finance signed the Financial Service

Agreement agreeing that the daily total balance of outstanding loans and unused credit with Wuliangye Group

Finance shall not exceed RMB10 billion in 2024.The “amount incurred” in the Reporting Period includes the bank acceptance bills of RMB19.3553 million

issued by Wuliangye Group Finance (undue bank acceptance bills as of 30 June 2024: RMB19.3553 million).

6. Transactions between Finance Companies Controlled by the Company and Related Parties

□ Applicable □ Not applicable

No such cases in the Reporting Period.

31Interim Report 2024 of Wuliangye Yibin Co. Ltd.

7. Other Significant Related-Party Transactions

□ Applicable □ Not applicable

No such cases in the Reporting Period.XII Significant Contracts and Execution

1. Entrustment Contracting and Leases

(1) Entrustment

□ Applicable □ Not applicable

No such cases in the Reporting Period.

(2) Contracting

□ Applicable □ Not applicable

No such cases in the Reporting Period.

(3) Leases

□ Applicable □ Not applicable

No such cases in the Reporting Period.

2. Significant Guarantees

□ Applicable □ Not applicable

No such cases in the Reporting Period.

3. Cash Entrusted for Wealth Management

□ Applicable □ Not applicable

No such cases in the Reporting Period.

4. Other Significant Contracts

□ Applicable □ Not applicable

No such cases in the Reporting Period.XIII Other Significant Events

□ Applicable □ Not applicable

No such cases in the Reporting Period.XIV Significant Events of Subsidiaries

□ Applicable □ Not applicable

As approved at the Second Meeting of the Sixth Board of Directors of 2024 dated 19 April 2024 the

Company’s wholly-owned subsidiary Sichuan Yibin Plastic Packaging Materials Company Limited has

incorporated “Sichuan Yibin Plastic Packaging Products Co. Ltd.” (hereinafter referred to as “PlasticPackaging Products”). Plastic Packaging Products has a registered capital of RMB50 million and the Company

owns 100% of Plastic Packaging Products.

32Interim Report 2024 of Wuliangye Yibin Co. Ltd.

Part VII Share Changes and Shareholder Information

I Share Changes

1. Share Changes

Unit: share

Increase/decrease in the current

Before After

period (+/-)

B

on

us

Bonus

iss SuAs % of issue Ot As % of

Number of New ue bt Number of

total from he total

shares issue fro ot shares

shares capital r shares

m al

reserves

pr

ofi

t

I Restricted shares 82098 0.00% 82098 0.00%

1. Shares held by the

state

2. Shares held by state-

owned corporations

3. Shares held by other

820980.00%820980.00%

domestic investors

Of which: Shares held by

domestic corporations

Shares held by

820980.00%820980.00%

domestic individuals

4. Shares held by

overseas investors

Of which: Shares held by

overseas corporations

Shares held by

overseas individuals

II Unrestricted shares 3881525907 100.00% 3881525907 100.00%

1. RMB-denominated

3881525907100.00%3881525907100.00%

ordinary shares

2. Domestically listed

foreign shares

3. Overseas listed

foreign shares

4. Others

III Total shares 3881608005 100.00% 3881608005 100.00%

Reasons for share changes:

□ Applicable □ Not applicable

Approval of share changes:

33Interim Report 2024 of Wuliangye Yibin Co. Ltd.

□ Applicable □ Not applicable

Transfer of share ownership:

□ Applicable □ Not applicable

Progress on any share repurchase:

□Applicable □ Not applicable

Progress on reducing the repurchased shares by means of centralized bidding:

□Applicable □ Not applicable

Effects of share changes on the basic earnings per share diluted earnings per share equity per share

attributable to the Company’s ordinary shareholders and other financial indicators of the latest year and the

latest accounting period respectively:

□ Applicable □ Not applicable

Other information that the Company considers necessary or is required by the securities regulator to be

disclosed:

□ Applicable □ Not applicable

2. Changes in Restricted Shares

□ Applicable □ Not applicable

II Issuance and Listing of Securities

□ Applicable □ Not applicable

III Shareholders and Their Shareholdings at the End of the Reporting Period

Unit: share

Number of preference shareholders with

Number of ordinary shareholders at

605118 resumed voting rights at the period-end 0

the period-end

(if any) (see note 8)

5% or greater ordinary shareholders or top 10 ordinary shareholders (exclusive of shares lent in refinancing)

Restri Shares in

Nature Shareho Increase/dec cted pledge

Total ordinary Unrestricted

of lding rease in the ordina marked or

Name of shareholder shares held at ordinary shares

shareh percenta Reporting ry frozen

the period-end held

older ge Period shares Stat Shar

held us es

State-

Yibin Development owned

34.43%13365480201336548020

Holding Group Co. Ltd. corpor

ation

State-

Sichuan Yibin Wuliangye owned

20.49%7952300113406668795230011

Group Co. Ltd. corpor

ation

Overs

Hong Kong Securities

eas

Clearing Company 4.79% 185881215 10991548 185881215

corpor

Limited

ation

China Securities Finance

Other 2.38% 92385936 92385936

Corporation Limited

Bank of China Limited－

China Merchants China Other 1.33% 51481362 -5636617 51481362

Securities Baijiu Index

34Interim Report 2024 of Wuliangye Yibin Co. Ltd.

Classification Securities

Investment Fund

State-

Central Huijin Asset owned

1.01%3932540039325400

Management Co. Ltd. corpor

ation

Bank of China Limited－

E Fund Blue Chip

Other 0.68% 26400000 -2980000 26400000

Selected Mixed Securities

Investment Fund

China Life Insurance

Company Limited－

Traditional－General Other 0.62% 23951250 422519 23951250

Insurance Product-005L-

CT001 Shanghai

Industrial and

Commercial Bank of

China Limited -Huatai

Bairui CSI 300 Traded Other 0.59% 22838574 8226365 22838574

Open-ended Index

Securities Investment

Fund

Industrial and

Commercial Bank of

China Limited－Invesco

Other 0.46% 17678300 -751200 17678300

Great Wall Newly Growth

Mixed Securities

Investment Fund

Strategic investor or general

corporation becoming a top-10

N/A

ordinary shareholder in a rights

issue (if any) (see note 3)

Among the top 10 shareholders Wuliangye Group is a wholly-owned subsidiary of Yibin

Related or acting-in-concert parties

Development Group. And the Company is not aware of any related or acting-in-concert

among the shareholders above

parties among the other public shareholders.Shareholders above

entrusting/entrusted with or waiving N/A

voting rights

Repurchased share account (if any)

among the top 10 shareholders (see N/A

note 11)

Top 10 unrestricted ordinary shareholders (exclusive of shares lent in refinancing and locked-up shares of senior management)

Unrestricted ordinary Shares by class

Name of shareholder shares held at the period-

end Class Shares

RMB-denominated

Yibin Development Holding Group Co. Ltd. 1336548020 1336548020

ordinary shares

RMB-denominated

Sichuan Yibin Wuliangye Group Co. Ltd. 795230011 795230011

ordinary shares

RMB-denominated

Hong Kong Securities Clearing Company Limited 185881215 185881215

ordinary shares

RMB-denominated

China Securities Finance Corporation Limited 92385936 92385936

ordinary shares

Bank of China Limited－China Merchants China

RMB-denominated

Securities Baijiu Index Classification Securities 51481362 51481362

ordinary shares

Investment Fund

35Interim Report 2024 of Wuliangye Yibin Co. Ltd.

RMB-denominated

Central Huijin Asset Management Co. Ltd. 39325400 39325400

ordinary shares

Bank of China Limited－E Fund Blue Chip Selected RMB-denominated

2640000026400000

Mixed Securities Investment Fund ordinary shares

China Life Insurance Company Limited－Traditional RMB-denominated

2395125023951250

－General Insurance Product-005L-CT001 Shanghai ordinary shares

Industrial and Commercial Bank of China Limited -

RMB-denominated

Huatai Bairui CSI 300 Traded Open-ended Index 22838574 22838574

ordinary shares

Securities Investment Fund

Industrial and Commercial Bank of China Limited－

RMB-denominated

Invesco Great Wall Newly Growth Mixed Securities 17678300 17678300

ordinary shares

Investment Fund

Related or acting-in-concert parties among top 10 Among the top 10 shareholders Wuliangye Group is a wholly-owned

unrestricted ordinary shareholders as well as between subsidiary of Yibin Development Group. And the Company is not aware

top 10 unrestricted ordinary shareholders and top 10 of any related or acting-in-concert parties among the other public

ordinary shareholders shareholders.Top 10 ordinary shareholders involved in securities

N/A

margin trading (if any) (see note 4)

5% or greater shareholders top 10 shareholders and top 10 unrestricted public shareholders involved in

refinancing shares lending:

□Applicable □ Not applicable

Changes in top 10 shareholders and top 10 unrestricted public shareholders due to refinancing shares

lending/return compared with the prior period:

□Applicable □ Not applicable

Indicate whether any of the top 10 ordinary shareholders or the top 10 unrestricted ordinary shareholders of

the Company conducted any promissory repurchase during the Reporting Period.□ Yes □ No

No such cases in the Reporting Period.IV Changes in Shareholdings of Directors Supervisors and Senior Management

□Applicable □ Not applicable

No changes occurred to the shareholdings of the directors supervisors and senior management in the

Reporting Period. See the 2023 Annual Report for more details.V Change of the Controlling Shareholder or the Actual Controller

Change of the controlling shareholder in the Reporting Period:

□ Applicable □ Not applicable

No such cases in the Reporting Period.Change of the actual controller in the Reporting Period:

□ Applicable □ Not applicable

No such cases in the Reporting Period.

36Interim Report 2024 of Wuliangye Yibin Co. Ltd.

Part VIII Preference Shares

□ Applicable □ Not applicable

No preference shares in the Reporting Period.Part IX Bonds

□ Applicable □ Not applicable

37Interim Report 2024 of Wuliangye Yibin Co. Ltd.

Part X Financial Statements

I Independent Auditor’s Report

Indicate whether the interim financial statements are audited.□ Yes □ No

The interim financial statements are unaudited.II Financial Statements

Monetary unit for the financial statements and the statements in the notes thereto unless otherwise stated:

RMB

1. Consolidated Balance Sheet

Prepared by Wuliangye Yibin Co. Ltd. 30 June 2024 Unit: RMB

Item 30 June 2024 1 January 2024

Current assets:

Monetary assets 128714842080.74 115456300910.64

Settlement reserve

Loans to other banks and

financial institutions

Held-for-trading financial assets

Derivative financial assets

Notes receivable 3650281.25

Accounts receivable 84118689.50 42647461.48

Receivables financing 19576430505.90 14086450565.79

Prepayments 160861414.58 169425745.15

Premiums receivable

Reinsurance receivables

Receivable reinsurance contract

reserve

Other receivables 51547943.32 39624933.74

Of which: Interest receivable

Dividends

receivable

Financial assets purchased under

resale agreements

Inventories 16847018906.97 17387841712.87

Of which: Data resources

Contract assets

Assets held for sale

Current portion of non-current

assets

Other current assets

Total current assets 165438469822.26 147182291329.67

38Interim Report 2024 of Wuliangye Yibin Co. Ltd.

Non-current assets:

Loans and advances to customers

Debt investments

Other debt investments

Long-term receivables

Long-term equity investments 2028290932.39 2020366240.69

Other equity investments

Other non-current financial assets 1200000.00 1200000.00

Investment property

Fixed assets 5144267933.32 5189917302.17

Construction in progress 6809490371.99 5623356422.20

Productive living assets

Oil and gas assets

Right-of-use assets 980047470.78 126810315.49

Intangible assets 2646157958.12 2056870639.03

Of which: Data resources

Development costs

Of which: Data resources

Goodwill 1621619.53 1621619.53

Long-term prepaid expense 149194939.46 163120023.86

Deferred income tax assets 2493692024.42 2242610567.82

Other non-current assets 292078812.34 824817224.29

Total non-current assets 20546042062.35 18250690355.08

Total assets 185984511884.61 165432981684.75

Current liabilities:

Short-term borrowings

Borrowings from the central bank

Loans from other banks and

financial institutions

Held-for-trading financial

liabilities

Derivative financial liabilities

Notes payable 569729467.22 732432611.26

Accounts payable 8951591862.82 8864206997.09

Advances from customers 18100649.63 17522814.61

Contract liabilities 8157503632.65 6864383635.25

Financial assets sold under

repurchase agreements

Customer deposits and deposits

from other banks and financial

institutions

Payables for acting trading of

securities

Payables for underwriting of

securities

39Interim Report 2024 of Wuliangye Yibin Co. Ltd.

Employee benefits payable 3648149395.63 3872122436.43

Taxes and surcharge payable 4504909475.97 6268458145.77

Other payables 23954160106.68 5385776903.69

Of which: Interest payable

Dividends payable 18127109383.35

Fees and commissions payable

Reinsurance payables

Liabilities directly associated

with assets held for sale

Current portion of non-current

373908963.8414512448.92

liabilities

Other current liabilities 624081189.42 663723991.63

Total current liabilities 50802134743.86 32683139984.65

Non-current liabilities:

Insurance contract reserve

Long-term borrowings

Bonds payable

Of which: Preference shares

Perpetual bonds

Lease liabilities 646160709.88 115722608.68

Long-term payables

Long-term employee benefits

payable

Provisions

Deferred income 246950215.16 253043325.37

Deferred income tax liabilities 240471806.67 31702578.88

Other non-current liabilities

Total non-current liabilities 1133582731.71 400468512.93

Total liabilities 51935717475.57 33083608497.58

Owners’ equity:

Share capital 3881608005.00 3881608005.00

Other equity instruments

Of which : Preference shares

Perpetual bonds

Capital reserves 2682647086.15 2682647086.15

Less: Treasury shares

Other comprehensive income

Specific reserve

Surplus reserves 33588553502.81 33588553502.81

General reserve

Retained earnings 90335152592.07 89405432446.55

Total equity attributable to owners of the

130487961186.03129558241040.51

Company as the parent

Non-controlling interests 3560833223.01 2791132146.66

40Interim Report 2024 of Wuliangye Yibin Co. Ltd.

Total owners’ equity 134048794409.04 132349373187.17

Total liabilities and owners’ equity 185984511884.61 165432981684.75

Legal representative: Zeng Congqin Chief Financial Officer: Zhang Xin Head of the accounting department: Liu Hongxu

2. Balance Sheet of the Company as the Parent

Unit: RMB

Item 30 June 2024 1 January 2024

Current assets:

Monetary assets 60959151409.68 60323450012.71

Held-for-trading financial assets

Derivative financial assets

Notes receivable

Accounts receivable

Receivables financing

Prepayments 3946792.23 3380448.33

Other receivables 6410452552.43 6485949705.92

Of which: Interest receivable

Dividends receivable 650667449.43 930755375.66

Inventories

Of which: Data resources

Contract assets

Assets held for sale

Current portion of non-current

assets

Other current assets

Total current assets 67373550754.34 66812780166.96

Non-current assets:

Debt investments

Other debt investments

Long-term receivables

Long-term equity investments 13443389025.18 13436738333.48

Other equity investments

Other non-current financial assets 1200000.00 1200000.00

Investment property

Fixed assets 105941317.09 114171167.35

Construction in progress 112398471.31 112398471.31

Productive living assets

41Interim Report 2024 of Wuliangye Yibin Co. Ltd.

Oil and gas assets

Right-of-use assets 9102156.14 985149.93

Intangible assets 37459792.91 39378847.31

Of which: Data resources

Development costs

Of which: Data resources

Goodwill

Long-term prepaid expense

Deferred income tax assets 14681556.80 11183406.83

Other non-current assets

Total non-current assets 13724172319.43 13716055376.21

Total assets 81097723073.77 80528835543.17

Current liabilities:

Short-term borrowings

Held-for-trading financial

liabilities

Derivative financial liabilities

Notes payable

Accounts payable 175000.00 175000.00

Advances from customers

Contract liabilities

Employee benefits payable 9151590.18 9870448.65

Taxes and surcharge payable 84444965.08 86642875.45

Other payables 18281781510.70 159525988.83

Of which: Interest payable

Dividends payable 18127109383.35

Liabilities directly associated

with assets held for sale

Current portion of non-current

2539935.97685585.96

liabilities

Other current liabilities

Total current liabilities 18378093001.93 256899898.89

Non-current liabilities:

Long-term borrowings

Bonds payable

Of which: Preference shares

42Interim Report 2024 of Wuliangye Yibin Co. Ltd.

Perpetual bonds

Lease liabilities 6796944.74

Long-term payables

Long-term employee benefits

payable

Provisions

Deferred income 7750000.00 7750000.00

Deferred income tax liabilities 2275539.04 246287.48

Other non-current liabilities

Total non-current liabilities 16822483.78 7996287.48

Total liabilities 18394915485.71 264896186.37

Owners’ equity:

Share capital 3881608005.00 3881608005.00

Other equity instruments

Of which: Preference shares

Perpetual bonds

Capital reserves 2682647086.15 2682647086.15

Less: Treasury shares

Other comprehensive income

Specific reserve

Surplus reserves 15508769954.04 15508769954.04

Retained earnings 40629782542.87 58190914311.61

Total owners’ equity 62702807588.06 80263939356.80

Total liabilities and owners’ equity 81097723073.77 80528835543.17

3. Consolidated Income Statement

Unit: RMB

Item H1 2024 H1 2023

I Total revenues 50648026578.65 45506384818.37

Of which: Operating revenue 50648026578.65 45506384818.37

Interest income

Insurance premium income

Fee and commission income

II Total costs and expenses 24499814494.48 22026681871.19

Of which: Cost of sales 11466138507.20 10567960344.77

Interest costs

Fee and commission costs

Surrenders

43Interim Report 2024 of Wuliangye Yibin Co. Ltd.

Net insurance claims paid

Net amount provided as reserve for insurance

obligations

Expenditure on policy dividends

Reinsurance premium expense

Taxes and surcharge 7169866343.52 6495771025.33

Selling expense 5366342173.42 4320445619.61

Administrative expense 1738561638.52 1756898762.85

Research and development expense 159760941.28 135677515.04

Finance costs -1400855109.46 -1250071396.41

Of which: Interest expense 17030819.31 6811996.58

Interest income 1423837619.29 1259323479.12

Add: Other income 220749387.64 218711927.56

Investment income (“－” for loss) 21877331.70 20626708.35

Of which: Share of profit or loss of joint ventures

21877331.7020626708.35

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 (“－” for loss)

Credit impairment losses (“－” for loss) -2190011.01 -3713694.44

Asset impairment losses (“－” for loss)

Gains on disposals of assets (“－” for losses) -3917579.22 237968.66

III Operating profit (“－” for loss) 26384731213.28 23715565857.31

Add: Non-operating income 12505112.08 11950306.57

Less: Non-operating expense 7164462.42 55248945.45

IV Gross profit (“－” for gross loss) 26390071862.94 23672267218.43

Less: Income tax expense 6563541257.72 5879733314.24

V Net profit (“－” for net loss) 19826530605.22 17792533904.19

(I) By operating continuity

1. Net profit from continuing operations (“－” for net loss) 19826530605.22 17792533904.19

2. Net profit from discontinued operations (“－” for net

loss)

(II) By ownership

1. Net profit attributable to owners of the Company as the

19056829528.8717036708791.18

parent (“－” for net loss)

2. Net profit attributable to non-controlling interests (“－”

769701076.35755825113.01

for net loss)

VI Other comprehensive income net of tax

Other comprehensive income net of tax attributable to owners of

the Company as the parent

(I) Other comprehensive income that will not be reclassified to

profit or loss

1. Changes caused by remeasurements on defined benefit

schemes

44Interim Report 2024 of Wuliangye Yibin Co. Ltd.

2. Other comprehensive income that will not be reclassified to

profit or loss under the equity method

3. Changes in the fair value of other debt investments

4. Changes in the fair value arising from changes in own

credit risk

5. Other

(II) Other comprehensive income that will be reclassified to

profit or loss

1. Other comprehensive income that will be reclassified to

profit or loss under the equity method

2. Changes in the fair value of other debt investments

3. Other comprehensive income arising from the

reclassification of financial assets

4. Credit impairment allowances for other debt investments

5. Reserve for cash flow hedges

6. Differences arising from the translation of foreign currency-

denominated financial statements

7. Other

Other comprehensive income net of tax attributable to non-

controlling interests

VII Total comprehensive income 19826530605.22 17792533904.19

Total comprehensive income attributable to owners of the

19056829528.8717036708791.18

Company as the parent

Total comprehensive income attributable to non-controlling

769701076.35755825113.01

interests

VIII Earnings per share:

(I) Basic earnings per share 4.910 4.389

(II) Diluted earnings per share 4.910 4.389

Where business combinations involving entities under common control occurred in the current period the

net profit achieved by the acquirees before the combinations was RMB0.00 with the amount for the same

period of last year being RMB0.00.Legal representative: Zeng Congqin Chief Financial Officer: Zhang Xin Head of the accounting department: Liu Hongxu

4. Income Statement of the Company as the Parent

Unit: RMB

Item H1 2024 H1 2023

I Operating revenue

Less: Cost of sales

Taxes and surcharge 328041.00 331940.81

Selling expense

Administrative expense 83757026.19 77330772.58

Research and development expense 37880928.14 38580473.31

Finance costs -848544763.65 -733373985.00

Of which: Interest expense 349686.50 16584.06

Interest income 848904968.99 733404479.69

Add: Other income 2346572.38 3212099.46

Investment income (“－” for loss) 20603331.70 22559787.80

45Interim Report 2024 of Wuliangye Yibin Co. Ltd.

Of which: Share of profit or loss of joint ventures

20603331.7017969787.80

and associates

Income from the derecognition of

financial assets at amortized cost (“－” for loss)

Net gain on exposure hedges (“－” for loss)

Gain on changes in fair value (“－” for loss)

Credit impairment losses (“－” for loss) -5811.93 -1518840.36Asset impairment losses (“－” for loss)）

Gains on disposals of assets (“－” for loss) -92629.13

II Operating profit (“－” for loss) 749522860.47 641291216.07

Add: Non-operating income 401401.08 33279.40

Less: Non-operating expense 900000.00 4377295.50

III Gross profit (“－” for gross loss) 749024261.55 636947199.97

Less: Income tax expense 183046646.94 141550011.95

IV Net profit (“－” for net loss) 565977614.61 495397188.02

(I) Net profit from continuing operations (“－” for net

565977614.61495397188.02

loss)

(II) Net profit from discontinued operations (“－” for net

loss)

V Other comprehensive income net of tax

(I) Other comprehensive income that will not be

reclassified to profit or loss

1. Changes caused by remeasurements on defined

benefit schemes

2. Other comprehensive income that will not be

reclassified to profit or loss under the equity method

3. Changes in the fair value of other debt investments

4. Changes in the fair value arising from changes in

own credit risk

5. Other

(II) Other comprehensive income that will be reclassified

to profit or loss

1. Other comprehensive income that will be

reclassified to profit or loss under the equity method

2. Changes in the fair value of other debt investments

3. Other comprehensive income arising from the

reclassification of financial assets

4. Credit impairment allowances for other debt

investments

5. Reserve for cash flow hedges

6. Differences arising from the translation of foreign

currency-denominated financial statements

7. Other

VI Total comprehensive income 565977614.61 495397188.02

VII Earnings per share:

(I) Basic earnings per share

(II) Diluted earnings per share

46Interim Report 2024 of Wuliangye Yibin Co. Ltd.

5. Consolidated Cash Flow Statement

Unit: RMB

Item H1 2024 H1 2023

I Cash flows from operating activities:

Proceeds from sale of goods and rendering of services 49648363358.43 43051685416.56

Net increase in customer deposits and deposits from other

banks and financial institutions

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 fees and commissions received

Net increase in loans from other banks and financial

institutions

Net increase in proceeds from repurchase transactions

Net proceeds from acting trading of securities

Tax and levy rebates 44310389.47 24684000.00

Cash generated from other operating activities 814125658.15 754037354.75

Subtotal of cash generated from operating activities 50506799406.05 43830406771.31

Payments for goods and services 7486715895.21 7505024442.31

Net increase in loans and advances to customers

Net increase in deposits in the central bank and other banks

and financial institutions

Payments for claims on original insurance contracts

Net increase in loans to other banks and financial institutions

Interest fees and commissions paid

Policy dividends paid

Cash paid to and for employees 4796005443.62 4794521049.72

Taxes and surcharge paid 21391864462.34 17401299720.73

Cash used in other operating activities 3404284949.25 2799742672.25

Subtotal of cash used in operating activities 37078870750.42 32500587885.01

Net cash generated from/used in operating activities 13427928655.63 11329818886.30

II Cash flows from investing activities:

Proceeds from the disposal of investments

Investment income 13952640.00

Net proceeds from the disposal of fixed assets intangible

3976302.92594829.45

assets and other long-term assets

Net proceeds from the disposal of subsidiaries and other

business units

Cash generated from other investing activities

Subtotal of cash generated from investing activities 17928942.92 594829.45

Payments for the acquisition and construction of fixed assets 1087312766.70 1345043512.81

47Interim Report 2024 of Wuliangye Yibin Co. Ltd.

intangible assets and other long-term assets

Payments for the acquisition of investments

Net increase in pledge loans

Net payments for the acquisition of subsidiaries and other

business units

Cash used in other investing activities

Subtotal of cash used in investing activities 1087312766.70 1345043512.81

Net cash generated from/used in investing activities -1069383823.78 -1344448683.36

III Cash flows from financing activities:

Capital contributions received

Of which: Capital contributions received by subsidiaries

from non-controlling interests

Borrowings received

Cash generated from other financing activities

Subtotal of cash generated from financing activities

Repayment of borrowings

Interest and dividends paid 10606030081.23

Of which: Dividends paid by subsidiaries to non-controlling

17601392.99

interests

Cash used in other financing activities 157849148.32 201882821.01

Subtotal of cash used in financing activities 157849148.32 10807912902.24

Net cash generated from/used in financing activities -157849148.32 -10807912902.24

IV Effect of foreign exchange rate changes on cash and cash

equivalents

V Net increase in cash and cash equivalents 12200695683.53 -822542699.30

Add: Cash and cash equivalents beginning of the period 113095684224.30 90584643897.66

VI Cash and cash equivalents end of the period 125296379907.83 89762101198.36

6. Cash Flow Statement of the Company as the Parent

Unit: RMB

Item H1 2024 H1 2023

I Cash flows from operating activities:

Proceeds from sale of goods and rendering of services

Tax and levy rebates

Cash generated from other operating activities 933235725.86 1797517178.90

Subtotal of cash generated from operating activities 933235725.86 1797517178.90

Payments for goods and services

Cash paid to and for employees 88701721.91 116579383.93

Taxes and surcharge paid 187456637.30 351172696.63

Cash used in other operating activities 1097222803.55 681369113.25

Subtotal of cash used in operating activities 1373381162.76 1149121193.81

Net cash generated from/used in operating activities -440145436.90 648395985.09

II Cash flows from investing activities:

Proceeds from the disposal of investments

48Interim Report 2024 of Wuliangye Yibin Co. Ltd.

Investment income 294040566.23 1213162199.85

Net proceeds from the disposal of fixed assets intangible

3857701.37350616.31

assets and other long-term assets

Net proceeds from the disposal of subsidiaries and other

business units

Cash generated from other investing activities

Subtotal of cash generated from investing activities 297898267.60 1213512816.16

Payments for the acquisition and construction of fixed assets

1320554.1212506369.28

intangible assets and other long-term assets

Payments for the acquisition of investments

Net payments for the acquisition of subsidiaries and other

business units

Cash used in other investing activities

Subtotal of cash used in investing activities 1320554.12 12506369.28

Net cash generated from/used in investing activities 296577713.48 1201006446.88

III Cash flows from financing activities:

Capital contributions received

Borrowings received

Cash generated from other financing activities

Subtotal of cash generated from financing activities

Repayment of borrowings

Interest and dividends paid 10588428688.24

Cash used in other financing activities 447300.00

Subtotal of cash used in financing activities 10588875988.24

Net cash generated from/used in financing activities -10588875988.24

IV Effect of foreign exchange rate changes on cash and cash

equivalents

V Net increase in cash and cash equivalents -143567723.42 -8739473556.27

Add: Cash and cash equivalents beginning of the period 58965084165.81 49975638860.17

VI Cash and cash equivalents end of the period 58821516442.39 41236165303.90

49Interim Report 2024 of Wuliangye Yibin Co. Ltd.

7. Consolidated Statements of Changes in Owners’ Equity

H1 2024 Unit: RMB

H1 2024

Equity attributable to owners of the Company as the parent

Other equity

Le

instruments Oth

ss:

Pe er

Tr

Item rp com Spe Gen

ea Ot Non-controlling Pre

et preh cific eral interests

Total owners’ equity

Share capital fere Capital reserves su Surplus reserves Retained earnings he Subtotal

ua Ot ensi rese rese

nce ry r

l her ve rve rve

sha sh

bo inco

res ar

nd me

es

s

I Balance as

at the end of 3881608005.00 2682647086.15 33588553502.81 89405432446.55 129558241040.51 2791132146.66 132349373187.17

the prior year

Add:

Adjustments

for changes

in accounting

policies

Adjustments

for correction

of previous

errors

Other

II Balance as

at the

3881608005.002682647086.1533588553502.8189405432446.55129558241040.512791132146.66132349373187.17

beginning of

the year

III Increase/

929720145.52929720145.52769701076.351699421221.87

decrease in

50Interim Report 2024 of Wuliangye Yibin Co. Ltd.the period (“-” for

decrease)

(I) Total

comprehensi 19056829528.87 19056829528.87 769701076.35 19826530605.22

ve income

(II) Capital

increase and

reduction by

owners

1. Ordinary

share

increase by

owners

2. Capital

increase by

holders of

other equity

instruments

3. Share-

based

payments

recognized in

owners’

equity

4. Other

(III) Profit

-18127109383.35-18127109383.35-18127109383.35

distribution

1.

Appropriated

to surplus

reserves

2.

Appropriated

to general

reserve

51Interim Report 2024 of Wuliangye Yibin Co. Ltd.

3. Distributed

to owners (or -18127109383.35 -18127109383.35 -18127109383.35

shareholders)

4. Other

(IV)

Transfers

within

owners’

equity

1. Increase in

capital (or

share capital)

from capital

reserves

2. Increase in

capital (or

share capital)

from surplus

reserves

3. Surplus

reserves used

to offset loss

4. Changes in

defined

benefit

schemes

transferred to

retained

earnings

5. Other

comprehensi

ve income

transferred to

retained

earnings

52Interim Report 2024 of Wuliangye Yibin Co. Ltd.

6. Other

(V) Specific

reserve

1. Increase in

the period

2. Used in

the period

(VI) Other

IV Balance

as at the end 3881608005.00 2682647086.15 33588553502.81 90335152592.07 130487961186.03 3560833223.01 134048794409.04

of the period

H1 2023 Unit: RMB

H1 2023

Equity attributable to owners of the Company as the parent

Other equity Ot

instruments her

Les

Pe co Sp

s:

Item rp mp eci Gene Non-controlling

Pref Tre

reh fic ral Ot Total owners’ equity et

Share capital eren Capital reserves asur Surplus reserves Retained earnings Subtotal

interests

ua Ot ens res reser her

ce y

l her ive erv ve

shar shar

bo inc e

es es

nd om

s e

I Balance as

at the end of

3881608005.002682647086.1528432198524.9879028605172.04114025058788.172659130827.92116684189616.09

the prior

year

Add:

Adjustment

283842.402554581.612838424.012838424.01

s for

changes in

53Interim Report 2024 of Wuliangye Yibin Co. Ltd.

accounting

policies

Adjustment

s for

correction

of previous

errors

Other

II Balance

as at the

3881608005.002682647086.1528432482367.3879031159753.65114027897212.182659130827.92116687028040.10

beginning

of the year

III Increase/

decrease in

the period 2356467350.21 2356467350.21 751415113.01 3107882463.22

(“-” for

decrease)

(I) Total

comprehens 17036708791.18 17036708791.18 755825113.01 17792533904.19

ive income

(II) Capital

increase and

reduction

by owners

1. Ordinary

share

increase by

owners

2. Capital

increase by

holders of

other equity

instruments

54Interim Report 2024 of Wuliangye Yibin Co. Ltd.

3. Share-

based

payments

recognized

in owners’

equity

4. Other

(III) Profit

-14680241440.97-14680241440.97-4410000.00-14684651440.97

distribution

1.

Appropriate

d to surplus

reserves

2.

Appropriate

d to general

reserve

3.

Distributed

to owners

-14680241440.97-14680241440.97-4410000.00-14684651440.97

(or

shareholder

s)

4. Other

(IV)

Transfers

within

owners’

equity

1. Increase

in capital

(or share

capital)

from capital

reserves

2. Increase

55Interim Report 2024 of Wuliangye Yibin Co. Ltd.

in capital

(or share

capital)

from

surplus

reserves

3. Surplus

reserves

used to

offset loss

4. Changes

in defined

benefit

schemes

transferred

to retained

earnings

5. Other

comprehens

ive income

transferred

to retained

earnings

6. Other

(V) Specific

reserve

1. Increase

in the

period

2. Used in

the period

(VI) Other

IV Balance

as at the end

3881608005.002682647086.1528432482367.3881387627103.86116384364562.393410545940.93119794910503.32

of the

period

56Interim Report 2024 of Wuliangye Yibin Co. Ltd.

8. Statements of Changes in Owners’ Equity of the Company as the Parent

H1 2024 Unit: RMB

H1 2024

Other equity Other

Less:

instruments comp Speci

Item Treas

Prefer rehen fic Othe

Share capital Perpetu Capital reserves ury Surplus reserves Retained earnings Total owners’ equity

ence Ot sive reser r

al share

share her inco ve

bonds s

s me

I Balance as at the end of the prior year 3881608005.00 2682647086.15 15508769954.04 58190914311.61 80263939356.80

Add: Adjustments for changes in

accounting policies

Adjustments for correction of

previous errors

Other

II Balance as at the beginning of the year 3881608005.00 2682647086.15 15508769954.04 58190914311.61 80263939356.80

III Increase/ decrease in the period (“-”

-17561131768.74-17561131768.74

for decrease)

(I) Total comprehensive income 565977614.61 565977614.61

(II) Capital increase and reduction by

owners

1. Ordinary share increase by owners

2. Capital increase by holders of other

equity instruments

3. Share-based payments recognized in

owners’ equity

4. Other

(III) Profit distribution -18127109383.35 -18127109383.35

1. Appropriated to surplus reserves

57Interim Report 2024 of Wuliangye Yibin Co. Ltd.

2. Distributed to owners (or shareholders) -18127109383.35 -18127109383.35

3. Other

(IV) Transfers within owners’ equity

1. Increase in capital (or share capital)

from capital reserves

2. Increase in capital (or share capital)

from surplus reserves

3. Surplus reserves used to offset loss

4. Changes in defined benefit schemes

transferred to retained earnings

5. Other comprehensive income

transferred to retained earnings

6. Other

(V) Specific reserve

1. Increase in the period

2. Used in the period

(VI) Other

IV Balance as at the end of the period 3881608005.00 2682647086.15 15508769954.04 40629782542.87 62702807588.06

H1 2023 Unit: RMB

H1 2023

Other equity Other

Less:

instruments comp Speci

Item Treas

Prefe Perpe rehen fic Ot

Share capital Capital reserves ury Surplus reserves Retained earnings Total owners’ equity

rence tual Ot sive reser her

share

share bond her inco ve

s

s s me

58Interim Report 2024 of Wuliangye Yibin Co. Ltd.

I Balance as at the end of the prior year 3881608005.00 2682647086.15 13295638080.20 52952968888.03 72812862059.38

Add: Adjustments for changes in

-19442.18-174979.59-194421.77

accounting policies

Adjustments for correction of

previous errors

Other

II Balance as at the beginning of the year 3881608005.00 2682647086.15 13295618638.02 52952793908.44 72812667637.61

III Increase/ decrease in the period (“-”

-14184844252.95-14184844252.95

for decrease)

(I) Total comprehensive income 495397188.02 495397188.02

(II) Capital increase and reduction by

owners

1. Ordinary share increase by owners

2. Capital increase by holders of other

equity instruments

3. Share-based payments recognized in

owners’ equity

4. Other

(III) Profit distribution -14680241440.97 -14680241440.97

1. Appropriated to surplus reserves

2. Distributed to owners (or shareholders) -14680241440.97 -14680241440.97

3. Other

(IV) Transfers within owners’ equity

1. Increase in capital (or share capital)

from capital reserves

2. Increase in capital (or share capital)

from surplus reserves

3. Surplus reserves used to offset loss

4. Changes in defined benefit schemes

transferred to retained earnings

59Interim Report 2024 of Wuliangye Yibin Co. Ltd.

5. Other comprehensive income

transferred to retained earnings

6. Other

(V) Specific reserve

1. Increase in the period

2. Used in the period

(VI) Other

IV Balance as at the end of the period 3881608005.00 2682647086.15 13295618638.02 38767949655.49 58627823384.66

60Interim Report 2024 of Wuliangye Yibin Co. Ltd.

III Company Profile

1. Company history

Wuliangye Yibin Co. Ltd. (hereinafter referred to as the "Company") is a company limited by shares

established by Sichuan Yibin Wuliangye Distillery through fund raising on 19 August 1997 with the approval of

Document CFH (1997) No. 295 issued by the People's Government of Sichuan Province. The Company is

principally engaged in the production and sales of "Wuliangye"-branded Baijiu products and other Baijiu series

with a registered capital of RMB3881.6080 million and registered address: 150 Minjiang West Road Cuiping

District Yibin City Sichuan Province China.The Company issued 80 million common shares (in RMB) on-line by fixed price offering at Shenzhen Stock

Exchange on 27 April 1998. According to the resolution of the extraordinary general meeting of Shareholders in

September 1999 the Company based on the total share capital of 320 million shares on 30 June 1999 transferred

capital reserve to increase share capital increasing five shares for every ten shares and the total share capital after

the conversion was changed to 480 million shares. The Company placed 31.2 million common shares (in RMB) to

the original shareholders as approved by Document ZH.J.G.S.Z. [2001] No. 6 issued by the China Securities

Regulatory Commission. The total share capital after the placement was 511.2 million shares. In August 2001 the

Company implemented the interim distribution plan 2001 and issued four bonus shares and increased three shares

for every ten shares by transferring capital reserve to share capital with 357.84 million bonus shares and shares

transferred from capital reserve in total. The total share capital after the issuance and translation was 869.04

million shares. In April 2002 the Company implemented the distribution plan 2001 and issued one bonus shares

increased two shares by transferring capital reserve to share capital and distributed RMB0.25 (tax inclusive) in

cash for every ten shares with 260.712 million bonus shares in total. The total share capital after the issuance and

translation was 1129.752 million shares. In April 2003 the Company implemented the distribution plan 2002 and

increased two shares for every ten shares by transferring capital reserve to share capital for all shareholders

increasing the share capital by 225.9504 million shares. The total share capital after the translation was

1355.7024 million shares. In April 2004 the Company implemented the distribution plan 2003 and issued eight

bonus shares and increased two shares by transferring capital reserve to share capital for every ten shares with

1355.7024 million bonus shares in total. The total share capital after the issuance and translation was 2711.4048

million shares.On 31 March 2006 the Company carried out the equity division reform and the shareholding structure after

the reform was as below: 1817.7869 million shares for state-owned legal person taking up 67.04% of the total

share capital 493.4 thousand shares for officers taking up 0.02% of the total share capital and 893.1245 million

shares for other shareholders taking up 32.94% of the total share capital. The total share capital remained at

2711.4048 million share.

In April 2007 the Company implemented the distribution plan 2006 and issued four bonus shares and

distributed RMB0.60 (tax inclusive) in cash for every ten shares with 1084.5619 million bonus shares in total.The total share capital after the issuance and distribution was 3795.96672 million shares. On 2 April 2008 shares

for state-owned legal person decreased by 416.5303 million shares due to the exercise of warrants and became

2128.3714 million shares taking up 56.07% of the total share capital. Other shareholders held 1667.5954 million

shares taking up 43.93% of the total share capital.According to the Notice on Free Transfer of Shares Held by State-owned Shareholders of Wuliangye Yibin

Co. Ltd. of the State-owned Assets Supervision and Administration Commission of Sichuan Province

(CH.G.Z.CH.Q. [2012] No. 88) and the Reply on Free Transfer of Shares Held by State-owned Shareholders of

Wuliangye Yibin Co. Ltd. of the State-owned Assets Supervision and Administration Commission of the State

Council (G.Z.CH.Q. [2012] No. 889) Yibin State-Owned Assets Operation Co. Ltd. (renamed as Yibin

61Interim Report 2024 of Wuliangye Yibin Co. Ltd.

Development Holding Group Co. Ltd. in 2021) transferred 761823343 shares held by it in the Company to

Sichuan Yibin Wuliangye Group Co. Ltd. for free on 10 October 2012. After this free transfer of shares Yibin

Development Holding Group Co. Ltd. still held 36% shares of the Company (i.e. 1366548020 shares) and was

the first majority shareholder of the Company; Sichuan Yibin Wuliangye Group Co. Ltd. holding 20.07% shares

of the Company (i.e. 791823343 shares) was the second majority shareholder of the Company.According to the Reply on Free Transfer of 49% Shares Held by Sichuan Yibin Wuliangye Group Co. Ltd.(Y.G.Z.W. [2016] No. 32) the State-owned Assets Supervision and Administration Commission of the People’s

Government of Yibin City transferred 49% shares held by it in Sichuan Yibin Wuliangye Group Co. Ltd. to Yibin

Development Holding Group Co. Ltd. for free in 2016. This transfer of shares did not involve the change of

shares held by both parties in the Company without changing the controlling shareholder and actual controller of

the Company.According to the resolutions of the 11th meeting of the 5th Board of Directors annual general meeting of

Shareholders 2015 the 19th meeting of the 5th Board of Directors the 24th meeting of the 5th Board of Directors

and annual general meeting of Shareholders 2016 of the Company and as approved by the License ZH.J.X.K.[2017] No. 1910 issued by the China Securities Regulatory Commission the Company issued 85641285 shares

by non-public offering by means of targeted issue on 12 April 2018. The total share capital after the issuance was

3881.608 million shares including 2128.3714 million shares for state-owned legal person taking up 54.83% of

the total share capital and 1753.2366 million shares for other shareholders taking up 45.17% of the total share

capital.According to the Reply on Approval of Free Transfer of Shares Held by Wuliangye Yibin Co. Ltd. (Y.G.Z.W.[2020] No. 157) issued by The State-owned Assets Supervision and Administration Commission of the People’s

Government of Yibin City the transfer was approved in principle. On 24 August 2020 Yibin Development

Holding Group Co. Ltd. transferred 30000000 shares held by it in the Company to Sichuan Yibin Wuliangye

Group Co. Ltd. for free. After this transfer of shares Yibin Development Holding Group Co. Ltd. still held 34.43%

shares of the Company (i.e. 1336548020 shares) and was the first majority shareholder of the Company;

Sichuan Yibin Wuliangye Group Co. Ltd. holding 20.40% shares of the Company (i.e. 791823343 shares) was

the second majority shareholder of the Company. This transfer of shares did not change the controlling

shareholder and actual controller of the Company.Sichuan Yibin Wuliangye Group Co. Ltd. has during the period from 14 December 2023 to the close of

trading on 12 June 2024 cumulatively increased its shareholding in the Company by 3406668 shares (or 0.09%

of the Company's current total share capital of 3881608005 shares) through the trading system of the Shenzhen

Stock Exchange by way of centralised bidding transactions with an amount of RMB500.0016 million. Upon

completion of the implementation of the shareholding increase plan Yibin Development Holding Group Co. Ltd.still holds a 34.43% interest in the Company (i.e. 1336548020 shares) being the largest shareholder of the

Company; and Sichuan Yibin Wuliangye Group Co. Ltd. holds a 20.49% interest in the Company (i.e.

795230011 shares) being the second largest shareholder of the Company. Therefore the controlling shareholder

and the actual controller of the Company have remained unchanged.

2. Industry and primary business scope of the Company

The Company is engaged in the beverage production industry and its business scope is: Production and

operation of liquor products and relevant auxiliary products (bottle caps trademarks logos and packaging

products). Its primary products are "Wuliangye"-branded Baijiu products and other Baijiu series.

3. Approval of financial statements

These financial statements have been reviewed and approved by General Meeting of Shareholders of the

Company on 27 August 2024.

62Interim Report 2024 of Wuliangye Yibin Co. Ltd.

IV Preparation Basis for Financial Statements

1. Preparation basis

The financial statements of the Company are prepared on the basis of going concern and the recognition and

measurement are made at actual transactions and matters in accordance with the Accounting Standards for

Business Enterprises-Basic Standards issued by the Ministry of Finance and the specific Accounting Standards

for Business Enterprise Guidelines for Application of Accounting Standards for Business Enterprises

Interpretation of Accounting Standards for Business Enterprises and other relevant provisions (hereinafter referred

to as “Accounting Standards for Business Enterprise”) combining with the Preparation Rules for Information

Disclosure by Companies Offering Securities to the Public No. 15 - General Provisions on Financial Reports

(2023 revision) issued by China Securities Regulatory Commission on this basis.

2. Going concern

The Company has the ability of going concern for at least 12 months from the end of the Reporting Period

and there is no major event affecting the ability of going concern.V Significant Accounting Policies and Accounting Estimates

The Company is subject to the disclosure requirements for the food and wine & liquor production industry in

Guidelines No. 3 of the Shenzhen Stock Exchange for the Self-Regulation of Listed Companies—Industry-

specific Information Disclosure.Specific accounting policies and accounting estimates:

The contents disclosed below cover the specific accounting policies and accounting estimates formulated by

the Company according to the actual production and operation characteristics.

1. Statement of compliance with the Accounting Standards for Business Enterprises

The Company states that the financial statements prepared comply with the requirements of the Accounting

Standards for Business Enterprises and truly and completely reflect the Company's financial position operating

results cash flows and other relevant information.

2. Accounting period

The accounting period of the Company is from 1 January to 31 December of each calendar year.

3. Operating cycle

The Company’s operating cycle is 12 months.

4. Bookkeeping base currency

RMB is used as the bookkeeping base currency and reporting currency of the Company.

5. Methods for determining materiality standards and selection criteria:

□ Applicable □ Not applicable

Item Significance standard

Significant receivables withdrawal of bad The provision separately accrued amount accounts for over 10% of the total bad

debt provision separately accrued debt provision for various receivables and exceeds RMB40 million.Significant bad debt provision recovered or The separately accrued recovery or reversal amount accounts for over 10% of the

reversed in accounts receivables total receivables and exceeds RMB40 million.The separately accrued write-off amount accounts for over 10% of the total bad

Write-off of significant accounts receivable

debt provision for various receivables and exceeds RMB40 million.The separately accrued investment budget for construction in progress exceeds

Significant construction in progress

RMB1 billion.

63Interim Report 2024 of Wuliangye Yibin Co. Ltd.

Exceeds 10% of the total budget for existing research and development projects

Significant externally purchased research and

with the amount of externally purchased research and development projects

development projects

exceeding RMB40 million.Significant capitalised research and Exceeds 10% of the total budget for existing research and development projects

development projects with the capitalisation amount for the current period exceeding RMB40 million.Significant prepayments accounts payable Accounts aged over 1 year account for over 10% of the corresponding items in the

and other accounts payable consolidated financial statements and exceed RMB1 billion.Significant advances received and contract Accounts aged over 1 year account for over 10% of the corresponding items in the

liabilities consolidated financial statements and exceed RMB1 billion.Individual investment cash flows account for over 10% of the total cash flows in

Significant investment projects

or out of investment activities exceeding RMB10 billion.Minority shareholders hold 5% or more equity with total assets net assets

Significant non-wholly-owned subsidiary operating income and net profit accounting for over 10% of the corresponding

items in the consolidated financial statements.Significant joint ventures or associated The long-term equity investment amount accounts for over 1% of the total assets

enterprises in the consolidated financial statements.

6. Accounting methods for business combinations involving enterprises under and not under the common

control

(1) Business combination involving enterprises under the common control

The assets and liabilities acquired by the combining party through business combination involving

enterprises under the common control are measured at the share of owners' equity of the combined party in the

carrying value on consolidated financial statements of the final controlling party on the combination date. The

difference between the carrying value of the net assets obtained by the combining party and the carrying value of

consideration paid for the combination (or total par value of the shares issued) is adjusted against share premium

in the capital reserve; if the capital reserve is not sufficient for writing down the retained earnings shall be

adjusted. All the direct costs incurred by the combining party for the business combination shall be included in

current profit/loss when incurred.

(2) Business combination involving enterprises not under the common control

In case of business combination involving enterprises not under the common control the combination costs

shall be the fair values of the assets paid liabilities incurred or assumed and the equity securities issued on the

date of acquisition by the acquirer in exchange for control on the acquiree.For a business combination involving enterprises not under the common control achieved through step-by-

step implementation of multiple transactions related accounting treatment shall be carried out by distinguishing

individual financial statements from consolidated financial statements:

a) In the individual financial statements the sum of carrying value of the equity investment held in the

acquiree prior to the date of acquisition and the cost of the new investment on the date of acquisition shall be

taken as the initial cost of such investment; where the equity held in the acquiree prior to the date of acquisition

involves other comprehensive income the other comprehensive income related to such investment shall be

transferred to current investment income.b) In the consolidated financial statements the equity held in the acquiree prior to the date of acquisition

shall be re-measured at the fair value of such equity on the date of acquisition and the difference between its fair

value and its carrying value shall be included in the current investment income; where the equity held in the

acquiree prior to the date of acquisition involves other comprehensive income the other comprehensive income

related to such investment shall be transferred to current investment income on the date of acquisition.The intermediary expenses such audit legal service evaluation and consultation and other administrative

expenses incurred by the acquirer for the business combination shall be included in current profit/loss; the

transaction expenses for issuing equity securities or debt securities by the acquirer as consideration of the

64Interim Report 2024 of Wuliangye Yibin Co. Ltd.

combination shall be included in the initial recognition amount of the equity securities or debt securities.Identifiable assets liabilities and contingent liabilities obtained from the acquiree in the business

combination involving enterprises not under the common control shall be measured at the fair value on the date of

acquisition. Where the combination cost exceeds the acquirer's interest in the fair value of the acquiree's net

identifiable assets obtained in the combination the difference shall be recognized as goodwill. Where the

combination cost is less than the acquirer's interest in the fair value of the acquiree's net identifiable assets

obtained in the combination the acquirer shall first recheck the fair values of the acquiree's identifiable assets

liabilities and contingent liabilities obtained in the combination and the combination cost. Where the combination

cost is still less than the acquirer's interest in the fair value of the acquiree's net identifiable assets obtained in the

combination the difference shall be included in the current profit/loss.

7. Judgement criteria for control and methods for preparing consolidated financial statements

(1) Judgement criteria for control

Control means that an investor has the power over the invested company gets variable return by

participating in related activities of the invested company and has the ability to influence the amount of the return

by its power over the invested company. The Company will judge whether these entities have been controlled by

the investee based on its comprehensive consideration of relevant facts and circumstances. Should any changes in

such facts and circumstances alter the elements defining control a reassessment is promptly conducted. Relevant

facts and circumstances mainly include: a) the purpose of the investee's establishment; b) the investee's activities

and how decisions regarding them are made; c) whether the rights held by the investor currently enable it to

dominate the investee's activities; d) whether the investor receives variable returns from participating in the

investee's activities; e) whether the investor has the ability to use its power over the investee to affect the amount

of its returns; f) the relationship between the investor and other parties.

(2) Methods for preparing consolidated financial statements

The scope of consolidated financial statements is determined on the basis of control including the Company

and the subsidiaries under its control.The Company as the parent shall prepare the consolidated financial statements based on its financial

statements and those of its subsidiaries and according to other relevant information. The share of the subsidiaries

in current profit/loss attributable to non-controlling interests shall be presented in the consolidated income

statement as "net profit attributable to non-controlling interests" under the net profit. The share in current

comprehensive income of the subsidiaries which is attributable to non-controlling interests shall be presented in

the consolidated income statement as "total comprehensive income attributable to non-controlling interests" under

the total other comprehensive income.For subsidiaries and businesses of the Company as the parent added by business combination involving

enterprises under the common control during the Reporting Period the revenue expenses and profits of such

subsidiaries and businesses from the beginning to the end of the period of business combination shall be recorded

into the consolidated income statement. Cash flows of such subsidiaries and businesses from the beginning to the

end of the year of business combination shall be recorded into the consolidated cash flow statement and relevant

items of the statements shall be adjusted through comparison of the statements as if the reporting entity after the

combination had been existing from control of the final controlling party after the combination comes into effect.For subsidiaries and businesses added by business combination involving enterprises not under the common

control or other means the revenue expenses and profits of such subsidiaries and businesses from the date of

acquisition to the end of Reporting Period shall be recorded into the consolidated income statement. Cash flows of

such subsidiary from the date of acquisition to the end of the Reporting Period shall be recorded into the

consolidated cash flow statement.

65Interim Report 2024 of Wuliangye Yibin Co. Ltd.

When the Company as the parent disposes subsidiaries and businesses during the Reporting Period the

revenue expenses and profits of such subsidiary and business from the beginning of the Reporting Period to the

date of disposal shall be recorded into the consolidated income statement; and the cash flow of such subsidiary

and business from the beginning of the Reporting Period to the date of disposal shall be recorded into the

consolidated cash flow statement.In the consolidated financial statements when the Company as the parent acquires the equity held by the

minority shareholders in the subsidiary the difference between the long-term equity investment obtained by

acquiring non-controlling interests and the share of the net assets to be enjoyed and continuously calculated from

the date of acquisition or combination according to the new increase in shareholding proportion shall be adjusted

against the capital reserve (capital premium or share premium). If the capital reserve is not sufficient for writing

down the retained earnings shall be adjusted.

8. Classification of joint arrangements and accounting methods for joint operations

Joint arrangements include joint operations and joint ventures.Joint operation refers to a joint arrangement where the Company is a party to the joint venture and owns its

relevant assets and bears its relevant liabilities.The Company shall recognize the following items related to share of interests and treat them according to

relevant Accounting Standards for Business Enterprises:

(1) Recognize assets solely held by the Company and those jointly owned assets according to the

Company's share;

(2) Recognize liabilities solely assumed by the Company and those jointly assumed liabilities according to

the Company's share;

(3) Recognize revenue from sales of the share that the Company enjoys in the output of joint operation;

(4) Recognize revenue from sales in the joint operation according to the Company's share;

(5) Recognize expenses solely incurred and those incurred for joint operation according to the Company's

share.Refer to the Note "long-term equity investment" for the accounting policy of the Company for investments

in joint venture.

9. Recognition criteria of cash and cash equivalents

Cash of the Company refers to cash on hand and deposits that can be used for payment at any time; cash

equivalents refer to the short-term (no more than three months since the date of acquisition) and highly liquid

investments that are readily convertible into known amounts of cash and that are subject to an insignificant risk of

change in value.

10. Foreign currency transaction and foreign currency statement translation

(1) Accounting methods of foreign currency transaction:

Foreign currency transaction shall be translated into the bookkeeping base currency at the benchmark

exchange rate (which is generally refers to the middle rate of the current foreign exchange rate published by the

People's Bank of China the same below) published by the People's Bank of China on the transaction date; at the

end of the period foreign currency monetary items shall be translated at the ending spot exchange rate; non-

monetary items in foreign currency measured at historical cost shall be translated at the spot exchange rate

prevailing on the transaction date; monetary items in foreign currency and measured at the fair value shall be

translated at the spot exchange rate prevailing on the date of determining fair value. The difference arising from

translation shall be included in the construction cost of relevant fixed assets if in connection with acquisition and

66Interim Report 2024 of Wuliangye Yibin Co. Ltd.

construction of the fixed assets which has not yet reached its intended condition for use; shall be included in

administrative expenses if incurring during the preparation period and not in connection with acquisition and

construction of fixed assets; and shall be included in current finance costs if incurring during the production and

operation period.

(2) Translation methods for foreign currency financial statements:

The assets and liabilities in the balance sheet shall be translated at the spot rate on the balance sheet date; all

items of owners' equity except for retained earnings shall be translated at the spot exchange rate at the time of

incurrence.The revenues and expenses in the income statement shall be translated at the spot exchange rate on the date

of transaction. Differences arising from the translation of foreign currency-denominated financial statements shall

be separately presented under the owners' equity in the balance sheet.The cash flows in foreign currency and cash flows of overseas subsidiaries shall be translated at the spot

exchange rate on the date of incurrence of the cash flows.

11. Financial instruments

Financial instruments refer to any contract that gives rise to a financial asset of a party and financial

liabilities or equity instruments of other parties.

(1) Recognition and de-recognition of financial instruments

The Company shall recognize relevant financial assets or financial liabilities when becoming a party of the

financial instrument contract.The financial assets shall be derecognized when meeting any of the following conditions: 1) The contractual

right to charge the cash flow of the financial assets is terminated; 2) The financial assets have been transferred and

the Company has transferred almost all risks and remuneration of the financial assets ownership to the transferee;

and 3) The financial assets have been transferred and the Company does neither transfer nor retain almost all risks

and remuneration of the financial assets ownership but gives up the control over the financial assets.The financial liabilities (or part thereof) shall be derecognized only when the existing obligation (or part

thereof) has been discharged.For the purchase or sale of financial assets in a conventional way the Company shall recognize the assets to

be received and the liabilities to be assumed on the trading day or derecognize the assets sold on the trading day.

(2) Classification and measurement of financial assets

According to the business model of managing financial assets and the contractual cash flow characteristics

of financial assets the Company classified financial assets into the following categories: Financial assets

measured at the amortized cost financial assets measured at fair value through other comprehensive income and

financial assets measured at fair value through profit and loss of the current period.

1) Initial measurement of financial assets

Financial liabilities upon initial recognition shall be measured at fair value. For financial assets at fair value

through profit or loss relevant transaction expenses shall be directly included in current profit or loss; for other

categories of financial assets relevant transaction expenses shall be included in the initial recognition amount. For

notes receivable and accounts receivable arising from sales of goods or provision of service which do not include

or consider the compositions of major assets the Company shall take the consideration expected to be received as

the initial recognition amount.

2) Subsequent measurement of financial assets

a) Investments in debt instruments measured at amortized cost

The business model of the Company for managing such financial assets aims at obtaining contractual cash

flow and the characteristics of contractual cash flow of such financial assets are basically the same as basic

67Interim Report 2024 of Wuliangye Yibin Co. Ltd.

borrowing arrangement namely the cash flow arising on a specific date which are solely payments of principal

and interest on the principal amount outstanding. The Company subsequently measures such financial assets at

amortized costs by effective interest method. The gain or loss from their amortization impairment and

derecognition shall be included in current profit or loss.b) Investments in debt instruments at fair value through other comprehensive income

The business model of the Company for managing such financial assets aims at receiving contractual cash

flow as well as selling and the characteristics of contractual cash flow of such financial assets are basically the

same as basic borrowing arrangement. Such financial assets shall be measured at fair value with the changes

included in other comprehensive income but the impairment loss exchange gain or loss and interest income

calculated by effective interest method shall be included in current profit or loss. The accumulative gains or losses

which are previously included in other comprehensive income shall be transferred out from other comprehensive

income and included in current profit or loss upon derecognition.c) Investment in debt instruments at fair value through profit or loss

The Company classifies debt instruments held which are not classified as debt instruments measured at

amortized cost and debt instruments at fair value through other comprehensive income as financial assets at fair

value through profit or loss. For eliminating or significantly reducing accounting mismatch upon initial

recognition financial assets may be designated as financial assets at fair value through profit or loss. Such

financial assets shall be subsequently measured at fair value with all changes in fair value included in current

profit or loss. Only when the Company changes the business model of managing financial assets shall relevant

financial assets being affected be reclassified.d) Investments in equity instruments at fair value through other comprehensive income

The Company designates some of the investments in non-trading equity instrument as financial assets at fair

value through other comprehensive income upon initial recognition. The Company includes relevant dividends

income in current profit or loss with changes in fair value included in other comprehensive income. The

accumulative gains or losses which are previously included in other comprehensive income shall be transferred

from other comprehensive income to retained earnings instead of current profit or loss upon derecognition of such

financial assets.

(3) Recognition basis and measurement methods for transfer of financial assets

If the Company has transferred almost all risks and remuneration of the financial assets ownership to the

transferee the financial assets shall be derecognized; if the Company retains almost all risks and remuneration of

the financial assets ownership the financial assets shall not be derecognized.The Company does neither transfer nor retain almost all risks and remuneration of the financial assets

ownership but gives up the control over the financial assets such financial assets shall be derecognized and the

rights or obligations arising or retained during the transfer shall be separately recognized as assets or liabilities; if

control over the financial assets is retained relevant financial assets shall be continuously recognized according to

the extent of involving in the financial assets transferred and relevant liabilities shall be recognized accordingly.

(4) Classification and measurement of financial liabilities

Financial liabilities shall be classified as financial liabilities measured at amortized cost and financial

liabilities at fair value through profit or loss upon initial recognition.

1) Initial measurement of financial liabilities

Any financial liability meeting any of the following conditions can be designated upon initial measurement

as the financial liabilities at fair value through profit or loss: a) This designation can eliminate or significantly

reduce accounting mismatch; b) According to the risk management or investment strategy of the Company as

stated in formal written document the portfolio of financial liabilities or the portfolio of financial assets and

68Interim Report 2024 of Wuliangye Yibin Co. Ltd.

financial liabilities is managed and evaluated on the basis of fair value and reported to the key management on

the basis of this inside the Company; c) This financial liability contains embedded derivative to be separately split.The Company shall determine classification of the financial liabilities upon initial recognition. For financial

liabilities at fair value through profit or loss relevant transaction expenses shall be directly included in current

profit or loss; relevant transaction expenses of financial liabilities measured at amortized cost shall be included in

the initial recognition amount.

2) Subsequent measurement of financial liabilities

a) Financial liabilities measured at amortized cost: The Company subsequently measures such financial

liabilities at amortized costs by effective interest method. The gain or loss from derecognition or amortization

shall be included in current profit/loss.b) Financial liabilities at fair value through profit or loss: Including held-for-trading financial liabilities

(including derivative instruments belonging to financial liabilities) and the financial liabilities at fair value through

profit or loss upon initial recognition.Held-for-trading financial liabilities (including derivative instruments belonging to financial liabilities) shall

be subsequently measured at fair value (except for those concerning hedge accounting) with changes in fair value

included in current profit or loss.For financial liabilities designated as measured at fair value through profit or loss changes in fair value

arising from change of the credit risk of the Company shall be included in other comprehensive income;

accumulative gain or loss previously included in other comprehensive income shall be transferred from other

comprehensive income to retained earnings. Other changes in fair value shall be included in current profit or loss.If previous accounting treatment may cause or expand the accounting mismatch in profit or loss all gains or

losses of such financial liabilities (including the amount affected by change in credit risk of the Company) shall be

included in current profit or loss.

(5) Offset of financial assets and financial liabilities

When the following conditions are met at the same time the financial assets and financial liabilities shall be

presented as net amount after offset in the balance sheet: The Company has the legal right to offset the recognized

amount and may exercise such legal right currently; the Company plans to settle with net amount or realize the

financial asset and pay off the financial liability simultaneously.

(6) Fair value determination of financial instruments

For financial instruments with active market the fair value shall be determined by the quotation in the active

market. For financial instruments without active market the fair value shall be determined by valuation technique.The Company shall adopt the valuation technique which is applicable in current situation and supported by

sufficient available data and other information for valuation. The Company shall choose inputs which are

consistent with the characteristics of assets or liabilities considered by the market participant in the transaction of

relevant assets and liabilities and give priority to relevant observable inputs. If it is impossible or impractical to

obtain relevant observable inputs the Company may use unobservable inputs.

(7) Impairment of financial instruments

The Company shall recognize provisions for loss of the financial assets measured at the amortized cost

investments in debt instruments at fair value through other comprehensive income contract asset lease

receivables loan commitment and financial guarantee contracts based on the expected credit loss.The expected credit loss refers to the weighted average credit loss of financial instruments weighted by the

risk of default. Credit loss refers to the difference between all contract cash flows discounted by the Company at

the original effective interest rate and receivable according to the contract and all expected cash flows received

namely the present value of all cash shortage. Among which the financial assets purchased or originated that have

69Interim Report 2024 of Wuliangye Yibin Co. Ltd.

suffered from credit impairment shall be discounted at the effective interest rate of the financial assets after credit

adjustment.Lifetime expected credit loss refers to the expected credit loss possibly incurred during the expected lifetime

of financial instruments due to defaults.

12-month expected credit loss refers to expected credit loss possibly incurred within 12 months (if the

expected lifetime of the financial instrument is less than 12 months the expected lifetime) after the balance sheet

date due to possible defaults of financial instruments and is an integral part of the lifetime expected credit loss.On the balance sheet date the Company measured the expected credit loss of financial instruments at

different stages respectively. If the credit risk of a financial instrument has not increased significantly since the

initial recognition the financial instrument is in Stage 1 and the Company measures the provisions for loss

according to the 12-month expected credit loss; if the credit risk of a financial instrument has increased

significantly but the credit impairment has not yet occurred since the initial recognition the financial instrument is

in Stage 2 and the Company measures the provisions for loss according to the lifetime expected credit losses; if

the financial instrument has suffered credit impairment since the initial recognition it is in Stage 3 and the

Company measures the provisions for loss according to the lifetime expected credit loss.For a financial instrument with low credit risk on the balance sheet date the Company assumes that the

credit risk has not increased significantly since the initial recognition and the Company measures the provisions

for loss according to the 12-month expected credit loss.For financial instruments with low credit risk in Stage 1 and Stage 2 the Company shall calculate the

interest income according to the carrying amount and effective interest rate before deducting the provisions for

impairment. For financial instruments in Stage 3 the Company shall calculate the interest income according to the

amortized cost and effective interest rate of the carrying amount after withdrawing the provisions for impairment.For notes receivable and accounts receivable regardless of whether there is major financing the Company

shall always consider all reasonable and sound information including prospective information to estimate

expected credit loss of the above accounts receivable individually or in combination and adopt the simplified

model of expected credit loss. The Company shall always measure the provisions for loss according to the lifetime

expected credit loss.

1) Accounts receivable

a) At the end of the Reporting Period if there is objective evidence indicating that impairment has occurred

in an account receivable impairment test shall be carried out separately on it such as accounts receivable in

dispute with counterparties or involved in litigation or arbitration; if there is obvious indication that the debtor is

likely to fail to comply with the repayment obligation the impairment loss shall be recognized and the bad debt

provisions shall be made based on the balance between the present value of future cash flows and its carrying

value.b) If there is no objective evidence indicating that impairment or the credit loss of a single financial asset

cannot be evaluated at reasonable cost the accounts receivable shall be classified into several groups by

characteristics of credit risk. The expected credit loss shall be calculated based on the combinations. Basis for

determining the combinations is as below:

Item Determination Basis

Bank acceptance bill group Bank acceptance bills

Letter of credit group Letters of credit

Commercial acceptance bills group Commercial acceptance bills

Accounts receivable group Receivables from related parties

70Interim Report 2024 of Wuliangye Yibin Co. Ltd.

Accounts receivable group External customer

Other receivables group Receivables from and payables to related parties

Other receivables group Cash float deposits and other receivables with low credit risk

Other receivables group Other amounts

For accounts receivable divided into risk groups the Company with reference to historical experience in

credit loss and based on current situation and forecast of future economic situation shall prepare a comparison

table between the aging of accounts receivable and the lifetime expected credit loss rate to calculate the expected

credit losses. For other groups the Company with reference to historical experience in credit loss and based on

current situation and forecast of future economic situation shall calculate the expected credit losses according to

the exposure at default and the 12-month or lifetime expected credit loss rate.

2) Debt investments and other debt investments

For debt investment and other debt investments the Company shall calculate the expected credit loss

according to the nature of investment types of counterparty and risk exposure exposure at default and the 12-

month or lifetime expected credit loss rate.The Company shall include the provision or reversal for loss made or included in current profit or loss. For

investment in debts instruments at fair value through other comprehensive income the Company shall adjust other

comprehensive income when the impairment loss or gain is included in current profit or loss; for financial assets

measured at amortized cost the provision for loss shall offset the carrying value of such financial assets.

12. Contract assets and contract liabilities

Under the contract between the Company and the customer the Company shall be entitled to receive the

contract price for the goods transferred to the customer and for the related services provided while at the same

time assuming the performance obligation to transfer the goods or services to the customer. When the customer

has actually paid the contract consideration or the enterprise has transferred goods or services to the customer

before such consideration is due and payable the right to receive the consideration for the transferred goods or

services should be presented as a contract asset and recognized as an accounts receivable when the unconditional

right to receive is obtained; conversely the Company's obligation to transfer goods or services to the customer for

the consideration received or receivable from the customer should be presented as a contract liability. Any

contract liability shall be recognised as revenue when the Company fulfils its obligation to transfer goods or

provide services to the customer. The Company presents contract asset and contract liability under the same

contract on a net basis.

13. Inventory

(1) Classification of inventory

Inventories mainly include raw materials packing materials self-manufactured semi-finished products

goods in process inventory of goods turnover materials etc.

(2) Valuation method of inventory

Grains raw coal and auxiliary materials for producing Baijiu are measured at actual cost and priced by

weighted average method when sent out; paper printing ink and auxiliary materials for producing printed matters

are measured at planned cost when purchased and sent out with the difference between actual cost and planned

cost included in “materials cost difference”. The difference to be amortized by the materials sent out shall be

calculated by materials cost difference by category at the end of the month so as to adjust cost of the materials

sent out into actual cost; goods in process self-manufactured semi-finished products and finished products are

measured at actual cost and priced by weighted average method when sent out.

71Interim Report 2024 of Wuliangye Yibin Co. Ltd.

(3) Determination basis of net realizable value of inventory and methods for provision of inventory falling

price reserves

On the balance sheet date the inventories shall be measured at the lower of cost and net realizable value. If

cost of the inventories is higher than the net realizable value a provision for inventory falling price reserves shall

be made and included in current profit or loss.Net realizable value refers to the amount after deducting the cost estimated until completion estimated

selling expenses and relevant taxes from the estimated selling price of the inventory.The Company shall determine the net realizable value of inventories based on solid evidence obtained and

after taking into consideration the purpose for which the inventory is held and the impact of post-balance sheet

events. Materials held for use in the production of inventories are measured at cost if the net realizable value of

the finished products in which they will be incorporated is higher than their cost; decline in the price of materials

indicates that the cost of the finished products exceeds their net realizable value the materials are measured at net

realizable value. The net realizable value of inventory held to satisfy sales or service contracts is based on the

contract price. If the quantities held by the Company is higher than the quantities of inventories specified in sales

contracts the net realizable value of the excess portion of inventories shall be based on general selling price.Any of the following circumstances usually indicates that net realizable value of an inventory is lower than

the cost.

1) Market price of the inventory declines continuously and there is no hope of rising in the foreseeable

future.

2) The cost of products produced by the Company with such raw materials is higher than the selling price of

the product.

3) The raw material inventory no longer satisfies the needs of new products due to upgrade of products and

the market price of the raw material is lower than the book cost.

4) The market price declines gradually due to obsolete goods or service provided by the Company or

change of market demands due to change of consumer preference.

5) Other circumstances which are sufficient to prove substantial impairment of the inventory.

The Company shall usually determine the falling price reserves of inventories on an item-by-item basis. For

inventories in large amount and low unit price provision for inventory falling price reserves may be made by

category of the inventories. For item of inventories relating to a product line that is produced and marketed in the

same geographical area have the same or similar end uses or purposes and cannot be practically measured

separately from other items provision for inventory falling price reserves may be made on an aggregate basis.The Company shall determine the net realizable value of inventories on the balance sheet date. When factors

causing written-down of the inventory value disappear the amount written down shall be recovered and will be

reversed from the provided inventory falling price reserves. The amount reversed will be included in current profit

or loss.

(4) Inventory system of inventories

The perpetual inventory system is adopted.

(5) Amortization method for low-value consumables

Low-value consumables shall be amortized according to one-off amortization method.

14. Assets held for sale

(1) Classification of non-current assets or disposal groups held for sale

The Company classifies non-current assets or disposal groups that meet both of the following conditions as

assets held for sale: 1) Assets or disposal groups can be sold immediately under current conditions based on the

practice of selling such assets or disposal groups in similar transactions; 2) sales are highly likely to occur that is

72Interim Report 2024 of Wuliangye Yibin Co. Ltd.

the Company has already made a resolution on a sale plan and obtained a certain purchase commitment and the

sale is expected to be completed within one year.Non-current assets or disposal groups specifically obtained by the Company for resale shall be classified bythe Company as held-for-sale on the acquisition date when they meet the stipulated conditions of “expected to besold within one year” on the acquisition date and may well satisfy the category of held-for-sale within a short

time (which is usually three months).If the transaction between non-related parties fails to be completed within one year due to one of the

following circumstances which is over the control of the Company and the Company still promises to sell the

non-current assets or disposal groups the Company should continue to classify the non-current assets or disposal

groups as held-for-sale: 1) The purchaser or other party unexpectedly sets conditions that lead to extension of the

sale. The Company has already acted on these conditions in a timely manner and it is expected to be able to

successfully deal with the conditions that led to the extension of the sale within one year after the conditions were

set; 2) due to unusual circumstances the non-current assets or disposal groups held-for-sale failed to be sold

within one year. In the first year the Company has taken necessary measures for these new conditions and the

assets or disposal groups meet the conditions of being held-for-sale again.

(2) Measurement of non-current assets or disposal groups held for sale

1) Initial measurement and subsequent measurement

When the Company initially measures or remeasures non-current assets or disposal groups held for sale on

the balance sheet date if the carrying value is higher than the fair value minus the net amount of the sale costs the

carrying value will be written down to the net amount of fair value minus the sale costs. The amount written down

will be recognized as asset impairment loss and included in current profit and loss and provision for impairment

of assets held for sale will be made.Non-current assets or disposal groups classified as held-for-sale on the date of acquisition shall be measured

at the lower of net amount of initial measurement amount minus sales cost and that of fair value minus selling

expenses assuming they were not classified as held-for-sale during initial measurement. Except for non-current

assets or disposal groups acquired from business combination the difference arising from taking the net amount

of fair value minus sales cost as initial measurement amount of the non-current assets or disposal groups shall be

included in current profit or loss.For the recognized amount of asset impairment loss of the disposal groups held for sale the carrying value

of goodwill of the disposal groups shall be offset first and then the carrying value of various non-current assets in

the disposal groups shall be offset by proportions.Non-current assets held for sale or non-current assets in the disposal group are not subject to depreciation or

amortization. Interest and other expenses of liabilities in the disposal group held for sale shall still be recognized.

2) Accounting treatment for reversal of asset impairment loss

If the net amount that the fair value of the non-current assets held for sale on the follow-up balance sheet

date minus the sale costs increases the previous written-down amount will be restored and reversed from the asset

impairment loss recognized after the assets are classified as held-for-sale. The reversed amount shall be included

in the current profit or loss. The asset impairment loss recognized before being classified as held-for-sale shall not

be reversed.If the net amount that the fair value of the disposal groups held for sale on the follow-up balance sheet date

minus the sale costs increases the previous written-down amount will be restored and reversed from the asset

impairment loss recognized for non-current assets after the assets are classified as held-for-sale. The reversed

amount shall be included in the current profit or loss. The carrying value of goodwill which had been written

down and the asset impairment loss recognized before non-current assets being classified as held-for-sale shall not

73Interim Report 2024 of Wuliangye Yibin Co. Ltd.

be reversed.For the recognized amount of asset impairment loss of the disposal groups held for sale which is reserved

subsequently the carrying value shall be increased according to the proportion of carrying value of various non-

current assets (except for goodwill) in the disposal groups.

3) Accounting treatment for assets no longer classified as held-for-sale and derecognition

When a non-current assets or disposal group ceases to be classified as held-for-sale or a non-current asset is

removed from the disposal group held for sale due to failure in meeting the classification conditions for the

category of held-for-sale it will be measured by one of the followings whichever is lower: a) Amount after

adjusting the carrying value before being classified as held for sale according to the depreciation amortization or

impairment that would have been recognized under the assumption that it was not classified as held for sale; b) the

recoverable amount.The gain or loss not yet recognized shall be included in current profit or loss when recognizing the non-

current assets or disposal groups held for sale.

15. Long-term equity investments

(1) Determination of initial investment cost

a) Long-term equity investment from business combination

1) For the long-term equity investment in subsidiaries acquired through business combination involving

enterprises under the common control the share of the carrying value of the owners' equity of the combined party

in the ultimate controller's consolidated financial statements on the date of combination shall be taken as the initial

investment cost of the long-term equity investment. The share premium of the capital reserve shall be adjusted

with the difference between the initial investment cost of the long-term equity investment and the carrying value

of the consideration paid. If the share premium of the capital reserve is insufficient for writing down the retained

earnings shall be adjusted.

2) For long-term equity investments in subsidiaries acquired through business combinations involving

enterprises not under the common control initial investment cost of the investment shall be the fair value of the

assets paid liabilities incurred or assumed and equity securities issued by the Company in exchange for control

over the acquiree on the date of acquisition. For long-term equity investment in subsidiaries acquired through

business combination involving enterprises not under the common control implemented by multiple transactions

the initial investment cost shall be the sum of the carrying value of equity investment held by the Company in the

acquiree before the date of acquisition and the cost of new investment on the date of acquisition.b) For long-term equity investment acquired by cash payment the initial investment cost shall be the

purchase price actually paid. The initial investment cost includes fees taxes and other necessary expenses directly

related to acquire the long-term equity investment.c) For long-term equity investment acquired by issuing equity securities the initial investment cost of long-

term equity investment obtained by issuing of equity securities shall be the fair value of issuing the equity

securities.d) The initial investment cost of long-term equity investment obtained by the exchange of non-monetary

assets shall be the fair value of the assets surrendered and relevant taxes payable if the exchange of non-monetary

assets has commercial nature and the fair value of the assets received or surrendered may be reliably measured

unless there is conclusive evidence providing that fair value of the assets received is more reliable. For exchange

of non-monetary assets not meeting the above conditions the initial investment cost shall be the carrying value of

the assets surrendered and relevant taxes payable.e) The initial investment cost of a long-term equity investment obtained by debt restructuring shall be

recognized at the fair value.

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(2) Subsequent measurement and profit & loss recognition methods

The long-term equity investment in subsidiaries is measured by the cost method. Long-term equity

investment calculated by cost method shall be priced at the initial investment cost. The cost of long-term equity

investment shall be adjusted when the investment is added or recovered. The cash dividends or profits declared to

be distributed by the invested company should be recognized as current investment income.The long-term equity investment in associates and joint ventures is accounted by the equity method.If the initial cost of long-term equity investment is greater than the fair value of identifiable net assets of the

invested company gained from the investment the initial cost of long-term equity investment shall not be adjusted.If the initial investment cost is smaller than the fair value of identifiable net assets of the invested company gained

from the investment the difference shall be included in current profit or loss and the cost of long-term equity

investments shall be adjusted.After the Company obtains a long-term equity investment it shall in accordance with the share of the net

profits and other comprehensive income of the invested company to be enjoyed or shared recognize the

investment income and other comprehensive income respectively and adjust the carrying value of the long-term

equity investment. The Company shall in accordance with the share in the profits or cash dividends declared and

distributed by the invested company decrease the carrying value of the long-term equity investment accordingly.As for other changes in owners' equity except for the net profit and loss other comprehensive income and

profit distribution of the invested company the Company shall adjust the carrying value of the long-term equity

investment and include it into the owners' equity. When the share of the net profit or loss of the invested company

is recognized the net profit of the invested company shall be adjusted and recognized according to the fair value

of the net identifiable assets of the invested company when the investment is made.For the transactions between the Company and associates and joint ventures the unrealized gains and losses

of the internal transactions shall be offset by the proportion attributable to the Company and the investment

income is recognized accordingly. Unrecorded internal transaction losses incurred between the Company and the

invested company shall be recognized in full if they fell under asset impairment losses.The Company shall recognize the net losses of the invested company until the carrying value of the long-

term equity investment and other long-term rights and interests which substantially form the net investment made

to the invested company are reduced to zero unless the Company has the obligation to undertake extra losses. If

the invested company realizes a net profit in the subsequent period the Company shall restore the recognition of

its share in profits after its share in profits offsets the share in unrecognized losses.If the accounting policy and accounting period adopted by the invested company are inconsistent with those

adopted by the Company financial statements of the invested company shall be adjusted and investment income

and other comprehensive income shall be recognized according to the accounting policy and accounting period of

the Company.

(3) Disposal of long-term equity investments

In disposal of the long-term equity investment the balance between the carrying value and the actual price at

which the investment is obtained shall be included in current profit or loss.For long-term equity investment accounted by the equity method the part of the investment originally

included in other comprehensive income shall be accounted for on the same basis as the invested company's direct

disposal of the relevant assets or liabilities when disposed. The owners' equity recognized as a result of changes in

other owners' equity other than net profit or loss other comprehensive income and profit distribution of the

invested company is carried forward proportionally into current profit or loss except for other comprehensive

income arising from changes due to remeasurement of net liabilities or net assets of the defined benefit plan.In case of loss of common control or significant influence on the invested company due to disposal of part of

75Interim Report 2024 of Wuliangye Yibin Co. Ltd.

the equity investments residual equity will be accounted by the recognition and measurement criterion for

financial instruments. The difference between the fair value on the date of losing common control or significant

influence and the carrying value shall be included in current profit or loss. Other comprehensive income

recognized due to accounting of the original equity investment by equity method shall be accounted for on the

same basis as the invested company’s direct disposal of the relevant assets or liabilities when stopping using

equity method. Owner’s equity recognized due to other changes in other owners’ equity other than the net profit

or loss other comprehensive income and profit distribution of the invested company will all be carried forward

into current profit or loss when stop using equity method.If the Company disposes of part of the equity investment and loses control over the invested company and if

the remaining equity after disposal can implement joint control or exert significant influence on the invested

company it shall be accounted for using the equity method when the individual financial statements are prepared

and the equity shall be adjusted as if the remaining equity had been accounted for using the equity method since

acquired; if the remaining equity after disposal cannot implement joint control or exert significant influence on the

invested company it shall be subject to accounting treatment in accordance with the relevant provisions of the

criteria for recognition and measurement of financial instruments. The difference between the fair value and the

carrying value on the date of losing control shall be included in the current profit or loss.If the disposed equities are acquired by the business combination due to the reasons such as additional

investment the remaining equities after the disposal shall be calculated based on the cost method or equity

method in preparing the individual financial statements and other comprehensive income and other owners'

equity recognized because of the equity method adopted for the calculation of the equity investment held prior to

the date of acquisition are carried forward in proportion; if the remaining equities after the disposal shall be

changed to be accounted in accordance with the recognition and measurement criterion for financial instruments

other comprehensive income and other owners' equity shall be carried forward in full.

(4) Determination basis of common control and significant influence on the invested company

Common control means common control over an arrangement according to relevant provisions and the

decision-making for relevant activities of such arrangement needs unanimous agreement of all participants sharing

the control.Significant influence means having the power to participate in decision-making of the financial and

operating policies of the invested company but not the power to control or jointly control the formulation of these

policies together with other parties.

16. Fixed assets

(1) Recognition conditions

Fixed assets refer to tangible assets which are held for producing goods providing services renting or

operation and management and with service life of more than one year and high unit value.Costs of outsourced fixed assets include purchase price import duty and other relevant taxes and other

expenditures incurred before and for making the fixed assets reach its intended condition for use directly

attributable to such assets.Book value of self-constructed fixed assets shall be the necessary expenditures incurred before and for

making the fixed assets reach its intended condition for use.Book value of fixed assets invested by investors shall be the value recognized by the investors.Subsequent expenditures related to fixed assets shall be included in the cost of fixed assets if meeting the

recognition conditions for fixed assets and shall be included in current profit or loss if not meeting the

recognition conditions for fixed assets.

76Interim Report 2024 of Wuliangye Yibin Co. Ltd.

(2) Depreciation method

Category Depreciation Method Depreciation Life Residual Rate Yearly Depreciation Rate

Tenements and Buildings Straight-line method 25-30 years 3%-5% 3.17-3.88%

General equipment Straight-line method 10-12 years 3%-5% 7.92-9.70%

Specialised equipment Straight-line method eight years 3%-5% 11.18-12.13%

Transport equipment Straight-line method six years 3%-5% 15.83-16.17%

Other equipment Straight-line method six years 3%-5% 15.83-16.17%

Fixed assets are recorded at actual cost at the time of acquisition and depreciated using the straight-line

method (the straight-line depreciation) from the second month after they reach their intended serviceable

condition.

17. Construction in progress

(1) For construction in progress book value of the fixed assets shall be the necessary expenditures incurred

before the assets reach its intended condition for use.

(2) Standard and timing for transferring construction in progress to fixed assets

From the date when the construction in progress reaches the predetermined usable state based on factors

such as the project budget cost or actual cost it is transferred to fixed assets based on the estimated value and

depreciated according to the Company's fixed asset depreciation policy. Adjustment shall be made to the

originally and provisionally estimated value based on the actual cost after the completion settlement is handled

but depreciation already provided shall not be adjusted.

18. Borrowing costs

(1) Recognition principles of borrowing costs:

Interest of borrowings and amortization of discount or premium attributable to the acquisition and

construction or production of fixed assets investment properties and inventories meeting the conditions of

capitalization period and capitalization amount should be capitalized and included in the cost of such assets; other

interest of borrowings and amortization of discounts or premiums shall be included in expenses in current period.The exchange differences incurred from special foreign currency borrowings for acquisition and construction or

production of fixed assets and investment properties shall be capitalized and included in the cost of such assets if

it is within the capitalization period. Auxiliary expenses for special borrowings if incurred before the fixed assets

acquired or constructed reach the intended condition for use shall be capitalized at the time of occurrence; other

auxiliary expenses shall be recognized as expenses in current period and included in current profit or loss.

(2) Capitalization period of borrowing costs:

a) Commencement of capitalization: Capitalization of borrowing interest amortization of discount or

premium and exchange differences shall be commenced when all the following conditions are met.

1) Asset expenditure has already occurred.

2) Borrowing costs have already occurred.

3) Acquisition and construction activities necessary to bring the assets to the intended condition for use have

already begun.b) Suspension of capitalisation: Where the acquisition and construction of a fixed asset is interrupted

abnormally and the interruption period lasts for more than 3 months the capitalization of the borrowing costs shall

be suspended and the borrowing costs shall be recognized as current expenses until recommencement of the

acquisition and construction of the asset.c) Termination of capitalization: When the fixed assets acquired and constructed reach the intended

condition for use capitalization of the borrowing costs shall be terminated.

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(3) Capitalized amount of borrowing costs:

Capitalized amount of interest of special borrowings during each accounting period shall be the amount of

interest expenses actually incurred in the current period less the interest income of the borrowings unused and

deposited in bank or the amount of investment income from temporary investment. Interest of general borrowings

to be capitalized should be calculated by multiplying the weighted average of asset disbursements of the excess of

accumulated asset disbursements over the special borrowings by the capitalization rate of used general borrowings.

(4) Determination principles of capitalization rate:

The capitalization rate is calculated by weighted average interest rate of general borrowings.

19. Intangible assets

(1) Service life and the basis for its determination estimation amortisation methods or review procedures

Externally acquired intangible assets shall be measured at the actual cost when acquired and averagely

amortized during the expected service life since the month when the intangible assets is acquired; book value of

the self-developed intangible assets shall be the sum of the expenditures during the research and development

stage of internal research and development projects of the Company which are eligible for capitalization and the

expenditures incurred before reaching the intended condition for use and be averagely amortized over the

expected service life since the month in which the intangible asset is ready for use.Service life of intangible assets shall be analyzed and determined when acquired. Intangible assets with

limited service life shall be amortized over period during which they may bring economic interests; if the period

during which the intangible assets may bring economic benefit to the enterprise is unforeseeable such intangible

assets shall be considered as intangible assets with uncertain service life and shall not be amortized.Impairment test: At the end of each year the Company shall recheck the service life and amortization

method of the intangible assets. Intangible assets with uncertain service life shall be subject to impairment test

every year whether there is any indication of impairment.

(2) Scope of research and development expenditures and related accounting treatment

The scope of research and development expenditures includes staff salaries for research and development

personnel direct input costs depreciation and amortisation expenses and other expenses.The expenditures of the Company’s internal research and development projects are divided into research

phase expenditures and development phase expenditures.Research phase expenditures shall be included in current profit or loss when incurred.Development phase expenditures can be capitalized and recognized as intangible assets only when meeting

all of the following conditions otherwise shall be included in current profit or loss when incurred:

a) It is technically feasible to complete this intangible assets so that it can be used or sold.b) The Company has the intention to complete the intangible assets and use or sell them.c) The way in which intangible assets generate economic benefits including the ability to prove that the

products produced using the intangible assets exist in the market or the intangible assets themselves exist in the

market and the intangible assets will be used internally can prove their usefulness; sufficient technical financial

resources and other resources support to complete the development of the intangible asset and the ability to use or

sell the intangible asset; the expenditure attributable to the development phase of the intangible asset can be

reliably measured.

20. Long-term asset impairment

For the long-term equity investments investment properties fixed assets construction in progress

intangible assets and other long-term assets measured at cost model if there are signs of impairment an

impairment test shall be conducted on the balance sheet date. If the recoverable amount of the asset is less than its

78Interim Report 2024 of Wuliangye Yibin Co. Ltd.

carrying value according to the test provision for impairment will be made at the difference and included in

impairment loss. Recoverable amount is the higher of the net amount of fair value of an asset deducting the

disposal expenses and the present value of estimated future cash flow of the asset. The provision for impairment

of assets is calculated and made on an individual basis. If it is difficult for the Company to estimate the

recoverable amount of the individual asset the recoverable amount of an asset group to which the said asset

belongs shall be determined. Asset group is the smallest asset group that can independently generate cash inflows.For goodwill impairment test shall be conducted at least at the end of each year. Impairment test shall be

carried out in combination with the relevant asset group or combination of asset group.The carrying value of goodwill caused by business combination is amortized to relevant asset groups with a

reasonable method from the date of acquisition when the Company carries out impairment test on goodwill; or

amortized to relevant combination of asset groups if it is difficult to be amortized to relevant asset groups. When

the carrying value of goodwill is amortized to the relevant assets group or combination of assets groups it shall be

evenly amortized according to the proportion of the fair value of each assets group or combination of assets

groups in the total fair value of the relevant assets groups or combinations of assets groups. Where the fair value

cannot be reliably measured it should be amortized according to the proportion of the carrying value of each asset

group or combination of assets groups in the total carrying value of assets groups or combinations of assets groups.When making an impairment test on the relevant assets groups or combination of assets groups containing

goodwill if any indication shows that the assets groups or combinations of assets groups may be impaired the

Company shall first conduct an impairment test on the assets groups or combinations of assets groups not

containing goodwill calculate the recoverable amount and compare it with relevant carrying value to recognize

the corresponding impairment loss. Then the Company shall conduct an impairment test on the assets groups or

combinations of assets groups containing goodwill and compare the carrying value of these assets groups or

combinations of assets groups (including the carrying value of the goodwill apportioned thereto) with the

recoverable amount. Where the recoverable amount of the relevant assets groups or combinations of assets groups

is lower than the carrying value thereof the Company shall recognize the impairment loss of goodwill.The above asset impairment losses shall not be reversed in subsequent accounting periods once recognized.

21. Long-term prepaid expense

Long-term prepaid expense is recorded according to the actual amount incurred and amortized over the

benefit period or the stipulated amortization period by the straight-line method. If a long-term deferred expense

item cannot benefit a later accounting period the amortized value of the item that has not been amortized shall be

transferred to the current profit or loss; long-term prepaid expense such as expenditure for improvement of fixed

assets under operating lease shall be amortized averagely within the benefit period.

22. Employee benefits

(1) Accounting treatment of short-term remuneration

Short-term remuneration refers to the payroll which is expected to be paid in full by the enterprise within 12

months after the end of the year in which the employee provided relevant services.During the accounting period when employees serve the Company the actual short-term remuneration is

recognized as liabilities and included in current profit or loss or costs of relevant assets.

(2) Accounting treatment of post-employment benefits

Post-employment benefits refer to various compensations and benefits to be provided by the enterprise after

retirement from or termination of the labour relation with the enterprise in exchange for the service provided by

the employee. Post-employment benefits are divided into two types: Defined contribution plans and defined

79Interim Report 2024 of Wuliangye Yibin Co. Ltd.

benefit plans.a) Defined contribution plan: Contribution which shall be made by the Company separately on the balance

sheet date in exchange for the service provided by the employee during the accounting period shall be recognized

as payroll liabilities and included in current profit or loss or relevant asset cost.b) Defined benefit plan: Based on the formula determined by expected cumulative welfare unit method the

benefit obligations arising from the defined benefit plan shall be attributable to the period in which the employee

provides service and included in current profit or loss or cost of relevant asset; changes due to remeasurement of

the net liabilities or net assets of the defined benefit plan shall be included in other comprehensive income and

shall not be reversed to profit or loss in subsequent accounting periods.

(3) Accounting treatment of dismissal benefits

Dismissal benefits refer to the compensation paid to the employee by the enterprise for termination of the

labour contract with the employee prior to expiration or encouraging the employee to accept downsizing

voluntarily.If the enterprise provides dismissal benefits payroll liabilities arising from dismissal benefits shall be

recognized and included in current profit or loss on the earlier date of:

a) The date when the enterprise could not unilaterally withdraw the dismissal benefits which offered by the

plan or layoff proposal due to termination of the labour relation.b) The date when the enterprise recognizes the cost or expense related to the reorganization related to

payment of the dismissal benefits.

(4) Accounting treatment of the other long-term employee welfare

Other long-term employee benefits refer to all payrolls except for short-term remuneration post-

employment benefits and dismissal benefits including long-term paid absences long-term disability benefits

long-term profit sharing plan etc.The other long-term employee benefits provided by the enterprise shall be recognized and measured as net

liability or net asset of other long-term employee benefits according to relevant provisions of the defined benefit

plan except for those meetings the conditions of defined contribution plan.

23. Provisions

(1) Recognition criteria for provisions

When obligations related to contingencies meet the following conditions the Company shall recognize them

as provisions:

a) The obligation is the current obligation assumed by the Company.b) The performance of this obligation may result in the outflow of economic benefits.c) The amount of this obligation can be reliably measured.

(2) Measurement method of provisions

Considering the risks uncertainties and time value of money related to contingencies the provisions shall

be initially measured at the best estimate of the required expenditure for the performance of current obligation. If

the time value of money is significant the best estimate shall be determined after discounting relevant future cash

outflow. The Company shall check the carrying value of the provisions on the balance sheet date and adjust the

carrying value to reflect current best estimate.

24. Revenue

(1) Recognition principles of revenues

Revenue is the total inflow of economic benefits arising from the Company's ordinary activities that would

80Interim Report 2024 of Wuliangye Yibin Co. Ltd.

result in an increase in shareholders' equity and are unrelated to capital contributions by shareholders.The Company recognizes revenue when it has fulfilled its performance obligations under the contract that is

when the customer obtains control of the relevant goods. Obtaining control over related goods means being able to

dominate the use of the goods and obtain almost all economic benefits from them.If the contract contains two or more performance obligations the Company will allocate the transaction

price to each individual performance obligation according to the relative proportion of the individual selling price

of the goods or services promised under each individual performance obligation on the contract commencement

date and measure the revenue according to the transaction price allocated to each individual performance

obligation.Transaction price is the amount of consideration that the Company is expected to be received due to the

transfer of goods or services to customers excluding the amount collected on behalf of third parties. In

determining the transaction price of a contract if variable consideration exists the Company will determine the

best estimate of the variable consideration based on the expected or most likely amount and include in the

transaction price in an amount not exceeding the amount that the accumulated recognized revenue will most likely

not be significantly reversed when the relevant uncertainty is eliminated. If there is a significant financing

component in the contract the Company will determine the transaction price according to the amount payable by

the customer in cash when obtaining the control right of the goods. The difference between the transaction price

and the contract consideration will be amortized by the effective interest rate method during the contract period. If

the interval between the transfer of control right and the payment price by the customer does not exceed one year

the Company will not consider the financing component.Performance obligations are fulfilled within a certain period if any of the following conditions is met;

otherwise performance obligations are fulfilled at a certain point in time:

a) The customer acquires and consumes the economic benefits of the Company's performance at the same

time as the Company's performance;

b) The customer controls the goods under construction during the performance of the Company;

c) The goods produced by the Company during the performance of the contract have irreplaceable uses and

the Company has the right to collect money for the accumulated performance that has been completed so far

during the whole contract period.For performance obligations performed within a certain period the Company recognizes revenue according

to the performance progress within that period except that the performance progress cannot be reasonably

determined. The Company determines the performance progress of the services provided according to the input

method (or output method). When the performance progress cannot be reasonably determined if the costs

incurred by the Company are expected to be compensated the revenue shall be recognized according to the

amount of costs incurred until the performance progress can be reasonably determined.For performance obligations performed at a certain point in time the Company recognizes revenue at the

point when the customer obtains control of the relevant goods. When judging whether the customer has acquired

control of goods or services the Company will consider the following indications:

a) The Company has a present right to receive payment for the goods or services i.e. the customer has a

present obligation to pay for the goods;

b) The Company has transferred legal ownership of the goods to the customer i.e. the customer has legal

ownership of the goods;

c) The Company has physically transferred the goods to the customer i.e. the customer has taken physical

possession of the goods;

d) The Company has transferred to the customer the principal risks and rewards of ownership of the goods

81Interim Report 2024 of Wuliangye Yibin Co. Ltd.

i.e. the customer has acquired the principal risks and rewards of ownership of the good;

e) The customer has accepted the goods.

(2) Recognition methods of revenues

a) Recognition methods of revenues for distribution model

The Company arranges logistics delivery to the customer's designated location delivers the goods to the

buyer according to the contract and recognizes revenue after the buyer signs for it;

b) Recognition methods of revenues for direct sales model

Group purchase sales: Revenue is recognized when the Company delivers the goods to the buyer and

receives payment or acquires the right to receive payment;

On-line sales; Revenue is recognized when the Company receives the payment transferred from the e-

commerce platform from the consumer.

25. Government subsidy

(1) Judgment basis and accounting treatment of asset-related government subsidies

The asset-related government subsidies refer to the government subsidies obtained by the Company and

used for acquisition or construction or for formation of long-term assets in other ways including the financial

allocation for purchasing fixed assets or intangible assets the financial discount for special loan of fixed assets

and others.The specific standard of the Company for classifying the government subsidies as asset-related subsidies:

government subsidies obtained by the Company and used for acquisition or construction or for formation of long-

term assets in other ways.If the government documents do not specify the target of the subsidies the basis that the Company classifies

the government subsidies as asset-related subsidies or income-related subsidies were as follows: Whether the

subsidies are used for acquisition or construction or for formation of long-term assets in other ways.Timing of recognition of asset-related government subsidies of the Company: Government subsidies when

actually received shall be recognized as deferred income and transferred equally to current profit or loss based on

the expected service life of the long-term assets when the long-term assets are available for use.The asset-related government subsidies are recognized as deferred income and included in current profit or

loss by stages based on the service life of the assets acquired and constructed. If the related asset is sold

transferred scrapped or damaged before the end of the service life the deferred income balance not yet distributed

shall be transferred to the profits and losses of the period in which the assets are disposed.

(2) Judgment basis and accounting treatment of income-related government subsidies

Income-related government subsidies refer to all the government subsidies other than asset-related

government subsidies.The specific standard of the Company for classifying the government subsidies as income-related subsidies:

All the government subsidies other than asset-related government subsidies.Timing of recognition of income-related government subsidies of the Company: Government subsidies

when actually received shall be included in current profit or loss if used to compensate the relevant expenses or

losses of the Company in the subsequent period; included in current profit or loss directly when acquired if used

to compensate relevant expenses or losses incurred by the Company.Income-related government subsidies used to compensate the relevant expenses or losses of the Company in

the subsequent period shall be recognized as deferred income when acquired; included in current profit or loss in

the period in which relevant expenses are recognized; those used to compensate relevant expenses or losses

incurred by the Company shall be directly included in profit or loss directly when they are received.

(3) The government subsidies related to daily activities of the Company shall be included in other incomes

82Interim Report 2024 of Wuliangye Yibin Co. Ltd.

or used to offset relevant costs and expenses according to the substance of the economic business. The

government subsidies irrelevant to the daily activities of the Company shall be included in non-operating revenue.

26. Deferred income tax assets/deferred income tax liabilities

The deferred income tax assets and deferred income tax liabilities are calculated and recognized according

to the difference (temporary difference) between the tax base and carrying value of the assets and liabilities.Deductible losses that can be carried forward to the subsequent year to offset taxable income according to the tax

law shall be considered as temporary difference and corresponding deferred income tax assets shall be recognized.For temporary differences related to the initial recognition of goodwill corresponding deferred income tax

liabilities shall not be recognized. For the temporary differences related to the initial recognition of the assets or

liabilities incurred in the transaction not for business combination that will not affect the accounting profits and

taxable income (or deductible losses) corresponding deferred income tax assets and deferred income tax liabilities

shall not be recognized. The deferred income tax assets and deferred income tax liabilities are measured on the

balance sheet date according to the applicable tax rate in the period of expected recovery of relevant assets or

liquidation of relevant liabilities.Deferred income tax assets shall be recognized within the limit of taxable income which the Company may

obtain for deducting deductible temporary differences deductible losses and tax deduction. Deferred income tax

assets and deferred income tax liabilities arising from temporary differences related to the investment in

subsidiaries and associates shall be recognized. If the time of reversal of temporary differences can be controlled

by the Company and the temporary differences are likely to not be reversed in the foreseeable future deferred

income tax assets and liabilities shall not be recognized.

27. Leases

From the effectiveness date of a contract the Company assesses whether the contract is a lease or includes

any lease. If a party to the contract transfers the right allowing the control over the use of one or more assets that

have been identified within a certain period in exchange for a consideration such contract is a lease or includes a

lease.

(1) Accounting treatment of the Company as the lessee

On the commencement date of the lease term except for short-term leases and leases of low-value assets

being adopted simplified treatment the Company recognises right-of-use assets or lease liabilities for the lease.Right-of-use assets shall be initially measured at costs including: a) The initial measurement amount of the

lease liabilities; b) the lease payment paid on or before the commencement date of the lease term. If there is a

lease incentive the amount related to the lease incentive taken should be deducted; c) the initial direct cost

incurred by the lessee; d) the estimated cost that the Company will use to pull down and remove the leasehold

property and restore the site of the leasehold property or restore the leasehold property to the state agreed in the

lease clauses (excluding the costs incurred by inventories for production).The lease liabilities shall be initially measured at the present value of the unpaid lease payment from the

commencement date of the lease term. When calculating the present value of lease payments the Company uses

the interest rate implicit in lease as the rate of discount. If the interest rate implicit in lease cannot be determined

the Company’s incremental lending rate is used as the rate of discount.After the commencement date of the lease term the Company subsequently measures the right-of-use assets

at cost model and the right-of-use assets are subject to depreciation by using the straight-line method. Meanwhile

the interest expenses of the lease liabilities in each period of the lease term are calculated and shall be included in

the profit or loss for the current period unless otherwise stipulated to be included in underlying asset costs.Variable lease payments that are not covered in the measurement of the lease liabilities are included in current

83Interim Report 2024 of Wuliangye Yibin Co. Ltd.

profit or loss when actually incurred unless otherwise stipulated to be included in underlying asset costs.For short-term leases within 12 months and leases of low-value assets the Company chooses not to

recognise right-of-use assets and lease liabilities. The relevant lease expenditures are included in relevant asset

cost or the profit or loss for the current period in the straight-line method in each period of the lease term.

(2) Accounting treatment of leases with the Company as the lessor

a) Classification of lease

The Company classifies leases into finance leases and operating leases at the inception of leases. A finance

lease refers to a lease where almost all the risks and rewards related to the ownership of the leased asset are

substantially transferred regardless of whether the ownership is eventually transferred or not. An operating lease

refers to all leases other than finance leases.b) Accounting treatment of financial lease

On the commencement date of the lease term the Company recognises the finance lease receivables for the

finance lease and derecognises the leased asset of the finance lease. In the initial measurement of finance lease

receivables the sum of the unsecured residual value and the present value of the lease payments receivable not yet

received on the commencement date of the lease term discounted at the interest rate implicit in lease is the book

value of the finance lease receivables. The Company calculates and recognises the interest income in each period

within the lease term at a fixed interest rate implicit in the lease. The received variable lease payments that are not

included in the measurement of the net investment in the lease are included in profit or loss for the current period

when they are actually incurred.c) Accounting treatment of operating lease

The Company recognises the lease payments receivable of the operating lease as rental earning in each

period within the lease term on a straight-line basis or according to other systematic and reasonable methods. The

initial direct costs related to the operating lease are capitalised amortised within the lease term on the same basis

as the recognition of rental earning and included in profit or loss for the current period. The received variable

lease payments related to the operating lease that are not included in the lease payments receivable are included in

profit or loss for the current period when they are actually incurred.

28. Changes to Significant Accounting Policies and Estimates

(1) Changes to Significant Accounting Policies

□ Applicable □ Not applicable

(2) Changes to Significant Accounting Estimates

□ Applicable □ Not applicable

(3) Adjustments to Financial Statement Items at the Beginning of the Year of the First

Implementation of any New Accounting Standard Implemented since 2024

□ Applicable □ Not applicable

VI Taxes

1. Main taxes and tax rates

Tax Item Tax Basis Tax Rate

13% (paid after offsetting input

VAT Taxable sales revenue

tax)

Consumption tax Taxable price or ex-factory price 10% 20%

Urban maintenance and construction tax Turnover tax payable 7%

Corporate income tax Taxable income 25%

84Interim Report 2024 of Wuliangye Yibin Co. Ltd.

Education surcharge Turnover tax payable 3%

Local education surcharge Turnover tax payable 2%

Note on disclosure of taxpayer applying different corporate income tax rates:

Name of taxpayer Income tax rate

Sichuan Yibin Wuliangye Jingmei Printing Co. Ltd. 15%

Sichuan Yibin Plastic Packaging Materials Company Limited 15%

Sichuan Yibin Wuliangye Environmental Protection Industry Co. Ltd. 15%

Yibin Xinxing Packaging Co. Ltd. 20%

Sichuan Jiebeike Environmental Technology Co. Ltd. 20%

Sichuan Jinwuxin Technology Co. Ltd. 20%

2. Tax preference

(1) Value added tax (VAT)

In January 2007 Sichuan Yibin Global Gelasi Glass Manufacturing Co. Ltd. obtained the certificate of

social welfare enterprise "F.Q.ZH.Z. No. 51004121049" issued by the Department of Civil Affairs of Sichuan

Province. The Company conforming to relevant provisions of G.SH.F. [2016] No. 33 and the Notice on VAT

Preferential Policy for Promoting the Employment of the Disabled of the Ministry of Finance and the State

Administration of Taxation (C.SH. [2016] No. 52) enjoys the drawback policy of value-added tax. Recoverable

value-added tax of each month = Number of disabled person employed by the taxpayer in current month x

quadruple of the minimum wage of current month. The amount of value-added tax refunded in the first half of

2024 was RMB36539560.00.

According to the Circular on Improving the Comprehensive Resource Utilisation VAT Policy (Circular No.No. 40 of 2021 of the Ministry of Finance and the State Administration of Taxation) Sichuan Yibin Wuliangye

Environmental Protection Industry Co. Ltd. enjoys the 70% drawback policy of value-added tax for providing

comprehensive utilisation of resources for wastewater treatment. The amount of value-added tax refunded in the

first half of 2024 was RMB7770829.47.

(2) Corporate income tax

Sichuan Yibin Wuliangye Jingmei Printing Co. Ltd. Sichuan Yibin Plastic Packaging Materials Company

Limited and Sichuan Yibin Wuliangye Environmental Protection Industry Co. Ltd. conforming to the

Announcement of the Ministry of Finance and the State Taxation Administration on Continuing the Corporate

Income Tax Policies for the Large-Scale Development of Western China (Announcement [2020] No. 23 of the

Ministry of Finance the State Taxation Administration and the National Development and Reform Commission)

has been filed with the Local Taxation Bureau of Yibin for preferential corporate income tax and pays the

corporate income tax at 15%.Yibin Xinxing Packaging Co. Ltd. Sichuan Jiebeike Environmental Technology Co. Ltd. and Sichuan

Jinwuxin Technology Co. Ltd. comply with the provisions of the Announcement of the State Taxation

Administration and the Ministry of Finance on Further Supporting Small and Micro Enterprises and Individual

Industrial and Commercial Businesses through Relevant Tax and Fee Policies (Announcement No. 12 of 2023 of

the Ministry of Finance and the State Taxation Administration). They are eligible for a 25% reduction in the

calculation of taxable income for small and micro-profit enterprises and they are subject to a 20% enterprise

income tax rate continuing until 31 December 2027.VII Notes to the Consolidated Financial Statements

1. Monetary assets

Unit: RMB

85Interim Report 2024 of Wuliangye Yibin Co. Ltd.

Item Closing balance Opening balance

Cash on hand 4855.27 42156.81

Bank deposits 86642061525.06 74892248621.63

Other monetary assets 324432721.19 264472639.86

Deposits in Wuliangye Group Finance 41748342979.22 40299537492.34

Total 128714842080.74 115456300910.64

A liquor/wine production enterprise should disclose in detail whether there is any special interest

arrangement where the Company and any of its stakeholders have a joint account for funds etc.□ Applicable □ Not applicable

2. Notes receivable

(1) Notes receivable presented by category

Unit: RMB

Item Closing balance Opening balance

Letters of credit 3650281.25

Total 3650281.25

(2) Notes receivable by method of establishing allowance for doubtful account

Unit: RMB

Closing balance Opening balance

Allowance for Allowance for doubtful

Gross amount Gross amount

doubtful account account

As %

Category

As % of Allowanc of the Carrying

Am Carrying amount Allowance

the total e as % of Amo total Amou amount

Amount oun as % of the

gross the gross unt gross nt

t gross amount

amount amount amoun

t

Notes

receivable

for which

allowances

for doubtful

accounts

are

established

on an

individual

basis

Of

which:

Notes

receivable

for which

allowances

for doubtful

3650281.25100.00%3650281.25

accounts

are

established

on a

grouping

86Interim Report 2024 of Wuliangye Yibin Co. Ltd.

basis

Of

which:

Letters of

3650281.25100.00%3650281.25

credit

Total 3650281.25 100.00% 3650281.25

Allowances for doubtful notes receivable established using the general model of expected credit loss:

□ Applicable □ Not applicable

(3) Allowances for doubtful accounts established recovered or reversed in the current period

The Company had no allowances for doubtful accounts established recovered or reversed in the current

period.Significant recovered or reversed allowances for doubtful accounts in the current period:

□ Applicable □ Not applicable

(4) Notes receivable in pledge at the end of the current period

The Company had no notes receivable pledged by the Company as at the end of the period.

(5) Notes receivable endorsed or discounted by the Company at the end of the current period and not

expired yet on the balance sheet date

The Company had no notes receivable endorsed or discounted by the Company at the end of the period and

not expired yet on the balance sheet date.

(6) Notes receivable actually written off in the current period

The Company had no notes receivable actually written off in the current period.

3. Accounts receivable

(1) Accounts receivable presented by category

Unit: RMB

Aging Closing gross amount Opening gross amount

Within 1 year (inclusive) 85589786.23 42890430.03

1 to 2 years 918696.09 31487.08

2 to 3 years 7721.68 278631.80

More than 3 years 5808416.56 6233545.71

3 to 4 years 278697.80 66.00

4 to 5 years 280471.24 473121.61

More than 5 years 5249247.52 5760358.10

Total 92324620.56 49434094.62

87Interim Report 2024 of Wuliangye Yibin Co. Ltd.

(2) Accounts receivable by method of establishing allowance for doubtful account

Unit: RMB

Closing balance Opening balance

Allowance for doubtful Allowance for doubtful

Gross amount Gross amount

account account

Category

Allowance Carrying Allowance Carrying

As % of the

as % of the amount

As % of the

as % of the amount

Amount total gross Amount Amount total gross Amount

gross gross

amount amount

amount amount

Accounts

receivable

for which

allowances

for doubtful

3477979.923.77%3477979.92100.00%3477979.927.04%3477979.92100.00%

accounts are

established

on an

individual

basis

Of which:

External

3477979.923.77%3477979.92100.00%3477979.927.04%3477979.92100.00%

customers

Accounts

receivable

for which

allowances

for doubtful

88846640.6496.23%4727951.145.32%84118689.5045956114.7092.96%3308653.227.20%42647461.48

accounts are

established

on a

grouping

basis

Of which:

External

63695534.7968.99%4727951.147.42%58967583.6527090348.4854.80%3308653.2212.21%23781695.26

customers

88Interim Report 2024 of Wuliangye Yibin Co. Ltd.

Related

25151105.8527.24%25151105.8518865766.2238.16%18865766.22

parties

Total 92324620.56 100.00% 8205931.06 8.89% 84118689.50 49434094.62 100.00% 6786633.14 13.73% 42647461.48

89Interim Report 2024 of Wuliangye Yibin Co. Ltd.

Accounts receivable for which allowances for doubtful accounts are established on an individual basis:

Unit: RMB

Opening balance Closing balance

Entity Allowance for Allowance for Allowance Reason for

Gross amount doubtful Gross amount doubtful as % of the

allowance

account account gross amount

Expected to be

Qu Liang 1411528.44 1411528.44 1411528.44 1411528.44 100.00%

unrecoverable

Beijing Junhui

Expected to be

Tianhong Trading 1174891.71 1174891.71 1174891.71 1174891.71 100.00%

unrecoverable

Co. Ltd.Nanxi Daliangxin Expected to be

389729.12389729.12389729.12389729.12100.00%

Food Co. Ltd. unrecoverable

Sichuan Debo

Expected to be

Daily Commodity 294230.65 294230.65 294230.65 294230.65 100.00%

unrecoverable

Co. Ltd.Gushi County Expected to be

207600.00207600.00207600.00207600.00100.00%

Yingjun Liquor unrecoverable

Total 3477979.92 3477979.92 3477979.92 3477979.92

Accounts receivable for which allowances for doubtful accounts are established on a grouping basis:

Unit: RMB

Closing balance

Item Allowance for doubtful Allowance as % of the

Gross amount

account gross amount

Accounts receivable for which allowances

for doubtful accounts are established based 63695534.79 4727951.14 7.42%

on the external customer group

Accounts receivable for which allowances

for doubtful accounts are established based 25151105.85

on the related party group

Total 88846640.64 4727951.14

Allowances for doubtful accounts established using the general model of expected credit loss:

□ Applicable □ Not applicable

(3) Allowances for doubtful accounts established recovered or reversed in the current period

Allowances for doubtful accounts in the current period:

Unit: RMB

Changes in the current period

Opening

Category Recover Ot Closing balance

balance Established ed or Written off he

reversed rs

Accounts receivable for which

allowances for doubtful accounts

3477979.923477979.92

are established on an individual

basis

Accounts receivable for which

allowances for doubtful accounts

3308653.221477823.1358525.214727951.14

are established based on the

external customer group

Total 6786633.14 1477823.13 58525.21 8205931.06

90Interim Report 2024 of Wuliangye Yibin Co. Ltd.

Significant recovered or reversed allowances for doubtful accounts in the current period: The Company

had no significant recovered or reversed allowances for doubtful accounts in the current period.

(4) Accounts receivable actually written off in the current period

Unit: RMB

Item Amount written off

Accounts receivable actually written off 58525.21

Significant accounts receivable written off: The Company had no significant accounts receivable written

off in the current period.

(5) Top five entities with respect to accounts receivable and contract assets

Unit: RMB

Closing balance of

As % of the

Closing Closing balance of allowances for

Closing balance closing balance

balance of accounts receivable doubtful accounts

Entity of accounts of total accounts

contract and contract assets and impairment

receivable receivable and

assets combined allowances for

contract assets

contract assets

Sichuan Kuanzhai Printing

39761659.9039761659.9043.07%1988083.00

Co. Ltd.Sichuan Putian Packaging

11523877.8311523877.8312.48%

Co. Ltd.Chengdu Huayu Glass

6482321.076482321.077.02%

Manufacturing Co. Ltd.Sichuan Tuopai Trading Co.

4174392.784174392.784.52%208719.64

Ltd.Chengdu PUTH Medical

2537100.002537100.002.75%

Technology Co. Ltd.Total 64479351.58 64479351.58 69.84% 2196802.64

4. Receivables financing

(1) Receivables financing presented by category

Unit: RMB

Item Closing balance Opening balance

Bank acceptance bills 19576430505.90 14086450565.79

Total 19576430505.90 14086450565.79

91Interim Report 2024 of Wuliangye Yibin Co. Ltd.

(2) Receivables financing by method of establishing allowance for doubtful account

Unit: RMB

Closing balance Opening balance

Allowance for Allowance for

Gross amount Gross amount

doubtful account doubtful account

Category Allowan Allowan

As % of As % of

ce as % Carrying amount ce as % Carrying amount

the total Amou the total

Amount of the Amount Amount of the

gross nt gross

gross gross

amount amount

amount amount

Receivables financing

for which allowances

for doubtful accounts

are established on an

individual basis

Of which:

Receivables financing

for which allowances

for doubtful accounts 19576430505.90 100.00% 19576430505.90 14086450565.79 100.00% 14086450565.79

are established on a

grouping basis

Of which:

Bank acceptance bills 19576430505.90 100.00% 19576430505.90 14086450565.79 100.00% 14086450565.79

Total 19576430505.90 100.00% 19576430505.90 14086450565.79 100.00% 14086450565.79

The Company had no receivables financing for which allowances for doubtful accounts are established on an individual basis as at the end of the current period.

92Interim Report 2024 of Wuliangye Yibin Co. Ltd.

Receivables financing for which allowances for doubtful accounts are established on a grouping basis:

Unit: RMB

Closing balance

Item Allowance for doubtful Allowance as % of the gross

Gross amount

account amount

Bank acceptance bills 19576430505.90

Total 19576430505.90

(3) Allowances for doubtful accounts established recovered or reversed in the current period

The Company had no allowances for doubtful accounts established recovered or reversed in the current

period.

(4) Receivables financing in pledge at the end of the current period

The Company had no receivables financing in pledge as at the end of the current period.

(5) Receivables financing endorsed or discounted by the Company at the end of the period and not

expired yet on the balance sheet date

Unit: RMB

Amount derecognized at the end of the Amount not yet derecognized at the end

Item

period of the period

Bank acceptance bills 1987564924.54

Total 1987564924.54

(6) Receivables financing actually written off at the end of the period

The Company had no receivables financing actually written off as at the end of the period.

5. Other receivables

Unit: RMB

Item Closing balance Opening balance

Other receivables 51547943.32 39624933.74

Total 51547943.32 39624933.74

(1) Other receivables

1) Other receivables classified by nature

Unit: RMB

Nature Closing gross amount Opening gross amount

Cash float 12240682.52 2277566.82

Current account 1567659.40 1510890.62

Security deposits 37256195.33 38602390.27

Other advance money for others or

11078629.367119780.00

temporary payment

Total 62143166.61 49510627.71

2) Other receivables presented by aging

Unit: RMB

Aging Closing gross amount Opening gross amount

Within 1 year (inclusive) 41652300.09 31302289.55

93Interim Report 2024 of Wuliangye Yibin Co. Ltd.

1 to 2 years 7338841.03 4460593.08

2 to 3 years 1250482.00 1394469.00

More than 3 years 11901543.49 12353276.08

3 to 4 years 1054607.12 1069474.75

4 to 5 years 1089285.45 2768887.33

More than 5 years 9757650.92 8514914.00

Total 62143166.61 49510627.71

94Interim Report 2024 of Wuliangye Yibin Co. Ltd.

3) Other receivables by method of establishing allowance for doubtful account

□ Applicable □ Not applicable

Unit: RMB

Closing balance Opening balance

Allowance for doubtful

Gross amount Allowance for doubtful account Gross amount

account

Category

Allowance Carrying Allowance Carrying

As % of the As % of the

as % of the amount as % of the amount

Amount total gross Amount Amount total gross Amount

gross gross

amount amount

amount amount

Other

receivables

for which

allowances

for doubtful

1838.850.00%1838.85100.00%1838.850.00%1838.85100.00%

accounts are

established

on an

individual

basis

Of which:

External

1838.850.00%1838.85100.00%1838.850.00%1838.85100.00%

customers

Other

receivables

for which

allowances

for doubtful

62141327.76100.00%10593384.4417.05%51547943.3249508788.86100.00%9883855.1219.96%39624933.74

accounts are

established

on a

grouping

basis

Of which:

External 61150212.91 98.40% 10593384.44 17.32% 50556828.47 48467068.38 97.89% 9883855.12 20.39% 38583213.26

95Interim Report 2024 of Wuliangye Yibin Co. Ltd.

customers

Related

991114.851.59%991114.851041720.482.10%1041720.48

parties

Total 62143166.61 100.00% 10595223.29 17.05% 51547943.32 49510627.71 100.00% 9885693.97 19.97% 39624933.74

96Interim Report 2024 of Wuliangye Yibin Co. Ltd.

Other receivables for which allowances for doubtful accounts are established on an individual basis:

Unit: RMB

Opening balance Closing balance

Item Allowance for Allowance for Allowance Reason for

Gross amount doubtful Gross amount doubtful as % of the

allowance

account account gross amount

Other receivables

for which

allowances for

Expected to be

doubtful accounts 1838.85 1838.85 1838.85 1838.85 100.00%

unrecoverable

are established on

an individual

basis

Total 1838.85 1838.85 1838.85 1838.85

Other receivables for which allowances for doubtful accounts are established on a grouping basis:

Unit: RMB

Closing balance

Item Allowance for doubtful Allowance as % of

Gross amount

account the gross amount

Other receivables for which allowances for

doubtful accounts are established based on the 61150212.91 10593384.44 17.32%

external customer group

Other receivables for which allowances for

doubtful accounts are established based on the 991114.85

related party group

Total 62141327.76 10593384.44

Allowances for doubtful accounts established using the general model of expected credit loss:

Unit: RMB

Stage 1 Stage 2 Stage 3

Allowances for doubtful 12-month Lifetime expected Lifetime expected credit Total

accounts expected credit credit loss (without loss (with credit

loss credit impairment) impairment)

Balance as at 1 January 2024 9883855.12 1838.85 9885693.97

Balance as at 1 January 2024

was in the current period

- Transferred to Stage 2

- Transferred to Stage 3 -2658.56 2658.56 0.00

- Transferred back to Stage 2

- Transferred back to Stage 1

Established in the current period 712187.88 712187.88

Reversed in the current period

Charged off in the current period

Written off in the current period 2658.56 2658.56

Other changes

Balance as at 30 June 2024 10593384.44 1838.85 10595223.29

Gross amounts with significant changes in loss allowances in the current period:

□ Applicable □ Not applicable

97Interim Report 2024 of Wuliangye Yibin Co. Ltd.

4) Allowances for doubtful accounts established recovered or reversed in the current period

Allowances for doubtful accounts in the current period:

Unit: RMB

Changes in the current period

Category Opening balance Recover Charged off Closing balance

Established ed or or written Others

reversed off

Other receivables for which

allowances for doubtful

1838.851838.85

accounts are established on

an individual basis

Other receivables for which

allowances for doubtful

accounts are established 9883855.12 712187.88 2658.56 10593384.44

based on the credit risk

characteristic group

Total 9885693.97 712187.88 2658.56 10595223.29

5) Other receivables actually written off in the current period

Unit: RMB

Item Amount written off

Other receivables actually written off 2658.56

Significant other receivables written off:

The Company had no significant other receivables written off in the current period.

6) Top five entities with respect to other receivables

Unit: RMB

As % of the

Closing balance

closing

Nature of of allowances

Entity Closing balance Aging balance of

account for doubtful

total other

accounts

receivables

Jiang'an County Finance Bureau’s escrow Security

10000000.00 Within 1year 16.09% 300000.00

funds fiscal account deposit

Security

Yibin Zhongqi Natural Gas Co. Ltd. 8010000.00 Within 1year 12.89% 240300.00

deposit

Yibin Cuiping District Housing and Urban- Security

5000000.00 Over 5 years 8.05% 4000000.00

Rural Development Bureau deposit

Other Within

China Mobile Communications Group

suspense 3239457.40 1year; 1-2 5.21% 119652.15

Sichuan Co. Ltd. Yibin Branch

payments years

Sichuan Chengdu Railway International Security

2054331.00 1-2 years 3.31% 205433.10

Business Travel Group Co. Ltd. deposit

Total 28303788.40 45.55% 4865385.25

6. Prepayments

(1) Prepayments presented by aging

Unit: RMB

Closing balance Opening balance

Aging

Amount As % of total Amount As % of total

98Interim Report 2024 of Wuliangye Yibin Co. Ltd.

prepayments prepayments

Within 1 year 137652593.47 85.57% 143838589.00 84.90%

1 to 2 years 5848367.08 3.64% 6079402.92 3.59%

2 to 3 years 3251500.91 2.02% 11610807.73 6.85%

More than 3 years 14108953.12 8.77% 7896945.50 4.66%

Total 160861414.58 169425745.15

(2) Top five entities with respect to prepayments

Unit: RMB

As % of the closing balance of total

Entity Closing balance

prepayments

Yibin PetroChina Kunlun Guoding Gas Co. Ltd. 32910000.00 20.46%

PetroChina Company Limited Southwest Chemical

22182897.5913.79%

Sales Branch

Hand Enterprise Solutions Co. Ltd. 10948113.21 6.81%

Xiamen Yijianxing Industrial Co. Ltd. 8221213.22 5.11%

Zhejiang Pengyuan Supply Chain Management Co.

6255070.003.89%

Ltd.Total 80517294.02 50.05%

99Interim Report 2024 of Wuliangye Yibin Co. Ltd.

7. Inventory

Indicate whether the Company is subject to the information disclosure requirements for the real estate sector.No.

(1) Classification of inventory

Unit: RMB

Closing balance Opening balance

Inventory valuation Inventory valuation

Item allowances or allowances or

Gross amount impairment allowances Carrying amount Gross amount impairment allowances Carrying amount

for contract for contract

performance costs performance costs

Raw materials 426733176.19 5826978.57 420906197.62 535367248.85 5839586.09 529527662.76

Goods in process 1223454330.06 1223454330.06 1263271738.43 1263271738.43

Inventory of goods 2963938353.12 29415124.10 2934523229.02 3786765952.30 30118427.27 3756647525.03

Turnover materials 2006080.96 436409.41 1569671.55 2771487.81 436409.41 2335078.40

Goods issued 25817968.86 917805.65 24900163.21 231804401.04 917805.65 230886595.39

Homemade semi-

12159061969.59150386.0112158911583.5811540815410.35150386.0111540665024.34

finished products

Packing materials 15916796.10 15916796.10 15916796.10 15916796.10

Manufacturing

consignment 29198763.87 29198763.87 29963859.21 29963859.21

materials

Goods in transit 53554968.06 53554968.06 34544229.31 34544229.31

Total 16899682406.81 52663499.84 16847018906.97 17441221123.40 53379410.53 17387841712.87

The Company is subject to the disclosure requirements for the food and wine & liquor production industry in Guidelines No. 3 of the Shenzhen Stock Exchange

for the Self-Regulation of Listed Companies—Industry-specific Information Disclosure.

100Interim Report 2024 of Wuliangye Yibin Co. Ltd.

(2) Classification of merchandise on hand

Unit: RMB

Closing balance Opening balance

Item

Gross amount Valuation allowances Carrying amount Gross amount Valuation allowances Carrying amount

Liquor 2485950572.78 2485950572.78 2960244729.82 2960244729.82

Plastic

327934312.341883172.95326051139.39597271784.751883172.95595388611.80

products

Printing 26381681.58 15689954.97 10691726.61 45863262.76 15689954.97 30173307.79

Glass

94916019.877575592.5887340427.29142839505.258278895.75134560609.50

bottles

Others 28755766.55 4266403.60 24489362.95 40546669.72 4266403.60 36280266.12

Total 2963938353.12 29415124.10 2934523229.02 3786765952.30 30118427.27 3756647525.03

(3) Inventory valuation allowances and impairment allowances for contract performance costs

Unit: RMB

Increase in the current period Decrease in the current period

Opening

Item Reversed or Closing balance balance Established Others Others

charged off

Raw materials 5839586.09 12607.52 5826978.57

Inventory of

30118427.27703303.1729415124.10

goods

Turnover

436409.41436409.41

materials

Packing

15916796.1015916796.10

materials

Goods issued 917805.65 917805.65

Semi-finished

150386.01150386.01

products

Total 53379410.53 715910.69 52663499.84

(4) Note on closing balance of inventory containing the capitalized amount of borrowing costs

None

(5) Notes of the amount of contract performance costs amortized for the current period

None

8. Long-term equity investments

Unit: RMB

Increase/decrease in the current period

Open Adjust

Inc Im

ing ment

rea Dec pai

balan Investment to Closing balance

Opening balance se reas rmce of income other Other Declared cash Ot

Investee in e in ent (carrying (carrying amount) impai recognized compr equity dividends or her

inv inve all amount)

rment using the ehensi changes profit s

est stm ow

allow equity method ve

me ent an

ance incom

nt ce

e

I Joint ventures

101Interim Report 2024 of Wuliangye Yibin Co. Ltd.

II Associates

Oriental

Outlook

27361937.34-5519829.3321842108.01

Media Co.Ltd.Sichuan

Yibin

Wuliangye

1958180619.9026114874.1613952640.001970342854.06

Group

Finance

Co. Ltd.Beijing

Zhongjiuh

uicui

Education 10751658.65 8286.87 10759945.52

and

Technolog

y Co. Ltd.Yibin

Jiamei

Intelligent 24072024.80 1274000.00 25346024.80

Packaging

Co. Ltd.Sub-total 2020366240.69 21877331.70 13952640.00 2028290932.39

Total 2020366240.69 21877331.70 13952640.00 2028290932.39

Other information:

(1) The Company invested in Oriental Outlook Media Co. Ltd. an associate of the Company for

implementing the strategy of entering the media industry. The Company contributed RMB17.15 million in April

2005 acquiring 49% of the equity of Oriental Outlook Media Co. Ltd. held by China Worldbest Group Shanghai

Worldbest Co. Ltd. and Shanghai Tiancheng Chuangye Development Co. Ltd.

(2) As reviewed and approved by the 22th meeting of the 4th Board of Directors of the Company on 24

October 2012 the Company Wuliangye Group and six of its subsidiaries and ABC International Holdings

Limited jointly invested and established Sichuan Yibin Wuliangye Group Finance Co. Ltd. (Wuliangye Group

Finance). Its registered capital is RMB2 billion among which the Company contributed RMB720 million taking

up 36% of the registered capital.On 23 May 2020 the 74th meeting of the 5th Board of Directors of the Company considered and approved

the capital increase of the Company to Wuliangye Group Finance based on the net asset value per share of

Wuliangye Group Finance evaluated at RMB1.3817 per share as consideration for the capital increase of

RMB734693877.55 of which: RMB531731835.82 was credited to registered capital and RMB202962041.73

was credited to capital reserve. In this capital increase the related party Sichuan Yibin Wuliangye Group Co. Ltd.increased its capital at the same price and the remaining shareholders of Wuliangye Group Finance did not

participate in this capital increase. After the completion of this capital increase the registered capital of

Wuliangye Group Finance increased from RMB2 billion to RMB3085619164.80 and the shareholding ratio of

the Company was changed to 40.56%.

(3) In 2019 Sichuan Yibin Wuliangye Jingmei Printing Co. Ltd. a holding subsidiary of the Company and

Shenzhen Jinjia New Intelligent Packaging Co. Ltd. jointly invested and established Yibin Jiamei Intelligent

Packaging Co. Ltd. Primary business of Yibin Jiamei Intelligent Packaging Co. Ltd. include research and

development platemaking printing production and sales of packaging products. Its registered capital is RMB20

million among which Sichuan Yibin Wuliangye Jingmei Printing Co. Ltd. contributed RMB9.8 million taking

102Interim Report 2024 of Wuliangye Yibin Co. Ltd.

up 49% of the registered capital.

(4) As reviewed and approved by the 85th meeting of the 5th Board of Directors of the Company on 5

February 2021 the Company Beijing Zhongjiuhuicui Exhibition Co. Ltd. Sichuan Wine and Tea Investment

Group Co. Ltd. Sichuan Science and Engineering Asset Management Co. Ltd. Sichuan Jingwei Education

Management Group Co. Ltd. and Yibin Vocational & Technical College Asset Operation and Management Co.Ltd. jointly invested and established Beijing Zhongjiuhuicui Education and Technology Co. Ltd. Its registered

capital is RMB54 million among which the Company contributed RMB11.25 million taking up 20.83% of the

registered capital.

9. Other non-current financial assets

Unit: RMB

Item Closing balance Opening balance

Sichuan Chinese Liquor Jinshanjiao Brand Operation

1200000.001200000.00

and Development Co. Ltd.Total 1200000.00 1200000.00

10. Fixed assets

Unit: RMB

Item Closing balance Opening balance

Fixed assets 5140968426.24 5188163140.11

Disposal of fixed assets 3299507.08 1754162.06

Total 5144267933.32 5189917302.17

103Interim Report 2024 of Wuliangye Yibin Co. Ltd.

(1) Information on fixed assets

Unit: RMB

Buildings and Specialised

Item General equipment Transport equipment Other equipment Total

constructions equipment

I Gross amount:

1. Opening balance 8614499374.03 3164665585.49 1851502601.18 158020886.43 713178799.71 14501867246.84

2. Increases in the current

4763971.4833943386.65118526631.934994179.3333681155.52195909324.91

period

(1) Acquisition 1322871.30 33818444.41 93128293.87 4994179.33 33590424.00 166854212.91

(2) Transferred from

3441100.18124942.2425398338.0690731.5229055112.00

construction in progress

(3) Increase from business

combination

3. Decreases in the current

3623619.7570126166.7035760694.414270578.684796286.53118577346.07

period

(1) Disposed or scrapped 3623619.75 70126166.70 35760694.41 4270578.68 4796286.53 118577346.07

4. Closing balance 8615639725.76 3128482805.44 1934268538.70 158744487.08 742063668.70 14579199225.68

II Accumulated depreciation

1. Opening balance 4539071966.05 2824994994.72 1252007853.00 97287161.70 573593089.72 9286955065.19

2. Increases in the current

128128406.5728553328.4248221148.348743141.8216036084.48229682109.63

period

(1) Provisions 128128406.57 28553328.42 48221148.34 8743141.82 16036084.48 229682109.63

3. Decreases in the current

2401401.7062170896.4129425346.624078744.094311580.05102387968.87

period

(1) Disposed or scrapped 2401401.70 62170896.41 29425346.62 4078744.09 4311580.05 102387968.87

104Interim Report 2024 of Wuliangye Yibin Co. Ltd.

4. Closing balance 4664798970.92 2791377426.73 1270803654.72 101951559.43 585317594.15 9414249205.95

III Impairment allowances

1. Opening balance 15412584.75 9953302.88 911614.26 471539.65 26749041.54

2. Increases in the current

period

(1) Provisions

3. Decreases in the current

2767448.052767448.05

period

(1) Disposed or scrapped 2767448.05 2767448.05

4. Closing balance 15412584.75 7185854.83 911614.26 471539.65 23981593.49

IV Carrying amount

1. Closing carrying amount 3935428170.09 329919523.88 662553269.72 56792927.65 156274534.90 5140968426.24

2. Opening carrying amount 4060014823.23 329717287.89 598583133.92 60733724.73 139114170.34 5188163140.11

105Interim Report 2024 of Wuliangye Yibin Co. Ltd.

(2) Fixed assets that are temporarily idle

The Company has no major fixed assets that are temporarily idle.

(3) Fixed assets leased out under operating leases

Unit: RMB

Item Closing carrying amount

Buildings and constructions 96823526.37

Equipment 5374272.51

Total 102197798.88

(4) Fixed assets without certificate of title

Unit: RMB

Item Carrying amount Reason for not obtaining certificate of title

The certificate of title has not been obtained due to historical reasons to which

Buildings and

780425693.07 the Company has attached great importance and planned to obtain the

constructions

certificate of title gradually.Other information: According to the Interim Regulation on Real Estate Registration of Sichuan Province

2016 the property ownership certificate and the land use certificate are integrated into the real estate ownership

certificate. The Company is sorting out relevant assets and handling with the certificate of title of relevant assets.

(5) Impairment tests of fixed assets

There were no further impairments of fixed assets as at the end of the current period.

(6) Disposal of fixed assets

Unit: RMB

Item Closing balance Opening balance

Equipment 3299507.08 1754162.06

Total 3299507.08 1754162.06

11. Construction in progress

Unit: RMB

Item Closing balance Opening balance

Construction in progress 6806944298.81 5620810349.02

Engineering materials 2546073.18 2546073.18

Total 6809490371.99 5623356422.20

106Interim Report 2024 of Wuliangye Yibin Co. Ltd.

(1) Construction in progress

Unit: RMB

Closing balance Opening balance

Project

Gross amount Impairment allowance Carrying amount Gross amount Impairment allowance Carrying amount

Construction in progress 6809344304.36 2400005.55 6806944298.81 5623210354.57 2400005.55 5620810349.02

Total 6809344304.36 2400005.55 6806944298.81 5623210354.57 2400005.55 5620810349.02

(2) Changes in important construction in progress in the current period

Unit: RMB

Of Interes

Transfe Cumulat

which: t

rred to ive Cumul

Other Capitali capital

fixed project Project ative

Increase in the decreases in zed ization Funding

Project Budget Opening balance assets Closing balance investme progres capitali

current period the current interest rate source

in the nt as % s zed

period in the for the

current of the interest

current current

period budget

period period

Liquor Packaging and

Integrated Smart Storage- Owned and

8596655000.001340216266.8393227366.171433443633.0016.67%40.00%

and-delivery Project raised funds

(note 1)

Owned

funds

Baijiu Cellar Renovation

1726166000.00 917726424.83 42505440.07 960231864.90 55.63% 98.00% subsidies

Project

and raised

funds

Qu-making Workshop Owned

2358117500.00495755748.44158137469.03653893217.4727.73%75.00%

Expansion Project funds

100000-ton Ecological

Owned

Distillery Project (Phase 1407954000.00 324339479.36 159816635.46 484156114.82 34.39% 85.00%

funds

I)

100000-ton Ecological

Owned

Distillery Project (Phase 4861043000.00 305210714.63 212384527.13 376139.76 517219102.00 10.65% 30.00%

funds

II)

Wuliangye Gateway Area Owned

5027737600.0043780484.4457524315.57101304800.012.01%5.00%

Project funds

Wuliangye 501 Ancient

Fermentation Pits- Owned

1613991000.003076226.43108561272.51111637498.946.92%9.00%

Chinese Baijiu Cultural funds

Sanctuary Project

107Interim Report 2024 of Wuliangye Yibin Co. Ltd.

New centralised

Owned

wastewater treatment 1200000000.00 13958788.95 120068678.29 134027467.24 11.17% 24.98%

funds

plant

Total 26791664100.00 3444064133.91 952225704.23 376139.76 4395913698.38

Note 1: The total budget investment in liquor packaging and integrated smart storage-and-delivery project is RMB8596655000 among which the investment

in construction is RMB6787568000 with RMB1809087000 of initial working capital. The project has two phases. The progress of the first phase is 88% and the

second phase will begin at the right time according to the production and operations of the Company. The total progress of the two phases of the project is 40%.

108Interim Report 2024 of Wuliangye Yibin Co. Ltd.

(3) Impairment allowances established for construction in progress for the current period

There were no additional impairments of construction in progress as at the end of the current period.

(4) Impairment tests of construction in progress

□ Applicable □ Not applicable

(5) Engineering materials

Unit: RMB

Closing balance Opening balance

Item Impairment Carrying Impairmen

Gross amount Gross amount Carrying amount

allowance amount t allowance

Engineering

2546073.182546073.182546073.182546073.18

materials

Total 2546073.18 2546073.18 2546073.18 2546073.18

12. Right-of-use assets

(1) Right-of-use assets

Unit: RMB

Buildings and Specialised Transport

Item Land use right Total

constructions equipment equipment

I Gross amount

1. Opening balance 263446011.50 366174.21 1407132.27 281179086.24 546398404.22

2. Increases in the

219153644.222149156.25847706504.221069009304.69

current period

(1) Operating

219153644.222149156.25847706504.221069009304.69

leases

3. Decreases in the

32423382.5232423382.52

current period

(1) Expiry or

32423382.5232423382.52

termination of leases

4. Closing balance 450176273.20 2515330.46 1407132.27 1128885590.46 1582984326.39

II Accumulated

depreciation

1. Opening balance 137113083.18 325488.19 970431.12 281179086.24 419588088.73

2. Increases in the

72900828.18339179.9262385.90141284417.40214586811.40

current period

(1) Provisions 72900828.18 339179.92 62385.90 141284417.40 214586811.40

3. Decreases in the

31238044.5231238044.52

current period

(1) Disposal

(2) Expiry or

31238044.5231238044.52

termination of leases

4. Closing balance 178775866.84 664668.11 1032817.02 422463503.64 602936855.61

III Impairment

allowances

109Interim Report 2024 of Wuliangye Yibin Co. Ltd.

1. Opening balance

2. Increases in the

current period

(1) Provisions

3. Decreases in the

current period

(1) Disposal

4. Closing balance

IV Carrying amount

1. Closing carrying

271400406.361850662.35374315.25706422086.82980047470.78

amount

2. Opening carrying

126332928.3240686.02436701.15126810315.49

amount

(2) Impairment tests of right-of-use assets

There were no impairments of right-of-use assets as at the end of the current period.

13. Intangible assets

(1) Intangible assets

Unit: RMB

Non-

Paten patent Technology use

Item Land use right Software system Copyright Total

ts technol right

ogy

I Gross amount

1. Opening balance 2026041189.87 397882359.20 10391942.73 8066037.47 2442381529.27

2. Increases in the

614250575.2049385582.03663636157.23

current period

(1) Acquisition 614250575.20 49385582.03 663636157.23

(2) Internal

research and

development

(3) Increase from

business combination

3. Decreases in the

4474612.574474612.57

current period

(1) Disposal 4474612.57 4474612.57

4. Closing balance 2640291765.07 442793328.66 10391942.73 8066037.47 3101543073.93

II Accumulated

amortization

1. Opening balance 179504424.15 189470419.56 10352084.37 6183962.16 385510890.24

110Interim Report 2024 of Wuliangye Yibin Co. Ltd.

2. Increases in the

36687330.3336851224.793679.26806603.7674348838.14

current period

(1) Provisions 36687330.33 36851224.79 3679.26 806603.76 74348838.14

3. Decreases in the

4474612.574474612.57

current period

(1) Disposal 4474612.57 4474612.57

4. Closing balance 216191754.48 221847031.78 10355763.63 6990565.92 455385115.81

III Impairment

allowances

1. Opening balance

2. Increases in the

current period

(1) Provisions

3. Decreases in the

current period

(1) Disposal

4. Closing balance

IV Carrying amount

1. Closing carrying

2424100010.59220946296.8836179.101075471.552646157958.12

amount

2. Opening carrying

1846536765.72208411939.6439858.361882075.312056870639.03

amount

Intangible assets created by internal research and development of the Company accounted for 0.00% of its

total intangible assets as at the end of the current period.

(2) Land use right failed to accomplish certification of property

Unit: RMB

Reason for failing to accomplish certification of

Item Carrying amount

property

Land of the Wuliangye Gateway Area Certification of property has not yet started for the

1258876888.48

Project construction planning is still being optimized.

(3) Impairment tests of intangible assets

□ Applicable □ Not applicable

14. Goodwill

(1) Gross amounts of goodwill

Unit: RMB

Increase in the current Decrease in the

period current period

Opening Closing

Investee or item generating goodwill

balance Generated due to Dispo balance

business

sal

combination

111Interim Report 2024 of Wuliangye Yibin Co. Ltd.

Sichuan Yibin Global Group Shenzhou

37535.9637535.96

Glass Co. Ltd.Sichuan Yibin Global Gelasi Glass

18005.1818005.18

Manufacturing Co. Ltd.Sichuan Yibin Plastic Packaging Materials

666461.77666461.77

Company Limited

Sichuan Yibin Push Group 3D Co. Ltd. 899616.62 899616.62

Total 1621619.53 1621619.53

15. Long-term prepaid expense

Unit: RMB

Increase in the Amortization in

Item Opening balance Other decreases Closing balance

current period the current period

Moulds 136844410.41 21085088.53 31666256.69 126263242.25

Overhaul expenses

19961882.39346541.394552266.6915756157.09

of kilns

Others 6313731.06 2883736.64 2021927.58 7175540.12

Total 163120023.86 24315366.56 38240450.96 149194939.46

16. Deferred income tax assets/deferred income tax liabilities

(1) Deferred income tax assets which have not been offset

Unit: RMB

Closing balance Opening balance

Item Deductible temporary Deferred income tax Deductible temporary Deferred income tax

differences assets differences assets

Asset impairment allowances 97125009.20 19159900.44 97497278.56 19252967.78

Unrealized profit of internal

1052883699.72263220924.931188281924.48297070481.12

transactions

Employee benefits payable 3492489038.76 873122259.69 3490817759.43 872704439.86

Lease liabilities (inclusive of

1020069673.72251485867.60130235057.6032558764.42

the current portion)

Accrued expenses etc. 4346812287.04 1086703071.76 4084095658.56 1021023914.64

Total 10009379708.44 2493692024.42 8990927678.63 2242610567.82

(2) Deferred income tax liabilities which have not been offset

Unit: RMB

Closing balance Opening balance

Item Taxable temporary Deferred income tax Taxable temporary Deferred income tax

differences liabilities differences liabilities

Right-of-use assets 980047470.78 240471806.67 126810315.49 31702578.88

Total 980047470.78 240471806.67 126810315.49 31702578.88

(3) Details about deferred income tax assets which have not been recognized

Unit: RMB

Item Closing balance Opening balance

Deductible temporary differences 1227844.03 2210106.17

Deductible losses 281021754.69 238826934.43

112Interim Report 2024 of Wuliangye Yibin Co. Ltd.

Total 282249598.72 241037040.60

(4) Deductible losses of deferred income tax assets which have not been recognized will become due in the

following years

Unit: RMB

Year Closing amount Opening amount Remarks

202433348604.2737175954.09

202526085821.4526822159.35

20260.000.00

202730804853.3231108726.70

2028143720094.29143720094.29

202947062381.36

Total 281021754.69 238826934.43

17. Other non-current assets

Unit: RMB

Closing balance Opening balance

Impa

Impai

Item irmerment

Gross amount Carrying amount Gross amount nt Carrying amount

allow

allow

ance

ance

Advances of progress

payment for information 173185173.27 173185173.27 197884442.32 197884442.32

system construction

Prepayments for land bids 47308599.07 47308599.07 617111764.28 617111764.28

Prepayments for equipment 71585040.00 71585040.00 9821017.69 9821017.69

Total 292078812.34 292078812.34 824817224.29 824817224.29

18. Assets with restricted ownership or rights-of-use

Unit: RMB

At the end of the current period At the beginning of the current period

Type Type

Item of of

Gross amount Carrying amount Restriction Gross amount Carrying amount Restriction

restric restric

tion tion

Security deposits Security deposits

for bank for bank

acceptance bills acceptance bills

other security other security

Secur deposits and the Secur deposits and the

Monetary ity balance in the ity balance in the

234648885.56234648885.56200977259.48200977259.48

assets depos securities trading depos securities trading

it etc. account with the it etc. account with the

Yibin Business Yibin Business

Department of Department of

Essence Essence

Securities Securities

Total 234648885.56 234648885.56 200977259.48 200977259.48

113Interim Report 2024 of Wuliangye Yibin Co. Ltd.

19. Notes payable

Unit: RMB

Category Closing balance Opening balance

Bank acceptance notes 569729467.22 732432611.26

Total 569729467.22 732432611.26

There were no notes payable which became mature but were unpaid as at the end of the current period.

20. Accounts payable

(1) Presentation of accounts payable

Unit: RMB

Item Closing balance Opening balance

Accounts payable 8951591862.82 8864206997.09

Total 8951591862.82 8864206997.09

(2) Significant accounts payable that are over one year or overdue

There were no significant accounts payable that were over 1 year or overdue as at the end of the current

period.

21. Other payables

Unit: RMB

Item Closing balance Opening balance

Dividends payable 18127109383.35

Other payables 5827050723.33 5385776903.69

Total 23954160106.68 5385776903.69

(1) Dividends payable

Unit: RMB

Item Closing balance Opening balance

Dividends payable to ordinary

18127109383.35

shareholders

Total 18127109383.35

(2) Other payables

1) Presentation of other payables by nature

Unit: RMB

Item Closing balance Opening balance

Image publicity expense and sales

3988265969.583641584720.31

promotional expense

Security deposits 1027541795.46 961975482.82

Frozen funds 271011242.15 272831242.15

Collecting payment on behalf of others 182101820.43 116936716.76

Claims from safeguarding rights 26908452.67 32741432.38

Others 331221443.04 359707309.27

Total 5827050723.33 5385776903.69

114Interim Report 2024 of Wuliangye Yibin Co. Ltd.

2) Significant other payables that are over one year or overdue

Unit: RMB

Item Closing balance Reason for unsettlement or carryforward

Frozen funds 262797339.21

Total 262797339.21

22. Advances from customers

(1) Presentation of advances from customers

Unit: RMB

Item Closing balance Opening balance

Advances from customers 18100649.63 17522814.61

Total 18100649.63 17522814.61

(2) Significant advances from customers that are over 1 year or overdue

There were no significant advances from customers that were over 1 year or overdue in the current

period.

23. Contract liabilities

Unit: RMB

Item Closing balance Opening balance

Advances from customers 8157503632.65 6864383635.25

Total 8157503632.65 6864383635.25

Significant contract liabilities that are over 1 year: There were no significant contract liabilities that were

over 1 year as at the end of the current period.The Company is subject to the disclosure requirements for the food and wine & liquor production industry

in Guidelines No. 3 of the Shenzhen Stock Exchange for the Self-Regulation of Listed Companies—Industry-

specific Information Disclosure.Presented by aging:

Unit: RMB

Aging Gross amount

Within 1 year 7984591321.20

1 to 2 years 28369223.49

2 to 3 years 27764821.41

More than 3 years 116778266.55

Total 8157503632.65

24. Employee benefits payable

(1) Presentation of employee benefits payable

Unit: RMB

Increase in the Decrease in the

Item Opening balance Closing balance

current period current period

I Short-term remuneration 3872108376.77 4019496112.28 4243469153.08 3648135335.97

II Post-employment benefits -

14059.66567078852.79567078852.7914059.66

defined contribution plans

Total 3872122436.43 4586574965.07 4810548005.87 3648149395.63

115Interim Report 2024 of Wuliangye Yibin Co. Ltd.

(2) Presentation of short-term remuneration

Unit: RMB

Increase in the Decrease in the

Item Opening balance Closing balance

current period current period

1. Salaries bonuses allowances

3810778669.493418286296.103603873179.093625191786.50

and subsidies

2. Employee benefits 59940612.71 59940612.71

3. Social insurance charges 154678.65 184611321.60 184611321.60 154678.65

Including: Medical insurance

154486.34172542133.11172542133.11154486.34

premium

Industrial injury

107.4511839439.0311839439.03107.45

insurance premium

Birth insurance

84.86229749.46229749.4684.86

premium

4. Housing provident fund 36668368.00 281459796.07 318128164.07

5. Labour union expenditure and

24506660.6375198085.8076915875.6122788870.82

personnel educational fund

Total 3872108376.77 4019496112.28 4243469153.08 3648135335.97

(3) Presentation of defined contribution plans

Unit: RMB

Increase in the current Decrease in the current

Item Opening balance Closing balance

period period

1. Basic pension

14059.66375472359.13375472359.1314059.66

insurance

2. Unemployment

14112505.3514112505.35

insurance premium

3. Corporate pension

177493988.31177493988.31

contribution

Total 14059.66 567078852.79 567078852.79 14059.66

25. Taxes and surcharge payable

Unit: RMB

Item Closing balance Opening balance

VAT 1317938207.67 1287318757.45

Consumption tax 1144873056.77 1576918931.41

Corporate income tax 1672676981.15 2936171629.30

Individual income tax 20856744.85 57956239.44

Urban maintenance and construction tax 176760344.31 207087550.24

Education surcharge 76064249.89 89319297.77

Local education surcharge 50714678.73 59551377.32

Deed tax 37629000.00 44169896.88

Stamp duty 6318725.81 8857961.71

Land use tax 669153.14 669153.14

Property tax 408071.37 425171.77

116Interim Report 2024 of Wuliangye Yibin Co. Ltd.

Environmental protection tax 262.28 12179.34

Total 4504909475.97 6268458145.77

26. Current portion of non-current liabilities

Unit: RMB

Item Closing balance Opening balance

Current portion of lease liabilities 373908963.84 14512448.92

Total 373908963.84 14512448.92

27. Other current liabilities

Unit: RMB

Item Closing balance Opening balance

Output tax to be transferred 624081189.42 663723991.63

Total 624081189.42 663723991.63

28. Lease liabilities

Unit: RMB

Item Closing balance Opening balance

Lease liabilities 646160709.88 115722608.68

Total 646160709.88 115722608.68

29. Deferred income

Unit: RMB

Increase in the Decrease in the

Item Opening balance Closing balance Cause

current period current period

Government grants 253043325.37 239700.00 6332810.21 246950215.16

Total 253043325.37 239700.00 6332810.21 246950215.16

30. Share capital

Unit: RMB

Increase/decrease in the current period (+/-)

Opening balance Bonus Bonus issue Closing balance

New issue issue from from capital Others Subtotal

profit reserves

Total shares 3881608005.00 3881608005.00

31. Capital reserves

Unit: RMB

Increase in the Decrease in the current

Item Opening balance Closing balance

current period period

Capital premium (share

2682523702.982682523702.98

premium)

Other capital reserves 123383.17 123383.17

Total 2682647086.15 2682647086.15

32. Surplus reserves

Unit: RMB

117Interim Report 2024 of Wuliangye Yibin Co. Ltd.

Increase in the current Decrease in the current

Item Opening balance Closing balance

period period

Statutory surplus

33588553502.8133588553502.81

reserves

Total 33588553502.81 33588553502.81

33. Retained earnings

Unit: RMB

Item H1 2024 H1 2023

Retained earnings at the end of the prior period

89405432446.5579028605172.04

before adjustment

Total retained earnings at the beginning of the

period before adjustment (“+” for increase “-” for 2554581.61

decrease)

Retained earnings at the beginning of the period

89405432446.5579031159753.65

after adjustment

Plus: Net profit attributable to owners of the

19056829528.8717036708791.18

Company as the parent in the current period

Less: Dividends payable to ordinary shareholders 18127109383.35 14680241440.97

Retained earnings at the end of the period 90335152592.07 81387627103.86

Adjustments to the retained earnings at the beginning of the period:

1) The retained earnings at the beginning of the period are adjusted by RMB0.00 due to the retroactive

adjustment according to the Accounting Standards for Business Enterprises and relevant new provisions.

2) The retained earnings at the beginning of the period are adjusted by RMB0.00 due to changes in

accounting policies.

3) The retained earnings at the beginning of the period are adjusted by RMB0.00 due to correction of major

accounting errors.

4) The retained earnings at the beginning of the period are adjusted by RMB0.00 due to changes in the

combination scope arising from the same control.

5) The retained earnings at the beginning of the period are adjusted by RMB0.00 in total due to other

adjustments.

34. Operating revenue and cost of sales

Unit: RMB

H1 2024 H1 2023

Item

Revenue Costs Revenue Costs

Principal operations 50383472503.12 11273317113.18 45156459899.92 10308637784.27

Other operations 264554075.53 192821394.02 349924918.45 259322560.50

Total 50648026578.65 11466138507.20 45506384818.37 10567960344.77

Breakdown of operating revenue and cost of sales:

Unit: RMB

Liquor products

Type of contract

Operating revenue Cost of sales

By operating segment

118Interim Report 2024 of Wuliangye Yibin Co. Ltd.

East China 13552135672.17 2059657459.06

South China 3496256070.40 488121708.11

West China 16758820769.19 3728672761.25

North China 4841310361.21 668971370.38

Central China 8462195848.29 1257657234.31

By sales channel

Online 2839694298.74 370942307.09

Offline 44271024422.52 7832138226.02

Total 47110718721.26 8203080533.11

Information related to performance obligations:

The amount of revenue corresponding to performance obligations that have been contracted but not yet

performed or not completed at the end of the Reporting Period was RMB8157503632.65.

35. Tax and surcharges

Unit: RMB

Item H1 2024 H1 2023

Consumption tax 5687106649.35 5192856587.27

Urban maintenance and construction tax 803552169.25 706212574.90

Education surcharge 344701516.76 303125551.67

Tax on natural resources 109522.00 31524.50

Property tax 23205815.59 23143856.12

Land use tax 41156166.30 31595916.16

Vehicle and vessel usage tax 47254.77 52097.99

Stamp duty 39863996.75 36370189.99

Local education surcharge 229801011.22 202085660.05

Environmental protection tax 322241.53 297066.68

Total 7169866343.52 6495771025.33

36. Administrative expenses

Unit: RMB

Item H1 2024 H1 2023

Comprehensive expenses of the Company

(including travel office expenses of the Board of

741401679.01758888165.15

Directors employee remuneration labour

insurance labour protection appliances etc.)

Rents 19137530.26 8267174.44

Trademark and logo royalties 583929526.70 523076192.92

Comprehensive service fee 1049929.49 47192255.79

Others 393042973.06 419474974.55

Total 1738561638.52 1756898762.85

37. Selling expenses

Unit: RMB

Item H1 2024 H1 2023

Image publicity expense 932275200.41 759134414.08

Sales promotional expense 3440601772.58 2612938992.07

119Interim Report 2024 of Wuliangye Yibin Co. Ltd.

Storage and logistics expenses 272408237.24 268515233.60

Expenses of labour 455092791.02 459063335.23

Other expenses 265964172.17 220793644.63

Total 5366342173.42 4320445619.61

38. Research and development expense

Unit: RMB

Item H1 2024 H1 2023

Comprehensive expenses (including

travel office payroll labour insurance 103573828.45 91323366.51

labour protection appliances etc.)

Material expenses 19708709.93 17295271.11

Product design fees 5713011.34 4148060.23

Depreciation and amortization expenses 8987010.37 7520452.33

Others 21778381.19 15390364.86

Total 159760941.28 135677515.04

39. Finance costs

Unit: RMB

Item H1 2024 H1 2023

Interest costs 17030819.31 6811996.58

Less: Interest income 1423837619.29 1259323479.12

Exchange loss 8853.74 137000.43

Less: Exchange gains 168365.72 265109.71

Service charge of financial institutions 1334764.34 803023.55

Others 4776438.16 1765171.86

Total -1400855109.46 -1250071396.41

40. Other income

Unit: RMB

Sources of other income H1 2024 H1 2023

Government subsidies 166637116.01 185029071.91

Tax rebates 44310389.47 24684000.00

Tax preferences 9801882.16 8998855.65

Total 220749387.64 218711927.56

41. Investment income

Unit: RMB

Item H1 2024 H1 2023

Return on long-term equity investments

21877331.7020626708.35

measured using the equity method

Total 21877331.70 20626708.35

42. Credit impairment losses

Unit: RMB

Item H1 2024 H1 2023

Loss on uncollectible accounts

-1477823.13-1889602.14

receivable

120Interim Report 2024 of Wuliangye Yibin Co. Ltd.

Loss on uncollectible other receivables -712187.88 -1824092.30

Total -2190011.01 -3713694.44

43. Gains on disposals of assets

Unit: RMB

Source of gains on disposals of assets H1 2024 H1 2023

Disposal of non-current assets -3917579.22 237968.66

Total -3917579.22 237968.66

44. Non-operating income

Unit: RMB

Amounts included in current

Item H1 2024 H1 2023

exceptional profit or loss

Penalty income 4296135.48 4249193.13 4296135.48

Gains from scrap of non-current assets 138044.69 81404.56 138044.69

Others 8070931.91 7619708.88 8070931.91

Total 12505112.08 11950306.57 12505112.08

45. Non-operating expense

Unit: RMB

Amounts included in current

Item H1 2024 H1 2023

exceptional profit or loss

Donations 906300.00 4450100.00 906300.00

Penalty expenditure 410453.12 400029.17 410453.12

Loss on scrap of non-current assets 878000.59 46819840.81 878000.59

Exceptional loss 192564.22 495599.84 192564.22

Others 4777144.49 3083375.63 4777144.49

Total 7164462.42 55248945.45 7164462.42

46. Income tax expense

(1) List of income tax expense

Unit: RMB

Item H1 2024 H1 2023

Current income tax expense 6640486565.75 5406739476.25

Deferred income tax expense -76945308.03 472993837.99

Total 6563541257.72 5879733314.24

(2) Reconciliation from accounting profit to income tax expense

Unit: RMB

Item H1 2024

Gross profit 26390071862.94

Income tax expense based on the statutory/applicable tax rates 6597517965.74

Effects of different tax rates of subsidiaries -85397061.26

Effects of adjustments to income tax of the prior period 52675689.69

Effects of non-taxable revenue -5469332.93

121Interim Report 2024 of Wuliangye Yibin Co. Ltd.

Effects of non-deductible costs expenses and losses 409296.01

Effects of the utilization of deductible losses on which deferred income tax

-1216890.29

assets were unrecognized in the prior period

Effects of deductible temporary differences or losses on which deferred

11520029.80

income tax assets are unrecognized in the current period

Effects of the over-deduction in the calculation of the taxable amount in

-6498439.04

relation to research and development expense

Income tax expense 6563541257.72

47. Cash flow statement items

(1) Cash generated from/used in operating activities

Cash generated from other operating activities:

Unit: RMB

Item H1 2024 H1 2023

Interest income 397946827.05 350049501.12

Security deposits and government grants

416178831.10403987853.63

received

Total 814125658.15 754037354.75

Cash used in other operating activities:

Unit: RMB

Item H1 2024 H1 2023

Expenses relating to selling 1682097066.99 1255864296.21

Trademark and logo royalties 460920003.79 442155116.39

Security deposits paid payments for current

1261267878.471101723259.65

transactions and other out-of-pocket expenses

Total 3404284949.25 2799742672.25

(2) Cash generated from/used in financing activities

Cash used in other financing activities:

Unit: RMB

Item H1 2024 H1 2023

Payment for the lease liabilities 157849148.32 201882821.01

Total 157849148.32 201882821.01

Changes in liabilities as a result of financing activities:

□ Applicable □ Not applicable

48. Supplementary information to the cash flow statement

(1) Supplementary information to the cash flow statement

Unit: RMB

Supplementary information H1 2024 H1 2023

1. Reconciliation of net profit to net cash generated from/used in

operating activities:

Net profit 19826530605.22 17792533904.19

Add: Asset impairment allowances 1412916.55 937272.04

Depreciation of fixed assets depletion of oil and gas 229682109.63 215850385.03

122Interim Report 2024 of Wuliangye Yibin Co. Ltd.

assets and depreciation of productive living assets

Depreciation of right-of-use assets 214586811.40 187720696.56

Amortization of intangible assets 74348838.14 35263937.14

Amortization of long-term prepaid expense 38240450.96 37841942.84

Loss on the disposal of fixed assets intangible assets and

3917579.22-237968.66

other long-term assets (“-” for gain)

Loss on the retirement of fixed assets (“-” for gain) 739955.90 46738436.25

Loss on changes in fair value (“-” for gain)

Finance costs (“-” for income) 17030819.31 6811996.58

Loss on investment (“-” for income) -21877331.70 -20626708.35

Decrease in deferred income tax assets (“-” for increase) -251081456.60 328617545.23

Increase in deferred income tax liabilities (“-” for

208769227.79-44345601.14

decrease)

Decrease in inventories (“-” for increase) 541538716.59 -114834365.08

Decrease in operating receivables (“-” for increase) -6566479747.87 2433772661.79

Increase in operating payables (“-” for decrease) -889430838.91 -9576225248.12

Others

Net cash generated from/used in operating activities 13427928655.63 11329818886.30

2. Significant investing and financing activities that involve no

cash proceeds or payments:

Conversion of debt to capital

Current portion of convertible corporate bonds

Fixed assets under finance leases

3. Net changes in cash and cash equivalents:

Closing balance of cash 125296379907.83 89762101198.36

Less: Opening balance of cash 113095684224.30 90584643897.66

Add: Closing balance of cash equivalents

Less: Opening balance of cash equivalents

Net increase in cash and cash equivalents 12200695683.53 -822542699.30

(2) Composition of cash and cash equivalents

Unit: RMB

Item Closing balance Opening balance

I Cash 125296379907.83 113095684224.30

Of which: Cash on hand 4855.27 42156.81

Bank deposits that can be readily

125204874285.18113032146687.11

drawn on demand

Other monetary assets that can be

91500767.3863495380.38

readily drawn on demand

II Cash equivalents

III Cash and cash equivalents end of the

125296379907.83113095684224.30

period

(3) Monetary assets that do not belong to cash and cash equivalents

Unit: RMB

123Interim Report 2024 of Wuliangye Yibin Co. Ltd.

Reason for not belong to cash and

Item H1 2024 H1 2023

cash equivalents

Security deposits for bank

234648885.56 304672444.89 Restricted use

acceptance bills etc.Accrued interest on term

3185530219.10 2490524342.90 Accrued interest

deposits

Total 3420179104.66 2795196787.79

49. Foreign currency monetary items

(1) Foreign currency monetary items

Unit: RMB

Closing balance in foreign

Item Exchange rate Closing balance in RMB

currency

Monetary assets

Of which: USD 2700964.13 7.11052 19205255.79

EUR

HKD

Accounts receivable

Of which: USD

EUR

HKD

Long-term borrowings

Of which: USD

EUR

HKD

(2) Overseas business entities (for substantial overseas business entities the following information shall

be disclosed: principal place of business functional currency and basis for the choice change of

functional currency and reasons)

□ Applicable □ Not applicable

50. Leases

(1) The Company as the lessee

□ Applicable □ Not applicable

Variable lease payments not included in lease liabilities:

□ Applicable □ Not applicable

Unit: RMB

Item H1 2024

Variable lease payments not included in lease liabilities 73943265.46

Expenses on short-term leases or leases of low-value assets:

□ Applicable □ Not applicable

Unit: RMB

124Interim Report 2024 of Wuliangye Yibin Co. Ltd.

Item H1 2024

Expenses on short-term leases or leases of low-value assets 29478761.63

(2) The Company as the lessor

Operating leases with the Company as the lessor:

□ Applicable □ Not applicable

Unit: RMB

Of which: Income related to variable lease payments not

Item Lease income

included in lease receipts

Income from operating leases 16075015.49

Total 16075015.49

Finance leases with the Company as the lessor:

□ Applicable □ Not applicable

Yearly undiscounted lease receipts in the coming five years:

□ Applicable □ Not applicable

VIII Research and Development Expenditures

Unit: RMB

Item H1 2024 H1 2023

Comprehensive expenses (including travel office payroll labour insurance

103573828.4591323366.51

labour protection appliances etc.)

Material expenses 19708709.93 17295271.11

Product design fees 5713011.34 4148060.23

Depreciation and amortization expenses 8987010.37 7520452.33

Others 21778381.19 15390364.86

Total 159760941.28 135677515.04

Of which: expensed research and development expenditures 159760941.28 135677515.04

1. Significant outsourced research and development projects

The Company had no significant outsourced research and development projects.IX Changes to the Scope of the Consolidated Financial Statements

1. Business combinations involving entities not under common control

(1) Business combinations involving entities not under common control in the current period

There were no business combinations involving entities not under common control in the Reporting Period.

2. Business combinations involving entities under common control

(1) Business combinations involving entities under common control in the current period

There were no business combinations involving entities under common control in the Reporting Period.

3. Counter purchase

There was no subsidiary acquired by counter purchase during the Reporting Period.

4. Disposal of subsidiary

Indicate whether there was any transaction or event during the current period in which control of a

subsidiary ceased.

125Interim Report 2024 of Wuliangye Yibin Co. Ltd.

□ Yes □ No

Indicate whether there was any step-by-step disposal of the investment in a subsidiary through multiple

transactions and control of the subsidiary ceased during the current period.□ Yes □ No

5. Changes in the consolidation scope for other reasons

As approved at the Second Meeting of the Sixth Board of Directors of 2024 dated 19 April 2024 the

Company’s wholly-owned subsidiary Sichuan Yibin Plastic Packaging Materials Company Limited has

incorporated “Sichuan Yibin Plastic Packaging Products Co. Ltd.” (“Plastic Packaging Products”). Plastic

Packaging Products has a registered capital of RMB50 million and the Company owns 100% of Plastic

Packaging Products.X Interests in Other Entities

1. Interests in subsidiaries

(1) Compositions of the Group

Unit: RMB

Princi The Company’s

pal interest

Place of Nature How the

Registered place

Subsidiary registrat of subsidiary

capital of

ion business Direct Indirect was obtained busine

ss

Sichuan Yibin Wuliangye Distillery Manufa

85000000.00 Yibin Yibin 99.00% 0.99% Incorporated

Co. Ltd. cturing

Yibin Wuliangye Liquor Sales Co. Commer

200000000.00 Yibin Yibin 95.00% Incorporated

Ltd. cial

Yibin Wuliang Tequ and Touqu Commer

20000000.00 Yibin Yibin 95.00% Incorporated

Brand Marketing Co. Ltd. cial

Yibin Wuliangchun Brand Commer

20000000.00 Yibin Yibin 95.00% Incorporated

Marketing Co. Ltd cial

Yibin Wuliangye Series Liquor Commer

20000000.00 Yibin Yibin 95.00% Incorporated

Brand Marketing Co. Ltd. cial

Sichuan Yibin Wuliangye Supply Commer

30000000.00 Yibin Yibin 99.00% 0.95% Incorporated

and Marketing Co. Ltd. cial

Manufa 100.00

Yibin Jiangjiu Liquor Co. Ltd. 50000000.00 Yibin Yibin Incorporated

cturing %

Sichuan Yibin Wuliangye

Manufa

Environmental Protection Industry 537000000.00 Yibin Yibin 51.00% Incorporated

cturing

Co. Ltd.Business

combination

involving

Sichuan Jinwuxin Technology Co. Commer

14000000.00 Yibin Yibin 51.00% entities not

Ltd. cial

under

common

control

Sichuan Jiebeike Environmental Enginee

10000000.00 Yibin Yibin 26.01% Incorporated

Technology Co. Ltd. ring

Yibin Changjiangyuan Liquor Co. Manufa 100.00

20000000.00 Yibin Yibin Incorporated

Ltd. cturing %

Yibin Changjiangyuan Trade Co. Commer 100.00

19800000.00 Yibin Yibin Incorporated

Ltd. cial %

126Interim Report 2024 of Wuliangye Yibin Co. Ltd.

Yibin Changjiangyuan Distillery Manufa 100.00

18900000.00 Yibin Yibin Incorporated

Co. Ltd. cturing %

Yibin Wuliangye Organic Agricult 100.00

10000000.00 Yibin Yibin Incorporated

Agriculture Development Co. Ltd. ural %

Yibin Wuliangye Xianlin Manufa

3000000.00 Yibin Yibin 90.00% Incorporated

Ecological Liquor Co. Ltd. cturing

Yibin Xianlin Liquor Marketing Commer

3000000.00 Yibin Yibin 90.00% Incorporated

Co. Ltd. cial

Sichuan Yibin Wuliangye Jingmei Manufa

14000000.00 Yibin Yibin 97.00% 1.53% Incorporated

Printing Co. Ltd. cturing

Commer

Yibin Xinxing Packaging Co. Ltd. 5000000.00 Yibin Yibin 98.53% Incorporated

cial

Business

combination

involving

Sichuan Yibin Plastic Packaging Manufa 100.00

150000000.00 Yibin Yibin entities not

Materials Company Limited cturing %

under

common

control

Sichuan Yibin Jiang’an Plastic New Manufa 100.00

50000000.00 Yibin Yibin Incorporated

Materials Company Limited cturing %

Sichuan Yibin Plastic Packaging Manufa 100.00

50000000.00 Yibin Yibin Incorporated

Products Co. Ltd. cturing %

Business

combination

involving

Sichuan Yibin Global Group Manufa 100.00

100000000.00 Yibin Yibin entities not

Shenzhou Glass Co. Ltd. cturing %

under

common

control

Business

combination

involving

Sichuan Yibin Global Gelasi Glass Manufa 100.00

200000000.00 Yibin Yibin entities not

Manufacturing Co. Ltd. cturing %

under

common

control

Business

combination

involving

Sichuan Yibin Push Group 3D Co. Manufa 100.00

22133300.00 Yibin Yibin entities not

Ltd. cturing %

under

common

control

Guangdong Plastic Packaging Fosha Manufa 100.00

49000000.00 Foshan Incorporated

Materials Company Limited n cturing %

Sichuan Yibin Wuliangye Investm

50000000.00 Yibin Yibin 95.00% Incorporated

Investment (Consulting) Co. Ltd. ent

Wuliangye Dashijie (Beijing) Trade Beijin Commer

20000000.00 Beijing 95.00% Incorporated

Co. Ltd. g cial

Handan Yongbufenli Liquor Co. Handa Manufa

500000000.00 Handan 51.00% Incorporated

Ltd. n cturing

Linzhang Desheng Liquor Trade Handa Commer

1000000.00 Handan 51.00% Incorporated

Co. Ltd. n cial

Handa Commer

Handan Yongbufenli Sales Co. Ltd. 5000000.00 Handan 51.00% Incorporated

n cial

Wuguchun Jiu Ye Co. Henan. 373280762.00 Huaibi Huaibin Manufa 51.03% Business

127Interim Report 2024 of Wuliangye Yibin Co. Ltd.

China n cturing combination

involving

entities not

under

common

control

Huaibi Commer

Huaibin Tenglong Trade Co. Ltd. 5000000.00 Huaibin 51.03% Incorporated

n cial

Wuguchun Jiu Ye Sales Co. Henan. Huaibi Commer

10000000.00 Huaibin 51.03% Incorporated

China n cial

Sichuan Wuliangye Culture

50000000.00 Yibin Yibin Tourism 80.00% Incorporated

Tourism Development Co. Ltd.Sichuan Wuliangye Tourist Agency

1000000.00 Yibin Yibin Tourism 80.00% Incorporated

Co. Ltd.Commer

Yibin Wuliangye Creart Co. Ltd. 100000000.00 Yibin Yibin 45.00% Incorporated

cial

Sichuan Wuliangye NongXiang Commer

100000000.00 Yibin Yibin 95.00% Incorporated

Baijiu Co. Ltd. cial

Sichuan Wuliangye New Retail Cheng Chengd Commer

100000000.00 90.00% Incorporated

Management Co. Ltd. du u cial

Note on the difference between shareholding proportion and proportion of voting rights in

subsidiary:

As reviewed and approved by the 5th Board of Directors of the Company the Company Beijing Sparkle

Investment Co. Ltd. Shanghai Yue Shan Investment Management Co. Ltd. and Changjiang Growth Capital Co.Ltd. jointly funded and established Yibin Wuliangye Creart Co. Ltd. (hereinafter referred to as the "Creart

Company") of which the registered capital is RMB100 million. The Company contributes RMB45 million taking

up 45% of the registered capital. On 9 December 2014 Shanghai Yue Shan Investment Management Co. Ltd. and

the Company entered into the Investment Cooperation Agreement of Yibin Wuliangye Creart Co. Ltd. through

mutual negotiation Shanghai Yue Shan Investment Management Co. Ltd. entrusted the Company for

management of the 6% equity held by it in Creart Company from the effective date of the agreement till the

duration of Creart Company. The Company will be entitled to the right of management of Shanghai Yue Shan

Investment Management Co. Ltd. in Creart Company and the voting right at the shareholder meetings of Creart

Company. The Company holds 51% of the voting rights at shareholder meetings of Creart Company in total and

therefore Creart Company is included in the consolidated statements.As resolved by the shareholder meeting of Creart Company on 23 February 2018 Changjiang Growth

Capital Co. Ltd. transferred 11% of the equity to Shanghai Yue Shan Investment Management Co. Ltd. and 6%

of the equity to China Financial Investment Management Limited; as resolved by the shareholder meeting of

Creart Company on 16 July 2018 Beijing Sparkle Investment Co. Ltd. transferred 20% of the equity to Beijing

Sparkle Hengye Education and Cultural Development Co. Ltd.; after the said equity transfer the Company still

holds 51% of the voting rights at shareholder meetings of Creart Company and therefore it is included in the

consolidated statements.The basis of controlling the invested company even if holding half or less than half voting rights and

not controlling the invested company even if holding more than half voting rights:

As reviewed and approved by the 5th Board of Directors of the Company the Company Beijing Sparkle

Investment Co. Ltd. Shanghai Yue Shan Investment Management Co. Ltd. and Changjiang Growth Capital Co.Ltd. jointly funded and established Yibin Wuliangye Creart Co. Ltd. (hereinafter referred to as the "Creart

Company") of which the registered capital is RMB100 million. The Company contributes RMB45 million taking

up 45% of the registered capital. On 9 December 2014 Shanghai Yue Shan Investment Management Co. Ltd. and

128Interim Report 2024 of Wuliangye Yibin Co. Ltd.

the Company entered into the Investment Cooperation Agreement of Yibin Wuliangye Creart Co. Ltd. through

mutual negotiation Shanghai Yue Shan Investment Management Co. Ltd. entrusted the Company for

management of the 6% equity held by it in Creart Company from the effective date of the agreement till the

duration of Creart Company. The Company will be entitled to the right of management of Shanghai Yue Shan

Investment Management Co. Ltd. in Creart Company and the voting right at the shareholder meetings of Creart

Company. The Company holds 51% of the voting rights at shareholder meetings of Creart Company in total and

therefore Creart Company is included in the consolidated statements.As resolved by the shareholder meeting of Creart Company on 23 February 2018 Changjiang Growth

Capital Co. Ltd. transferred 11% of the equity to Shanghai Yue Shan Investment Management Co. Ltd. and 6%

of the equity to China Financial Investment Management Limited; as resolved by the shareholder meeting of

Creart Company on 16 July 2018 Beijing Sparkle Investment Co. Ltd. transferred 20% of the equity to Beijing

Sparkle Hengye Education and Cultural Development Co. Ltd.; after the said equity transfer the Company still

holds 51% of the voting rights at shareholder meetings of Creart Company and therefore it is included in the

consolidated statements.

(2) Important non-wholly-owned subsidiaries

Unit: RMB

Declared

Net profit or loss

Non- dividends for non-

attributable to non- Closing balance of non-

Subsidiary controlling controlling

controlling interests controlling interests

interests interests in the

in the current period

current period

Yibin Wuliangye Liquor Sales Co.

5.00%623007257.602339739933.25

Ltd.

129Interim Report 2024 of Wuliangye Yibin Co. Ltd.

(3) Key financial information of important non-wholly-owned subsidiaries

Unit: RMB

Closing balance

Subsidiary

Current assets Non-current assets Total assets Current liabilities Non-current liabilities Total liabilities

64483211627.693557881234.9568041092862.6421432661136.14104253778.9221536914915.06

Opening balance

Yibin Wuliangye Liquor Sales Co.Ltd.Current assets Non-current assets Total assets Current liabilities Non-current liabilities Total liabilities

50607865351.643063184649.2753671050000.9119615941084.6111076120.8019627017205.41

Unit: RMB

H1 2024

Subsidiary

Net cash generated from/used in operating

Operating revenue Net profit Total comprehensive income

activities

38924211000.0912460145152.0812460145152.089335517505.07

H1 2023

Yibin Wuliangye Liquor Sales Co.Ltd. Net cash generated from/used in operating

Operating revenue Net profit Total comprehensive income

activities

34753003408.3312087869194.0312087869194.037643096296.42

130Interim Report 2024 of Wuliangye Yibin Co. Ltd.

2. Interests in joint ventures or associates

(1) Important joint ventures or associates

The Company’s Accounting

Principal Place of interest (%) treatment of

Nature of

Joint venture or associate place of registratio investment in the

business

business n IndireDirect joint venture or

ct associate

Sichuan Yibin Wuliangye Group Finance

Yibin Yibin Finance 40.56% Equity method

Co. Ltd.

(2) Key financial information of important associates

Unit: RMB

Closing balance/H1 2024 Opening balance/H1 2023

Sichuan Yibin Wuliangye Group Finance Sichuan Yibin Wuliangye Group Finance

Co. Ltd. Co. Ltd.Current assets 36865397768.88 11767876781.26

Non-current assets 16824958310.26 41146331998.09

Total assets 53690356079.14 52914208779.35

Current liabilities 48829642034.40 48080869222.79

Non-current liabilities 2866771.42 5478067.66

Total liabilities 48832508805.82 48086347290.45

Non-controlling interests

Equity attributable to the shareholders of

4857847273.324827861488.90

the Company as the parent

Share of net assets in proportion to the

1970342854.061958180619.90

Company’s interest

Adjustments

--Goodwill

--Unrealized profit of internal

transactions

--Others

Carrying amount of equity investments

1970342854.061958180619.90

in associates

Fair value of equity investments in

associates with quoted prices on the open

market

Operating revenue 199580727.31 204373885.44

Net profit 64385784.42 59833900.69

Net profit of discontinued operations

Other comprehensive income

Total comprehensive income 64385784.42 59833900.69

Dividends received from the associates

13952640.0023638368.00

in the current period

131Interim Report 2024 of Wuliangye Yibin Co. Ltd.

(3) Aggregate financial information of unimportant joint ventures and associates

Unit: RMB

Closing balance/H1 2024 Opening balance/H1 2023

Joint ventures:

Aggregate amount in proportion to the

Company’s interests

Associates:

Total carrying amount of investments 57948078.33 62185620.79

Aggregate amount in proportion to the

Company’s interests

--Net profit -4237542.46 -3641921.77

--Total comprehensive income -4237542.46 -3641921.77

3. Interests in structured entities not included in the consolidated financial statements

There were no structured entities that were not included in the consolidated financial statements in the

Reporting Period.XI Government Grants

1. Government grants recognised at the end of the Reporting Period at the amount receivable

□ Applicable □ Not applicable

Reasons for not receiving the projected amount of government grants at the projected time:

□ Applicable □ Not applicable

2. Liability items involving government grants

□ Applicable □ Not applicable

Unit: RMB

Amount

recorder in Amount Other

New grant

non- transferred to changes Related to

Accounting in the

Opening balance operating other income in in the Closing balance assets/inco

item current

income in the current current me

period

the current period period

period

Deferred Related to

251827069.86239700.006307810.19245758959.67

income assets

Deferred Related to

1216255.5125000.021191255.49

income income

Total 253043325.37 239700.00 6332810.21 246950215.16

3. Government grants through profit or loss

□ Applicable □ Not applicable

Unit: RMB

Accounting item H1 2024 H1 2023

Other income 166637116.01 185029071.91

132Interim Report 2024 of Wuliangye Yibin Co. Ltd.

XII Disclosure of Fair Value

1. Closing fair value of assets and liabilities measured at fair value

Unit: RMB

Closing fair value

Item Fair value Fair value Fair value measurement

measurement at measurement at Total

at level III

level I level II

I Consistent fair value

--------

measurement

Receivables financing 19576430505.90 19576430505.90

Other non-current financial assets 1200000.00 1200000.00

Total assets measured at fair value

19577630505.9019577630505.90

on an ongoing basis

II Fair value measurement on a

--------

non-ongoing basis

2. Basis for determining the market value of fair value measurement at level I on an ongoing and non-

ongoing bases

□ Applicable □ Not applicable

3. For fair value measurement at level II on an ongoing and non-ongoing bases qualitative and

quantitative information on the valuation techniques used and significant parameters

□ Applicable □ Not applicable

4. For fair value measurement at level III on an ongoing and non-ongoing bases qualitative and

quantitative information on the valuation techniques used and significant parameters

Receivables financing: Due to the short term of notes receivable held by the Company and the selling time

selling price and selling proportion cannot be estimated reliably the Company measures the notes receivable

according to the par value as a reasonable estimate of fair value.Other non-current financial assets: Since the Company holds other non-current financial assets that are not

traded in an active market and its equity interest in the invested company is low and has no significant influence

it is not realistic and feasible to value the equity in the invested company using the income approach or market

approach and there is no recent introduction of external investors to the invested company or transfer of equity

among shareholders that can be used as a reference basis for determining fair value. In addition the Company has

not found any significant changes in the internal and external environment of the invested company since the

beginning of the year from the analysis of the relevant information available therefore it is a "limited

circumstances" in which the carrying cost can be used as the best estimate of the fair value and therefore the fair

value is based on the cost at the end of the year.

5. For fair value measurement at level III on an ongoing basis reconciliation information between

beginning and ending carrying values and sensitivity analysis of unobservable parameters

□ Applicable □ Not applicable

6. For fair value measurement items on a continuous basis if there is a conversion between different

levels in the current period the reasons for the conversion and the policy for determining the conversion

time point

□ Applicable □ Not applicable

133Interim Report 2024 of Wuliangye Yibin Co. Ltd.

7. Changes in valuation techniques occurring in the current period and reasons for changes

□ Applicable □ Not applicable

8. Fair value of financial assets and financial liabilities not measured at fair value

□ Applicable □ Not applicable

XIII Related Parties and Related-Party Transactions

1. Information on the parent company of the Company

The parent

Place of The parent

Nature of company’s voting

Name of the parent company registratio Registered capital company’s interest

business right percentage in

n in the Company

the Company

Yibin Development Holding

Yibin Investment RMB5 billion 34.43% 34.43%

Group Co. Ltd.Information on the parent company of the Company:

Yibin Development Holding Group Co. Ltd. is a wholly state-owned company funded and established by the

People’s Government of Yibin City. Legal representative of the company is Han Chengke and its registered

capital is RMB5 billion. Its business scope includes the state-owned property right (including state-owned shares)

state-owned assets and state investments as authorized by the People's Government of Yibin City. The company

as an investor conducts capital management and assets management by holding shareholding investment and

receiving assignment transfer auction and lease within the limits of authority.Main functions of Yibin Development Holding Group Co. Ltd. include: First holding state-owned equity

and exercising shareholder’s rights in municipal-level enterprise on behalf of the People’s Government of Yibin

City; second raising funds for key construction projects as an investment and financing platform of the People’s

Government of Yibin City and investing in such projects by shareholding and holding; third promoting the

preserve and increase the value of state-owned assets and economic development of the city by capital

management and assets management.Yibin Development Holding Group Co. Ltd. by administrative transfer of state-owned assets holds 100%

of the equity of Sichuan Yibin Wuliangye Group Co. Ltd. so that it controls 2131778031.00 shares of the

Company directly or indirectly taking up 54.92% of the total share capital of the Company.The State-owned Assets Supervision and Administration Commission of the People’s Government of Yibin

City is the ultimate controller of the Company.

2. Subsidiaries of the Company

Refer to the Note "X Interests in Other Entities" for information about subsidiaries of the Company.

3. Joint ventures and associates of the Company

Refer to the Note "X Interests in Other Entities" for information about important joint ventures and

associates of the Company.Other joint ventures or associates that were involved in related-party transactions with the Company in the

current period or that were involved in related-party transactions with the Company in prior periods with

balances lasting into the current period:

Name of joint venture or associate Relationship with the Company

Sichuan Yibin Wuliangye Group Finance Co. Ltd. Associate

Yibin Jiamei Intelligent Packaging Co. Ltd. Associate

134Interim Report 2024 of Wuliangye Yibin Co. Ltd.

4. Other related parties

Names of other related parties Relationship between other related parties and the Company

The legal representative of the Company concurrently serves as

the Secretary of the CPC Committee and Chairman of the

Board of Wuliangye Group and some directors and officers of

Sichuan Yibin Wuliangye Group Co. Ltd.the Company concurrently hold positions in Wuliangye Group.Wuliangye Group directly holds a 20.40% interest in the

Company.Anji Logistic Group Co. Ltd. Sichuan Subsidiary of Wuliangye Group

Sichuan Yibin Wuliangye Group Anji Logistic Co. Ltd. Subsidiary of Anji Logistic Group

Yibin Wuliangye Group I&E Co. Ltd. Subsidiary of Wuliangye Group

Sichuan Yibin Push Group Co. Ltd. Subsidiary of Wuliangye Group

Sichuan Yibin Push Mold Co. Ltd. Subsidiary of Push Group

Sacred Mountain Molin Group Co. Ltd. Si Chuan Subsidiary of Wuliangye Group

Sichuan Wuliangye Products Co. Ltd. Subsidiary of Wuliangye Group

Sichuan Yibin Global Group Co. Ltd. Subsidiary of Wuliangye Group

Sichuan Yibin Global Huaxin Commercial Development Co.Subsidiary of Global Group

Ltd.WuLiangYe Group Health Liquor Co. Ltd. Yibin. Sichuan Subsidiary of Wuliangye Group

Yibin Global Photoelectric Energy Conservation Technology

Subsidiary of Global Group

Co. Ltd.Chengdu PUTH Medical Technology Co. Ltd. Subsidiary of Push Group

Sichuan Yibin Push Building Materials Co. Ltd. Subsidiary of Push Group

Sichuan Yibin Push Auto Parts Co. Ltd. Subsidiary of Push Group

Push Information & Automation (Chengdu) Co. Ltd. Subsidiary of Push Group

Sichuan Yibin Wuliangye Group Ecological Distillery and

Subsidiary of Wuliangye Group

Marketing Co. Ltd.Sichuan Yibin Push Intelligent Technology Co. Ltd. Subsidiary of Push Group

Chengdu Huayu Glass Manufacturing Co. Ltd. Subsidiary of Global Group

Yibin Push Linko Technology Co. Ltd. Subsidiary of Push Group

Sichuan Putian Packaging Co. Ltd. Subsidiary of Push Group

Sacred Mountain White Magnolia Industrial Co. Ltd. Sichuan Subsidiary of Sacred Mountain Molin Group

Yibin Push Assets Management Co. Ltd. Subsidiary of Push Group

Sichuan Andaxin Logistics Co. Ltd. Subsidiary of Anji Logistic Group

Sichuan Yibin Global Environmental Technology Co. Ltd. Subsidiary of Global Group

Wuming Tea Industry Holding Co. Ltd. Subsidiary of Wuliangye Tea Industry Development Fund

Sichuan Linhu Tea Industry Co. Ltd. Subsidiary of Chuanhong Tea Group

Sichuan Yibin Wuliang Pharmaceutical Co. Ltd. Subsidiary of Wuliangye Group

Sichuan Yibin Licai Group Co. Ltd. Subsidiary of Wuliangye Group

Yibin Wucai Packaging Co. Ltd. Subsidiary of Licai Group

Yibin Huanyu Trading Co. Ltd. Subsidiary of Health Liquor Group

Sichuan Nongwu E-commerce Co. Ltd. Subsidiary of Chuanhong Tea Group

Sichuan Global Insulator Co. Ltd. Subsidiary of Global Group

135Interim Report 2024 of Wuliangye Yibin Co. Ltd.

Sichuan Chuanhong Tea Group Co. Ltd. Subsidiary of Wuliangye Tea Industry Development Fund

Sichuan Yibin Push International Co. Ltd. Subsidiary of Push Group

Zhejiang Pukai New Material Co. Ltd. Subsidiary of Push Group

Yibin Airport Aviation Service Co. Ltd. Subsidiary of Sanjiang Investment and Construction Group

Yibin Grace Fiber Industry Co. Ltd. Subsidiary of Grace Group

Yibin City Commercial Bank Co. Ltd. Wuliangye Group holds a 19.99% interest.Sichuan Yibin Push Drive Co. Ltd. Subsidiary of Push Group

Yibin Shunan Cultural Tourism and Creative Product

Subsidiary of Shunan Cultural Tourism Investment Group

Development Co. Ltd.Yibin Construction Investment Group Jinpaiyuan Supply Chain Subsidiary of Yibin Urban and Traffic Construction Investment

Management Co. Ltd. Group

Sichuan United Liquor Investment Management Co. Ltd. Subsidiary of Anji Logistic Group

Yibin Xinjinxiu Garden Landscaping Co. Ltd. Subsidiary of Grace Group

Yibin Shunan Mingkun Supply Chain Service Co. Ltd. Subsidiary of Shunan Cultural Tourism Investment Group

Yibin Sanjiang Huiyuanhe Agricultural Investment

Subsidiary of Sanjiang Investment and Construction Group

Development Co. Ltd.Yibin Wuliangye Ecological Distillery Co. Ltd. Subsidiary of Wuliangye Group

Sichuan Huansheng Pharmacy Co. Ltd. Subsidiary of Wuliang Pharmaceutical

Chengdu Branch of Anji Logistic Group Co. Ltd. Sichuan Subsidiary of Anji Logistic Group

Yibin Shunanzhuhai Scenic Area Management Co. Ltd. Subsidiary of Shunan Cultural Tourism Investment Group

5. Related-party transactions

(1) Related-party transactions involving purchase and sale of goods as well as receipt and rendering of

services

Purchases of goods/receipt of services:

Unit: RMB

Over

the

Appro

appro

ved

ved

Content of transa

Related party H1 2024 transa H1 2023

transaction ction

ction

amoun

amou

t

nt or

not

Sacred Mountain Molin Group Co. Ltd. Si Packaging

240466851.82207001476.34

Chuan materials etc.Wuming Tea Industry Holding Co. Ltd. PPE etc. 175441681.54 2337444.26

Sichuan Yibin Global Huaxin Commercial Raw materials

123235167.33202532443.60

Development Co. Ltd. glass bottles etc.Raw materials

Sichuan Wuliangye Products Co. Ltd. 79167460.88 25917444.71

etc.Sacred Mountain White Magnolia Industrial

PPE etc. 53283746.48 45870444.38

Co. Ltd. Sichuan

Yibin Wuliangye Ecological Distillery Co. Liquor products

51418327.21

Ltd. etc.Anti-counterfeit

Sichuan Yibin Push International Co. Ltd. 46423262.87

labels etc.

136Interim Report 2024 of Wuliangye Yibin Co. Ltd.

Raw materials

Sichuan Putian Packaging Co. Ltd. 37246303.40 7421727.40

etc.Chengdu PUTH Medical Technology Co. Raw materials

20854338.9937461741.54

Ltd. etc.Yibin Sanjiang Huiyuanhe Agricultural Raw materials

19953657.42

Investment Development Co. Ltd. etc.Sichuan Huansheng Pharmacy Co. Ltd. Medicines etc. 12757753.98 29400.00

Sichuan Yibin Push Mold Co. Ltd. Moulds etc. 11690265.49 11769911.50

Sichuan Yibin Push Drive Co. Ltd. Boxes etc. 11543968.28 8747674.70

Push Information & Automation (Chengdu) Packaging

10567769.92783927.47

Co. Ltd. materials

Yibin Xinjinxiu Garden Landscaping Co. Raw materials

8388440.05

Ltd. etc.Yi Bin Jia Mei Smartpackaging Co. Ltd. Raw materials 7565560.54 1260840.54

Chengdu Huayu Glass Manufacturing Co.Glass bottles etc. 7366799.00 12423336.45

Ltd.Bottle caps

Sichuan Yibin Push Mold Co. Ltd. comprehensive 5269999.98 9509372.10

materials etc.Sichuan Yibin Push Building Materials Co. Packaging

3220159.285376221.73

Ltd. materials

Raw materials

Sichuan Yibin Push Auto Parts Co. Ltd. 1312316.53 5718676.00

etc.WuLiangYe Group Health Liquor Co. Ltd.Health liquor 105592684.05

Yibin. Sichuan

Sichuan Chuanhong Tea Group Co. Ltd. Tea 12684.00 24683627.25

Yibin Huanyu Trading Co. Ltd. Health liquor 13207079.46

Sichuan Yibin Wuliang Pharmaceutical Co.Medicines etc. 11491021.86

Ltd.Sichuan Yibin Global Environmental

Glass bottles 9393.89 8561271.74

Technology Co. Ltd.Other miscellaneous purchases of goods

8229723.514493622.56

from related parties

Total purchases of goods from related parties 935425632.39 752191389.64

Freight and

miscellaneous

Anji Logistic Group Co. Ltd. Sichuan 353515103.36 302263739.29

charges service

charges etc.External labour

Sichuan Andaxin Logistics Co. Ltd. 87112742.55 75645109.14

costs

External

Yibin Wucai Packaging Co. Ltd. processing 35673826.80 1030482.77

expenses

Freight and

miscellaneous

Sichuan Yibin Wuliangye Group Anji

charges shuttle 23464521.31 27513681.27

Logistic Co. Ltd.service charges

etc.External

Chengdu PUTH Medical Technology Co.processing 12019189.03 4086461.50

Ltd.expenses etc.Marketing support

Sichuan Nongwu E-commerce Co. Ltd. 9888822.08

expenses

Sichuan Wuliangye Products Co. Ltd. Repair expenses 8617973.65 14132830.19

137Interim Report 2024 of Wuliangye Yibin Co. Ltd.

and marketing

support expenses

Marketing support

Wuming Tea Industry Holding Co. Ltd. 7635079.10 3131998.67

expenses etc.External

Yi Bin Jia Mei Smartpackaging Co. Ltd. processing 4124506.03 64128580.14

expenses

Sichuan Yibin Push Intelligent Technology Repair expenses

2346546.166404316.39

Co. Ltd. etc.Promotion

Sichuan Chuanhong Tea Group Co. Ltd. 1550864.06 8461698.11

expenses etc.Other miscellaneous receipts of services from

19648796.0211105868.03

related parties

Total receipts of services from related parties 565597970.15 517904765.50

Sale of goods/rendering of services:

Unit: RMB

Content of

Related party H1 2024 H1 2023

transaction

Liquor products

Yibin Wuliangye Group I&E Co. Ltd. 419701184.60 367008796.93

etc.Bottle caps slices

Sichuan Putian Packaging Co. Ltd. 87079604.00 69286660.73

etc.Liquor products

Sichuan Nongwu E-commerce Co. Ltd. 77782379.87 1172103.55

etc.Yibin Shunan Mingkun Supply Chain Service Liquor products

26548495.480.00

Co. Ltd. etc.Chengdu PUTH Medical Technology Co. Ltd. Raw materials etc. 18603435.51 28507995.29

Liquor products

Wuming Tea Industry Holding Co. Ltd. 14293380.59 179228782.31

etc.Chengdu Huayu Glass Manufacturing Co. Ltd. Cartons etc. 9161960.72 5117674.19

Yi Bin Jia Mei Smartpackaging Co. Ltd. Paper products etc. 7915329.61 1214711.36

Liquor products

Sichuan Wuliangye Products Co. Ltd. 7541166.60 5145132.71

etc.Packaging boxes

Sichuan Linhu Tea Industry Co. Ltd. 6064031.62 3244174.16

etc.Packaging boxes

Sichuan Chuanhong Tea Group Co. Ltd. 5071810.47 3479588.87

etc.Sichuan Yibin Push Drive Co. Ltd. Slices etc. 4194872.53 5578997.82

Yibin Airport Aviation Service Co. Ltd. Liquor products 2539000.00 31526159.28

Yibin Shunan Cultural Tourism and Creative Liquor products

764890.39442477857.70

Product Development Co. Ltd. etc.Sichuan United Liquor Investment Management

Liquor products 83920.33 14108849.55

Co. Ltd.Yibin Construction Investment Group Jinpaiyuan

Liquor products 300887362.93

Supply Chain Management Co. Ltd.Sichuan Yibin Wuliangye Group Ecological

Liquor products 111469944.62

Distillery and Marketing Co. Ltd.Sichuan Global Insulator Co. Ltd. Glass bottles etc. 40284110.80

Liquor products

Sichuan Yibin Wuliang Pharmaceutical Co. Ltd. 11654946.03

etc.Zhejiang Pukai New Material Co. Ltd. Slices 8449819.82

Other miscellaneous sales to related parties 19430227.41 28802056.93

138Interim Report 2024 of Wuliangye Yibin Co. Ltd.

Total 706775689.73 1658645725.58

(2) Leases between the Company and related parties

The Company as the lessor:

Unit: RMB

Type of the Lease income recognized in Lease income recognized in

Lessee

leased asset H1 2024 H1 2023

Chengdu Branch of Anji Logistic Group Buildings and

1637781.60

Co. Ltd. Sichuan constructions

Buildings and

constructions

Other miscellaneous leases 2605181.56 377880.88

and warehouses

etc.

139Interim Report 2024 of Wuliangye Yibin Co. Ltd.

The Company as the lessee:

Unit: RMB

Lease expense on short-term leases

and leases of low-value assets Variable lease payments not included

Lease payments Interest expense on lease liabilities Addition of right-of-use assets

Type of accounted with a simplified in lease liabilities (if applicable)

Lessor the leased approach (if applicable)

asset

H1 2024 H1 2023 H1 2024 H1 2023 H1 2024 H1 2023 H1 2024 H1 2023 H1 2024 H1 2023

Yibin

Push

Linko Warehous

306778.034074347.443154914.942422072.4110283.637990918.52

Technolo es

gy Co.Ltd.Anji

Logistic

Warehous

Group 2026088.80 47836197.32 59220761.70 12579302.60 6728926.64 702814.36

es

Co. Ltd.Sichuan

Sichuan

Yibin

Global

Buildings

Huaxin

and

Commerc 2057142.84 1714285.70 31473.87 77364.07

constructi

ial

ons

Develop

ment Co.Ltd.Sichuan

Buildings

Yibin

and

Global 1667388.67 762616.78 157995.92 6743.29 18018268.24

constructi

Group

ons

Co. Ltd.Sichuan Operatio

Yibin n and

289980.001094532.6713258064.7514627700.001517481.49398996.1193202000.80

Wuliangy manage

e Group ment

140Interim Report 2024 of Wuliangye Yibin Co. Ltd.

Co. Ltd. areas

(note 2)

Sichuan

Buildings

Yibin

and

Licai 1363000.00 2948126.00 1551764.00 131626.38 26679866.39

constructi

Group

ons

Co. Ltd.Sichuan

Yibin

Land

Wuliangy 123261527.65 148304273.22 11867786.67 4045258.53 847706504.22

(note 1)

e Group

Co. Ltd.Yibin

Push Buildings

Assets and

1820005.741468639.171215960.001823940.003512.9043326.59

Manage constructi

ment Co. ons

Ltd.Sichuan

Buildings

Yibin

and

Push 4612887.62 1255268.57 197104.08 113675.82 26280543.35

constructi

Group

ons

Co. Ltd.Other

miscellan Warehous

13691636.07553877.441266909.138255317.4740411.63265621.712539615.86

eous es etc.leases

Total 17677482.90 1648410.11 53730550.50 66792441.81 163893019.67 183472328.38 14660490.93 4950986.12 1014426798.86 7990918.52

Notes to the leases between the Company and related parties:

Note 1: On 22 January 2024 the Company and Sichuan Yibin Wuliangye Group Co. Ltd. entered into a Land Lease Agreement according to which Wuliangye

Group leased Wujiaba Land Parcel Zongchang Land Parcel Ziyan Land Parcel I Fuzao Land Parcel Zhuchangqu Land Parcel Guifei Land Parcel Yuanmingyuan

Land Parcel I and II Nanxi Land Parcel I II and III and 1000 mu of land in the north side of Hongba Road totalling 3697845.83 square meters to the Company.The annual rent is RMB295827666.4 and the lease term is from 1 January 2024 to 31 December 2026.Land price criterion: The land lease pricing policy of the Company and Sichuan Yibin Wuliangye Group Co. Ltd. is formulated with reference to the land lease

criterion of previous years and in accordance with the Reply of Yibin Land Resource Administration Bureau on the Request of Wuliangye Group for Adjustment of

the Land Lease Criterion (YGTH [2010] No. 53 12 March 2010) which states that "the rent of RMB50 to RMB110 per square meter per year for the industrial land

141Interim Report 2024 of Wuliangye Yibin Co. Ltd.

in this area is consistent with prevailing land price of Yibin". The Company and Wuliangye Group determine the rent of leased land as RMB80 per square meter per

year through mutual agreement.Note 2: On 22 January 2024 the Company and Sichuan Yibin Wuliangye Group Co. Ltd. entered into the Operation and Management Areas Lease Agreement

according to which Wuliangye Group leases part of the operation and management areas (including the office building multi-function pavilion etc.) owned by it to

the Company. The leased area is 27121.32 square meters with the annual rent of RMB29.2552 million. The lease term is from 1 January 2024 to 31 December 2026.

142Interim Report 2024 of Wuliangye Yibin Co. Ltd.

(3) Guarantees between the Company and related parties

There were no guarantees between the Company and related parties during the Reporting Period.

(4) Loans between the Company and related parties

There were no loans between the Company and related parties during the Reporting Period.

(5) Asset transfers and debt restructuring involving related parties

There were no asset transfers or debt restructuring involving related parties during the Reporting Period.

(6) Other related-party transactions

a) Procurement of equipment etc.Unit: RMB

Related party Content of transaction H1 2024 H1 2023

Trademark and logo royalties

Sichuan Yibin Wuliangye Group Co. Ltd. 583579159.03 523042335.92

(note)

Sichuan Yibin Wuliangye Group Co. Ltd. Comprehensive service fee 46845485.49

Other miscellaneous purchases of equipment etc.

10895250.975965216.58

Total 594474410.00 575853037.99

Note: On 31 December 2023 the Company and Sichuan Yibin Wuliangye Group Co. Ltd. entered into the

Trademark and Logo Licensing Agreement which specifies that: Wuliangye Group licenses to the Company the

nonexclusive right of use of one factory emblem the nonexclusive right of use of 19 trademarks exclusive right

of use of 202 trademarks and unpaid exclusive right of use of 22 trademarks. The royalty shall be paid by the

following means: 1) The royalty of "factory emblem" shall be paid at 1.27% of the annual sales revenue from all

liquor products using the factory emblem; 2) no royalty shall be paid for trademark of liquor products of which

the annual sales revenue is less than 50 tons and royalty of trademark of liquor products sold by 50 tons

(inclusive) or more shall be calculated by the total sales volume. Royalties of trademark shall be paid by the

following means: Trademark royalty of products with selling price at RMB30000 per ton and above shall be

RMB1500 per ton; and that of products with selling price at RMB12000 per ton and above but below

RMB30000 per ton shall be RMB1400 per ton; that of products with selling price below RMB12000 shall be

RMB1300 per ton. The Agreement is valid from 1 January 2024 to 31 December 2026.b) Related-party transactions with Sichuan Yibin Wuliangye Group Finance Co. Ltd.: On 28 June 2024 the

Company and Sichuan Yibin Wuliangye Group Finance Co. Ltd. (hereinafter referred to as "Wuliangye Group

Finance") entered into the Financial Service Agreement. According to the Agreement the daily balances of the

Company’s deposits in as well as loans and credit lines from Wuliangye Group Finance in 2024 shall be no more

than RMB55 billion and RMB10 billion respectively.The total deposits of the Company with Wuliangye Group Finance was RMB41748342979.22 at the end of

the period; Sichuan Yibin Wuliangye Group Co. Ltd. issued the Commitment Letter to the Company assuring

that relevant deposits and loans of the Company with Wuliangye Group Finance are safe; the current interest

income is RMB556299642.15 in total; and Wuliangye Group Finance issued bank acceptance bills of

RMB19355289.75 for the Company during the current period (undue bank acceptance bills as at 30 June 2024:

RMB19355289.75).c) Related-party transactions with Yibin City Commercial Bank Co. Ltd.: The total deposits of the Company

with Yibin City Commercial Bank Co. Ltd. was RMB12908978373.80 at the end of the period; the current

interest income is RMB159152209.70 in total; Yibin City Commercial Bank Co. Ltd. issued bank acceptance

143Interim Report 2024 of Wuliangye Yibin Co. Ltd.

bills of RMB188335650.00 for the Company during the current period (undue bank acceptance bills as at 30

June 2024: RMB188335650.00).

6. Amounts due from and to related parties

(1) Amounts due from related parties

Unit: RMB

Closing balance Opening balance

Allow Allow

ance ance

Item Related party for for

Gross amount doubtf Gross amount doubtf

ul ul

accou accoun

nt t

Account receivable Sichuan Putian Packaging Co. Ltd. 11523877.83 11034316.71

Chengdu Huayu Glass Manufacturing

Account receivable 6482321.07 3953526.99

Co. Ltd.Chengdu PUTH Medical Technology

Account receivable 2537100.00

Co. Ltd.Account receivable Yibin Grace Fiber Industry Co. Ltd. 2215549.57 2641212.86

Other miscellaneous accounts

Account receivable 2392257.38 1236709.66

receivable

Sacred Mountain White Magnolia

Prepayment 3398230.09 3398230.09

Industrial Co. Ltd. Sichuan

Prepayment Wuming Tea Industry Holding Co. Ltd. 6016608.60

Yibin Xinjinxiu Garden Landscaping

Prepayment 4380147.38

Co. Ltd.Prepayment Other miscellaneous prepayments 850127.77 821470.76

Sichuan Yibin Wuliangye Group

Monetary assets 1090649408.05 606922650.12

Finance Co. Ltd.Monetary assets Yibin City Commercial Bank Co. Ltd. 243851435.64 118345047.42

Other receivables Other miscellaneous other receivables 991114.85 1037121.60

The amounts related to Sichuan Yibin Wuliangye Group Finance Co. Ltd. and Yibin City Commercial

Bank Co. Ltd. in this table represented the interest on time deposits accrued on an accrual basis and the closing

balances were presented in monetary assets.

(2) Amounts due to related parties

Unit: RMB

Item Related party Closing gross amount Opening gross amount

Yibin Construction Investment Group Jinpaiyuan

Contract liability 36106483.50 44602126.69

Supply Chain Management Co. Ltd.Contract liability Sichuan Wuliangye Products Co. Ltd. 30505492.41 35457682.68

Sichuan Yibin Wuliangye Group Ecological

Contract liability 11699334.09 1732228.75

Distillery and Marketing Co. Ltd.Contract liability Yibin Wuliangye Group I&E Co. Ltd. 3191942.80 199518341.92

Contract liability Wuming Tea Industry Holding Co. Ltd. 1814235.12 620639.12

Contract liability Sichuan Nongwu E-commerce Co. Ltd. 1536907.60 1130074.52

Contract liability Anji Logistic Group Co. Ltd. Sichuan 1408823.45 50286.24

144Interim Report 2024 of Wuliangye Yibin Co. Ltd.

Contract liability Sacred Mountain Molin Group Co. Ltd. Si Chuan 1307000.30 1023041.91

Contract liability Sichuan Yibin Push Building Materials Co. Ltd. 1266198.00 927779.69

Yibin Shunan Mingkun Supply Chain Service Co.Contract liability 500400.00 26548672.57

Ltd.Contract liability Other miscellaneous contract liabilities 4820980.85 3922376.57

Other payable Wuming Tea Industry Holding Co. Ltd. 2312536.00 57242321.41

Yibin Sanjiang Huiyuanhe Agricultural Investment

Other payable 1883607.50 1883607.50

Development Co. Ltd.Sichuan Yibin Push Intelligent Technology Co.Other payable 1712809.49 2105565.41

Ltd.Yibin Shunanzhuhai Scenic Area Management Co.Other payable 1500000.00

Ltd.Push Information & Automation (Chengdu) Co.Other payable 1496620.39 1480720.39

Ltd.Other payable Anji Logistic Group Co. Ltd. Sichuan 751113.09 216589647.24

Other payable Other miscellaneous other payables 6660038.58 5459594.24

Dividend payable Yibin Development Holding Group Co. Ltd. 6241679253.40

Dividend payable Sichuan Yibin Wuliangye Group Co. Ltd. 3713724151.37

Note payable Anji Logistic Group Co. Ltd. Sichuan 10518942.06 5757438.64

Note payable Yi Bin Jia Mei Smartpackaging Co. Ltd. 9850000.00

Sichuan Yibin Global Huaxin Commercial

Note payable 7934890.71 14607310.45

Development Co. Ltd.Note payable Yibin Wucai Packaging Co. Ltd. 7000000.00

Yibin Global Photoelectric Energy Conservation

Note payable 2286618.47

Technology Co. Ltd.Note payable Wuming Tea Industry Holding Co. Ltd. 1638944.60

Yibin Sanjiang Huiyuanhe Agricultural Investment

Note payable 1320000.00

Development Co. Ltd.Note payable Chengdu Huayu Glass Manufacturing Co. Ltd. 6300559.87

Note payable Other miscellaneous notes payable 1339025.29 148734.18

Sichuan Yibin Global Huaxin Commercial

Account payable 12710171.71 12485412.92

Development Co. Ltd.Account payable Sichuan Yibin Wuliangye Group Co. Ltd. 6998669.23

Account payable Chengdu Huayu Glass Manufacturing Co. Ltd. 5809711.88 359504.22

Sichuan Yibin Global Environmental Technology

Account payable 3774267.20 3825469.04

Co. Ltd.Account payable Sichuan Yibin Push Drive Co. Ltd. 1256917.98

Account payable Sichuan Yibin Push International Co. Ltd. 108505.76 1433373.36

Account payable Anji Logistic Group Co. Ltd. Sichuan 93288.05 135225553.79

Account payable Sichuan Putian Packaging Co. Ltd. 37096.80 1350604.28

Account payable Sacred Mountain Molin Group Co. Ltd. Si Chuan 224885409.87

Account payable Sichuan Wuliangye Products Co. Ltd. 3727072.00

Account payable Yibin Push Assets Management Co. Ltd. 3096000.00

Account payable Other miscellaneous accounts payable 309191.50 1852234.59

Advance from

Other miscellaneous advances from customers 17142.71

customer

145Interim Report 2024 of Wuliangye Yibin Co. Ltd.

XIV Undertakings and Contingencies

1. Significant undertakings

The Company had no significant undertakings which need to be disclosed during the Reporting Period.

2. Contingencies

(1) Contract dispute between Handan Yongbufenli Liquor Co. Ltd. (hereinafter referred to as

“Yongbufenli”) and Chengdu Yuexin Liquor Co. Ltd. (hereinafter referred to as “Yuexin Liquor”): In October

2022 Yongbufenli filed a lawsuit with the Intermediate People's Court of Handan against Yuexin Liquor

requesting a) payment of RMB100.4928 million in outstanding payments from the defendant plus interest

calculated at the Loan Prime Rate (“LPR”) from 21 July 2020 to the date when the payment is made in full; and

b) the defendant to bear all litigation and appraisal fees. In March 2023 the first-instance judgment dismissed

Yongbufenli's claims. In April 2023 Yongbufenli filed a second-instance appeal with the Supreme People's

Court of Hebei and the case was reopened on 10 April 2024. The judgment has not yet been made.

(2) Contract dispute between Handan Yongbufenli Liquor Co. Ltd. (hereinafter referred to as

“Yongbufenli”) and Sichuan Baijiadi Liquor Co. Ltd. (hereinafter referred to as “Baijiadi”): In January 2022

Yongbufenli filed a lawsuit with the People's Court of Linzhang County against Baijiadi over a sales contract

dispute involving an amount of RMB72.4635 million. The court was requested to a) order the defendant to pay

RMB72.4635 million along with the interest calculated at the LPR published by the National Interbank

Funding Center from 16 September 2020 to the date when the payment is made in full; and b) order the

defendant to bear all litigation and appraisal fees. On 22 July 2023 the People's Court of Linzhang County held

a hearing on the case and on 26 March 2024 the People's Court of Linzhang County dismissed Yongbufenli's

claims in a judgment. In April 2024 Yongbufenli filed an appeal for a second trial with the Intermediate

People's Court of Handan. The second trial was held on 12 June 2024 and the judgment has not yet been made.

(3) Construction contract dispute between the Company and Xi'an Construction Engineering Group Co.

Ltd. (hereinafter referred to as “Xi'an Construction Engineering Group”) with an involved amount of

RMB21.6233 million: In April 2023 the People's Court of Cuiping District Yibin City made the first-instance

judgment requiring Xi'an Construction Engineering Group to compensate the Company for various losses

totalling RMB7.5327 million. After offsetting the outstanding project payments Xi'an Construction Engineering

Group shall still pay the Company RMB1.7194 million. Both parties appealed against the first-instance

judgment. The second-instance court dismissed the appeal and upheld the original judgment.XV Post-Balance Sheet Date Events

1. Important non-adjustment matters

The Company had no important non-adjustment matters which need to be disclosed.

2. Profit distribution

The Company has no interim dividend plan either in the form of cash or bonus issue.

3. Note on other post-balance sheet date events

The Company has no other post-balance sheet date events which need to be disclosed.XVI Other Significant Matters

1. Annuity plan

The Company obtained the reply of the State-owned Assets Supervision and Administration Commission of

the People’s Government of Yibin City on the Plan of Establishing the Corporate Annuity Plan of the Company

146Interim Report 2024 of Wuliangye Yibin Co. Ltd.

(YGZW [2018] No. 221) on 14 September 2018 and had filed with the Department of Human Resources and

Social Security of Sichuan Province on 30 October 2018. On 21 August 2023 the Yibin Human Resources and

Social Security Bureau agreed to the Company's revised Corporate Annuity Plan for filing and implementation.Participants of the corporate annuity plan of the Company include: (1) Employees who have entered into

labour contracts with the Company; (2) employees who participate in the basic old-age insurance system for

enterprise employees according to the law and perform the obligation of payment; and (3) employees who are on

duty and registered (excluding the probation period) will participate the corporate pension plan on a voluntary

basis.Expenses for the corporate annuities shall be shared by the Company and the employees. Contribution by an

employee shall be 4% of the contribution base of such employee and the monthly contribution base of the

employee shall be the average wage in the previous year. Total amount of contribution by the Company shall be 8%

of the total annual wage paid by the Company which shall be distributed to individual accounts of the employees

at 7% of the contribution base of the employees while the remaining 1% shall be distributed to the corporate

account as incentives for rewarding personnel who make significant contributions to the Company and for

redistribution to employees of the Company.

2. Segment information

The Company has no other businesses than liquor products which have significant impact on the operating

result. The Company has no segment information that needs to be disclosed since revenue of the Company is

mainly generated within China and the assets are also located within China.XVII Notes to Major Line Items in the Financial Statements of the Company as the Parent

1. Other receivables

Unit: RMB

Item Closing balance Opening balance

Dividends receivable 650667449.43 930755375.66

Other receivables 5759785103.00 5555194330.26

Total 6410452552.43 6485949705.92

(1) Dividends receivable

1) Classification of dividends receivable

Unit: RMB

Item (or investee) Closing balance Opening balance

Dividends receivable from subsidiaries 650667449.43 930755375.66

Total 650667449.43 930755375.66

(2) Other receivables

1) Other receivables classified by nature

Unit: RMB

Nature Closing gross amount Opening gross amount

Current account 5758406567.51 5553988496.97

Security deposits 5000000.00 5000000.00

Cash float 389072.65 199301.29

147Interim Report 2024 of Wuliangye Yibin Co. Ltd.

Other advance money for others or

5610.9416868.17

temporary payment

Total 5763801251.10 5559204666.43

2) Other receivables presented by aging

Unit: RMB

Aging Closing gross amount Opening gross amount

Within 1 year (inclusive) 302500707.61 421132709.48

1 to 2 years 1238711498.85 2927461223.86

2 to 3 years 2117840016.92 213939106.11

More than 3 years 2104749027.72 1996671626.98

3 to 4 years 182818067.62 150484231.55

4 to 5 years 150341735.80 102537494.25

More than 5 years 1771589224.30 1743649901.18

Total 5763801251.10 5559204666.43

148Interim Report 2024 of Wuliangye Yibin Co. Ltd.

3) Other receivables by method of establishing allowance for doubtful account

□ Applicable □ Not applicable

Unit: RMB

Closing balance Opening balance

Allowance for doubtful Allowance for doubtful

Gross amount Gross amount

account account

Category

As % of Allowanc Carrying amount As % of Allowanc Carrying amount

the total e as % of the total e as % of

Amount Amount Amount Amount

gross the gross gross the gross

amount amount amount amount

Other

receivables

for which

allowances

for doubtful

accounts are

established

on an

individual

basis

Of which:

Other

receivables

for which

allowances

for doubtful 5763801251.10 100.00% 4016148.10 0.07% 5759785103.00 5559204666.43 100.00% 4010336.17 0.07% 5555194330.26

accounts are

established

on a grouping

basis

Of which:

Of which:

External 5394683.59 0.09% 4016148.10 74.45% 1378535.49 5219730.82 0.09% 4010336.17 76.83% 1209394.65

customers

149Interim Report 2024 of Wuliangye Yibin Co. Ltd.

Related

5758406567.5199.91%5758406567.515553984935.6199.91%5553984935.61

parties

Total 5763801251.10 4016148.10 0.07% 5759785103.00 5559204666.43 100.00% 4010336.17 0.07% 5555194330.26

150Interim Report 2024 of Wuliangye Yibin Co. Ltd.

Other receivables for which allowances for doubtful accounts are established on a grouping basis:

Unit: RMB

Closing balance

Item Allowance Allowance for doubtful

Gross amount as % of the

account

gross amount

Other receivables for which allowances for

doubtful accounts are established based on the 5394683.59 4016148.10 74.45%

external customer group

Other receivables for which allowances for

doubtful accounts are established based on the 5758406567.51

related party group

Total 5763801251.10 4016148.10

Allowances for doubtful accounts established using the general model of expected credit loss:

Unit: RMB

Stage 1 Stage 2 Stage 3

Allowances for doubtful 12-month Lifetime expected credit Lifetime expected credit Total

accounts expected credit loss (without credit loss (with credit

loss impairment) impairment)

Balance as at 1 January 2024 4010336.17 4010336.17

Balance as at 1 January 2024

was in the current period

- Transferred to Stage 2

- Transferred to Stage 3

- Transferred back to Stage 2

- Transferred back to Stage 1

Established in the current

5811.935811.93

period

Reversed in the current period

Charged off in the current

period

Written off in the current

period

Other changes

Balance as at 30 June 2024 4016148.10 4016148.10

Gross amounts with significant changes in loss allowances in the current period:

□ Applicable □ Not applicable

4) Allowances for doubtful accounts established recovered or reversed in the current period

Allowances for doubtful accounts in the current period:

Unit: RMB

Changes in the current period

Opening ChargeRecover Closing Category

balance Establishe d off or Othered or balance

d written s

reversed

off

Other receivables for which allowances for

doubtful accounts are established on an

individual basis

Other receivables for which allowances for 4010336.17 5811.93 4016148.10

151Interim Report 2024 of Wuliangye Yibin Co. Ltd.

doubtful accounts are established based on the

credit risk characteristic group

Total 4010336.17 5811.93 4016148.10

5) Other receivables actually written off in the current period

There were no other receivables actually written off in the current period.

6) Top five entities with respect to other receivables

Unit: RMB

As % of

the Closing

Nature closing balance of

Entity of Closing balance Aging balance of allowances for

account total other doubtful

receivable accounts

s

Sichuan Yibin Wuliangye Distillery Current Within 1year; 1-3

3211833714.5255.72%

Co. Ltd. account years

Current 1-5 years; over 5

Yibin Jiangjiu Liquor Co. Ltd. 2244835760.28 38.95%

account years

Sichuan Yibin Wuliangye

Current Within 4 years; over 5

Environmental Protection Industry 172530814.66 2.99%

account years

Co. Ltd.Yibin Wuliangye Xianlin Ecological Current

129206278.05 Over 5 years 2.24%

Liquor Co. Ltd. account

Housing and Urban-Rural

Security

Development Bureau of Cuiping 5000000.00 Over 5 years 0.09% 4000000.00

deposit

District Yibin City

Total 5763406567.51 99.99% 4000000.00

2. Long-term equity investments

Unit: RMB

Closing balance Opening balance

Imp Imp

airm airm

Item ent ent

Gross amount Carrying amount Gross amount Carrying amount

allo allo

wan wan

ces ces

Investments in

11440444117.5911440444117.5911440444117.5911440444117.59

subsidiaries

Investments in

associates and joint 2002944907.59 2002944907.59 1996294215.89 1996294215.89

ventures

Total 13443389025.18 13443389025.18 13436738333.48 13436738333.48

(1) Investments in subsidiaries

Unit: RMB

Openi Increase/decrease in Closi

ng the current period ng

balanc In De Im balan

Opening balance Closing balance

Investee e of cr cre pa Ot ce of

(carrying amount) (carrying amount)

impair ea ase ir he impai

ment se in m rs rment

allowa in inv en allow

152Interim Report 2024 of Wuliangye Yibin Co. Ltd.

nce in est t ance

ve me all

st nt o

m wa

en nc

t e

Sichuan Yibin Wuliangye Distillery Co. Ltd. 5069784707.36 5069784707.36

Yibin Wuliangye Liquor Sales Co. Ltd. 190000000.00 190000000.00

Sichuan Yibin Wuliangye Supply and Marketing Co. Ltd. 765756006.41 765756006.41

Yibin Jiangjiu Liquor Co. Ltd. 50000000.00 50000000.00

Sichuan Yibin Wuliangye Environmental Protection

42411979.4842411979.48

Industry Co. Ltd.Yibin Changjiangyuan Liquor Co. Ltd. 20000000.00 20000000.00

Yibin Wuliangye Xianlin Ecological Liquor Co. Ltd. 2700000.00 2700000.00

Sichuan Yibin Wuliangye Jingmei Printing Co. Ltd. 49374409.93 49374409.93

Sichuan Yibin Plastic Packaging Materials Company

3443149609.253443149609.25

Limited

Sichuan Yibin Global Group Shenzhou Glass Co. Ltd. 108922175.18 108922175.18

Sichuan Yibin Global Gelasi Glass Manufacturing Co.

307282551.14307282551.14

Ltd.Sichuan Yibin Push Group 3D Co. Ltd. 240419229.32 240419229.32

Sichuan Yibin Wuliangye Investment (Consulting) Co.

47500000.0047500000.00

Ltd.Wuliangye Dashijie (Beijing) Trade Co. Ltd. 323000000.00 323000000.00

Handan Yongbufenli Liquor Co. Ltd. 255000000.00 255000000.00

Wuguchun Jiu Ye Co. Henan. China 255143449.52 255143449.52

Sichuan Wuliangye Culture Tourism Development Co.

40000000.0040000000.00

Ltd.Yibin Wuliangye Creart Co. Ltd. 45000000.00 45000000.00

Sichuan Wuliangye NongXiang Baijiu Co. Ltd. 95000000.00 95000000.00

Sichuan Wuliangye New Retail Management Co. Ltd. 90000000.00 90000000.00

Total 11440444117.59 11440444117.59

153Interim Report 2024 of Wuliangye Yibin Co. Ltd.

(2) Investment in associates and joint ventures

Unit: RMB

Openin Increase/decrease in the current period

g

Closing

balance Investment Adjustmen

Opening balance Increa Decrea Closing balance balance of of

Investee income t to other Other Impairmen

(carrying amount) se in se in Declared cash

impairmen

impair (carrying amount) recognized comprehe equity t Others

invest invest dividends or profit t

ment using the nsive changes allowance

ment ment allowance

allowan equity method income

ce

I Joint ventures

II Associates

Oriental Outlook Media Co.

27361937.34-5519829.3321842108.01

Ltd.Sichuan Yibin Wuliangye

1958180619.9026114874.1613952640.001970342854.06

Group Finance Co. Ltd.Beijing Zhongjiuhuicui

Education and Technology 10751658.65 8286.87 10759945.52

Co. Ltd.Sub-total 1996294215.89 20603331.70 13952640.00 2002944907.59

Total 1996294215.89 20603331.70 13952640.00 2002944907.59

154Interim Report 2024 of Wuliangye Yibin Co. Ltd.

3. Investment income

Unit: RMB

Item H1 2024 H1 2023

Return on long-term equity investments

4590000.00

measured using the cost method

Return on long-term equity investments

20603331.7017969787.80

measured using the equity method

Total 20603331.70 22559787.80

XVIII Supplementary Information

1. Schedule of current exceptional gains and losses

□ Applicable □ Not applicable

Unit: RMB

Item Amount Note

Gain or loss on disposal of non-current assets -4657535.12

Government grants recognised in profit or loss (exclusive of those that are closely related

to the Company's normal business operations and given in accordance with defined criteria

163594119.28

and in compliance with government policies and have a continuing impact on the

Company's profit or loss)

Capital occupation charges on non-financial enterprises that are recognized in profit or

426869.99

loss

Non-operating income and expense other than the above 6080605.56

Less: Income tax effects 41341400.04

Non-controlling interests effects (net of tax) 6086814.56

Total 118015845.11 --

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

2. Return on equity (ROE) and earnings per share (EPS)

Weighted average ROE EPS

Profit in the Reporting Period

(%) Basic EPS (RMB/share) Diluted EPS (RMB/share)

Net profit attributable to the

13.70%4.9104.910

Company’s ordinary shareholders

Net profit attributable to the

Company’s ordinary shareholders 13.62% 4.879 4.879

before exceptional gains and losses

119Interim Report 2024 of Wuliangye Yibin Co. Ltd.

3. 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

(2) Net profit and equity under CAS and foreign accounting standards

□ Applicable □ Not applicable

(3) Accounting data differences under CAS and IFRS and foreign accounting standards. Where any

reconciliation is made to the data audited by an overseas independent auditor the name of the overseas

independent auditor shall be provided.None.

156