五粮液:2021年度报告（英文版）

Wuliangye Yibin Co. Ltd.Annual Report 2021
Chairman of the Board: Zeng Congqin
29 April 2022Annual Report 2021 of Wuliangye Yibin Co. Ltd.
Table of Contents
Part I Important Notes and Definitions .............. 3
Part II Corporate Information and Key Financial In... 5
Part III Management Discussion and Analysis ......... 9
Part IV Corporate Governance ....................... 34
Part V Environmental and Social Responsibility ..... 56
Part VI Significant Events ......................... 63
Part VII Share Changes and Shareholder Information.. 69
Part VIII Preference Shares ........................ 77
Part IX Bonds ...................................... 77
Part X Financial Statements ........................ 78
Part XI Documents Available for Reference ......... 198
2Annual Report 2021 of Wuliangye Yibin Co. Ltd.
Part I Important Notes 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 Luo Wei 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. Eight directors were supposed to attend the board meeting for the review of this Report.
Seven of them were present at the meeting in person while Independent Director Xie Zhihua voted
by way of telecommunication for he was not able to be present due to travel restrictions caused by
the COVID-19 pandemic.
4. Any future plans development strategies and other forward-looking statements mentioned in
this Report shall not be considered as promises to investors for the reason of their uncertainty.Investors are kindly advised to invest wisely. The Company has disclosed in this Report the possible
risks. And investors are reminded to exercise caution when making investment decisions.
5. The Board of Directors has approved a final cash dividend of RMB30.23 (tax inclusive) per
10 shares to shareholders based on the total 3881608005 shares held by them with the total
amount to be distributed reaching RMB11.734 billion.
6. 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.
3Annual Report 2021 of Wuliangye Yibin Co. Ltd.
Definitions
Term refers to Definitions
The “Company” “Wuliangye”
refers to Wuliangye Yibin Co. Ltd.“WLY” or “we”
The State-owned Assets Supervision and
SASAC Yibin refers to Administration Commission of the People’s Government
of Yibin City
Yibin Development Group refers to Yibin Development Holding Group Co. Ltd.Wuliangye Group Wuliangye Group refers to Sichuan Yibin Wuliangye Group 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.Wuliangye Group I&E refers to Yibin Wuliangye Group I&E Co. Ltd.Creart refers to Yibin Wuliangye Creart Co. Ltd.Wuliangye New Retail refers to Sichuan Wuliangye New Retail Management Co. Ltd.
4Annual Report 2021 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. 五粮液
Company name in English (if
WULIANGYE YIBIN CO.LTD.any)
Abbr. (if any) WLY
Legal representative Zeng Congqin
Registered address 150 Minjiang West Road Cuiping District Yibin City Sichuan Province China
Zip code 644007
Past changes of registered
N/A
address
Office address 150 Minjiang West Road Cuiping District Yibin City Sichuan Province China
Zip code 644007
Company website http://www.wuliangye.com.cn
Email address 000858-wly@sohu.com
II Contact Information
Board Secretary Securities Representative
Name Jiang Lin Xiao Xiangfa and Li Xinyi
150 Minjiang West Road Cuiping District 150 Minjiang West Road Cuiping District
Office address
Yibin City Sichuan Province China Yibin City Sichuan Province China
Tel. （0831）3567000 3566938 3567988 （0831）3567000 3566938 3567988
Fax （0831）3555958 （0831）3555958
Email address 000858-wly@sohu.com 000858-wly@sohu.com
III Media for Information Disclosure and Place where this Report Is Lodged
Stock exchange website where this Report
The website of the Shenzhen Stock Exchange (www.szse.cn)
is disclosed
Media and website where this Report is China Securities Journal Shanghai Securities News Securities Times and
disclosed http://www.cninfo.com.cn
Place where this Report is lodged The Company’s Board Office
5Annual Report 2021 of Wuliangye Yibin Co. Ltd.
IV Change to Company Registered Information
Organization code 91511500MA62A0WM8P
Changes to the principal activities of the Company
No change during the Reporting Period
since its listing (if any)
Every change of controlling shareholder since
No change during the Reporting Period
incorporation (if any)
V Other Information
The independent auditor appointed by the Company:
Name of the independent auditor Sichuan Huaxin (Group) CPA (LLP)
Office address 28/F South Jinmaolidu 18 Ximianqiao Street Chengdu City Sichuan Province China
Accountants writing signatures Li Wulin Luo Guiqiu and Ye Juan
The independent sponsor appointed by the Company to exercise constant supervision over the Company in
the Reporting Period:
√ Applicable □ Not applicable
Name of sponsor Office address Representative Supervision period
Guotai Junan Securities Co. 618 Shangcheng Road China
Cai Hu and Kang Xin 1 January 2021-31 December 2021
Ltd. (Shanghai) Pilot Free Trade Zone
The independent financial advisor appointed by the Company to exercise constant supervision over the
Company in the Reporting Period:
□ Applicable √ Not applicable
VI Key Financial Information
Indicate whether there is any retrospectively restated datum in the table below.□ Yes √ No
2021-over-2020
202120202019
change (%)
Operating revenue (RMB) 66209053612.11 57321059453.15 15.51% 50118105877.14
Net profit attributable to the listed
23377074353.4019954809594.5217.15%17402164190.16
company’s shareholders (RMB)
Net profit attributable to the listed
company’s shareholders before 23327729257.82 19994943929.15 16.67% 17405930787.45
exceptional gains and losses (RMB)
Net cash generated from/used in
26774941873.05 14698327593.21 82.16% (note) 23112072040.66
operating activities (RMB)
Basic earnings per share (RMB/share) 6.023 5.141 17.16% 4.483
Diluted earnings per share
6.0235.14117.16%4.483
(RMB/share)
Weighted average return on equity Up by 0.36 percenta
25.30%24.94%25.26%
(%) ge point
6Annual Report 2021 of Wuliangye Yibin Co. Ltd.
Change of 31
December 2021 over
31 December 2021 31 December 2020 31 December 2019
31 December 2020
(%)
Total assets (RMB) 135620812221.13 113893139013.72 19.08% 106396972333.66
Equity attributable to the listed
99068498346.2485705972645.7415.59%74290700662.22
company’s shareholders (RMB)
Note: The increased cash generated from operating activities was primarily driven by the low base of
proceeds from sale of goods and rendering of services last year due to the COVID-19 pandemic as well as the
increased operating revenue cash inflows from due bank acceptance notes etc. in the current year.Indicate whether the lower of the net profit attributable to the listed company’s shareholders before and after
exceptional gains and losses was negative for the last three accounting years and the latest independent auditor’s
report indicated that there was uncertainty about the Company’s ability to continue as a going concern.□ Yes √ No
Indicate whether the lower of the net profit attributable to the listed company’s shareholders before and after
exceptional gains and losses was negative.□ Yes √ No
VII Accounting Data Differences under China’s Accounting Standards for Business
Enterprises (CAS) and International Financial Reporting Standards (IFRS) and Foreign
Accounting Standards
1. Net Profit and Equity under CAS and IFRS
□ Applicable √ Not applicable
No difference for the Reporting Period.
2. Net Profit and Equity under CAS and Foreign Accounting Standards
□ Applicable √ Not applicable
No difference for the Reporting Period.VIII Key Financial Information by Quarter
Unit: RMB
Q1 Q2 Q3 Q4
Operating revenue 24324839644.81 12426708181.89 12969249482.03 16488256303.38
Net profit attributable to the listed
9323613990.163876757756.574127069251.936049633354.74
company’s shareholders
Net profit attributable to the listed
company’s shareholders before 9318357623.15 3815315666.22 4151926942.25 6042129026.20
exceptional gains and losses
Net cash generated from/used in
5505475102.103202012880.716690405836.6511377048053.59
operating activities
Indicate whether any of the quarterly financial data in the table above or their summations differs materially
from what have been disclosed in the Company’s quarterly or interim reports.□ Yes √ No
7Annual Report 2021 of Wuliangye Yibin Co. Ltd.
IX Exceptional Gains and Losses
√ Applicable □ Not applicable
Unit: RMB
Item 2021 2020 2019 Note
Gain or loss on disposal of non-current assets
-23622995.51-5064647.92-1571612.06
(inclusive of impairment allowance write-offs)
Government grants through profit or loss (exclusive
of government grants consistently given in the
Company’s ordinary course of business at fixed 184126377.62 100407690.85 129760347.41
quotas or amounts as per governmental policies or
standards)
Capital occupation charges on non-financial
2144596.612602571.3115503633.45
enterprises that are recognized in profit or loss
Non-operating income and expense other than the
-80306712.64-141782777.02-135436782.11
above
Less: Income tax effects 21010672.65 -15373976.81 -4831273.10
Non-controlling interests effects (net of tax) 11985497.85 11671148.66 16853457.08
Total 49345095.58 -40134334.63 -3766597.29 --
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.
8Annual Report 2021 of Wuliangye Yibin Co. Ltd.
Part III Management Discussion and Analysis
I Industry Overview for the Reporting Period
In 2021 the downward pressure mounted on economies at home and abroad. The Baijiu industry saw a
year-on-year decline in output but a steady growth in revenue. According to data from the National Bureau of
Statistics the output of Baijiu stood at 7.1563 million kiloliters during 2021 down 0.59% year on year while the
revenue amounted to RMB603.3 billion up 18.6% year on year. The industry has become more concentrated
towards top producers strong brands and major producing areas. Therefore competitive edges of top Baijiu
producers have been further strengthened.II Principal Operations of the Company during the Reporting Period
(I) Overview
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" the
primary product of the Company is a classic strong-flavor Chinese Baijiu. Additionally the Company has
developed based on different production techniques other Baijiu series such as Wuliang Chun (Spring) Wuliang
Chun (Rich Flavor) Wuliang Tequ and Jianzhuang with complete categories and unique tastes to meet the
diverse needs of different consumers.(II) Brand Operation
1. Wuliangye-branded Baijiu Products
In 2021 the Company adhered to the principle of "focusing on high-quality market share growth"
encouraged bold exploration and innovation drove steady progress on key work and continuously consolidated
the market foundations. Firstly brand stories continued to be enriched and the brand value was constantly
highlighted. Through all-round and three-dimensional brand culture communication the brand value saw
noticeable increases in rankings in several authoritative lists. Secondly the product strategy was continuously
strengthened and the competitive status continued to be raised. Classic Wuliangye had completed the supplier
selection and preliminary trial sales in highland markets and key markets and entered the stage of comprehensive
market arrangement and formal sales further improving Wuliangye's brand value and competitive status in the
industry. Thirdly channel operations were continuously transformed and the sales quality continued to be
improved. After completing the retail infrastructure construction the Company began to hand over the retail work
to merchants in all aspects and entered the stage of refined terminal operation management with the merchants as
the main body and the manufactures the cooperators. Fourthly the cultivation of consumption continued to be
advanced and the group purchase system was continuously improved. The Company continuously improved the
form and content of tasting sessions continued to strengthen the group cultivation of opinion leaders and worked
hard to build "group purchase" into a benchmark of marketing in the industry.
2. Other Baijiu Series
In 2021 other Baijiu series adhered to the strategies of "three characteristics and one recognition" "three
focuses" and "building four national brands" and broke new ground in various tasks. Firstly the quality of
operation continued to be improved and the sales revenue achieved stable growth. Secondly the rejuvenation of
9Annual Report 2021 of Wuliangye Yibin Co. Ltd.
brand value was accelerated. The brand structure was significantly optimized the brand matrix was continuously
improved and the brand image was greatly enhanced. Thirdly the market foundations were continuously
consolidated. The structure of merchants was continuously optimized. The community of gains of manufacturers
was established effectively. The core terminal building achieved noticeable achievements. Teams exclusive to
distributors were continuously expanded. The support for channels was further strengthened. Fourthly
market-driven sell-through growth was more sustainable. Digital marketing based on "one code per bottle"
achieved new breakthroughs. The volume of code scanning for opening bottles continued to grow and the market
share rose steadily.(III) Major Sales Models of the Company
Distributor model: This includes the traditional channel operator model exclusive store model KA
marketplace etc. mainly sold offline.Direct-to-consumer model: This includes group purchase sales model where products are sold directly to
group consumers and online sales model where products are sold through e-commerce platforms such as Tmall
and JD.(IV) Distributor 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 YoY change in
Gross profit YoY change in
Item Operating revenue Cost of sales operating gross profit
margin cost of sales
revenue margin
By sales model
Liquor products 61731839992.96 12165790903.99 80.29% 17.73% 17.63% 0.01%
Of which:
50136705774.8510432852899.8079.19%10.48%12.68%-0.41%
Distributor model
Direct-to-consumer
11595134218.11 1732938004.19 85.05% 64.37% (Note 1) 59.95% (Note 1) 0.41%
model
By product category
Liquor products 61731839992.96 12165790903.99 80.29% 17.73% 17.63% 0.01%
Of which:
Wuliangye-branded 49112013173.38 7076007335.05 85.59% 11.46% 6.70% 0.64%
Baijiu products
Other Baijiu series 12619826819.58 5089783568.94 59.67% 50.71% (Note 2) 37.16% (Note 3) 3.99%
Note 1: This was mainly due to the fact that in the Reporting Period the Company strengthened the group
cultivation of consumer opinion leaders and online direct sales leading to a surge in the sales revenue of the
direct-to-consumer model and a corresponding leap in cost of sales.Note 2: This was mainly due to the fact that the Company adhered to the "three characteristics and one
recognition" for other Baijiu series focused on building Wuliang Chun (Spring) Wuliang Chun (Rich Flavor)
Wuliang Tequ and Jianzhuang into the four national strategic brands coordinated growing brands and total
distribution brands as a strategic synergy and continuously optimize the brand structure. Both the volume and the
10Annual Report 2021 of Wuliangye Yibin Co. Ltd.
price of other Baijiu series increased in the Reporting Period.Note 3: This was mainly due to the year-on-year increase in the sales revenue of other Baijiu series in the
Reporting Period leading to the corresponding growth in cost of sales.
2. Number of Distributors
Number of distributors of
Reason for change (more than
Region Wuliangye-branded Baijiu YoY change (number)
30%)
products
East China 562 36
South China 411 11
West China 392 12
North China 276 14
Central China 413 20
N/A
Subtotal 2054 93
Number of distributors of
Region YoY change (number)
other Baijiu series
China 602 87
Total 2656 180
Note: There is overlap between distributors of Wuliangye-branded Baijiu products and other Baijiu series.
3. Main Settlement Methods and Distribution Methods of Distributor 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 distributors reached RMB6058 million accounting for 9.15% of
the total sales revenue; and at the end of the period there were no accounts receivable from the top five distributor
customers.
4. Retail Store Sales Accounting for More Than 10% of Total Sales
√ Applicable □ Not applicable
Number of exclusive
Number of exclusive stores at the Reason for change (more than
Region stores at the beginning of
end of the Reporting Period 30%)
the Reporting Period
East China 408 411
South China 268 273
West China 287 291
N/A
North China 214 217
Central China 350 353
Total 1527 1545
5. Online Direct-to-consumer Sales
√ Applicable □ Not applicable
Product category Platform
Wuliangye-branded Baijiu products:
The 8th-generation Wuliangye Tmall JD and WeChat
11Annual Report 2021 of Wuliangye Yibin Co. Ltd.
Other Baijiu series:
Wuliang Chun (Spring) Wuliang Chun (Rich Flavor)
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.□ Applicable √ Not applicable
(V) Purchase Model and Purchased Items
Unit: RMB
Purchase model Purchased items Amount
Market-based purchase Raw materials and auxiliary materials etc. 7056914674.20
Market-based purchase Packaging materials 2240046213.03
Market-based purchase Energy 540742407.32
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
(VI) Main Production Models
The Company's Baijiu products are all produced by itself.Commissioned processing and production:
□ Applicable √ Not applicable
(VII) Output and Inventory
1. Output Sales Volume and Inventory of Major Products
Output (ton) Sales volume (ton) Inventory (ton)
Product
2021 YoY change 2021 YoY change 2021 YoY change
Wuliangye-branded
284089.46%292033.78%1938-29.09%
Baijiu products
Other Baijiu series 160309 20.64% 152572 15.32% 19223 67.36% (Note 2)
Total 188717 18.82% 181775 13.30% 21161 48.82% (Note 2)
Notes: 1. The liquor referred to in the table above is all commercial liquor.
2. Due to a considerable growth in sales revenue of other Baijiu series during the Reporting Period
the Company increased the inventory to meet market demand.
2. Finished Baijiu and Semi-finished Baijiu (Including Base Baijiu)
Category Inventory (ton)
Finished Baijiu 21161
12Annual Report 2021 of Wuliangye Yibin Co. Ltd.
Semi-finished Baijiu (including pottery jar base
179396
Baijiu)
3. Designed Actual and In-progress Production Capacity of Major Products by Production Entities
Designed production Actual production capacity Production capacity in progress
Major product
capacity (’0000 tons) (’0000 tons) (’0000 tons)
Liquor 14.16 10.60 1.999
Note: The liquor in the table above includes Baijiu and base fruit liquor.III Core Competitiveness Analysis
The Company has five unique competitive edges which constitute the traditional core competitiveness of
Wuliangye. Firstly the unique natural environment makes Wuliangye unique. Secondly the microbiota of its
unique ancient fermentation pits have been growing continuously since early Ming Dynasty with more than 600
years of history. Thirdly the high-quality world-famous Wuliangye is produced with unique five-grain formulas.Fourthly it uses unique fermentation and production techniques to create a unique microbial zone within the
Wuliangye Distillery. And finally the unique harmonious culture of Wuliangye makes it a symbol of Chinese
culture.In 2021 the Company persisted in improving quality and performance and empowerment focusing on market
needs. Quality support technological innovation cultural construction business ecosystem and team building
were significantly strengthened and market support was improved. Moreover the Company caught up with the
trend of consumption upgrading took up-to-date approaches to marketing innovation and achieved new
breakthroughs in product structure branding channel construction consumption cultivation digital
transformation and relationships between distilleries. The Company's market potential was unleashed and its core
competitiveness was continuously enhanced. Moreover the foundation for the high-quality development of the
Company was further consolidated.IV Analysis of Principal Operations
1. Overview
2021 marked the opening year of China’s 14th Five-Year Plan for Economic and Social Development and a
key year for the Company's innovation transformation and leapfrog development. In face of the complex and
challenging macro-environment under the strong leadership of the provincial and municipal party committees and
governments the Company based itself in a new stage of development implemented the new development
philosophy and integrated itself into the new development landscape. It attached more importance to and
strengthened the principal operations continuously shored up weak spots developed strengths and created new
growth drivers. Upholding the principle of "focusing on high-quality market share growth" the Company seized
opportunities arising from the structured growth in the industry achieved progress while ensuring stability and
got off to a good start in the 14th Five-Year Plan period. In 2021 the Company achieved operating revenue of
RMB66.209 billion up 15.51% year on year and a net profit attributable to its shareholders of RMB23.377
billion up 17.15% year on year.(I) Product structure was optimized and product value was improved steadily
Firstly the Wuliangye-branded product portfolio was continuously improved. The 8th-generation
Wuliangye a core product achieved "growth in sales volume with stable selling prices" with a new high recorded
in retail sales and a better balance of sales volume and selling prices. In terms of the vintage Baijiu series Classic
Wuliangye was launched to the market successfully. Many stylish products such as Wuliangye Year of the Ox
13Annual Report 2021 of Wuliangye Yibin Co. Ltd.
Commemorative Baijiu Bu Bu Gao Sheng and Bo’ao Commemorative Baijiu were also launched. Aged Baijiu
collection and exchanges increased day by day. The quality and charm of aged Baijiu was recognized
continuously and the time value of Aged Wuliangye Baijiu was further demonstrated.Secondly the portfolio of other Baijiu series was more concentrated. The optimization and upgrade of the
four national strategic brands regional key brands and some of the total distribution brands were completed and
products such as the new product Wuliang Chun (Spring) Jianzhuang 1911 and Year of the Tiger Zodiac Baijiu
were successfully launched. In addition to that seven brands and 509 products mainly run by distributors were
eliminated and the implementation of the "three focuses" including self-operation brands medium- and high-end
brands and superior brands was more noticeable.In the Reporting Period on the lists of "Global 500" released by Brand Finance and "China’s 500 Most
Valuable Brands" released by World Brand Lab the Company's brand value and ranking increases ranked first in
the industry.(II) New horizons on quality engineering were broadened and quality support was enhanced steadily
Firstly quality management achieved a higher level. The Company's special grain base of one million mu
for distilling was continuously optimized. The operation of the environmental protection and safety management
system was continuous and effective. The "from seed to liquor" whole-process quality control achieved
remarkable results. After winning the "Tianfu Quality Award" and "ARE-QE Award" the Company won the
"National Quality Award" again becoming the only liquor enterprise in the industry that had won the highest
award in the field of national quality management for four consecutive years in 1990 2003 2011 and 2021. Its
status as a quality benchmark in the industry was further consolidated.Secondly new achievements were made in major projects. The Company completed the major task of the
demolition of areas in front of the plant established four renovation projects of industrial parks and completed
the main engineering tasks of four continued construction projects including the capacity expansion project for
storing blended liquor the finished liquor package and integrated smart storage project the Hongba New Park
supporting facility construction project and the brewing special grain process bin & milling automation
renovation project. The capacity expansion project was conducted smoothly.(III) The channel construction achieved new optimization and the marketing performance was
improved steadily
Firstly traditional terminal channels were further optimized. By focusing on "highland markets" and
"core ports" Wuliangye Exclusive Stores started to establish cultural experience halls with "an integration of
products and sales" and further improved market arrangements. The Company continuously optimized terminals
steadily promoted the integration of KA channel supply chains of Wuliangye and series liquors and strengthened
the refined services of national supermarkets regional supermarkets and exclusive channels.Secondly emerging channels were further expanded. Wuliangye New Retail continuously exerted the
function of product image and value display window. Official self-operation flagship stores were operated steadily.Strategic cooperation with mainstream e-commerce platforms across the country was continuously strengthened.New sales growth was achieved.Thirdly the group purchase network was further improved. Strategic cooperation was reached with the
Huawei Group the Geely Group and Shenzhen Harmony Club to establish the group purchase network that was
led by leading enterprises and served tens of thousands of enterprises across the country.Fourthly the highland markets and the key markets were further expanded. Targeted expansion was
facilitated in eight highland markets in Beijing Shanghai Guangzhou Shenzhen Chengdu Hangzhou Nanjing
and Zhengzhou and 14 provincial capital-level key markets.
14Annual Report 2021 of Wuliangye Yibin Co. Ltd.
(IV) Brand promotion achieved new breakthroughs and corporate image was improved steadily
Firstly the brand reputation in the domestic market continued to be advanced. Relying on the
Company's core value and profound cultural heritage and its advantages in raw grain fermentation pit brewing
quality and brand a number of brilliant cultural IPs such as the Forbidden City China West Lake Love Wuliangye
Rose Wedding Ceremony and See You Wuliangye's exclusive titled entrepreneur follow-up dialogue program
were created to promote Wuliangye culture. The brand image was displayed in national key airports core business
circles in key cities and transportation hubs in an all-round manner so that the atmosphere in high-end
consumption places across the country could be enhanced to gain exposure for Wuliangye extend the coverage of
Wuliangye enable customers to create a memory of Wuliangye and improve the reputation of Wuliangye.Secondly the brand's influence on the international market continued to grow. Wuliangye integrated
itself into the national strategy of Belt and Road participated in international events such as Dubai World Expo
and Fortune Global 500 Summit endowed scene culture expression with new connotations and new forms and
displayed the national corporate image and the charm of domestic brands. The brand's global influence was
enhanced.(V) New growth drivers were created for consumer cultivation and cultural construction was advanced
steadily
Wuliangye products being carriers the Company launched the corporate group purchase system for corporate
group purchase customers; conducted exclusive in-app purchase events for employees of group purchase
companies; combined with different consumer needs such as personalized customized products for aged liquor
collection to launch more thoughtful service to further boost the consumption potential. "Classic Wuliangye"
tasting sessions and tasting sessions exclusive to VIP customers were held in tier-one cities and provincial capitals.The number of consumer opinion leaders and brand enthusiasts was continuously increased. Wuliangye's
reputation and engagement in high-end consumption circles were enhanced steadily.(VI) New progress were made in digital transformation and scientific and technological innovation was
enhanced steadily
Firstly digital transformation was implemented to build corporate advantages. The establishment of a
digital marketing management and service system was completed. The operation of pilot smart specialty shops
noted initial progress. Marketing processes such as traditional business and innovative business were incorporated
into the online digital system to push forward the improvement of omni-channel digital management.Secondly Wulianye's capacity for scientific and technological innovation maintained a leadership
position in the industry. The new world-class International Joint Lab on Wuliangye Flavor was established based
on the efficient operation of the existing national and provincial scientific research platforms. Wuliangye as the
first author wrote a world authoritative book on the research of the flavor of distilled liquors which was
published worldwide. The Company's "Wuliangye Baobaoqu Quality Improvement Technology Research and
Application" project won the first prize of the 2021 China National Food Industry Association Science and
Technology Award. Furthermore the Company won the title of Advanced Group of the 13th Five-Year Plan of
Light Industry Technology Innovation China National Light Industry Council and the "Outstanding Contribution
Award for China's Wine Industry Science and Technology" by China Alcoholic Drinks Association becoming the
first enterprise in the industry to be selected into the third batch of industrial products green design demonstration
enterprises by the Ministry of Industry and Information Technology.
2. Revenue and Cost Analysis
(1) Breakdown of Operating Revenue
Unit: RMB
15Annual Report 2021 of Wuliangye Yibin Co. Ltd.
20212020
As % of As % of
total total Change
Operating revenue operating Operating revenue operating (%)
revenue revenue
(%)(%)
Total 66209053612.11 100.00% 57321059453.15 100.00% 15.51%
By operating division
Manufacturing 66209053612.11 100.00% 57321059453.15 100.00% 15.51%
By product category
Liquor 61731839992.96 93.24% 52434071866.48 91.47% 17.73%
Of which: Wuliangye-branded Baijiu
49112013173.3874.18%11.46%
products 44060628351.09 76.87%
Other Baijiu series 12619826819.58 19.06% 8373443515.39 14.61% 50.71%
Plastic products 2509011509.24 3.79% 2585059494.52 4.51% -2.94%
Printing 138217423.29 0.21% 136405558.64 0.24% 1.33%
Glass bottles 135971277.27 0.21% 176439052.84 0.31% -22.94%
Other 1694013409.35 2.56% 1989083480.67 3.47% -14.83%
By operating segment
Liquor products 61731839992.96 93.24% 52434071866.48 91.47% 17.73%
Of which: East China 18782177440.32 28.37% 14186030946.71 24.75% 32.40%
South China 7430135341.39 11.22% 5623782156.78 9.81% 32.12%
West China 16979243862.88 25.64% 18493709772.58 32.26% -8.19%
North China 7535414625.22 11.38% 5787446943.40 10.10% 30.20%
Central China 11004868723.15 16.62% 8343102047.01 14.56% 31.90%
Non-liquor products 4477213619.15 6.76% 4886987586.67 8.53% -8.39%
By sales model
Liquor products 61731839992.96 93.24% 52434071866.48 91.47% 17.73%
Distributor model 50136705774.85 75.72% 45379752892.82 79.17% 10.48%
Direct-to-consumer model 11595134218.11 17.51% 7054318973.66 12.31% 64.37%
Non-liquor products 4477213619.15 6.76% 4886987586.67 8.53% -8.39%
Notes: 1. The Company does not export liquor products directly. Instead it sells them to Wuliangye Group
I&E for export.
2. The sales regions are divided based on the places of registration of customers.
(2) Operating Division Product Category Operating Segment or Sales Model Contributing over 10% of
Operating Revenue or Operating Profit
√ Applicable □ Not applicable
Unit: RMB
YoY
Gross YoY change in
YoY change in change
Operating revenue Cost of sales profit operating
cost of sales (%) in gross
margin revenue (%)
profit
16Annual Report 2021 of Wuliangye Yibin Co. Ltd.
margin
(%)
By operating division
Manufacturing
61731839992.9612165790903.9980.29%17.73%17.63%0.01%
(Liquor production)
By product category
Liquor 61731839992.96 12165790903.99 80.29% 17.73% 17.63% 0.01%
Of which:
Wuliangye-branded 49112013173.38 7076007335.05 85.59% 11.46% 6.70% 0.64%
Baijiu products
Other Baijiu
12619826819.58 5089783568.94 59.67% 50.71%（Note 1） 37.16%（Note 2） 3.99%
series
By operating segment
Liquor 61731839992.96 12165790903.99 80.29% 17.73% 17.63% 0.01%
Of which: East
18782177440.32 3412179998.04 81.83% 32.40%（Note 3） 27.39% 0.71%
China
South China 7430135341.39 1174384448.56 84.19% 32.12%（Note 4） 15.19% 2.32%
West China 16979243862.88 4079790164.23 75.97% -8.19% 2.69% -2.55%
North China 7535414625.22 1246334864.18 83.46% 30.20%（Note 4） 13.34% 2.46%
Central China 11004868723.15 2253101428.98 79.53% 31.90%（Note 4） 43.33%（Note 4） -1.63%
By sales model
Liquor 61731839992.96 12165790903.99 80.29% 17.73% 17.63% 0.01%
Of which: 50136705774.85 10432852899.80 79.19% 10.48% 12.68% -0.41%
Distributor model
Direct-to-co 11595134218.11 1732938004.19 85.05% 64.37%（Note 5） 59.95%（Note 5） 0.41%
nsumer model
Data of principal operations restated according to the changed methods of measurement that occurred in the
Reporting Period:
□ Applicable √ Not applicable
Any over 30% YoY movements in the data above and why:
√ Applicable □ Not applicable
Note 1: This was mainly due to the fact that the Company adhered to the "three characteristics and one
recognition" for other Baijiu series focused on building Wuliang Chun (Spring) Wuliang Chun (Rich Flavor)
Wuliang Tequ and Jianzhuang into the four national strategic brands coordinated growing brands and total
distribution brands as a strategic synergy and continuously optimized the brand structure. Both the sales volume
and the price of other Baijiu series grew during the Reporting Period.Note 2: This was mainly due to the year-on-year increase in the sales revenue of other Baijiu series in the
Reporting Period leading to the corresponding growth in cost of sales.Note 3: This was mainly due to the steady growth in the sales revenues in the eastern region of the
Company's core sales area and of Wuliangye-branded Baijiu products and other Baijiu series in the Reporting
Period.
17Annual Report 2021 of Wuliangye Yibin Co. Ltd.
Note 4: This was mainly due to the fact that compared with the same period of last year the markets in the
southern northern and central regions were greatly affected by the pandemic and the operating revenue base was
relatively low. In the Reporting Period the sales of products in the southern northern and central regions was
improved the operating revenue increased and the cost of sales grew accordingly as well. The inconsistency in the
increase in revenue and cost was mainly caused by the product sales structure.Note 5: This was mainly due to the fact that in the Reporting Period the Company strengthened the group
cultivation of consumer opinion leaders and online direct-to-consumer sales leading to a surge in the sales
revenue of the direct-to-consumer sales model and a corresponding increase in cost of sales.
(3) Whether Revenue from Physical Sales Is Higher than Service Revenue
√ Yes □ No
Operating division Item Unit 2021 2020 Change (%)
Sales volume Metric ton 181775 160443 13.30%
Liquor Output Metric ton 188717 158831 18.82%
Inventory Metric ton 21161 14219 48.82%（Note）
Note: The liquor referred to in the table above is all commercial liquor.Any over 30% YoY movements in the data above and why:
√ Applicable □ Not applicable
Note: Due to a considerable growth in sales revenue of other Baijiu series during the Reporting Period the
Company increased the inventory to meet market demand.
(4) Execution Progress of Significant Signed Sales or Purchase Contracts in the Reporting Period
□ Applicable √ Not applicable
(5) Breakdown of Cost of Sales
Unit: RMB
20212020
Operating Change in
Item As % of total cost As % of total cost
division Cost of sales Cost of sales percentage
of sales (%) of sales (%)
Raw
8695241991.4153.28%8280192175.7855.90%-2.62%
materials
Labor cost 5141719582.95 31.51% 4328398411.77 29.22% 2.29%
Manufacturing
Energy 947639638.53 5.81% 796325741.28 5.38% 0.43%
Production
1534177375.939.40%1407045149.829.50%-0.10%
cost
(6) Changes in the Scope of Consolidated Financial Statements for the Reporting Period
√ Yes □ No
As per the Three-year Action for the Reform of State-owned Enterprises at Provincial and Municipal Levels
(2020～2022) in order to optimize the branch company and subsidiary allocation as a state-owned enterprise the
Company has strengthened the disposal of less competitive business entities that are not part of its principal
operations. On 19 November 2021 three wholly-owned subsidiaries of the Company namely Yibin Cuipingshan
Liquor Co. Ltd. Yibin Century Liquor Co. Ltd. and Yibin Zhenwushan Liquor Co. Ltd. were de-registered and
have been excluded from the Company’s consolidated financial statements since that day.
18Annual Report 2021 of Wuliangye Yibin Co. Ltd.
(7) Significant Changes to the Business Scope or Product or Service Range in the Reporting Period
□ Applicable √ Not applicable
(8) Major Customers and Suppliers
Major customers:
Total sales to top five customers (RMB) 6057814328.10
Total sales to top five customers as % of total sales in the Reporting
9.15%
Period (%)
Total sales to related parties among top five customers as % of total
0.00%
sales in the Reporting Period (%)
Top five customers:
As % of total sales in the Reporting Period
No. Customer Sales to the customer (RMB)
(%)
1 Customer A 1537411241.70 2.32%
2 Customer B 1280114201.77 1.93%
3 Customer C 1228957956.73 1.86%
4 Customer D 1039219625.21 1.57%
5 Customer E 972111302.69 1.47%
Total -- 6057814328.10 9.15%
Other information about major customers:
□ Applicable √ Not applicable
Major suppliers:
Total purchases from top five suppliers (RMB) 3080986307.31
Total purchases from top five suppliers as % of total purchases in
29.18%
the Reporting Period (%)
Total purchases from related parties among top five suppliers
11.61%
as % of total purchases in the Reporting Period (%)
Top five suppliers:
As % of total purchases in the Reporting
No. Supplier Purchases (RMB)
Period (%)
1 Supplier A 731440676.51 6.93%
2 Supplier B 691658046.61 6.55%
3 Supplier C 579931127.88 5.49%
4 Supplier D 543645525.58 5.15%
5 Supplier E 534310930.73 5.06%
Total -- 3080986307.31 29.18%
Other information about major suppliers:
□ Applicable √ Not applicable
19Annual Report 2021 of Wuliangye Yibin Co. Ltd.
3. Expenses
Unit: RMB
Item 2021 2020 Change (%) Main reason for any significant change
Selling expense 6503506131.90 5578918523.98 16.57%
Administrative
2899968867.372609529686.0911.13%
expense
Finance costs -1731702085.22 -1485519200.21 N/A
Greater investments in R&D projects
R&D expense 177411727.65 131315225.33 35.10%
such as production techniques
(1) Breakdown of Selling Expense
Unit: RMB
20212020
Change Reason for
Item Amount As % of selling Amount As % of selling
(%) change
expense expense
Image promotion
1218266158.6218.73%1148203672.9220.58%6.10%
expense
Sales promotion
3786854045.2758.23%3302764255.5659.20%14.66%
expense
Warehousing and
411654403.24 6.33% 260214712.62 4.66% 58.20% Note
logistics expense
Labor cost 611192688.42 9.40% 470739623.11 8.44% 29.84%
Other expenses 475538836.35 7.31% 396996259.77 7.12% 19.78%
Total 6503506131.90 5578918523.98 16.57%
Note: Firstly stronger sales of liquor products resulted in an increase in warehousing and logistics expense;
secondly the increase in warehousing expense was also a result of the Company’s efforts to improve distribution
efficiency.
(2) Advertising Expense
During 2021 the Company’s primary advertising means included TV broadcasting Internet outdoor ads
and exhibitions. The expenses on online offline and TV ads were RMB161 million RMB552 million and
RMB505 million respectively.
4. R&D Investments
√ Applicable □ Not applicable
Main R&D Specific
Purpose Progress Expected impact on the Company
project objectives
Development of In the key brewing (1) The key equipment of a smart Conduct a If the project achievements can be
Wuliangye process the production line was successfully large-scale popularized and put into
intelligent traditional manual developed and a pilot demonstration production application then the revolution in
brewing operation is replaced line was established; (2) 50 patents and Wuliangye's production methods
production line by the smart were applied for; (3) the production application can be promoted so as to realize
and research on production line to and application demonstration of the demonstration the transformation from traditional
supporting reduce labor designed smart brewing production in Wuliangye manual brewing to modern smart
20Annual Report 2021 of Wuliangye Yibin Co. Ltd.
production intensity improve the line scheme was planned to be liquor brewing. The gradual
technique labor environment carried out in the first phase of the production transformation from an experience
and reduce the Wuliangye high-quality workshop and skill-oriented production
quality fluctuation in multiplication project process to a knowledge and
the operation technology-oriented one is
process and to conducive to the stability and
conduct improvement of product quality
demonstration
verification and data
collection for the
promotion of the
smart brewing
production line in
traditional liquor
production workshop
Scientifically demonstrate the
unique biological enzymes and
Explore the
microbial flora in Baobaoqu
contribution of (1) Completed the analysis of the Establish the
Wuliangye establish an evaluation mechanism
Baobaoqu enzymes structure of Baobaoqu enzymes and enzymatic
Baobaoqu for the application performance of
and microbes to the systematically studied the enzymatic fingerprints
enzymatic core enzymes based on the control
unique flavor of properties of the main enzymes; (2) and relevant
fingerprint of production technique
Wuliangye and clarified the composition and microbial
analysis and conditions develop key
display the special abundance of microbial flora in metabolic
enzyme-producing technologies for improving
functions and roles of Baobaoqu using genomics networks of
microbial Baobaoqu's quality and
Baobaoqu originally technology; (3) published a paper in different
community performance and provide
created by SCI and applied for one invention types of
analysis theoretical and technological
Wuliangye in patent Baobaoqu
support for stabilizing and
Wuliangye brewing
improving Wuliangye's famous
wine rate
(1) Used the high-throughput Lay a solid technical foundation
Systematically
sequencing technology combined and provide theoretical support for
analyze the scientific Reveal the
with the culturomics technology to scientifically and accurately
mechanism of the mechanism of
clarify the type and proportion of the analyzing the mystery of
core brewing the mutual
Analysis of the main caproic acid bacteria in the five-grain brewing developing the
technologies of influence of
mechanism and Wuliang brewing system key technology for improving the
Wuliangye and each kind of
characteristics of systematically analyzed its quality rate of Wuliangye with
explore the grain in the
Wuliangye metabolism and the characteristics functional microbial flora
characteristics and five kinds of
multi-grain and molecular mechanisms of the metabolism in pit mud and
mechanism of the grain on the
brewing system flavor produced and accurately continuously improving
impact exerted by the fermentation
identified the complex microbial Wuliangye's famous wine rate
five grain formulas microbial
species in the five-grain brewing and play the role of Wuliangye for
on the brewing flora
system; (2) discovered and confirmed scientifically and fully reveal the
microbial system
a new species of the main caproic mystery of the complexity of our
21Annual Report 2021 of Wuliangye Yibin Co. Ltd.
acid bacteria of NongXiang Series country's strong flavor Baijiu
Baijiu in the pit mud which was brewing system
recognized globally and formally
established the taxonomic status of
the new species of caproic acid
bacteria; (3) published two
authoritative papers in SCI and
screened a strain of the new species
of caproic acid bacteria
Particulars about R&D personnel:
2021 2020 Change (%)
Number of R&D personnel 2571 2719 -5.44%
R&D personnel as % of total Down by 0.36 percentage poi
9.96%10.32%
employees nt
Educational background of
——————
R&D personnel
Junior college and below 1495 1649 -9.34%
Bachelor’s degree 899 899 0.00%
Master’s degree 168 163 3.07%
Doctoral degree 13 8 62.50%
Age structure of R&D
——————
personnel
Below 30 857 906 -5.41%
30~409881044-5.36%
Over 40 726 769 -5.59%
Particulars about R&D investments:
2021 2020 Change (%)
R&D investments (RMB) 177411727.65 131315225.33 35.10%
R&D investments as % of operating Up by 0.04 percentage poi
0.27%0.23%
revenue nt
Capitalized R&D investments (RMB) 0.00 0.00 0.00%
Capitalized R&D investments as % of
0.00%0.00%0.00%
total R&D investments
Reasons for any significant change to the composition of R&D personnel and the impact:
□ Applicable √ Not applicable
Reasons for any significant YoY change in the percentage of R&D investments in operating revenue:
□ Applicable √ Not applicable
Reasons for any sharp variation in the percentage of capitalized R&D investments and rationale:
□ Applicable √ Not applicable
22Annual Report 2021 of Wuliangye Yibin Co. Ltd.
5. Cash Flows
Unit: RMB
Item 2021 2020 Change (%)
Subtotal of cash generated from
83023369160.6564967961994.1827.79%
operating activities
Subtotal of cash used in operating
56248427287.6050269634400.9711.89%
activities
Net cash generated from/used in
26774941873.05 14698327593.21 82.16%（Note 1）
operating activities
Subtotal of cash generated from
47904368.82 6438616.16 644.02%（Note 2）
investing activities
Subtotal of cash used in investing
1544754180.861728453964.74-10.63%
activities
Net cash generated from/used in
-1496849812.04-1722015348.58-13.08%
investing activities
Subtotal of cash generated from
15000000.00 N/A
financing activities
Subtotal of cash used in financing
11269456954.069228223328.7622.12%
activities
Net cash generated from/used in
-11269456954.06-9213223328.7622.32%
financing activities
Net increase in cash and cash
14008165578.27 3762958476.66 272.26%（Note 3）
equivalents
Explanation of why any of the data above varies significantly on a year-on-year basis:
√ Applicable □ Not applicable
Note 1: The increased cash generated from operating activities was primarily driven by the low base of
proceeds from sale of goods and rendering of services last year due to the COVID-19 pandemic as well as the
increased operating revenue cash inflows from due bank acceptance notes etc. in the current year.Note 2: A dividend amount of RMB42 million was received from associate Wuliangye Group Finance in the
current year.Note 3: Net cash generated from operating activities increased in the current year.Explanation of why the net cash generated from/used in operating activities varies significantly from the net
profit of the Reporting Period:
□ Applicable √ Not applicable
V Analysis of Non-Core Businesses
□ Applicable √ Not applicable
VI Analysis of Assets and Liabilities
1. Significant Changes in Asset Composition
Unit: RMB
23Annual Report 2021 of Wuliangye Yibin Co. Ltd.
31 December 2021 1 January 2021 Change in Reason for any
As % of total As % of total percentage significant
Amount Amount
assets assets (%) change
Monetary assets 82335955927.74 60.71% 68209577022.61 59.81% 0.90%
Accounts
64193116.220.05%41496170.350.04%0.01%
receivable
Inventories 14015067118.25 10.33% 13228273631.45 11.60% -1.27%
Long-term
equity 1911228653.63 1.41% 1849977103.30 1.62% -0.21%
investments
Fixed assets 5610147000.37 4.14% 5866880860.03 5.14% -1.00%
Construction in
2646087846.011.95%1482098184.641.30%0.65%
progress
Right-of-use
697805952.690.51%146707923.470.13%0.38%
assets
Contract
13058652246.119.63%8618543467.257.56%2.07%
liabilities
Lease liabilities 355338950.93 0.26% 73960277.66 0.06% 0.20%
Indicate whether overseas assets account for a larger proprtion in total assets.□ Applicable √ Not applicable
2. Assets and Liabilities Measured at Fair Value
√ Applicable □ Not applicable
Unit: RMB
Imp
airm
Gain/los ent
s on Cumulativ allo
Purcha
fair-valu e wan Sold
sed in
e fair-value ce in the
Item Opening amount the Other changes Closing amount
changes changes for current
current
in the recognized the period
period
current in equity curr
period ent
peri
od
Financial assets
1. Held-for-trading
financial assets
1200000.001200000.00
(exclusive of derivative
financial assets)
24Annual Report 2021 of Wuliangye Yibin Co. Ltd.
2. Derivative financial
assets
3. Other debt
investments
4. Other equity
investments
5. Receivables financing 2024442016.72 -382932428.03 1641509588.69
Subtotal of financial
2025642016.72-382932428.031642709588.69
assets
Investment property
Productive living assets
Other
Total of the above 2025642016.72 -382932428.03 1642709588.69
Financial liabilities
Indicate whether any significant change occurred to the measurement attributes of the major assets in the
Reporting Period.□ Yes √ No
3. Restricted Assets as at the Period-end
√ Applicable □ Not applicable
Unit: RMB
Item Closing carrying amount Reason for restriction
The balance of RMB3211.55 in the securities trading account with the Yibin
Business Department of Essence Securities security deposits of
Monetary assets 307498340.40
RMB307240205.65 for bank acceptance notes and other security deposits of
RMB254923.20
Receivables financing 118374800.00 In pledge for bank acceptance notes
Total 425873140.40
VII Investment Analysis
1. Total Investment Amount
√ Applicable □ Not applicable
Total investment amount in the Reporting Total investment amount in last year
Change (%)
Period (RMB) (RMB)
5625000.00 734693877.55 -99.23%（Note）
Note: The change was primarily driven by a capital increase to associate Wuliangye Group Finance last year.
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
25Annual Report 2021 of Wuliangye Yibin Co. Ltd.
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
(1) General Information about the Use of Raised Funds
√ Applicable □ Not applicable
Unit: RMB’0000
Amo
unt
Cumulat
bein
ive
Re-purp g
re-purpo
osed idle
Total Used in the Cumulative sed Purpose and
Year of Way of Cumulativel amount Unused for
amount current re-purposed amount whereabouts of the
raising raising y used in the amount mor
raised period amount as % of unused amount
Reportin e
total
g Period than
amount
two
raised
year
s
The unused amount
is all deposited in
the special account
for raised funds for
future use in the
raised funds
investment projects.Private Meanwhile in view
2018 placement 185327.74 95922.11 148140.12 0 169405.51 91.41% 37187.62 of the progress of
of shares the raised funds
investment projects
the unused amount
is rationally
allocated as current
deposits call
deposits term
deposits etc.Total -- 185327.74 95922.11 148140.12 0 169405.51 91.41% 37187.62 --
More information
During the Reporting Period RMB537.0565 million was paid for the finished liquor packaging and intelligent warehousing and
distribution integration project and RMB422.1646 million was paid for the liquor storage cellar renovation project.
26Annual Report 2021 of Wuliangye Yibin Co. Ltd.
(2) Promised Use of Raised Funds
√ Applicable □ Not applicable
Unit: RMB’0000
Signi
Re-pur
Time ficant
posed Investmen Meetin
Total Cumulativel when the Returns chang
Promised raised funds or Adjusted t progress g the
promised Used in the y used as of project is derived e to
investment project and partiall total as of the expect
investment Reporting the ready for in the proje
investments with y investment period-en ed
amount with Period period-end its Reportin ct
over-raised funds re-pur amount (1) d (3)＝ returns
raised funds (2) intended g Period feasib
posed (2)/(1) or not
use ility
or not
or not
Promised projects
Information
technology-based Yes 71530 5644.64 0 5644.64 100.00% N/A N/A N/A No
transformation
Construction of a
Yes 50793 3944.06 0 3944.06 100.00% N/A N/A N/A No
marketing center
Service-oriented
Yes 63074 8434.04 0 8434.04 100.00% N/A N/A N/A No
e-commerce platform
Finished liquor
Expected
packaging and
ly
intelligent warehousing No 0 94422.74 53705.65 69336.68 73.43% N/A N/A No
Decembe
and distribution
r 2023
integration
Expectedl
Liquor storage cellar y
No 0 74982.77 42216.46 60780.7 81.06% N/A N/A No
renovation December
2022
Subtotal of promised
--185397187428.2595922.11148140.12--------
projects
Investments with over-raised funds
Repaying bank loans (if
----------
any)
Supplementing
----------
working capital (if any)
Subtotal of investments
----------
with over-raised funds
Total -- 185397 187428.25 95922.11 148140.12 -- -- -- --
Reasons for not
N/A
reaching the scheduled
27Annual Report 2021 of Wuliangye Yibin Co. Ltd.
progress or expected
returns (project by
project)
Particulars about
significant change to N/A
project feasibility
Amount purpose and
use progress of N/A
over-raised funds
Change of
implementation
N/A
location of raised funds
investment projects
Adjustments to the way
of implementation of
N/A
raised funds investment
projects
Advance investments in
promised projects
funded with raised N/A
funds and subsequent
swaps
Use of idle raised funds
for temporarily
N/A
supplementing the
working capital
Surplus amount of
raised funds upon
N/A
project implementation
and the reasons
Purpose and The unused amount is all deposited in the special account for raised funds for future use in the raised funds
whereabouts of unused investment projects. Meanwhile in view of the progress of the raised funds investment projects the unused
raised funds amount is rationally allocated as current deposits call deposits term deposits etc.Problems or other
issues arising in the use
N/A
and disclosure of raised
funds
(3) Re-purposed Raised Funds
√ Applicable □ Not applicable
Unit: RMB’0000
Former Total raised Used in the Cumulativel Investmen Time when Returns Meeting the Significant
New project
project funds to be Reporting y used as of t progress the project is derived in expected change to the
28Annual Report 2021 of Wuliangye Yibin Co. Ltd.
invested in Period the as of the ready for its the returns or feasibility of
the new period-end period-end intended use Reporting not the new project
project (1) (2) (3)＝ Period or not
(2)/(1)
Finished Information
Liquor technology-
packaging based
and Expectedly transformati
intelligent on 94422.74 53705.65 69336.68 73.43% December N/A N/A No
warehousin construction 2023
g and of a
distribution marketing
integration center and
Liquor service-orie Expectedly
storage nted December
74982.77 42216.46 60780.70 81.06% N/A N/A No
cellar e-commerce 2022
renovation platform
Total -- 169405.51 95922.11 130117.38 -- -- -- --
The Proposal on Changes to the Purpose and User of Funds Raised in a Private Placement was
approved at the 73rd Meeting of the Fifth Board of Directors on 24 April 2020 and then at the
2019 Annual General Meeting of Shareholders on 29 May 2020. As such it was agreed to
Reasons for the changes
change the purpose of the raised funds and change the user from Sichuan Yibin Wuliangye
decision-making procedure executed
Supply and Marketing Co. Ltd. to Sichuan Yibin Wuliangye Distillery Co. Ltd.and relevant disclosed information
For further information see the Announcement on Resolutions of the 73rd Meeting of the
(project by project)
Fifth Board of Directors the Announcement on Resolutions of the 2019 Annual General
Meeting of Shareholders and the Announcement on Signing a Four-party Supervision
Agreement for the Special Account for Raised Funds for a Private Placement.Reasons for not reaching the
scheduled progress or expected returns N/A
(project by project)
Particulars about significant change to
N/A
the feasibility of the new projects
VIII 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
IX 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:
29Annual Report 2021 of Wuliangye Yibin Co. Ltd.
Unit: RMB
Relationship with
Name Principal activities Registered capital Total assets Net assets
the Company
Sale of liquor liquor
Yibin Wuliangye Liquor import & export and
Subsidiary 200000000.00 50052122188.83 25814632948.26
Sales Co. Ltd. agency service of
liquor import & export
Relationship with
Name Principal activities Operating revenue Operating profit Net profit
the Company
Sale of liquor liquor
Yibin Wuliangye Liquor import & export and
Subsidiary 58718765149.19 22559094728.31 16925376124.29
Sales Co. Ltd. agency service of
liquor import & export
Subsidiaries acquired or disposed of in the Reporting Period:
√ Applicable □ Not applicable
Way of acquisition or
Name of company Impact on the Company
disposal
As per the Three-year Action for the Reform of State-owned Enterprises at
Provincial and Municipal Levels (2020～2022) in order to optimize the branch
Yibin Cuipingshan Liquor Co. Ltd. company and subsidiary allocation as a state-owned enterprise the Company
Yibin Shiji Liquor Co. Ltd. and De-registered has strengthened the disposal of less competitive business entities that are not
Yibin Zhenwushan Liquor Co. Ltd. part of its principal operations. Three wholly-owned subsidiaries of the
Company were de-registered which had no impact on the Company’s ordinary
course of business.X Structured Entities Controlled by the Company
□ Applicable √ Not applicable
XI Prospects
(I) Industry Landscape and Trends
From a macroeconomic perspective although the development of domestic economy faces the triple
pressures of demand contraction supply shocks and weakening expectations and there are still many unstable and
uncertain factors favorable conditions remain prominent. The fundamentals of Chinese economy - its vitality
strong resilience and long-term sustainability - remain unchanged. The consumption base and capacity remain
prudent.From the perspective of industry development structural growth has become the focus of the development
of the Baijiu industry. Superior brands superior enterprises and superior producing areas will continue to be
benefited and industry concentration will be gradually increased. In particular the growth of high-quality
production capacity supply is far from keeping up with the growth of high-end consumer demand. The liquor
industry has entered an era of quality competition in which "there is no shortage of liquor for a long time but
there is a long-term shortage of quality liquors".From the perspective of corporate status the directional and patterned development momentum in the
market channels brands and products continues to rise. Enterprises have entered a new stage of high-quality
30Annual Report 2021 of Wuliangye Yibin Co. Ltd.
development in an all-round manner.(II) Development Strategies of the Company
Strategic vision of the Company: In pursuit of long-lasting business Wuliangye is committed to developing
into a world-leading Baijiu producer with superior products strong brands advanced innovation and modern
governance that keeps growing in a sustainable steady and high-quality way.(III) Completion of the Business Plan for 2021
1. Planning at the beginning of the year: Double-digit growth in the total revenues in 2021.
2. Realities: In 2021 the Company's operating revenue reached RMB66.209 billion up 15.51% year on year.
(IV) Development Goals for 2022
The Company's operation goal for 2022: A continued double-digit growth in total revenues.In 2022 the Company will act on the general principle of seeking progress while maintaining stability meet
the fundamental goal of satisfying the new demands of consumption upgrades pursue high-quality development
as the general aim take structural reform on the supply side as the main task harness reform and innovation as the
key source of momentum seize new development opportunities and make every effort to build a sustained steady
and high-quality Wuliangye with the five-in-one of "ecology quality culture digitalization and sunshine".(V) Potential Risks
Firstly macroeconomic uncertainties; secondly further intensification of industry competition especially the
competition among famous liquor enterprises; thirdly the risk of intellectual property protection for well-known
brands.XII Researches Inquiries Interviews etc. Received during the Reporting Period
√ Applicable □ Not applicable
Main
Type of
discussions Index to the
Way of the
Date Place Communication party and materials relevant
communication communic
provided by information
ation party
the Company
One-on-one ABC-CA Fund Management China
15 January 2021 Yibin Institution
meeting Merchants Fund Penghua Fund
China Universal Asset
8 March 2021 Yibin By phone Institution Management Shenwan Hongyuan
Securities
The
9 March 2021 Yibin By phone Institution Ninetyone Fund
Company’s
Securities firm’s Penghua Fund Bosera Funds development
http://www.cninf
investment Changjiang Pension Foresight strategies
10 March 2021 Shanghai Institution o.com.cn
strategy Fund Chang Xin Asset production
conference Management etc. and operation
10 March 2021 Yibin By phone Institution Fullgoal Fund status etc.
Securities firm’s
Great Wall Fund Panjing Invest
investment
11 March 2021 Hangzhou Institution Fullgoal Fund China Everwin Asset
strategy
Management etc.conference
16-17 March 2021 Wuhan Securities firm’s Institution China Fund CICC Fund Bosera
31Annual Report 2021 of Wuliangye Yibin Co. Ltd.
investment Funds Guangdong Development
strategy Asset Management etc.conference
China Fund BOCOM Schroders
17-18 March 2021 Yibin By phone Institution
Penghua Fund
Orient Securities Asset
Securities firm’s Management Zhong Ou Asset
investment Management Qian Hai Life
18 March 2021 Hangzhou Institution
strategy Insurance Huatai-Pinebridge Fund
conference Management Southern Asset
Management etc.One-on-one Guotai Junan Securities Sinolink
25 March 2021 Yibin Institution
meeting Securities Huaxi Securities etc.HSBC Qianhai Balckrock Egerton
10 May 2021 Yibin By phone Institution
etc.Securities firm’s China Capital Management CITIC
Chengdu
investment Asset Management Bank of China
12 May 2021 and Institution
strategy Investment Management ICBC
Shanghai
conference Wealth Management etc.CICC Southern Asset Management
Yibin and One-on-one
13 May 2021 Institution Credit Suisse Founder Securities
Chengdu meeting
etc.Tongben Invest Bosera Funds
17 May 2021 Yibin By phone Institution
Fullgoal Fund etc.One-on-one Shenzhen Kaifeng Investment
25 May 2021 Yibin Institution
meeting Management
Chengdu Securities firm’s
Nanjing investment Fullgoal Fund E Fund Yinhua
03-04 June 2021 Institution
and strategy Fund Brilliance Capital etc.Shanghai conference
E Fund China Universal Asset
Institution
General meeting Management Southern Asset
18 June 2021 Yibin and
of shareholders Management individual
individual
shareholders etc.Securities firm’s
Wuxi and investment Fullgoal Fund HuaAn Funds
9 July 2021 Institution
Shanghai strategy Sealand Securities etc.conference
Securities firm’s HuaAn Funds Bosera Funds New
Shanghai
investment China Fund ICBC Credit Suisse E
21-23 July 2021 and Institution
strategy Fund GUOTAI AMC Orient Fund
Guiyang
conference etc.
06-10 September Yibin By phone Institution Southern Asset Management
32Annual Report 2021 of Wuliangye Yibin Co. Ltd.
2021 Penghua Fund China Universal
Asset Management Greenwoods
Asset Management Taikang Asset
Management etc.
14 September Cinda Securities Tianhong Asset
Yibin By phone Institution
2021 Management
09 and 11 CICC Ninetyone Fund E Fund
Yibin By phone Institution
November 2021 Yinhua Fund etc.
16 and 18 HSBC Qianhai Baoying Fund
Yibin By phone Institution
November 2021 Bosera Funds etc.
2 December 2021 Yibin By phone Institution Mondrian China Fund E Fund etc.
China Universal Asset
22 December
Yibin By phone Institution Management E Fund ChinaAMC
2021
BOCOM Schroders etc.
27 December One-on-one
Yibin Institution Shenwan Hongyuan Securities etc.
2021 meeting
Southern Asset Management
28 December
Yibin By phone Institution Bosera Funds Penghua Fund
2021
Yinhua Fund etc.
33Annual Report 2021 of Wuliangye Yibin Co. Ltd.
Part IV Corporate Governance
I Corporate Governance Overview
The Company is dedicated to establishing and improving its governance structure. In strict compliance with
the applicable laws and regulations such as the Company Law the Securities Law and the Code of Governance
for Listed Companies the Company has established the relevant rules methods and mechanisms and keeps
revising and improving them. Among them the rules for general meetings of shareholders the Board of Directors
and the Supervisory Committee ensure their respective power of final approval decision-making and supervision.Five special committees have been put in place under the Board of Directors namely the Strategy Committee the
Remuneration and Appraisal Committee the Nomination Committee the Audit Committee and the
Comprehensive Budget Management Committee which has promoted compliance in the operation of the Board
of Directors in an effective manner.During the Reporting Period the Company has further improved its management rules and methods by
revising rules and methods such as the Articles of Association.Indicate whether there is any material incompliance with the applicable laws regulations or rules issued by
the CSRC governing the governance of listed companies.□ Yes √ No
No such cases.II Independence of the Company from its Controlling Shareholder and Actual Controller in
Assets Personnel Finance Organizational Structure Business etc.The Company is independent of its controlling shareholder in business personnel assets organizational
structure finance etc. It has independent and complete systems of production and operation and is able to operate
on its own.In terms of business the Company has independent production and operation systems production supporting
systems and related ancillary facilities. It is able to make decisions on its own with respect to operating activities.In terms of personnel the Company independently manages labor human resources and salaries.In terms of assets the Company has ownership and control of its assets and the controlling shareholder does
not occupy its assets or funds.In terms of organizational structure the principal management organs and systems for production and
operation of the Company are independent.In terms of finance the Company has an independent financial organ independent accounting system and
financial management mechanism and has its own bank account.III Horizontal Competition
□ Applicable √ Not applicable
IV 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
34Annual Report 2021 of Wuliangye Yibin Co. Ltd.
See the
Announcement on
The 2020 Annual Annual General Resolutions of the
General Meeting of Meeting of 71.85% 18 June 2021 19 June 2021 2020 Annual General
Shareholders Shareholders Meeting of
Shareholders
(2021/No. 018)
2. Extraordinary General Meetings of Shareholders Convened at the Request of Preference Shareholders
with Resumed Voting Rights
□ Applicable √ Not applicable
V Directors Supervisors and Senior Management
1. General Information
Increa Decrea
Other Reaso
Opening se in se in Closing
increas n for
Statu Gen sharehol the the sharehol
Name Office title Age Start of office term End of office term e/decr share
s der ding current current ding
ease change
(share) period period (share)
(share) s
(share) ( share)
Secretary of
the CPC Incu 28 January 2022
Zeng Mal
Committee mbe 53 Currently ongoing
Congqin e
Chairman of nt
27 September 2019
the Board
Deputy
Secretary of
28 January 2022
the CPC
Committee Incu
Jiang Mal
Vice mbe 55 Currently ongoing
Wenge e
Chairman of nt
the Board 18 February 2022
and General
Manager
Incu
Fem
Xu Bo Director mbe 54 18 June 2021 Currently ongoing
ale
nt
Member of Incu
the CPC mbe 30 December 2020
Committee nt
Zhang Director and Mal
47 Currently ongoing
Yu Vice e
To-b
Chairman of 27 December 2021
e
the
Board-to-be
Deputy
Incu
Secretary of
Xiao mbe Mal 15 December 2021
the CPC 45 Currently ongoing
Hao nt e
Committee
Director-to- To-b 3 March 2022
35Annual Report 2021 of Wuliangye Yibin Co. Ltd.
be e
Member of
the CPC 22 February 2022
Committee
Director Incu 18 June 2021
Jiang Fem
Deputy mbe 42 Currently ongoing Lin ale
General nt
Manager 3 March 2022
and Board
Secretary
Incu
Zhou Independent Mal
mbe 69 22 June 2016 Currently ongoing
Yousu Director e
nt
Gan Incu
Independent Mal
Shengda mbe 55 18 November 2016 Currently ongoing
Director e
o nt
Incu
Xie Independent Mal
mbe 62 18 June 2021 Currently ongoing
Zhihua Director e
nt
Incu
Independent Mal
Wu Yue mbe 55 18 June 2021 Currently ongoing
Director e
nt
Member of Incu
the CPC mbe 22 February 2022 Currently ongoing
Committee nt
Supervisor
Liu and Mal
51
Ming Chairman of e
To-b
the 4 March 2022 Currently ongoing
e
Supervisory
Committee-t
o-be
Incu
Liu Fem
Supervisor mbe 52 29 May 2020 Currently ongoing
Feng ale
nt
Zhang Supervisor-t To-b Mal
52 27 December 2021 Currently ongoing
Xin o-be e e
Incu Grante
Wu Employee Mal
mbe 52 9 June 2015 Currently ongoing 0 17594 d
Guoping Supervisor e
nt under
emplo
yee
Cao Incu
Employee Fem stock
Hongyin mbe 55 5 June 2020 Currently ongoing 3100 10320
Supervisor ale owner
g nt
ship
plan
Member of
the CPC 21 February 2014
Incu
Committee Mal
Luo Wei mbe 57 Currently ongoing
Deputy e
nt
General 18 July 2014
Manager
36Annual Report 2021 of Wuliangye Yibin Co. Ltd.
and CFO
Member of
the CPC Incu 12 July 2017
Zhao Mal
Committee mbe 57 Currently ongoing
Dong e
Chief nt
3 March 2022
Engineer
Member of
the CPC Incu 22 February 2022
Mal
Jiang Jia Committee mbe 47 Currently ongoing
e
Chief nt
3 March 2022
Economist
Deputy Incu
Yue Mal
General mbe 49 3 March 2022 Currently ongoing
Song e
Manager nt
Deputy Incu
Liu Mal
General mbe 43 27 December 2021 Currently ongoing
Yang e
Manager nt
Deputy Incu
Mal
Li Jian General mbe 47 27 December 2021 Currently ongoing
e
Manager nt
Secretary of
Li
the CPC For Mal
Shuguan 59 21 April 2017 18 February 2022
Committee mer e
g
and Director
Member of
the CPC
Committee
Vice For Mal
Zou Tao 43 21 July 2018 18 February 2022
Chairman of mer e
the Board
and General
Manager
Member of
the CPC
Tang
Committee For Mal
Shengyu 59 18 July 2014 21 July 2021 9100 9100
and Deputy mer e
n
General
Manager
Chairman of
Jiang
the For Mal
Wenchu 51 18 June 2021 27 December 2021
Supervisory mer e
n
Committee
Yang For Fem
Supervisor 35 29 May 2020 27 December 2021
Ling mer ale
Fu Independent For Mal
60 18 July 2014 18 June 2021
Nanping Director mer e
Member of
the CPC
Zhu Committee For Mal
58 18 July 2014 21 July 2021 11501 11501
Zhongyu and Deputy mer e
General
Manager
37Annual Report 2021 of Wuliangye Yibin Co. Ltd.
Shareh
Member of olding
the CPC increas
Tang Committee For Mal e on
57 18 July 2014 14 September 2021 20000 20500
Bochao and Deputy mer e the
General second
Manager ary
market
Lang
Independent For Mal
Dingcha 56 18 June 2021 12 October 2021
Director mer e
ng
Total 43701 69015
Indicate whether any director supervisor or senior management resigned before the expiry of their office
terms during the Reporting Period.□ Yes √ No
Changes of directors supervisors and senior management:
√ Applicable □ Not applicable
Type of
Name Office title Date Reason
change
Xu Bo Director Incumbent 18 June 2021 Elected at a general meeting of shareholders
Director Incumbent 18 June 2021 Elected at a general meeting of shareholders
Jiang Lin Deputy General Manager
Incumbent 3 March 2022 Appointed by the Board of Directors
and Board Secretary
Xie Incumbent
Independent Director 18 June 2021 Elected at a general meeting of shareholders
Zhihua
Wu Yue Independent Director Incumbent 18 June 2021 Elected at a general meeting of shareholders
Fu Former
Independent Director 18 June 2021 Elected at a general meeting of shareholders
Nanping
Jiang Supervisor and Chairman of Appointed 18 June 2021 Elected at a general meeting of shareholders
Wenchun the Supervisory Committee Former 27 December 2021 Resigned for a job change
Vice Chairman of the Board
Appointed 21 July 2021 Elected and appointed by the Board of Directors
and General Manager
Zou Tao Director Vice Chairman of Former
the Board and General 18 February 2022 Resigned for a job change
Manager
Chief Engineer Appointed 21 July 2021 Appointed by the Board of Directors
As nominated by the higher organization he ceased
Supervisor and Chairman of to be the Chief Engineer and became Supervisor
Liu Ming
the Supervisory To-be 4 March 2022 and Chairman of the Supervisory Committee-to-be
Committee-to-be which is to be finalized at a general meeting of
shareholders.According to the administration methods for
Tang
Deputy General Manager Former 21 July 2021 leadership teams of state-owned enterprises he
Shengyun
ceased to be Deputy General Manager for the
38Annual Report 2021 of Wuliangye Yibin Co. Ltd.
reason of his age as decided by the Board of
Directors.According to the administration methods for
leadership teams of state-owned enterprises he
Zhu
Deputy General Manager Former 21 July 2021 ceased to be Deputy General Manager for the
Zhongyu
reason of his age as decided by the Board of
Directors.Tang
Deputy General Manager Former 14 September 2021 Resigned for personal reasons
Bochao
Lang
Dingchan Independent Director Former 12 October 2021 Deceased due to illness
g
Nominated by the higher organization and the
Director and Vice Chairman
Zhang Yu To-be 27 December 2021 Board of Directors which is to be finalized at a
of the Board
general meeting of shareholders
Liu Yang Deputy General Manager Incumbent 27 December 2021 Appointed by the Board of Directors
Li Jian Deputy General Manager Incumbent 27 December 2021 Appointed by the Board of Directors
Zhang Nominated by the higher organization which is to
Supervisor To-be 27 December 2021
Xin be finalized at a general meeting of shareholders
Yang Ling Supervisor Former 27 December 2021 Resigned for a job change
Li Former
Director 18 February 2022 Resigned for a job change
Shuguang
Jiang Vice Chairman of the Board
Incumbent 18 February 2022 Elected and appointed by the Board of Directors
Wenge and General Manager
Nominated by the higher organization and the
Xiao Hao Director To-be 3 March 2022 Board of Directors which is to be finalized at a
general meeting of shareholders
Yue Song Deputy General Manager Incumbent 3 March 2022 Appointed by the Board of Directors
Jiang Jia Chief Economist Incumbent 3 March 2022 Appointed by the Board of Directors
Incumbent Ceased to be Deputy General Manager and became
Zhao
Chief Engineer 3 March 2022 Chief Engineer as appointed by the Board of
Dong
Directors
2. Biographical Information
Professional backgrounds main work experience and current positions in the Company of the incumbent
directors supervisors and senior management:
(1) Mr. Zeng Congqin a doctoral degree holder. He began to work in July 1988 and successively served in
Changning County of Yibin municipal authorities Cuiping District and Lingang Economic Development Zone.He once served as a member of the Standing Committee of the Changning County Party Committee Director of
the Publicity Department and Executive Deputy County Chief of Changning County Director of the Investment
Service Bureau of Yibin Lingang Economic Development Zone Secretary of the Party Leadership Group and
Director of the Yibin Municipal Development and Reform Commission and Director of the Municipal Price
Bureau Director of the Municipal Bureau of Energy Secretary of the Cuiping District Party Committee and
Secretary of the Party Working Committee of Lingang Economic Development Zone. At present he serves as the
39Annual Report 2021 of Wuliangye Yibin Co. Ltd.
Secretary of the Party Committee and the Chairman of the Board of the Company as well as the Secretary of the
Party Committee and the Chairman of the Board of Wuliangye Group.
(2) Mr. Jiang Wenge a master's degree holder. He began to work in August 1985 and successively served in
Peng'an County and Shunqing District of Nanchong City Sichuan the Sichuan Provincial Development and
Reform Commission and the Welfare-to-work Office of Sichuan Province. He once served as the Deputy Head of
Shunqing District Government Deputy Director of the Employment and Income Distribution Office Deputy
Director of the Division of Rural Economy and Director of the Division of Rural Economy of Sichuan Provincial
Development and Reform Commission and the Deputy Director and Primary Investigator of the Welfare-to-work
Office of Sichuan Province. He now serves as the Deputy Secretary of the Party Committee Vice Chairman of the
Board and General Manager of the Company.
(3) Ms. Xu Bo a bachelor's degree holder Vice Chairman of Yibin Municipal Committee of the Kuomintang
Revolutionary Committee a member of the Provincial Committee of the Kuomintang Revolutionary Committee.She began to work in December 1983 and successively served in the Electronic Education Company of the Yibin
Education Bureau and the Yibin City Bureau of Audit. She once served as the Deputy Head Head and Deputy
Director of the Yibin City Bureau of Audit. She now serves as a Director of the Company as well as a Director
and the General Manager of Yibin Development Group.
(4) Mr. Zhang Yu a doctoral degree holder. He began to work in July 1997 and successively served in the
Chengdu Education Bureau Qingyang District Government and Xindu District Committee. He once served as
Secretary of Party Committee Director and Party Group Secretary of the District Education Bureau a member of
the Party Group of the District Government Deputy District Chief a member of the Standing Committee of
District Committee and Director of the Organization Department of the District Government Deputy Secretary of
the Party Committee of Wuliangye Group from April to December 2020 and Deputy Secretary of the Party
Committee of the Company from December 2020 to December 2021. He has been a member of the Party
Committee of the Company since December 2021 and is also a Director-to-be and Vice Chairman of the
Board-to-be of the Company.
(5) Mr. Xiao Hao a master's degree holder. He began to work in July 1998. He successively served in
Organization Department of Xijie Town Yibin County and the County Party Committee Organization
Department of Yibin Municipal Party Committee and Yibin Municipal Party Committee Office. He successively
served as the Deputy Director of Municipal Party Construction Office Deputy Director of Municipal Party
Committee Office Director of the Standing Committee Office of the Municipal Party Committee and Deputy
Secretary-General of the Municipal Party Committee. He served as the Deputy Secretary of the Party Committee
of Wuliangye Group from December 2020 to December 2021. He has been the Deputy Secretary of the Party
Committee of the Company since December 2021 and serves as the Deputy Secretary of the Party Committee of
Wuliangye Group from March 2022. He is a Director-to-be of the Company.
(6) Ms. Jiang Lin a doctoral degree holder. She began to work in July 2004 and successively served in
Research Office of Chongqing Municipal Government Research Office of Chengdu Municipal Committee
Chengdu Finance Office Tianfu International Fund Area and Wanchuang Investment Holdings Chengdu Co. Ltd.She once served as the Deputy Head of the Economy Division of the Research Office of Chengdu Municipal
Committee Deputy Head and Head of the Capital Market Division of the Chengdu Finance Office Director and
General Manager of the Tianfu International Fund Area and Deputy General Manager of Wanchuang Investment
Holdings Chengdu Co. Ltd. She now serves as a member of the Party Committee Director Deputy General
Manager and Board Secretary of the Company.
(7) Mr. Zhou Yousu a bachelor's degree holder and professor. He began to work in July 1983 and once
served Sichuan Academy of Social Sciences and Meigu County Committee of Sichuan Province. He now serves
40Annual Report 2021 of Wuliangye Yibin Co. Ltd.
as a researcher and professor of Sichuan Academy of Social Sciences Independent Director of the Company
Independent Director of Chengdu Huasun Technology Group Inc. Ltd. Independent Director of Sichuan
Road&Bridge Co. Ltd. and Independent Director of Sichuan Development Lomon Co. Ltd.
(8) Mr. Gan Shengdao a doctoral degree holder and professor. He has been working on the teaching and
scientific research of financial management and accounting in Sichuan University since July 1990. He now serves
as a professor doctoral supervisor post-doctoral co-supervisor in accounting of Business School Sichuan
University Independent Director of the Company Independent Director of RYCHIP Semiconductor Inc. Ltd.Independent Director of Chengdu XGimi Technology Co. Ltd. Independent Director of Chengdu RML
Technology Co. Ltd. and Outside Director of Sichuan Fortune Enterprises M&A Investment Co. Ltd.
(9) Mr. Xie Zhihua a doctoral degree holder professor certified public accountant and Expert of the Special
Government Allowances of the State Council. He began to work in June 1976 and successively served in Xiangxi
Autonomous Prefecture Commercial School Beijing Business School and Beijing Technology and Business
University. He once served as the Deputy Director Director Director of the Academic Affairs Department and
Vice President of the Accounting Faculty of Beijing Business School and a member of the Party Committee and
Vice President of Beijing Technology and Business University. He now serves as the Independent Director of the
Company Professor of Beijing Technology and Business University Independent Director of BJB (Beijing)
Information Technology Co. Ltd. and Independent Director of China Non-ferrous Metal Industry's Foreign
Engineering and Construction Co. Ltd.
(10) Mr. Wu Yue a doctoral degree holder and professor. He now serves as the Professor at the School of
Law of Southwestern University of Finance and Economics and concurrently serves as the Vice President of
Sichuan Business Law Research Association Executive Director of China Business Law Research Association
Arbitrator of China International Economic and Trade Arbitration Commission and Arbitrator of Chengdu
Arbitration Commission and Independent Director of the Company Independent Director of Chengdu Corpro
Technology Co. Ltd. Independent Director of Sichuan MIngxing Electric Power Co. Ltd. and Independent
Director of Sichuan Jule Food Co. Ltd.
(11) Mr. Liu Ming a bachelor's degree holder senior engineer and China Liquor Brewing Master
national-level specially-invited Baijiu appraisal committee member. He began to worked in Wuliangye distillery
in December 1986 and once served as the Deputy Director and Director of the workshop and concurrently served
as the Deputy Secretary of the Party Branch Secretary of the Party Branch President of the Branch Labor Union
Secretary of the Party General Branch and Chairman of Yibin Changjiangyuan Liquor Co. Ltd. Assistant to the
General Manager and Director of the Production Management Department of the Company. He served as the
Chief Engineer of the Company from July 2021 to March 2022. He has been a member of the Party Committee of
the Company since February 2022 and a candidate for the supervisor of the Company and for the chairman of the
Supervisory Committee of the Company since March 2022.
(12) Ms. Liu Feng a bachelor's degree holder. She began to work in July 1990 and once served in Yibin
Tianyuan Group Co. Ltd. Yibin Agricultural Machinery Bureau and Yibin Civil Air Defense Office. She once
served as the headmaster of the technical school Deputy Director of the Design and Research Institute and
Deputy Director of the Staff Education Institute of Yibin Tianyuan Group Co. Ltd. a member of the Party Group
of the Yibin Civil Air Defense Office head of the discipline inspection team and the special inspector for
discipline inspection and supervision. She now serves as a Supervisor of the Company as well as a member of the
Party Committee and Secretary of the Commission for Discipline Inspection of Yibin Development Group.
(13) Mr. Zhang Xin a master's degree holder. He once successively served in Yibin Regional Bureau of
Finance Yibin Regional State-owned Assets Supervision and Administration Commission. He once successively
served as the Full-time Deputy Secretary of Institutional Party Committee and Head of the Asset Management
41Annual Report 2021 of Wuliangye Yibin Co. Ltd.
Section. He has been a member of the Party Committee and Deputy General Manager of Yibin Development
Group since December 2020. He has been a supervisor candidate for the Company since December 2021.
(14) Mr. Wu Guoping a bachelor's degree holder auditor and senior sourcer. He began to work in August
1989 and once served in Audit Bureau and Finance Bureau of Cuiping District Yibin City Yibin City Bureau of
Audit. He was transferred to the Company and served as the Deputy Director of the Audit Affairs Department in
May 2015 Employee Supervisor of the Company in June 2015 and Deputy Director of the Audit Department in
July 2015. He now serves as an Employee Supervisor and the Deputy Director of the Audit and Supervision
Department of the Company as well as a Supervisor of Wuliangye Group.
(15) Ms. Cao Hongying a junior college graduate and senior engineer. She began to work in December 1981
and served as the Deputy Director of the Product R&D Department of the Company in December 2012 Secretary
of Party Committee of Workshop 506 of the Company in August 2017 and Secretary of Party Committee and
Director of Workshop 506 of the Company in May 2018. She now serves as an Employee Supervisor Secretary of
the Party Branch and the Director of Workshop 506 and the Director of the Baijiu Body Design Center of the
Company.
(16) Mr. Luo Wei a master's degree holder. He began to work in July 1986 and once served in Yibin
Municipal Bureau of Finance Municipal Audit Bureau Municipal Investment Group Co. Ltd. and Yibin Airport
Co. Ltd. He once served as the Deputy Director of Yibin Municipal State-owned Assets Supervision and
Administration Commission a member of the Party Group and head of the discipline inspection team of Yibin
Municipal Audit Bureau a member of the Party Committee Vice President and Chief Accountant of Yibin Paper
Industry Co. Ltd. a member of the Party Committee and Deputy General Manager of Yibin Investment Group
Co. Ltd. and Deputy Secretary of the Party Committee and General Manager of Yibin Airport Co. Ltd. He now
serves as a member of the Party Committee Deputy General Manager and Chief Financial Director of the
Company.
(17) Mr. Zhao Dong a bachelor's degree holder senior engineer and China Liquor Brewing Master. He
began to work in August 1986 and served in Wuliangye distillery in May 1989. He once served as the Secretary of
Party Committee and Director of Workshop 607 of Wuliangye distillery Director of the Technology Research
Center of the Company Secretary of the Eleventh Party Branch and President of the Branch Labor Union and
Deputy General Manager and Deputy Chief Engineer of the Company. He has been a member of the Party
Committee and the Chief Engineer of the Company since March 2022.
(18) Mr. Jiang Jia a bachelor's degree holder and senior economist. He began to work in Wuliangye distillery
in July 1997 and once served as the Deputy General of the Sales Department Deputy General of the Brand Affairs
Department of Brand Distributors Deputy Director and Director of the Strategic Development Department and
Chairman of Wuliangye Health Wine Company. He served as a member of the Party Committee and Chief
Economic Engineer of Wuliangye Group in April 2020 and has been a member of the Party Committee and the
Chief Economist of the Company since March 2022.
(19) Mr. Yue Song a bachelor's degree holder and senior brewing technician. He served in the People's
Liberation Army Navy in December 1990 and worked in Wuliangye distillery in December 1995. He once served
as the Deputy Director of the Company Office Deputy Director of the Office of the Board of Directors Secretary
of Party Committee and President of the Branch Labor Union of Workshop 505 and Workshop 523 General
Manager and President of the Branch Labor Union of Sichuan Wuliangye Culture Tourism Co. Ltd. Secretary of
the Party General Branch and Chairman of Yibin Changjiangyuan Liquor Co. Ltd. and General Engineer of
Wuliangye Group. He has been a Deputy General Manager of the Company since March 2022.
(20) Mr. Liu Yang a bachelor's degree holder. He began to work in July 2001 and served in Meishan City
from July 2001 to May 2017. He once served as the Deputy County-level Official of Meishan City and Director of
42Annual Report 2021 of Wuliangye Yibin Co. Ltd.
the Economic Cooperation Bureau of Meishan Municipal Government in Beijing. He worked in Yibin City from
May 2017 to December 2021 and served as the Director of the Liaison Office of Yibin Municipal Government in
Beijing (and concurrently the Director of the Beijing Branch of the Municipal Economic Cooperation and Foreign
Affairs Bureau). He has been a Deputy General Manager of the Company since December 2021.
(21) Mr. Li Jian a doctoral degree holder. He began to work in October 1995 and once served in the Housing
and Urban-Rural Development Bureau of Changning County Education and Sports Bureau of Yibin City and
Shunan Culture & Tourism Group. He once served as a member of the Party Committee and Deputy General
Manager of Shunan Culture & Tourism Group. He has been a Deputy General Manager of the Company since
December 2021.Offices held concurrently in shareholding entities:
√ Applicable □ Not applicable
Start of End of
Paid by the entity
Name Shareholding entity Office held in the entity office office
or not
term term
Sichuan Yibin Wuliangye Group Secretary of the CPC Committee and
Zeng Congqin No
Co. Ltd. Chairman of the Board
Yibin Development Holding Group
Xu Bo Director and General Manager Yes
Co. Ltd.Member of the CPC Committee and
Yibin Development Holding Group
Liu Feng Secretary of the Commission for Yes
Co. Ltd.Discipline Inspection
Offices held concurrently in other entities:
√ Applicable □ Not applicable
Start of End of
Paid by the entity
Name Other entity Office held in the entity office office
or not
term term
Sichuan Yibin Wuliangye Group Finance Co. Ltd.Yibin Wuliangye Fund Management Co. Ltd.Jiang Lin Director No
Sichuan Bank Company Limited and Sichuan
United Liquor Exchange Co. Ltd.Sichuan Academy of Social Sciences Researcher Yes
Chengdu Huasun Technology Group Inc. Ltd.Zhou Yousu
Sichuan Road&Bridge Co. Ltd. and Sichuan Independent Director Yes
Development Lomon Co. Ltd.Professor doctoral
supervisor and
Sichuan University post-doctoral Yes
Gan
co-supervisor in
Shengdao
accounting
Chengdu RYCHIP Semiconductor Inc. Ltd.Independent Director Yes
Chengdu XGimi Technology Co. Ltd. and RML
43Annual Report 2021 of Wuliangye Yibin Co. Ltd.
Technology Co. Ltd.Sichuan Fortune Enterprises M&A Investment Co.Outside Director Yes
Ltd.Beijing Technology and Business University Teaching Yes
BJB (Beijing) Information Technology Co. Ltd.Xie Zhihua
and China Non-ferrous Metal Industry's Foreign Independent Director Yes
Engineering and Construction Co. Ltd.Professor of School of
Southwestern University of Finance and Economics Yes
Law
Wu Yue Chengdu Corpro Technology Co. Ltd. Sichuan
MIngxing Electric Power Co. Ltd. and Sichuan Independent Director Yes
Jule Food Co. Ltd.Punishments imposed in the recent three years by the securities regulator on the incumbent directors
supervisors and senior management as well as those who resigned in the Reporting Period:
□ Applicable √ Not applicable
3. Remunerations of Directors Supervisors and Senior Management
Decision-making procedure determination basis and actual payments of remunerations for directors
supervisors and senior management:
(1) Decision-making procedure
In accordance with the relevant rules of the higher organization and the Company the remuneration plan for
the senior management of the Company is formulated then submitted to the Remuneration and Appraisal
Committee under the Board of Directors for review and then finalized by the Board of Directors.
(2) Basis for the determination of remunerations
In accordance with the relevant rules the remunerations for directors supervisors and senior management are
determined upon appraisal.
(3) Actual payments
Part of the base pay is given on a monthly basis and part of the performance-related pay is given within the
year.Remunerations of directors supervisors and senior management during the Reporting Period
Unit: RMB'0000
Total before-tax
Paid by any
remunerations
Name Office title Gender Age Status related party or
from the
not
Company
Zeng Congqin Chairman of the Board Male 53 Incumbent 99.35 No
Vice Chairman of the Board and Incumbent
Jiang Wenge Male 55 77.43 No
General Manager
Xu Bo Director Female 54 Incumbent Yes
Director Deputy General Incumbent
Jiang Lin Female 42 Yes
Manager and Board Secretary
Zhou Yousu Independent Director Male 69 Incumbent 10 No
44Annual Report 2021 of Wuliangye Yibin Co. Ltd.
Gan Shengdao Independent Director Male 55 Incumbent 10 No
Xie Zhihua Independent Director Male 62 Incumbent 6 No
Wu Yue Independent Director Male 55 Incumbent 6 No
Supervisor and Chairman of the Male Incumbent
Liu Ming 51 248.92 No
Supervisory Committee-to-be
Liu Feng Supervisor Female 52 Incumbent Yes
Wu Guoping Employee Supervisor Male 52 Incumbent 72.21 Yes
Cao Hongying Employee Supervisor Female 55 Incumbent 255.99 No
Deputy General Manager and Incumbent
Luo Wei Male 57 77.43 No
CFO
Zhao Dong Chief Engineer Male 57 Incumbent 77.86 No
Liu Yang Deputy General Manager Male 43 Incumbent No
Li Jian Deputy General Manager Male 47 Incumbent No
Li Shuguang Director Male 59 Former 86.57 No
Vice Chairman of the Board and
Zou Tao Male 43 Former 80.01 No
General Manager
Tang Former
Deputy General Manager Male 59 77.84 No
Shengyun
Jiang Chairman of the Supervisory Former
Male 51 86.77 Yes
Wenchun Committee
Yang Ling Supervisor Female 35 Former Yes
Fu Nanping Independent Director Male 60 Former 5 No
Zhu Zhongyu Deputy General Manager Male 58 Former 63.15 No
Tang Bochao Deputy General Manager Male 57 Former 62.94 No
Lang Former
Independent Director Male 56 4.2 No
Dingchang
Total -- -- -- -- 1407.67 --
Note: The remunerations of Mr. Zeng Congqin included part of his remunerations for 2019. Ms. Jiang Lin
served as a Director during the Reporting Period and has become a Deputy General Manager and the Board
Secretary since March 2022. Mr. Liu Yang and Mr. Li Jian took office in the Company in late December 2021. Mr.Jiang Wenchun served as the Chairman of the Supervisory Committee from June to December 2021. His
remunerations included the allowances for serving as the Assistant to General Manager from January to March
2020 but did not include the pay of RMB183100 for serving in Wuliangye Group. Mr. Wu Guoping was given a
pay of RMB37100 by Wuliangye Group.
6. Activities of Directors during the Reporting Period
1. Board Meetings Convened during the Reporting Period
Meeting Date of the meeting Disclosure date Resolutions
The Proposal on the Comprehensive
The 83rd Meeting of the Fifth
06-11 January 2021 N/A Budget Adjustment Plan for 2020
Board of Directors
was approved.The 84th Meeting of the Fifth 01-03 February 2021 6 February 2021 See Announcement 2021/No. 003
45Annual Report 2021 of Wuliangye Yibin Co. Ltd.
Board of Directors
The Proposal on the Incorporation of
The 85th Meeting of the Fifth Joint Venture Chinese Baijiu
05-07 February 2021 N/A
Board of Directors Education Technology Co. Ltd. was
approved.The Proposal on Adjustments to the
The 86th Meeting of the Fifth Investment in the Distillery Waste
8 February 2021 N/A
Board of Directors Water Comprehensive Treatment
Project was approved.The 87th Meeting of the Fifth
25 April 2021 28 April 2021 See Announcement 2021/No. 007
Board of Directors
The Proposal on the Adjustment of
the Name of the 120000-ton
Eco-friendly Brewing Project (Phase
The 88th Meeting of the Fifth
25 May 2021 N/A II) Supporting Facilities Project to
Board of Directors“523 Workshop to Liujiacao RegionRoad and Ancillary Project” was
approved.The Proposal on the Construction of
The 89th Meeting of the Fifth a New Centralized Sewage
31 May-8 June 2021 N/A
Board of Directors Treatment Plant (Project
Establishment) was approved.The 90th Meeting of the Fifth
2 June 2021 4 June 2021 See Announcement 2021/No. 015
Board of Directors
The Proposal on the Acceptance of
The 91st Meeting of the Fifth Expropriation of Properties in Front
20 July 2021 N/A
Board of Directors of the Company’s Plant was
approved.The 92nd Meeting of the Fifth
20 July 2021 22 July 2021 See Announcement 2021/No. 023
Board of Directors
The 93rd Meeting of the Fifth
29 July 2021 30 July 2021 See Announcement 2021/No. 024
Board of Directors
The 94th Meeting of the Fifth
25 August 2021 30 August 2021 See Announcement 2021/No. 025
Board of Directors
The 95th Meeting of the Fifth The Third Quarterly Report 2021
26-28 October 2021 N/A
Board of Directors was approved.The Proposal on the Issuance of a
Principal Shareholder Commitment
The 96th Meeting of the Fifth
25-30 November 2021 N/A Letter to Sichuan Yibin Wuliangye
Board of Directors
Group Finance Co. Ltd. was
approved.The 97th Meeting of the Fifth 14-27 December 2021 28 December 2021 See Announcement 2021/No. 036
46Annual Report 2021 of Wuliangye Yibin Co. Ltd.
Board of Directors
The 98th Meeting of the Fifth
27 December 2021 28 December 2021 See Announcement 2021/No. 037
Board of Directors
The Proposal on the Comprehensive
The 99th Meeting of the Fifth
30 December 2021 N/A Budget Adjustment Plan for 2021
Board of Directors
was approved.
2. Attendance of Directors at Board Meetings and General Meetings of Shareholders
Attendance of directors at board meetings and general meetings of shareholders
Board
Total number General
meetings Board Board
of board Board The director failed to meetings
attended by meetings meetings the
meetings the meetings attend two of
Director way of attended director
director was attended on consecutive board sharehold
telecommunica through a failed to
supposed to site meetings or not ers
tion or proxy attend
attend attended
circulation
Zeng Congqin 17 2 15 0 0 No 1
Li Shuguang 17 0 17 0 0 No 1
Zou Tao 17 2 15 0 0 No 1
Jiang Wenge 17 2 15 0 0 No 1
Xu Bo 9 1 8 0 0 No 1
Jiang Lin 9 1 8 0 0 No 1
Fu Nanping 8 1 7 0 0 No 1
Zhou Yousu 17 2 15 0 0 No 1
Gan Shengdao 17 2 15 0 0 No 1
Xie Zhihua 9 1 8 0 0 No 1
Wu Yue 9 1 8 0 0 No 1
Lang Dingchang 4 1 3 0 0 No 1
Explanation of why any director failed to attend two consecutive board meetings:
Not applicable.
3. Objections Raised by Directors on Matters of the Company
Indicate whether any director raised any objections on any matter of the Company.□ Yes √ No
No such cases in the Reporting Period.
4. Other Information about the Activities of Directors
Indicate whether any recommendation from directors was adopted by the Company.√ Yes □ No
Explanation on adoption/rejection of recommendations of directors:
During the Reporting Period in strict compliance with the applicable laws regulations and the Articles of
47Annual Report 2021 of Wuliangye Yibin Co. Ltd.
Association the directors of the Company performed their duties diligently providing professional opinion or
recommendations for business decisions of the Company. They have played their part in protecting the legitimate
rights and interests of the Company and its shareholders.VII Activities of Special Committees under the Board of Directors during the Reporting
Period
The Board of Directors of the Company has set up five special committees including the Strategy
Committee the Audit Committee the Nomination Committee the Remuneration and Appraisal Committee and
the Comprehensive Budget Management Committee.
1. Strategy Committee
In the Reporting Period the Strategic Committee of the Company convened three meetings according to the
relevant requirements of the Implementation Rules for Strategic Committee of the Company hearing reports on
the preparation work of the "14th Five-Year Plan" the work summary of the first half of the year the promotion
of key projects the three-year action plan for the reform of state-owned enterprises and marketing.
2. Audit Committee
In the Reporting Period the Audit Committee was diligent and responsible in performing the responsibilities
required by the system: (1) reviewed the Company's 1st quarter report of 2021 semi-annual report of 2021 and
the 3rd quarter report of 2021 and formed resolutions; (2) reviewed the Company's renewal of employment of the
accounting firm in 2022 and the audit budget and formed resolutions; (3) determined the timing of audit of the
financial and accounting statements 2021 through consultation with the accounting firm responsible for annual
audit of the Company; (4) reviewed for the first time the summary financial and accounting statements of 2021
prepared by the Department of Finance of the Company before entry of the certified public accountants (CPA) for
the annual audit and provided written comments; (5) after entry of the CPA for annual audit the Audit
Committee and the CPAs for annual audit communicated about problems found during the audit and the time for
submitting the audit report; and (6) the Audit Committee further reviewed the Company's financial and accounting
statements 2021 and formed resolutions after the CPAs for the annual audit issued the preliminary audit opinions.
3. Nomination Committee
The Nomination Committee convened three meetings in the Reporting Period according to relevant
provisions of the Implementation Rules for Nomination Committee of the Company and agreed to nominate Ms.Xu Bo as a candidate for director nominate Mr. Zou Tao and Mr. Liu Ming as candidates for officers nominate
Mr. Zhang Yu as a candidate for director and nominate Mr. Liu Yang and Mr. Li Jian as candidates for officers.
4. Remuneration and Appraisal Committee
The Remuneration and Appraisal Committee convened two meetings in the Reporting Period according to
relevant provisions of the Implementation Rules for Remuneration and Appraisal Committee and issued audit
opinion on the prepayment of some annual performance-based salaries for the Company's senior executives in the
first half of 2021 and the prepayment of the remuneration of the Company's senior executives in 2020.
5. Comprehensive Budget Management Committee
The committee convened two budge work meetings in the Reporting Period according to the Implementation
Rules for Comprehensive Budget Management Committee of the Company and deliberated and approved the
Annual Budget Scheme 2021 and the Comprehensive Budget Adjustment Scheme 2021. The schemes mentioned
above were submitted to the Board of Directors for deliberation and approval.VIII Activities of the Supervisory Committee
Indicate whether the Supervisory Committee identified any risk to the Company during its supervision in the
48Annual Report 2021 of Wuliangye Yibin Co. Ltd.
Reporting Period.□ Yes √ No
The Supervisory Committee raised no objections with respect to matters of the Company.IX Employees
1. Number Functions and Educational Backgrounds of Employees
Number of in-service employees of the Company as the parent at
17446
the period-end
Number of in-service employees of major subsidiaries at the
8357
period-end
Total number of in-service employees at the period-end 25803
Total number of paid employees in the Reporting Period 25803
Number of retirees to whom the Company as the parent and its
299
major subsidiaries need to pay retirement pensions
Functions
Function Number of employees
Production 19381
Sales 1159
Technical 4050
Financial 205
Administrative 1008
Total 25803
Educational backgrounds
Educational background Number of employees
Junior college and beyond 6913
High school to junior college (exclusive) 11472
Middle school and below 7418
Total 25803
2. Remuneration Policy
The remuneration policies implemented by the Company are the Trial Measures for the Management of Total
Wages of Municipal Supervised Enterprises in Yibin City (YGZW [2019] No. 205) and the Company's Interim
Provisions on Wage Management and the Trial Measures for the Management of Total Wages of Subsidiaries.
3. Training Plans
In 2022 training work of the Company will center on the strategy of "Reform Innovation Transformation
and Development" focus on the building of the talent team and strengthen the foundation of innovation and
development. The Company will carry out hierarchical and classified trainings with rich contents and by flexible
means based on the demand of the Company for reform and development and the demands of employees for
diversified trainings enhancing the planning pertinency and effectiveness of educational training. The Company
plans to carry out 130 trainings at company level 111 trainings at department level 238 trainings at workshop
49Annual Report 2021 of Wuliangye Yibin Co. Ltd.
level 134 external trainings and 54 skill trainings to provide strong human resources guarantee for the reform and
innovation of the Company so as to effectively match up with and promote strategic improvement of the
Company and achievement of the annual operation objectives.
4. Labor Outsourcing
√ Applicable □ Not applicable
During 2021 the Company and its major majority-owned subsidiaries outsourced carriage loading and
unloading temporary work etc. for which they paid RMB132 million in total.X Profit Distributions in the Form of Cash and/or Shares
The formulation implementation and amendments to the profit distribution policy especially the cash
dividend policy in the Reporting Period:
√ Applicable □ Not applicable
According to the 2020 Final Dividend Plan approved at the 2020 Annual General Meeting of Shareholders
the Company declared a cash dividend of RMB25.8 (tax inclusive) per 10 shares to shareholders based on the
total 3881608005 shares held by them. The independent directors issued their opinion on the final dividend plan
which was approved by the Board of Directors and then at the general meeting of shareholders. This final
dividend plan has been carried out on 9 July 2021.Special statement about the cash dividend policy
In compliance with the Company’s Articles of Association and
Yes
resolution of general meeting of shareholders
Specific and clear dividend standard and ratio Yes
Complete decision-making procedure and mechanism Yes
Independent directors faithfully performed their duties and
Yes
played their due role
Non-controlling shareholders are able to fully express their
opinion and desire and their legal rights and interests are fully Yes
protected
In case of adjusting or altering the cash dividend policy the
conditions and procedures involved are in compliance with Yes
applicable regulations and transparent
Indicate whether the Company fails to put forward a cash dividend plan despite the facts that the Company
has made profit in the Reporting Period and the profit of the Company as the parent distributable to shareholders
is positive.□ Applicable √ Not applicable
Final dividend plan for the Reporting Period:
√ Applicable □ Not applicable
Bonus issue from profit (share/10 shares) 0
Cash dividend/10 shares (RMB) (tax inclusive) 30.23
Bonus issue from capital reserves (share/10 shares) 0
Share base (share) 3881608005
50Annual Report 2021 of Wuliangye Yibin Co. Ltd.
Cash dividends (RMB) (tax inclusive) 11734100999.12
Cash dividends in other forms (such as share repurchase)
0
(RMB)
Total cash dividends (including those in other forms) (RMB) 11734100999.12
Distributable profit (RMB) 47031016639.11
Total cash dividends (including those in other forms) as % of
100%
the total profit to be distributed
Applicable cash dividend policy
Where the Company is at a mature stage of development and has any substantial spending plan total cash dividends shall account
for at least 40% of the total profit to be distributed.Final dividend plan in detail
As the 2021 final dividend plan the Company intends to pay a cash dividend of RMB30.23 (tax inclusive) per 10 shares to
shareholders based on the total share capital at the record date for the dividend payout with the total amount to be distributed
amounting to RMB11734100999.12; and no bonus issue will be carried out either from profit or capital reserves.XI Equity Incentive Plans Employee Stock Ownership Plans or Other Incentive Measures for
Employees
√ Applicable □ Not applicable
1. Equity Incentives
Not applicable.Equity incentives received by directors and senior management:
□ Applicable √ Not applicable
Appraisal mechanism and incentives for senior management:
See “Part IV V 3. Remunerations of Directors Supervisors and Senior Management” herein.
2. Employee Stock Ownership Plans
√ Applicable □ Not applicable
Outstanding employee stock ownership plans during the Reporting Period:
Total number of
Number of As % of the total share capital
Scope of employees shares held under the Change Funding source
employees of the Company
plans
Employees covered
2428 23696280 N/A 0.61% Self-pooled
by the 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. As
of the end of the Reporting Period certain incumbent directors supervisors and senior management participated
in the employee stock ownership plan through an asset management plan of Guotai Junan.Change of the asset management agency during the Reporting Period:
□ Applicable √ Not applicable
51Annual Report 2021 of Wuliangye Yibin Co. Ltd.
Equity changes incurred by the disposal of shares by any holder etc. during the Reporting Period:
□ Applicable √ Not applicable
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
During the Reporting Period as approved at the first general meeting of holders under the employee stock
ownership plan in 2021 and the first meeting of the management committee of the employee stock ownership plan
in 2021 50% of the 23696280 shares subscribed for by 2428 employees under the employee stock ownership
plan through a private placement were transferred in advance to the securities accounts of the holders by way of a
“non-transaction transfer”. According to the Confirmation on Securities Ownership Transfer and Registration
issued by the Shenzhen branch of China Securities Depository and Clearing Corporation Limited as of the end of
the Reporting Period a total of 10470000 shares have been transferred to 2408 holders by way of a
“non-transaction transfer” under the employee stock ownership plan. The Company carries out the transfers and
management under the employee stock ownership plan based on different awardees and by instalments.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 informatoin:
Not applicable.
3. Other Incentive Measures for Employees
□ Applicable √ Not applicable
XII Establishment and Implementation of Internal Controls during the Reporting Period
1. Establishment and Implementation of Internal Controls
In 2021 in accordance with the requirements of laws and regulations such as the Company Law and the
Basic Criteria of Enterprise Internal Control the Company continuously established institutional norms for Party
building business operation personnel management and logistics support and continued to improve the internal
control system. The Company conducts internal control self-assessment work with full participation in accordance
with national regulations every year. It set up steering groups for internal control self-assessment to guide a total
of 58 units including workshops functional departments and subsidiaries to carry out internal control
self-assessment work and at the same time set up groups for random inspection of internal control to conduct
random inspection on the construction and implementation of the Company's internal control system focused on
major business segments such as procurement and sales production and capital management evaluated the
rationality of the design and the effectiveness of the operation of the internal control system so as to continuously
optimized internal control. The evaluation results showed that no material and significant deficiency was
identified in the internal control system. In the future the Company will continuously focus on the construction
and implementation of the internal control system so that the internal control work can reach a higher level.
52Annual Report 2021 of Wuliangye Yibin Co. Ltd.
2. Material Defects in Internal Control Identified during the Reporting Period
□ Yes √ No
XIII Management and Control of Subsidiaries during the Reporting Period
Problems
Name of Integration
Integration plan encountered in the Measures taken Progress Subsequent plan
company progress
integration
N/A
XIV Self-assessment Report or Independent Auditor’s Report on Internal Control
1. Self-assessment Report on Internal Control
Date of full disclosure of the internal control assessment report 29 April 2022
Index of full disclosure of the internal control assessment report http://www.cninfo.com.cn
Ratio of the total assets of the organizations included in the assessment to
100.00%
the Company's consolidated total assets
Ratio of the operating revenue of the organizations included in the
assessment to the Company's operating revenue in the consolidated 100.00%
financial statements
Deficiency identification criteria
Category Financial report Non-financial report
1. Material deficiencies: (1) correction by the 1. Material deficiencies: (1) in violation of
Company of the financial statement which have national laws regulations or normative
been published. (2) major misstatements found documents. (2) unscientific enterprise
by the external auditor in current financial decision-making procedure such as wrong
statements which have not been identified. (3) decision which causes failure of major
corrupt practice of directors supervisors and transactions. (3) loss of management personnel
officers found by the external auditor. (4) or technician of important posts. (4) lack of
ineffective supervision of internal control by the institutional control or systematic failure of the
Company's internal audit department. (5) institution for important businesses and existing
material deficiencies previously found but were but ineffective operation of institutional
not corrected within a reasonable period or were guidance for internal control of important
Qualitative criteria
ineffectively corrected. economic business. (5) failure to correct material
2. Significant deficiencies: (1) failure to select deficiencies within a reasonable period.
and apply accounting policies in accordance 2. Significant deficiencies: (1) property loss not
with generally accepted accounting policies. (2) reaching or exceeding the level of materiality but
failure to effectively control irregular should be noticed by the Board of Directors and
(non-repeating) or complicated transactions. (3) the management in nature. (2) individual events
failure to effectively control the anti-corrupt criticized by government departments causing
work. (4) ineffective internal control over the moderate negative influence on reputation of the
financial report at the end of the period. Company. (3) violation of internal rules and
3. General deficiencies: deficiencies other than regulations of the enterprise and causing losses.
material deficiencies and significant (4) deficiency in important business mechanism
53Annual Report 2021 of Wuliangye Yibin Co. Ltd.
deficiencies are recognized as general or system.deficiencies. 3. General deficiencies: deficiencies in internal
control other than material deficiencies and
significant deficiencies are general deficiencies.
1. Material deficiencies: misstatement
amount >3% of total operating revenue;
misstatement amount >10% of net profit;
misstatement amount >3% of total assets.
2. Significant deficiencies: 1% of total 1. Material deficiencies: proportion of loss to net
operating revenue < misstatement amount ≤3% profit ≥5%.of total operating revenue; 5% of net profit < 2. Significant deficiencies: 3%≤ proportion of
Quantitative criteria
misstatement amount ≤10% of net profit; 1% of loss to net profit