五粮液:2021年度社会责任报告（英文版）

SOCIAL RESPONSIBILITY REPORT
Strong Flavor of China · Harmonious Wuliangye · Top Chinese Baijiu
WULIANGYE YIBIN CO. LTD.About This Report
The 2021 Social Responsibility Report of Wuliangye Yibin Co. Ltd. (hereinafter referred to as this "Report") is the 14th annual cor-
porate social responsibility ("CSR") report released by Wuliangye Yibin Co. Ltd. (hereinafter referred to as "Wuliangye") since 2008.Based on our principles of being objective standard transparent and comprehensive this Report discloses in detail Wuliangye's
practices and performance in areas of its responsibilities to environmental social and governance ("ESG") causes in 2021.Reporting Period Shenzhen Stock Exchange ("SZSE") - Guidelines for the Standard Operation of Listed Companies
Shenzhen Stock Exchange ("SZSE") - Guidelines for the ESG Environmental Social Responsibility and Corporate Governance Infor-
This Report covers the period lasting from 1 January 2021 to 31 December 2021. To make its content more comparable and com-
mation Disclosure of Listed Companies (Exposure Draft)
plete this Report has included data from previous years.Designation
Scope of This Report
For the convenience of our readers "Wuliangye" "Company" and "We" are used in this Report to refer to "Wuliangye Yibin Co. Ltd."
This Report covers Wuliangye Yibin Co. Ltd. (stock code: 000858) and its subsidiaries.Availability
Release Period
This Report is available online and in print copy (environmentally-friendly paper). The online report can be viewed and downloaded
This Report is an annual report. The 2020 report was released in April 2021.at:
http://www.cninfo.com.cn
Data Resource and Credibility
Data contained in this Report is collected from government public data Wuliangye's internal statistical statements third-party sur- Contact Information
veys administrative policies and reports and third-party evaluations and interviews. This Report has been reviewed and approved
Address: 150 Minjiang West Road Cuiping District Yibin City Sichuan Province China
by the Board of Directors of Wuliangye Yibin Co. Ltd.Postal code: 644007
Telephone: (0831) 3567000 3566937 and 3566858
Normative References Fax: (0831) 3555958
GRI Sustainability Reporting Standards ("GRI Standards") E-mail: 000858-wly@sohu.com
Chinese Academy of Social Sciences - Corporate Social Responsibility 4.0 ("CASS-CSR4.0") Website: https://www.wuliangye.com.cn
The Ten Principles of the UN Global Compact
ISO26000: Guidance on Social Responsibility (2010)
GB/T36001-2015 Guidance on Social Responsibility ReportingCONTENTS Inheritance Techniques Society01 Time-honored Brand that 03 Premium Products through An- 05 Extensive Brotherhood through
Bears "Red" Heritages cient and Modern Efforts Ancient and Modern Cultivation
Special Party Building 09 Craftsmanship-embedded 41 Supplier Management 75
subject
Celebration of the 100th Anni- 16 Innovation Distributor Support 77
versary of the Founding of the Technique Inheritance 48 Consumer Services 79
Communist Party of China Quality Control 51 Employee Recruitment and 87
Culture Promotion 57 Development
Investor Relation Management 98
Common Industrial Progress 101
Rural Revitalization 105
Public Welfare and Charity 110
A Message from the 01 Governance Environment Performance 117
Senior Management 02 Cellar Prosperity throughout An- 04 Preservation of Rivers in Their Future Outlook 119
About Wuliangye 03 cient and Modern Governance Natural State through Ancient
and Modern Cultivation Benchmarks for 121
Company Profile 03 Corporate Governance 21 Environmental Management 65 Indicators
Highlights of 2021 04 Risk Control and Compliance 25 Zero-carbon Liquor Enterprise 66
Honors and Awards 05 Combating Corruption and 26 Ecological Conservation 69 Suggestions 123
Upholding Integrity Green Logistics 72 and Feedback
Digital Transformation and 33
Upgrade
Corporate Social Responsibility 35
ManagementA MABEOSUST AWGULEIA NFGRYOE M THE SSEPNECIIAOL SRUB MJECAT: NINHAERGITEANMCEE · TNIMTE-HONORED GOVERNANCE · CELLAR PROSPERITY THROUGH TECHNIQUE · PREMIUM PRODUCTS THROUGH ENVIRONMENT · PRESERVATION OF RIVERS IN THEIR NATURAL STATE SOCIETY · EXTENSIVE BROTHERHOOD THROUGH BRAND THAT BEARS "RED" HERITAGES ANCIENT AND MODERN GOVERNANCE ANCIENT AND MODERN EFFORTS THROUGH ANCIENT AND MODERN CULTIVATION ANCIENT AND MODERN CULTIVATION WULIANGYE YIBIN CO. LTD.A Message from the Senior Management
In 2021 we consistently adhered to innovation empowerment to meet the diverse needs of our customers. We proactively implemented the
national innovation-driven development strategy and upheld our core values of staying honest and quality-oriented while advocating craftsmanship and inheritance-in-
spired creation so as to capitalize on the advantages of our environment craftsmanship and aged fermentation pits. Apart from the original technological innovation
platforms such as China Light Industry Laboratory the solid fermentation laboratory and the National Enterprise Technical Center efforts were also accelerated to
promote the creation of the innovation center for the Baijiu industry of Sichuan Province. Thus along with the innovation of production techniques and improvement of
product quality we consistently promoted the supply-side structural reform optimized our product system and committed ourselves to upgrading the internationaliza-
tion of our Baijiu products in the new dual-circulation development pattern thereby creating a full product system that would meet the needs of consumers around the
world. Moreover through these efforts the international competitiveness and influence of Chinese Baijiu would be enhanced and it would be recognized throughout
the world.In 2021 we upheld value sharing as the means to promote the steady development of the Company. We have steadily maintained the core val-
ue ideas of "creating happiness for employees creating outstanding experiences for customers and creating returns for investors" and vigorously practiced the spirit
of a state-owned enterprise by readily taking responsibility to realize value sharing with all stakeholders. Additionally guided by the strategy of talent-based develop-
ment we created a well-developed welfare mechanism and empowerment platform and built up a community of shared future for the Company and its employees. A
continuous effort was made to promote the stability of the supply chain and the channel transformation establish a new relationship of coexistence and co-prosperity
with suppliers and elevate the customer’s experience with high-quality services. We also protected the rights and interests of our investors unblocked communication
channels for investors and created a steady increase in value on their behalf.It was in 2021 that we implemented the green development philosophy to grow into an environmental benchmark enterprise. We were
committed to promoting the harmony between man and nature. To achieve this goal we resolutely followed the national strategy of carbon-emission peaking and
carbon neutrality. In doing so we proactively implemented the arrangements for the nationwide battle to prevent and control pollution and prioritized the work of en-
vironmental protection. For example we took the lead in putting forward the vision of building a "Zero-carbon Liquor Enterprise" as well as actively formulated related
strategies and implemented them. Additionally we created Minjiang Ecological Reserve and environmental-protection ecological wetlands thereby contributing to the
realization of carbon-emission peaking and carbon neutrality. Besides in the process of realizing the brand value we held firm to the eco-cycle development philoso-Mr. Zeng Congqin phy and strove to carry out the principle "from the land to the land”. By reducing the consumption of production resources recycling products and services recycling
Secretary of Party Committee and Chairman of Wuliangye Group production materials and controlling the production process we formed an efficient production pattern featuring low consumption and comprehensively created a
Secretary of Party Committee and Chairman of Wuliangye Yibin Co. Ltd.resource-saving environmental development mode thus facilitating the realization of sustainable development.In 2021 we carried forward the principle of harmony so as to help people have happier more fulfilling lives. Guided by "mean and harmony"
the essence of Confucianism we stuck to cultural confidence polished our national symbols and promoted the Chinese culture so as to prosper in the new era. We
consistently endeavored to apply the principle of harmony as a symbol of Chinese Baijiu that meets people's needs for a better life thus building a national brand and
a Chinese business card that would be known throughout the world. We established a three-in-one organization structure in order to guide the assistance work and
thus improve people's livelihood and made a five-year plan to help the assisted regions achieve revitalization. Additionally we devoted ourselves to the public-welfare
undertaking by resting on charitable foundations to contribute to regional development and common prosperity.The year 2021 marked the centennial anniversary of the Communist Party of China. It was also the first year of the "14th Five-Year Plan". Based on this historic point
of advancing from the first centenary goal to the second we seized the moment and strategic opportunities for a new chapter of high-quality development. Bearing The window of opportunity is short-lived. So we must seize it without hesitation. The world is undergoing profound changes unseen in a century with both opportuni-
in mind the country's top priorities we observed the prevailing trend thought and planned in terms of the big picture. We focused on major issues as well as sought ties and challenges. In pursuit of long-lasting business we’ll actively take up development opportunities shore up our weak spots develop our strengths and create
stable progress by maintaining strategic focus. We saw meeting the new needs resulting from enhanced consumption as our objective and the supply-side structural new growth drivers in accordance with the principle of bolstering weak spots and consolidating advantages while bolstering the digital transformation. Moreover we’ll
reform as our guiding principle so that we could comprehensively promote the sustainable steady and high-quality development of Wuliangye. implement the new development philosophy and integrate with the new national development pattern to play a steady role as a state-owned enterprise in contributing
to a strong national economy over the long term.
1 2ABOUT WULIANGYE SPECIAL SUBJECT: INHERITANCE · TIME-HONORED GOVERNANCE · CELLAR PROSPERITY THROUGH TECHNIQUE · PREMIUM PRODUCTS THROUGH ENVIRONMENT · PRESERVATION OF RIVERS IN THEIR NATURAL STATE SOCIETY · EXTENSIVE BROTHERHOOD THROUGH BRAND THAT BEARS "RED" HERITAGES ANCIENT AND MODERN GOVERNANCE ANCIENT AND MODERN EFFORTS THROUGH ANCIENT AND MODERN CULTIVATION ANCIENT AND MODERN CULTIVATION WULIANGYE YIBIN CO. LTD.
About Wuliangye Highlights of 2021
February · Held the Year-end Summary Conference 2020.Company Profile
March · Concluded a contract with the Secretariat of the Boao Forum for Asia to become the Honorary Strategic Partner of the
Company Development Boao Forum for Asia Annual Conference 2021.· Attended the opening ceremony of the Boao Forum for Asia Annual Conference 2021.· Undertook the 10th Chinese Baijiu T9 Summit.
1952 Eight old liquor production workshops jointly established the Yibin Daqu Liquor Production Industrial Joint Venture. Then the April · Co-held the Social Responsibility Forum for State-owned Enterprises.
venture changed its name to Yibin No. 24 Liquor Distillery of Southern Sichuan State-Owned Monopoly Company.· Donated RMB200 million to the building of ten kindergartens in the central urban area of Yibin.
1959 Its name was changed to Sichuan Local State-Owned Yibin Wuliangye Local Distillery. May · Being the first enterprise in the Baijiu industry to attend an important international academic conference as the first au-
thor's unit.
1964 Its name was changed to Sichuan Yibin Wuliangye Distillery.
· Ranked second on the Brand Finance Spirits 50 2021.
1998 In the joint-stock reform Sichuan Yibin Wuliangye Distillery restructured part of its assets into Wuliangye Yibin Co. Ltd. which June · Held the 2020 General Meeting of Shareholders.
· Held the signing ceremony for its strategic cooperation with Postal Savings Bank of China.went public on Shenzhen Stock Exchange under the ticker symbol 000858.
2020 Wuliangye's market capitalization exceeded RMB1 trillion. · Held a celebration for the 100th anniversary of the founding of the Communist Party of China.
July · Held the signing ceremony for its strategic cooperation with the Hong Kong-based Sunwah Group.Brand Value of the Company
September · Attended the APEC Women Leadership Forum 2021 as a partner and the designated supplier for the wine for the theme
Throughout the year 2021 the Baidu Index of Wuliangye has been above the average level of the leading peers. In addition Wuliangye is constant-
dinner.ly consolidated in terms of the brand's core advantages. It ranks first among peers on authoritative lists such as the World's 500 Most Influential
Brands China's 500 Most Valuable Brands and Brand Finance Global 500. · Being the exclusive strategic partner and the exclusive title sponsor of the launching ceremony of the large-scale documen-
October
tary The Forbidden City.Corporate Vision
· Being awarded the 19th China Quality Award.In pursuit of long-lasting business Wuliangye is committed to developing into a green innovative world-leading enterprise that keeps growing in a · Attended the 2021 Boao Forum for Entrepreneurs.high-quality and sustainable way. · Signed a strategic cooperation agreement with Bazhong.· Undertook the special session dedicated to Wuliangye under the Old Baijiu in Household collection event.Development Goals · Signed a technical cooperation agreement with Beijing Technology and Business University on the Biological Activity Re-
December search and Application of Polysaccharide in Huangshui of Wuliangye.Wuliangye sticks to the general principle of seeking progress while maintaining stability and the new development philosophy. Additionally it · Held the 25th Wuliangye 12·18 Super Fan Festival.consistently deepens its long-term policy of "shoring up weak spots developing strengths and creating new growth drivers" to improve quality · Held the 25th Wuliangye Liquor Sage Ceremony.strengthen management and control strengthen digital transformation as well as realize new development. Meanwhile Wuliangye strives to attain · Held the 25th Wuliangye 12·18 Annual Convention: Achieving Shared Growth through Discussion and Collaboration at the
the "2118" development goals including the capacity to produce 200000 tons of unblended liquor the capacity to warehouse one million tons of major venue and 27 online sub-venues.base liquor a sales revenue of more than RMB100 billion and a total pre-tax profit of RMB80 billion.
3 4ABOUT WULIANGYE SPECIAL SUBJECT: INHERITANCE · TIME-HONORED GOVERNANCE · CELLAR PROSPERITY THROUGH TECHNIQUE · PREMIUM PRODUCTS THROUGH ENVIRONMENT · PRESERVATION OF RIVERS IN THEIR NATURAL STATE SOCIETY · EXTENSIVE BROTHERHOOD THROUGH BRAND THAT BEARS "RED" HERITAGES ANCIENT AND MODERN GOVERNANCE ANCIENT AND MODERN EFFORTS THROUGH ANCIENT AND MODERN CULTIVATION ANCIENT AND MODERN CULTIVATION WULIANGYE YIBIN CO. LTD.
Honors and Awards
Brand Operation
Honor or Award Organizer Honor or Award Organizer
The 19th China Quality Award The China Association for Quality (CAQ)
The 251st on the World's 500 Most Influential Brands 2021
2020 Sichuan Tianfu Quality Award The People's Government of Sichuan Province
The First Prize of the 2020 Science and Technology Award by the China National Food Industry
The 17th on China's 500 Most Valuable Brands with the brand value assessed at RMB325316000000 World Brand Lab China National Food Industry Association
Association
Best Practice Case for the 2020 Annual Report Results Presentation by Listed Companies China Association for Public Companies
The 35th on Asia's 500 Most Influential Brands 2021
Special Award for Scientific and Technological Progress in China's Wine Industry during the
Scientific and Technological Award Committee under China Alco-
"13th Five-Year Plan" Period and Award for Outstanding Scientific and Technological Contribu-
The 61st on the Brand Finance Global 500 2021 Brand Finance holic Drinks Associationtions to China's Wine Industry
China Enterprise Reform and Development Society
2021 China Corporate Credit Top 500
The 3rd on China's 100 Most Valuable Brands R&F Global Ranking China Cooperative Trade Enterprises Association
Gold Medal in the World Cocktail Championships International Bartenders Association
Top 200 Enterprises in China Light Industry China National Light Industry Council Organizing Committee of China Agricultural Brand Annual Award 2021 · China Agriculture Award for Ten Outstanding Contributions to Rural Revitalization
Ceremony
Like 2021 My Favorite Chinese Brand China National Brand 2021 Best Operator and Performer Organizing Committee of China High-end Wine and Spirits Expo
Best New Media Operator of the 2020 Investor Relations Golden Awards www.p5w.net
2021 China Brand Innovation Case People's Daily 2020 Golden Bull of Investment Value China Securities Journal
Social Responsibilities
Honor or Award Organizer
The Third Sichuan Charity Award - The Most Charitable Contributor The People's Government of Sichuan Province
2021 China Corporate Social Responsibility Case People's Daily
2021 Green Innovation China CSR Annual Forum
2021 Outstanding Corporate Social Responsibility Report China CSR Annual Forum
The 15th China Listed Company Value Evaluation - China Listed Company Corporate Social Responsi-
Securities Times
bility Award
5 6v
ABOUT WULIANGYE SPECIAL SUBJECT: INHERITANCE · TIME-HONORED GOVERNANCE · CELLAR PROSPERITY THROUGH TECHNIQUE · PREMIUM PRODUCTS THROUGH ENVIRONMENT · PRESERVATION OF RIVERS IN THEIR NATURAL STATE SOCIETY · EXTENSIVE BROTHERHOOD THROUGH BRAND THAT BEARS "RED" HERITAGES ANCIENT AND MODERN GOVERNANCE ANCIENT AND MODERN EFFORTS THROUGH ANCIENT AND MODERN CULTIVATION ANCIENT AND MODERN CULTIVATION WULIANGYE YIBIN CO. LTD.
01Inheritance Time-honored Brand that Bears "Red" Heritages
The year 2021 marked the start of the "14th Five-Year Plan" period that is a critical period for
Wuliangye to ride on the momentum to start a new journey and important window period for
Wuliangye to seize strategic opportunities to arrange the new round of high-quality develop-
ment. Wuliangye closely united around the CPC Central Committee with Comrade Xi Jinping
as the core and earnestly implemented the decisions and arrangements of the CPC Central
Committee the State Council the CPC Sichuan Provincial Committee the People's Gov-
ernment of Sichuan Province the CPC Yibin Municipal Committee and the People's Gov-
ernment of Yibin City. Meanwhile it consolidated its top position in strong flavor spirits and
expedited to become a modern world-leading liquor enterprise featuring excellent products
outstanding brands leading innovation and modern governance so as to welcome the con-
vening of the 20th CPC National Congress and the 12th Congress of Party Representatives
of Sichuan Province with more excellent achievements.· Party Building
· Celebration of the 100th Anniversary of the Found-
ing of the Communist Party of China
7 8ABOUT WULIANGYE SPECIAL SUBJECT: INHERITANCE · TIME-HONORED GOVERNANCE · CELLAR PROSPERITY THROUGH TECHNIQUE · PREMIUM PRODUCTS THROUGH ENVIRONMENT · PRESERVATION OF RIVERS IN THEIR NATURAL STATE SOCIETY · EXTENSIVE BROTHERHOOD THROUGH BRAND THAT BEARS "RED" HERITAGES ANCIENT AND MODERN GOVERNANCE ANCIENT AND MODERN EFFORTS THROUGH ANCIENT AND MODERN CULTIVATION ANCIENT AND MODERN CULTIVATION WULIANGYE YIBIN CO. LTD.
Party Building
· The Company integrated Party organizations into the governance structure specified and enhanced Party organizations' legal status in
the corporate governance structure and embedded Party building into its Articles of Association. Concurrently it specified important mat-
The Company always upheld the leadership of the Party reinforced Party building and consolidated the "root" and "soul" as a state-owned enterprise. In terms of ters such as Party organizations' responsibilities and authorities institutional settings operating mechanisms and basic guarantee and
specific practices Wuliangye created the "12345" Key Work System promoted the deep integration between Party building and production and operations and led constantly promoted the "Self-inspection of the Integration of Party Building into the Articles of Association". During the
high-quality corporate development based on high-quality Party building. Moreover it exerted all its effort to have a solid start of the "14th Five-Year Plan" period and
establish a basic guarantee for becoming a Fortune Global 500 company and modern world-leading enterprise featuring excellent products outstanding brands lead- Reporting Period Wuliangye's tier-1 subsidiaries completed the revision to their articles of association.ing innovation and modern governance. · The Company further implemented and improved the the dual responsibilities requirement (to be responsible for both Party and business
work) ensured the inclusion of members of CPC Wuliangye Committee in management or the board and vice versa strictly implemented
a prerequisite for management and the board in making major decisions to have issues discussed and studied first by the Party committee.The "12345" Key Work System
Throughout the year the Party Committee of the Company reviewed 173 major matters.Upholding the leadership of the Party and · T he Company held more than 1500 sessions of educational and learning activities benefiting over 40000 Party members
reinforcing Party building.and offered more than 140 sessions of on-site lectures on the Party history and nature.· The Company's works on the theme Zhao Yiman were granted the first prize of a themed speech competition of the State-
"One Foundation"
owned Assets Supervision and Administration Commission of Sichuan Province and Second Prize of the Finals of
the First Community-level Theory Publicity Competition of Sichuan Province and the competitor was named to the "Top 10
Golden Promoters"of Sichuan Province."Five Brewing "Two Synchroni-
Working Measures" zations"
Enhancing the strengths of "12345" Arranging and assessing Party Pyramid Project to Enhance Standard Party Building of Community-Level Party Branches and Consolidate
community-level organizations. Key Work System building and production and the "One Foundation"
operations synchronously.· One priority
Three perspectives to sharpen the top · One focus
· One method
"Four Innovations" "Three Drives"
Making innovation in WeChat-based Party Driving production industrial development · We made Party building more effective via educational
Lectures Party Member-led Key Projects the and team building through Party building. and promotional activities
duty performance and fact recording platform · We created highlights by strengthening demonstrations Four skills for enhancing the body
and the Wuliangye Family App. and educational sites
· We promoted integrated development with new methods
· We made work easier with the Internet+
One Foundation
· Full coverage of basic education
"One Foundation" means upholding the leadership of the Party and reinforcing Party building. During the Reporting Period the Company achieved the "Three Full · Fundamental lecture sessions were provided to all staff
Coverages"—the full coverage of the development of Party organizations the full coverage of the "Integration of Party Building into the Articles of Association" and · Fundamental Party organizations valued CPC member
the full coverage of prerequisites that the Party Committee discussed and regarded as major decisions. In the meantime it fully promoted the standardized and nor- Five fundamentals to cementing the foundation admission
malized building of Party organizations issued the Guidelines for the Standardized and Normalized Building of Community-level Party Organizations pushed forward · Fundamental rules were rigorously implemented
organizational development organizational life team management information and materials and the standardized and normalized development of activity platforms · Fundamental supportive measures were put into practice
and strengthened Party branches' role as a fortress in battles.
9 10ABOUT WULIANGYE SPECIAL SUBJECT: INHERITANCE · TIME-HONORED GOVERNANCE · CELLAR PROSPERITY THROUGH TECHNIQUE · PREMIUM PRODUCTS THROUGH ENVIRONMENT · PRESERVATION OF RIVERS IN THEIR NATURAL STATE SOCIETY · EXTENSIVE BROTHERHOOD THROUGH BRAND THAT BEARS "RED" HERITAGES ANCIENT AND MODERN GOVERNANCE ANCIENT AND MODERN EFFORTS THROUGH ANCIENT AND MODERN CULTIVATION ANCIENT AND MODERN CULTIVATION WULIANGYE YIBIN CO. LTD.
Case Strictly Controlling CPC Member Admission Two Synchronizations
The Company gave top priority to political standards and strictly selected Party member candidates. the frontline employees who engaged in production and
operations and marketing young employees and those with a high educational background were the main sources of such candidates. During the Reporting "Two Synchronizations" means the synchronous arrangement and assessment of Party building and production and operations. Every year the Company synchro-
Period the Party committees of the Company and its subsidiaries approved 217 new Party members. In the meantime in order to further enhance the political nously issued the goals of Party building and production and operations through the No. 1 Document. The dual responsibilities requirement in Party building was im-
quality of active applicants for Party membership the Company held training sessions for active applicants for Party membership (and potential Party mem- plemented. The Letter of Commitment of Production and Operation Goals and the Letter of Commitment of Party Building Goals are signed at the same time to keep
bers). A total of 377 active applicants for Party membership and potential Party members from community-level Party organizations participated in the training raising the weight and proportion of Party building in assessment. Additionally it continued to improve and implement the "Plan-Do-Check-Act Cycle" and turned the
and took exams. integration between Party building and production and operations more reasonable systematic feasible and practical.Case Having a Strict Political Life Continuing to Improve and Implement the "Plan-Do-Check-Act Cycle" to Enhance Production and Operations
The Company's Party Committee organized special organizational life meetings during the Reporting Period. All community-level Party organizations conscien-
Implementing the policy of Party building contact points implementing the dual responsibilities
tiously organized pre-meeting learning heard employees' voices deeply investigated issues and performed strict criticism and self-criticism. Party members Focusing on core tasks and annual targets developing annual Party
requirement in Party building and reinforcing the supervision and guidance of competent organi-
were guided to exchange their ideas summarize experience and lessons and conduct criticism and self-criticism. Leadership team members as ordinary Par- building "must-dos" and refining and quantifying the goals and tasks zations relevant fields and the contact points of community-level Party building
ty members attended special organizational life meetings of their respective Party branches earnestly carried out criticism and self-criticism and achieved two of Party building
"One Hundred Percent". · Giving full play to the Party's leading role: The five projects of Party building were implemented.· A special meeting of the Party Committee is held at the beginning of
The Five Brewing Working Measures were adopted. The CPC Wuliangye Committee Party
each year: Key work is studied and promoted.School the Wuliangye Youth League School and the Wuliangye Lectures offered training and
· A meeting promoting Party building was regularly held: Party building
lectures. Party building activities were carried out at the "1+N" sites for the Party building culture
and production and operations were planned deployed implement-
on multiple themes.ed and assessed synchronously.· Conducting Party building activities: The Company deeply promoted the learning and education
· T he Letter of Commitment on Party Building was signed: The
of the Party history to be normalized and long-term deepened the daily education of Party mem-
Letter of Commitment on Party Building is signed with secretaries
bers and advocated innovative theories of the Party in workshops and teams.of community-level Party organizations every year to urge them to
· N ormalizing the activity of "Party Member-led Key Projects": Nearly 400 scientific and technolog-
effectively perform their responsibilities as the "First Responsible
ical achievements were made and applied cumulatively resulting in economic benefits exceed-
Persons" of Party building.ing RMB400 million since the launch of this activity.P: Plan D: Do
A: Act C: Check
Special organizational life meeting on the learning and education of the Party history of the First Party Branch
Employing a self-check + check by Party organizations model to make the deep integration be-
tween Party building and business operation compulsory rather than suggested
Combining result consolidation and issue summarization and incorpo- · Raising the proportion of Party building in assessment: The proportion was increased by 5%.rating issues identified into the next "PDCA cycle" of Party building. · Self-check: All community-level Party organizations conducted self-check in line with the Rules
for the Assessment of Party Building Goals at the end of the year.Holding a seminar on Party building: Experience and good practices · Check by Party organizations: The Party Building Assessment Group inspected and assessed
were summarized; and the results were promoted. the duty performance in Party building by the secretaries of community-level Party organizations.The "1+5" evaluation system (1: Overall evaluation 5: Political quality business performance
solidarity and cooperation style and image and Party building) was developed. Party building
was incorporated into the democratic evaluation of leadership team members at all levels.Meanwhile comprehensive inspection and assessment were carried out over the completion
Special organizational life meeting on the learning and education of the Party Special organizational life meeting on the learning and education of the Party status of the goals and tasks of Party building of community-level Party organizations.history of the Party Branch of Sacred Mountain Molin Group Co. Ltd. Si history of the 11th Party Branch
Chuan (Sacred Mountain Molin Group)
11 12ABOUT WULIANGYE SPECIAL SUBJECT: INHERITANCE · TIME-HONORED GOVERNANCE · CELLAR PROSPERITY THROUGH TECHNIQUE · PREMIUM PRODUCTS THROUGH ENVIRONMENT · PRESERVATION OF RIVERS IN THEIR NATURAL STATE SOCIETY · EXTENSIVE BROTHERHOOD THROUGH BRAND THAT BEARS "RED" HERITAGES ANCIENT AND MODERN GOVERNANCE ANCIENT AND MODERN EFFORTS THROUGH ANCIENT AND MODERN CULTIVATION ANCIENT AND MODERN CULTIVATION WULIANGYE YIBIN CO. LTD.
Three Drives "Four Innovations" Work Mechanism
"Three Drives" means the drive of production industrial development and team building through Party building. During the Reporting Period the Company highlighted
Party lectures were optimized. New "WeChat-based Party Lec- The activity of Party Member-led Key Projects was deepened.the "Improvement in the Well-being of Employees" stuck to the synchronous growth of employee income and corporate development and establish a "normalized tures" were proposed. Knowledge of the Party and the stories of The pioneering and exemplary role of Party members was given
+ emergency" assistance mechanism. Besides it continued to implement the Management Measures for Leaving the Post for Recuperation due to Critical Illnesses people around were told from small entry points and small topics. full play to. The team of Party members was stimulated to resolve
improved the production and living environments of employees and practically enhance the well-being of employees. difficulties in production and operations and create economic and
social benefits."Three Drives" Work Mechanism "Four Innova-
tions"
The "Wuliangye Family" App was upgraded to be an online bridge The duty performance and fact recording platform within the Party
featuring ideological guidance poverty alleviation legal assistance was utilized to preliminarily form a grand supervision layout consist-
Party building
psychological counseling convenience to the people harmony and ing of "critical minority + routine supervision + frontline supervision".interconnectivity.Driving
Driving Driving Work System of "Party Member-led Key Projects Addressing Difficulties in Development"
industrial devel-
production team building
opment
Actively Responding to the Party's Call
· T he Company included in the first group · Platforms such as "Wuliangye's Employee · T he "Wuliangye Youth League School" The Regulations of the Communist Party of China for the Community-level Party Orga- The requirements of the CPC Central Committee and the CPC Sichuan Provincial Com-
of pilot organizations of the team building Family" and the "Wuliangye Family" App was established. nizations of State-owned Enterprises (Provisional) were observed. mittee for strengthening the Party building of state-owned enterprises were implemented.reform of industrial workers of the prov- were created. · T he "Young Employee Cultivation Pro- The integration between Party building and production and operations was deepened.ince focused on ideological guidance · Brands such as the "Craftsmen Incubator gram" was implemented.achievements and family construction Program" the "Employees' Life Festival" · T he Skill Improvement Quarter of Young
and endeavored to develop a team of and the "Employee Sports Season" were Employees was launched. Planning Work Implementation Paths
high-quality and modern industrial work- created. · The vitality and motivation of the youth The Party Committee closely followed the working idea The Party branches' role as a fortress in battles and the The activity of Party Member-led Key Projects was con-
ers. · T eams such as "Wuliangye Family Ex- were stimulated. of "Party Building and Shared Development". Party members' pioneering and exemplary roles were ducted.· Wuliangye's "Production Reform Model" perience Officers" and "Labor Union New given full play to.was fully recognized by the All-China Fed- Media Promoters" were built.eration of Trade Unions and the Sichuan · Employees' senses of gain happiness Ensuring implementation
Federation of Trade Unions. and safety were raised.The Guidelines on Standardization of Community-level The Steering Group of the Activity of Party Member-led All community-level Party organizations took charge of
Party Organization Construction in Wuliangye Group and Key Projects was established. the routine management of Party Member-led Key Proj-
Yibin Wuliangye were issued. ects.Four Innovations Party Members Taking the Lead in Overcoming Difficulties
"Four Innovations" means the innovation in "WeChat-based Party Lectures" Party Member-led Key Projects the duty performance and fact recording platform and Projects were set up regarding the topics closely related to the Company's reform and development such as Party building production technologies marketing financial management
the Wuliangye Family App. The Company addressed difficulties in development through innovation and constantly strengthened community-level Party organizations. quality management safety management energy and eco-protection management. The exemplary and leading role of Party members was given full play to.Converting Results to Improve Quality and Efficiency
During the Reporting Period the Company's "Wuliangye Family" App was named to "Top 10 Corporate Platforms" Results were applied to production and operations and converted into economic and A model for Party Member-led Key Projects was developed which is normalized and
by the All-China Federation of Trade Unions. social benefits to drive the Company's reform and development. long-acting and centers on first-class business new business records and optimal
results.
13 14ABOUT WULIANGYE SPECIAL SUBJECT: INHERITANCE · TIME-HONORED GOVERNANCE · CELLAR PROSPERITY THROUGH TECHNIQUE · PREMIUM PRODUCTS THROUGH ENVIRONMENT · PRESERVATION OF RIVERS IN THEIR NATURAL STATE SOCIETY · EXTENSIVE BROTHERHOOD THROUGH BRAND THAT BEARS "RED" HERITAGES ANCIENT AND MODERN GOVERNANCE ANCIENT AND MODERN EFFORTS THROUGH ANCIENT AND MODERN CULTIVATION ANCIENT AND MODERN CULTIVATION WULIANGYE YIBIN CO. LTD.
Case Party Members Playing an Exemplary Role in Party Member-led Key Projects Celebration of the 100th Anniversary of the
The Company gave full play to the pioneering and exemplary role of Party members and deeply conducted the activity of Party Member-led Key Projects to
address difficulties in development. During the Reporting Period 100 results were achieved by overcoming difficulties resulting in economic benefits of nearly Founding of the Communist Party of China
RMB300 million. Particularly great achievements were made in the "Project of Desulfuration and Flue Gas Cleaning with Alkali Recovery Boilers" the "Project
of Multiple Measures for Reducing Energy Costs" and the "Project of Improvement in the Transport Efficiency of the Heat Supply Network of the Jiangbei
Industrial Park" in terms of energy conservation emission reduction and environmental protection. Besides economic benefits the Company made favorable The year 2021 marked the 100th anniversary of the founding of the Communist Party of China. The Party will lead the Chinese people to start a new journey to build
social benefits. a modern socialist country in all respects. In order to grandly celebrate the 100th anniversary promote and eulogize the Party's remarkable achievements and carry
forward the hardworking and enterprising spirit the Party Committee of the Company pushed forward activities on five themes "Centennial Journey Centennial Im-
pression Original Aspirations Hardest Row and Wisdom of the Masses" properly conducted major events of Party building promoted the deep integration between
Party building and production and operations and stimulate Wuliangye to become a Fortune Global 500 company.Held the Activity on the Theme "Revisit Revolutionary Sites and Re-
call Revolutionary Memory"
During the Reporting Period the Company organized Party members and cadres to visit revolutionary resources in Yibin such as the Zhao Yiman Memorial Hall and
the Li Shuoxun Memorial Hall to learn the moving stories of revolutionary martyrs. Frontline Party members from 21 marketing war zones and 58 marketing bases
nationwide leveraged local revolutionary resources and held more than 140 on-site lectures on the Party history and nature at red education bases such as the sites
Party Member-led Key Project: Recycling of Bottle Washing Water Party Member-led Key Project: Achievements in the Project of of the previous sessions of the Congress of Party Representatives and the Jinggang Mountains and revolutionary site such as the Hubei-Henan-Anhui Revolutionary
Desulfuration and Flue Gas Cleaning Memorial Museum so as to perceive the power of patriotism and carry forward the tradition of revolution.Five Brewing Working Measures
The "Five Brewing Working Measures" aim to enhance the strengths of community-level organizations. In combination of the actual Baiju production the Company
applied the "Five Brewing Working Measures" to community-level Party organizations and enhanced the quality and efficiency of the building of community-level Party
organizations.Five Brewing Working Measures
Reflect results in production quality in a business-oriented and
data-based manner.Reviewing the Chinese Communist Party Admission Oath Visiting the site of the First CPC National Congress
Achieve
results
Advocate solidarity and cooperation Reflect results in innovation and efficien-
promote integration and efficiency cy based on management by overcom-
and form work synergy. Create Enhance ing difficulties.synergy efficiency
Five Brewing
Working Mea-
sures
Improve the overall skill level of employ- Give full play to the pioneering and exempla-
ees by adopting the "transmitting aiding ry role of Party members by promoting the
Improve
and leading" mode and encouraging Develop best practices of model Party members.techniques style
employees to "compete with each other".Visiting Zhu De's Former Residence Visiting the Zhao Yiman Memorial Hall
15 16ABOUT WULIANGYE SPECIAL SUBJECT: INHERITANCE · TIME-HONORED GOVERNANCE · CELLAR PROSPERITY THROUGH TECHNIQUE · PREMIUM PRODUCTS THROUGH ENVIRONMENT · PRESERVATION OF RIVERS IN THEIR NATURAL STATE SOCIETY · EXTENSIVE BROTHERHOOD THROUGH BRAND THAT BEARS "RED" HERITAGES ANCIENT AND MODERN GOVERNANCE ANCIENT AND MODERN EFFORTS THROUGH ANCIENT AND MODERN CULTIVATION ANCIENT AND MODERN CULTIVATION WULIANGYE YIBIN CO. LTD.
Holding a Grant Exhibition Celebrating the 100th Anniversary of the
Founding of the Communist Party of China
The Company held a grant exhibition celebrating the 100th anniversary of the founding of the Communist Party of China in line with high standards and developed an
offline program on the theme "Learn the Party history and Wuliangye's History" open to the public. Since its opening on "1 July" it attracted more than 10000 visitors
came from superior organizations brother enterprises and surrounding communities.Commended representatives Speech by the representative of advanced commu- Speech by the representative of excellent Party
nity-level Party organizations workers
Holding an Employees' Variety Performance Celebrating the 100th
Anniversary of the Founding of the Communist Party of China
The Company held an employees' variety performance celebrating the 100th anniversary of the founding of the Communist Party of China on the theme "Centennial
Endeavor New Journey" to review the Party's splendid development in the past century and wish the great Party to lead the Chinese people to march toward a new
journey and a new era.An exhibition celebrating the 100th anniversary of the founding of the Communist Party of China
Holding the July First Awarding Event
The Company held the "Two Excellent and One Advanced" commendation conference during the Reporting Period to commend excellent Party members excellent
Party workers advanced community-level Party organizations and advanced organizations and individuals in poverty alleviation and stimulated Party organizations
at all levels and Party members to strive to make achievements in "starting a new undertaking". Twenty advanced community-level Party organizations 50 excellent
Party workers and 100 excellent Party members were commended at the July First Awarding event by the Party Committee of the Company.July First Awarding Event An employees' variety performance celebrating the 100th anniversary of the founding of the Communist Party of China
17 18vv
ABOUT WULIANGYE SPECIAL SUBJECT: INHERITANCE · TIME-HONORED GOVERNANCE · CELLAR PROSPERITY THROUGH TECHNIQUE · PREMIUM PRODUCTS THROUGH ENVIRONMENT · PRESERVATION OF RIVERS IN THEIR NATURAL STATE SOCIETY · EXTENSIVE BROTHERHOOD THROUGH BRAND THAT BEARS "RED" HERITAGES ANCIENT AND MODERN GOVERNANCE ANCIENT AND MODERN EFFORTS THROUGH ANCIENT AND MODERN CULTIVATION ANCIENT AND MODERN CULTIVATION WULIANGYE YIBIN CO. LTD.
02Governance Cellar Prosperity throughout An-cient and Modern Governance
The year 2021 is of special significance as it marks the beginning of the 14th Five-
Year Plan. Facing this historical moment advancing from the first centenary goal to the
second the Company adhered at all time to the guidance of strategy mechanism and
awareness implemented its actions firmly and kept its corporate mission of "promot-
ing our historic legacy co-creating a life of enjoyment" in mind to stabilize governance
strengthen inner control inherit the practice of the old breed new practice and consol-
idate the Company's foundation in its sustainable and high-quality development.·Corporate Governance
·Risk control Compliance
·Anti-corruption and Upholding Integrity
·Digital Transformation and Upgrade
·Social Responsibility Management
19 20ABOUT WULIANGYE SPECIAL SUBJECT: INHERITANCE · TIME-HONORED GOVERNANCE · CELLAR PROSPERITY THROUGH TECHNIQUE · PREMIUM PRODUCTS THROUGH ENVIRONMENT · PRESERVATION OF RIVERS IN THEIR NATURAL STATE SOCIETY · EXTENSIVE BROTHERHOOD THROUGH BRAND THAT BEARS "RED" HERITAGES ANCIENT AND MODERN GOVERNANCE ANCIENT AND MODERN EFFORTS THROUGH ANCIENT AND MODERN CULTIVATION ANCIENT AND MODERN CULTIVATION WULIANGYE YIBIN CO. LTD.
Corporate Governance
General Meeting of Shareholders
The Supervisory Committee
In order to regulate corporate operation and continuously improve the Company's governance capability in standardization Wuliangye strictly followed the guidance in
the Company Law the Securities Law and the Governance Guidelines for Listed Companies formulated the Articles of Association and the Compilation for Corporate The Board of Directors
Standardized Operation System and continuously revised and improved them so as to optimize the governance structure and system for corporate legal person and
continuously improve the Company's governance capability.Managers
Structure Chart of the Company
6
10
2122
Wuliangye Brand Project Department 21 marketing regions/ 60 marketing centers
Liquor Body Design Center Sichuan Wuliangye New Retail Management Co. Ltd.Exclusive Store Management Department
Yibin Jiangjiu Liquor Co. Ltd.Market Management Department
Wuguchun Jiu Ye Co. Henan. China
Discipline Inspection & Supervision Department
Handan Yongbufenli Liquor Co. Ltd.Quality Testing Center
Yibin Wuliangye Creart Co. Ltd.Quality Control Department
Yibin Changjiangyuan Liquor Co. Ltd.Design Center
Sichuan Yibin Wuliangye Jingmei Printing Co. Ltd.Production Management Department
Shenzhou Class Co. Ltd. Global Group Yibin Sichuan
Corporate Culture Research and Promotion Center
Sichuan Yibin Global Gelasi Glass Manufacturing Co. Ltd.Wuliangye Personnel Management Center
Sichuan Yibin Pushi Group 3D Co. Ltd.Information Management Center
Personnel Education & Training Center Sichuan Yibin Plastic Packaging Materials Company Limited
Supplies Procurement Center Yibin Wuliangye Xianlin Ecological Liquor Co. Ltd.Technology Research Center Sichuan Yibin Wuliangye Investment (Consulting) Co. Ltd.International Cooperation Department Wuliangye Dashijie (Beijing) Trade Co. Ltd.Energy and Environmental Protection Management Department
Sichuan Yibin Wuliangye Environmental Protection Industry Co. Ltd.Investment and Technical Renovation Department
Sichuan Wuliangye Culture Tourism Development Co. Ltd.Family Planning and Logistics Service Department
Yibin Wuliangye Liquor Sales Co. Ltd.Security Department
Wuliang NongXiang Series Baijiu Yibin Co. Ltd.Safety Production Supervision Department
Sichuan Yibin Wuliangye Supply and Marketing Co. Ltd.Asset Management Department
Sichuan Yibin Wuliangye Distillery Co. Ltd.Human Resources Department
The Audit Department
Financial Management Department
Tendering Manage-
Party-Mass Working Department Auxiliary Workshop (Number: )ment Office
Strategy & Development Department Deepen ing Reform
Office (Number of) Liquor Production Workshop
Administration Office Office of CPC Commit-
tee & Government Office
Office of the Supervisory Committee
Office of the Board of DirectorsABOUT WULIANGYE SPECIAL SUBJECT: INHERITANCE · TIME-HONORED GOVERNANCE · CELLAR PROSPERITY THROUGH TECHNIQUE · PREMIUM PRODUCTS THROUGH ENVIRONMENT · PRESERVATION OF RIVERS IN THEIR NATURAL STATE SOCIETY · EXTENSIVE BROTHERHOOD THROUGH BRAND THAT BEARS "RED" HERITAGES ANCIENT AND MODERN GOVERNANCE ANCIENT AND MODERN EFFORTS THROUGH ANCIENT AND MODERN CULTIVATION ANCIENT AND MODERN CULTIVATION WULIANGYE YIBIN CO. LTD.Operation of General Meetings of Shareholders Board of Directors
and Supervisory Committee to Safeguard Stable Development The Board of Directors
In 2021 17 meetings of the Board of Directors were
In 2021 the Company continuously improved and built governance structure and system secured the power of the General Meetings of Shareholders the Board of held.Directors and the Supervisory Committee in decision-making and supervising in accordance with the Articles of Association the Procedure Rules of the General Meet-
ing the Procedure Rules of the Board of Directors and the Procedure Rules of the Supervisory Committee and further clarified the scope of their respective rights and 36 proposals were deliberated
responsibilities to improve the three boards' capability in independent operation and mutual supervision. and 36 proposals were passed.Wherein 2 on-site meetings were held
During the Reporting Period there were 8 directors in the Company including 4 independent non-executive directors and 4 inde-
and 18 proposals were deliberated;
pendent directors. 15 proposals were deliberated in way of circulating
2 female directors were also included. for perusal
and 18 proposals were deliberated.The 2020 General Meeting of Shareholders
More than 300 of the Company's directors supervisors officers investors and securities researchers analysts and others attended the meeting.The Supervisory Committee
12 proposals were deliberated and 12 proposals were passed.
In 2021 5 meetings of the Supervisory Committee were
held
and 21 proposals were deliberated.Wherein 2 on-site meetings were held
and 18 proposals were deliberated;
3 proposals were deliberated in way of circulation and
communication
and 3 proposals were deliberated.Officer Meetings
In 2021 16 officer meetings were held involving 47 items.Wherein 24 issues were deliberated and conveyed the spirit of important meetings for 6 times.
23 24ABOUT WULIANGYE SPECIAL SUBJECT: INHERITANCE · TIME-HONORED GOVERNANCE · CELLAR PROSPERITY THROUGH TECHNIQUE · PREMIUM PRODUCTS THROUGH ENVIRONMENT · PRESERVATION OF RIVERS IN THEIR NATURAL STATE SOCIETY · EXTENSIVE BROTHERHOOD THROUGH BRAND THAT BEARS "RED" HERITAGES ANCIENT AND MODERN GOVERNANCE ANCIENT AND MODERN EFFORTS THROUGH ANCIENT AND MODERN CULTIVATION ANCIENT AND MODERN CULTIVATION WULIANGYE YIBIN CO. LTD.
Risk Control and Compliance The High-quality Development of Internal Review Transformation of the New Era
Depth of Understanding The Intensity in Execution of Duty
Rectification Intensity
To safeguard stable development the Company continuously improved internal control system and risk control system. The Internal Control Audit Scheme (Trial) and The Party Committee Attaches Around the Center of Overall Emphasis on Audit Closed Loop
the Internal Control Evaluation & Assessment Scheme (Trial) were formulated in accordance with the Company Law the Securities Law and the Basic Criteria of Great Importance Situation
Enterprise Internal Control and periodic disclosure of the Internal Control Self-Assessment Report the Internal Control Authentication Report and the Audit Report
on the Assessment of Risk Continuity of Finance Companies and the Report on the Deposit and Usage Condition of Raised Funds were carried out. Meanwhile the · S ecretary of Party Committee shall ear- · It shall implement the three-year action · I t shall establish rectification account-
Company made its Risk Control Committee play a further role carried out internal control self-evaluation and assessment per annum within the whole company to nestly perform duties in internal review plan for the reform of state assets and ability system and advance closed
cope with its operations risks. Besides the Company noticed the risk in environmental protection and carried out energy planning carbon neutral and water balance management of main person in charge; state-owned enterprises establish loop management for rectification and
projects accordingly so as to include environment social and governance (ESG) and related risks in its corporate risk control step by step. a five-year rotational audit plan for cancellation together with internal
· T he Company's Party Committee shall economic responsibility audit of cadres supervision force;
carry out the overall planning on internal and achieve diversified sector audit of
Two Major Bases for Internal Control System review development deploy work focus comprehensive coverage. · T he audit findings shall be linked to
implement the main responsibility for cadre's assessment reward and pun-
rectification and build such mechanisms · It shall implement major policies and ishment appointment and removal and
Internal Control Self-Assess- as audit accountability and internal measures of the Party and the state and performance;
ment System collaborative supervision; the Company's strategies thoroughly
Internal
Internal Controller System Workload Configuration Work Development Basis and carry out policy tracking audit on · It shall combine with the Company's
Control System · T he Company's Party Committee shall the basis of business reality. strategy of implementing "backward-
Internal Control Assessment strengthen various configuration and ness and forwardness" in subsidiaries
System security of internal review work. · I t shall focus on internal governance and clear out four "zombie enterprises"
and strengthen risk audit. timely.Organization Structure and Responsibility Scope of Risk Prevention and Control Committee
· Laws regulations and policies shall be implemented thoroughly and scientific and standardized risk-management system shall be built comprehensively on
the principle of legality safety and effectiveness so as to improve the Company's capability in prevention and control and efficiency and to safeguard the sta-
ble running of operation and management. During the Reporting Period Wuliangye won the honor of "national advanced enterprise for typical experience in internal au-
· Such works as risk identification prevention and control of every risk control group shall be supervised. dit for promoting organization to implement major policies and measures of the Party and the state thoroughly";
It shall be in charge of the deliberation of risk detection report of every risk control group and of supervision in implementation of the report upon its being
passed. The review audit for project budget (settlement) and procurement budget saved the Company's funds of RMB186000000;
Internal audit personnel on secondment were cited by Provincial Party Committee Inspection Group Municipal Party Committee Inspection
Group and audit institutions.Risk Prevention and
Control Committee
Financial Management Investment and Law Asset Management Corporate Governance Other Risk Combating Corruption and Upholding Integrity
Risk Control Group Risk Control Group Risk Control Group Risk Control Group Prevention & Control Group
To further reinforce the awareness of Party members and cadres in incorruptibility and self-discipline and to carry out "Learning from Cases to Facilitate Improve-
· It shall divide and carry out risk control at this level in accordance with functions grasp and supervise the risk prevention and control of tier-1 subsidiary and ments" in manner of addressing both symptoms and root causes the Company shall adhere to the basis of "cases" the key of "facilitating" and the goal of "improve-
its establishment of risk control measures. ment improve party conduct strengthen discipline and fight corruption as a whole and actively develop integrity-themed vocational training sessions incorruptibility
· It shall establish risk accounts related to each subsidiary respectively and supervise and urge it to take measures to control risks seasonally. education and warning education so as to improve the supervision system and prevent incorruptibility risks effectively. The Company shall also maintain a "zero
· I t shall carry out test check in line with the accounts inspect major potential risks produce a report on special inspections put forward suggestions for rectifi- tolerance" attitude to punish corruption investigate and prosecute corruption in accordance with discipline and law and launch supervision over the whole process of
cation and report to Risk Prevention and Control Committee for deliberation. major project investment.
25 26ABOUT WULIANGYE SPECIAL SUBJECT: INHERITANCE · TIME-HONORED GOVERNANCE · CELLAR PROSPERITY THROUGH TECHNIQUE · PREMIUM PRODUCTS THROUGH ENVIRONMENT · PRESERVATION OF RIVERS IN THEIR NATURAL STATE SOCIETY · EXTENSIVE BROTHERHOOD THROUGH BRAND THAT BEARS "RED" HERITAGES ANCIENT AND MODERN GOVERNANCE ANCIENT AND MODERN EFFORTS THROUGH ANCIENT AND MODERN CULTIVATION ANCIENT AND MODERN CULTIVATION WULIANGYE YIBIN CO. LTD.
It shall persist in preventing and controlling incorruptibility risks in Highlighted Practice in the Prevention and Control of Incorruptibility Risks
manner of addressing both symptoms and root causes.Prevention Control and Manage-
To advance the establishment of the system for preventing and controlling incorruptibility risks sticking to the combined practice of punishment and prevention the ment of Incorruptibility Risks
Company printed and distributed the Notification on Setting up a Leading Group for Establishing the System of Investigating and Affixing the Responsibility in Illegal
Operation and Investment the Implementation Measures for Investigating and Affixing the Responsibility in Illegal Operation and Investment the Accountability Regu-
lations on Violations of Laws and Rules and Wrongdoings and other system documents. It also enforced seriousness in conducts and discipline to complete "Learning
from Cases to Facilitate Improvements" to screen and update incorruptibility risk areas and to refine prevention and control measures and launch prevention against Economic Responsibility Audit Economic Benefit and Special Audit
improper related-party transactions.Double-guarantee practice in enforcing seriousness in conducts and discipline and "Learning from Cases to In line with the stipulations in Measures It shall focus on important fund core It shall center on the Company's central tasks
Facilitate Improvements" on the Audit of Economic Accountability of resources major jobs and cadres' significant and major strategies and stick to problem-ori-
Internal Management Cadres major issues economic behaviors and conduct economic ented guidance to assist the Company in
shall be handed over to discipline inspection accountability audit on internal management standardizing management improving quality
and supervision departments. cadres. and efficiency and preserving and increasing
Prevention and the value of state-owned assets.Enforcing Seriousness in Conducts Disci- Control of Strengthening supervision through "Learning
pline and Accountability Incorruptibility from Cases to Facilitate Improvements"
Risks
Prevention the Practice
of Incorruptibility Risks
During the Reporting Period in terms of enforcing seriousness in conducts discipline and accountability: Procurement Audit Engineering Audit
The Company handled 39 problematic clues put 6 cases on record gave 8 people party disciplinary sanctions upon verifying disciplinary violations and
gave 12 people administrative penalties 10 people received oral or written warnings 20 people received criticism and education and 98 people
received reminder conversations. It shall engage in the supervision of bidding It shall conduct the pre-audit and concurrent A whole-process tracking audit shall be
and review the compliance in the bidding audit on procurement and review the reason- carried out around major projects investment.links. ableness of procurement budget prices.In terms of "Learning from Cases to Facilitate Improvements":
The Company's Party Committees at all levels held meetings (Party branch committee) on "Learning from Cases to Facilitate Improvements" warning ed-
ucation meetings and learning and education meetings. They also shoot an inside film Strayed Away for warning which was viewed by times cumulatively
organized over people to visit discipline and law education bases and interviewed more than personnel of important jobs at their home on incorruptibility. They
organized or so leaders and cadres to sit on court trials of cases in a hierarchical manner and through batches revised improved and established over sys-
tems analyzed issues and completed rectifications in a high-quality manner. During the Reporting Period through major projects tracking audit progress payment of RMB352 million was lessoned after au-
dit; through pre-audit and concurrent audit on procurement procurement funds of RMB3072300 was saved by means
of reviewing the reasonableness of procurement control prices procurement methods supplies disposal and the likes of 65 proj-
ects; the Company's procurement funds of RMB73739800 was jointly saved with the constituent units of supervising
the opening of the tender by means of engaging in the supervision on procurement bidding and reviewing the compliance for bidding
links of 478 projects.
27 28ABOUT WULIANGYE SPECIAL SUBJECT: INHERITANCE · TIME-HONORED GOVERNANCE · CELLAR PROSPERITY THROUGH TECHNIQUE · PREMIUM PRODUCTS THROUGH ENVIRONMENT · PRESERVATION OF RIVERS IN THEIR NATURAL STATE SOCIETY · EXTENSIVE BROTHERHOOD THROUGH BRAND THAT BEARS "RED" HERITAGES ANCIENT AND MODERN GOVERNANCE ANCIENT AND MODERN EFFORTS THROUGH ANCIENT AND MODERN CULTIVATION ANCIENT AND MODERN CULTIVATION WULIANGYE YIBIN CO. LTD.
The Safeguard Mechanism for Implementing Anti-corruption Five Work Mechanisms for Joint Supervision System
Mutual Learning
Institutional Special Joint Super- Clue Trans-
·Regulations on Complaint and Reporting of Discipline Inspection and Supervision and Regulations on Executing of Discipline Inspec- Joint Meeting ference and Mutual Com-Mechanism Feedback vision
munication
Support tion and Supervision were formulated and carried out.Realization Path for Joint Supervision System
Behavior Practice Meetings for screening issues and clues were held at fixed period.Implementation Clues related to business ethics violation and corruption were analyzed studied and judged.Construction of Management System
Establishment of Joint Supervision System
Issue and Problem Inquiries through conversations and letters initial verification and case filing investigation were carried out in line with stipulations on
Handling represented issues.Institutional Mechanism Support
· Implementation Opinions on the Establishment of Joint Supervision System was formulated and mechanisms for linked and collaborative work between the
Supervision systems shall be improved and clean state-owned en- Party's supervision within the Company and other types of supervision were established.terprises shall be built.Implementation of Work Actions
· Leading groups for joint supervision and responsible for joint supervision on all fronts were set up.To advance the establishment of "clean state-owned enterprises" the Company built and improved joint supervision systems formulated Implementation Opinions
on the Establishment of Joint Supervision System set up leading groups for joint supervision and created five mechanisms for special feedback joint meetings joint
supervision clues transference and mutual communication and mutual learning to further coagulate joint forces of normal and long-lasting supervision.A special operation on "Serious Discipline throughout Four Seasons" was developed and the quality and efficiency of
Case
Multi-dimensional Joint Supervision supervision were improved.The Company sticked to requirements in the "Year for Supervision Quality Improvement" of the Municipal Commission for Discipline Inspection and Supervi-
sion printed and circulated Action Plan for the Special Operation in the Year for Supervision Quality Improvement carried out the special operation on "Serious
Financial Discipline throughout Four Seasons" in a deep-going way and determined a key supervision point every quarter to achieve "One Theme One Season Opera-
Supervision tions throughout Four Seasons". During the Reporting Period the Company launched 83 joint supervision and issued 21 Notifications on Issue Rectification.The Internet supervision and supervision within the Party were integrated and network supervision platforms facilitated
Organic Linking Case the carrying out of anti-corruption in an innovative and efficient manner.The Company integrated Internet and supervision within the Party in an organic way and exploited the political advantages of "Internet Plus" in supervision
Supervision within the Party to the full. In 2018 it developed a "Platform for Supervision within the Party and Accountability Supervision" in an innovative way which refined
Other Supervi- within the Party Audit Super- such responsibilities as the Party Committee's responsibility for overall supervision the Secretary of Party Committee's responsibility as the "First Person
sions Playing a Lead- vision Accountable" team members' separate responsibilities in supervision and the Discipline Inspection Commission's special responsibility for supervision into
ing Role "Nine Lists" to achieve responsibility specification responsibility execution and responsibility investigation and affixation in line with the lists. The platform won
the award nomination for the Second China Incorruptibility Innovation Award and received high evaluation and vigorous promotion form the Municipal Party
Mutual Coordination Committee Municipal Commission for Discipline Inspection and Supervision and Municipal State-owned Assets Supervision and Administration Commission
of Yibin City to be widely promoted and applied in more than 30 state-owned enterprises at the provincial and municipal levels.Supervision During the Reporting Period the platform completed over 4000 tasks a completion rate of 100% which not only
from the Super- assisted and facilitated the healthy development of the Company and its employees but also gained favorable public reaction.visory Commit-
tee
29 30ABOUT WULIANGYE SPECIAL SUBJECT: INHERITANCE · TIME-HONORED GOVERNANCE · CELLAR PROSPERITY THROUGH TECHNIQUE · PREMIUM PRODUCTS THROUGH ENVIRONMENT · PRESERVATION OF RIVERS IN THEIR NATURAL STATE SOCIETY · EXTENSIVE BROTHERHOOD THROUGH BRAND THAT BEARS "RED" HERITAGES ANCIENT AND MODERN GOVERNANCE ANCIENT AND MODERN EFFORTS THROUGH ANCIENT AND MODERN CULTIVATION ANCIENT AND MODERN CULTIVATION WULIANGYE YIBIN CO. LTD.
Incorruptibility education was carried out to improve party conduct
and strengthen discipline strictly and impartially.On 14 May the Company organized leadership team members
The Company adhered to a hard way of warning education to carry out "Learning from Cases to Facilitate Improvements" and organized Party members and cadres assistants of general managers and main person in charge of Party
in a targeted way to such places as red education bases incorruptibility education bases and discipline and law education bases to appreciate incorruptibility stories organizations in sub-groups to "Qing Feng Hall" to receive warning
to review the pledge of party membership and to receive the baptism of incorruptibility culture. education.Incorruptibility education was carried out in different levels and areas
Incorruptibility
Education
On 29 November the Company organized visits to Tianfu Family
Traditions Museum to carry out incorruptibility education.Being carried out in a targeted and classified way and in different levels and areas to improve accuracy and efficiency."Critical Minority" as the Target General Party Members as the Target
The Party members and cadres shall be respectful be wary and hold General Party members watched the inside warning education film
the line. Strayed Away.The Company organized leadership team members and middle It also organized visits to red education bases incorruptibility educa-
management members to "Qing Feng Hall" a demonstration spot tion bases and discipline and law education bases. On 31 December the Company's Discipline Inspection Commission
of incorruptibility education for state-owned enterprises in Sichuan organized work seminars themed "Learning from Cases to Facilitate
Province to receive warning education. Improvements and Governance" in food inspection system.The Company organized leadership team members and middle man- "A Talent on Incorruptibility" an on-line knowledge competition was
agement members to sit on case trials in Pingshan County People's held and "Incorruptibility Packages" were handed out.Court.On 21 October the Company organized a painting calligraphy and
The Company organized leadership team members Secretary of "Paintings and Calligraphies in Praise of the One-hundred-year Path photography exhibition of employees' incorruptibility culture in state-
primary-level Party organizations Secretary of the Commission for Light and Shadow to Dream a New Journey" a painting calligraphy owned enterprises.Discipline Inspection cadres of Discipline Inspection and Supervision and photography exhibition of employees' incorruptibility culture was
to visit and learn at Tianfu Family Traditions Museum an incorrupt- held.ibility base in Sichuan Province.
31 32ABOUT WULIANGYE SPECIAL SUBJECT: INHERITANCE · TIME-HONORED GOVERNANCE · CELLAR PROSPERITY THROUGH TECHNIQUE · PREMIUM PRODUCTS THROUGH ENVIRONMENT · PRESERVATION OF RIVERS IN THEIR NATURAL STATE SOCIETY · EXTENSIVE BROTHERHOOD THROUGH BRAND THAT BEARS "RED" HERITAGES ANCIENT AND MODERN GOVERNANCE ANCIENT AND MODERN EFFORTS THROUGH ANCIENT AND MODERN CULTIVATION ANCIENT AND MODERN CULTIVATION WULIANGYE YIBIN CO. LTD.
Digital Transformation and Upgrade Path for Digital Transformation and Upgrade
To grasp the strategic opportunity of "Digital China" the Company advanced the operation of "Cloud Service Promotion Big Data Usage and Intelligentization Endow- Digitization Construction Leading New Modes
ment" on all fronts and further implemented the digital transformation strategy. The Company established the industry's first-class intelligent retail system digital man- Transforma- and Operation New Plans
agement system digital business innovation system and the industry's digital transformation benchmark with the advancement of deep integration of the next-genera- tion Strategy Digital Platform
tion information technology and the manufacturing industry as the main line with the marketing digital transformation as the breakthrough continuously promoted the
transformations of digital empowerment businesses abilities and management and established digital enterprises of national industry leader on all fronts to create New Exploration
new drivers of growth and new advantages for enterprise's high-quality development. Striving to CreateCorporate Big Data
Activation Data Value Expansion Deepening
"Zero-carbon
Application Integrating with Business Liquor Enterprise"
The Digital Management System of 2021 Scenarios
Network Focusing on Mar- Support
Support keting
Sticking to the With the guidance of building the industry's benchmark Focus on mas- With organizations systems and data as the core bases Safety Sys- Digital Transfor- Knowledge Em-
leading role of of digital transformation. tering the core all along to carry out digital transformation. tem mation powerment
strategies basis
Build data With data as the main line to focus on the establishment Continuously Sticking to the escort of organization system security for Case Activating data value to empower the Company's improvement in governance ability
governance of data governance system. optimize organi- the advancement of digital strategies
system zation security
The Company accelerated the establishment of the foundation platform for the data safety of modern enterprises set up operation digital platform activated
enterprise's data value and was devoted to establish "Digital Wuliangye". The Company advanced the implementation of Enterprise's Resources Plan (ERP)
project on all fronts combined internationally advanced management experience with Wuliangye's digitalization boosted the revolution and reengineering of
Double-security Mechanism for Digital Transformation organizations processes and so on inside the Company and explored an ERP construction path that is suitable for Wulingye's reality.Meanwhile the Company conducted strategic cooperation with third parties continuously carried out the establishment of data governance system and printed
and circulated Administrative Measures for Wuliangye's Data Classification. It also continuously optimized the functions of master data management platform
Institutional Assurance for the Establishment of Digital Projects Constitutional and managed data on the basis of normalization and standardization established systems of digital command center and marketing decision-making center and
Administrative Measures for the Implementation and Assessment of ERP Proj- Institutional Assurance efficiently collected and used data assets so that it enabled enterprise's data value to be constantly activated and its insight could be continuously improved on
ects (in Trial) the basis of data. The Company's innovation achievements in production marketing logistics storage security and protection and other areas on the basis of
such technologies as big data Internet of things blockchain and artificial intelligence all contributed model applications to the industry.Improving the Efficiency of Decision-making Progress
Administrative Measures for the Problems and Decisions of ERP Projects (in
Trial)
Improving the Quality of Digital Technical Services
Digitization Case Improving the abilities in data collection analyzing and handling and deepening the expansion of big data applications
Administrative Measures for the Front and Back Operation of Marketing Digital
Transformation
Application System (in Trial)
During the Reporting Period the Company deepened the project application results of the big data center of China's liquor industry on a continuous basis.Enhancing the Management of Data Safety Risks First it excavated and analyzed the integrity of RMB8 million liquor enterprises and merchants via the big data project on integrity of China's liquor industry
Administrative Measures of Data Classification (in Trial) explored the release way of the integrity index in the liquor industry guided honest liquor enterprises and merchants to perform the authentication for integrity
and explored a new application model for integrity assessment in liquor industry. Second it achieved Internet of Things monitoring over the link of making dis-
tiller's yeast via the on-line monitoring of distiller's yeast-making progress and the big data mining project for crafts. Meanwhile the Company conducted deep
analysis and excavation on the management of bacterial culture of distiller's yeast and built mechanical learning model for material craft and the quality of
Fund Security
Fund and Resources distiller's yeast to explore a big data plan for optimizing distiller's yeast-making.A Plan to Spend Approximately RMB1.5 billion on the Establishment of Digital
Security
Transformation
33 34ABOUT WULIANGYE SPECIAL SUBJECT: INHERITANCE · TIME-HONORED GOVERNANCE · CELLAR PROSPERITY THROUGH TECHNIQUE · PREMIUM PRODUCTS THROUGH ENVIRONMENT · PRESERVATION OF RIVERS IN THEIR NATURAL STATE SOCIETY · EXTENSIVE BROTHERHOOD THROUGH BRAND THAT BEARS "RED" HERITAGES ANCIENT AND MODERN GOVERNANCE ANCIENT AND MODERN EFFORTS THROUGH ANCIENT AND MODERN CULTIVATION ANCIENT AND MODERN CULTIVATION WULIANGYE YIBIN CO. LTD.
Case Relying on new technologies in digitalization to create intelligent Wuliangye Social Responsibilities/ESG Development Plan
During the Reporting Period under the guidance of the vision for striving to create "Zero-carbon Liquor Enterprise" the Company followed PDCA Administrative
System to effectively advance and continuously improve the development of integration of "information technology and industrialization" inside the enterprise
to build intelligent resource platform for real-time monitoring of carbon footprint in production and running to form basic database for carbon footprint and Completion of Improvement Carrying out Enhanced
to provide scientific basis for decision making in reaching the goals of carbon emission peak and carbon neutrality. In the meantime the Company deployed Organizational of System Integration Information
around GIS demonstration and risk spots management platform with double control in safety and production as the core and GIS geographic information Structure Plan on All Fronts Disclosure
technology as the basis and formed real-time safety management system for information distributed in four colors namely "red orange yellow and blue" to
effectively improve safety management efficiency.Social responsibilities/ESG Combining with the Company's Social responsibilities/ESG The disclosure way of social
system integrated into the Com- development strategy social re- related targets shall be integrat- responsibilities/ESG information
pany's present organization sponsibilities/ESG system shall ed into performance assessment shall be innovated and the
structure shall be built to specify be formulated and improved to and work goals of all depart- information disclosure shall be
Case Building network safety system to escort digital transformation related responsibilities. ensure the implementation of ments to secure the thorough carried out through multiple
the plan. implementation of system plans. channels and angles to continu-
The Company thoroughly implemented such laws and regulations as Cyber Security Law and Data Safety Law introduced new technologies of cyber secu-
ously improve disclosure levels.rity and built a three-dimensional cyber security system integrated people defense physical defense and technical defense to reach zero accident and zero
incident of cyber safety inside the Company . The Company also thoroughly implemented national information safety protection at different levels created
safe space for digital transformation and planned to create mutual connection and communication between remote special line date and backup for disaster
recovery to reach digital transformation via the escort of full-dimensional control full-network protection round-the-clock operation. It also conducted regular Social Responsibilities/ESG Overall Empowerment
and coordinated offensive and defense drills with municipal Office of the Central Cyberspace Affairs Commission to test the Company's cyber security defense
ability in actual combats.Specialized institutions shall be hired to assist the Company in Trainings shall be organized to improve the overall professional
improving social responsibilities/ESG levels level of related personnel
During the Reporting Period the Company's digital transformation achievements were as follows: · Social responsibilities/ESG improving plans shall be customized for the · Social responsibilities/ESG experts shall be invited on a regular basis to
It has been recognized as the first digital transformation promotion center of the industry in Sichuan Province; Company. conduct knowledge empowerment for the Company.It has been awarded "Excellent Practice Unit in Digital Transformation of Enterprises in Western China" by Sichuan · Planning: Planning strategies for sustainable development to guide the ·I t shall conduct special training on a regular basis for directors supervi-
Enterprises Federation and Sichuan Entrepreneurs Association. related work. sors officers and other related personnel of the Company in a targeted
·M anagement Optimization: The overall integration of social responsibility way improve related personnel's awareness and business abilities in per-
management shall be carried out and social responsibilities/ESG evalua- forming environmental responsibilities corporate governance and social
tion system shall be formulated. responsibilities and pay a return visit to exchange and communicate.Corporate Social Responsibility Management ·R ating Improvement: ESG rating management shall be carried out.· Enhancing disclosure: Social responsibilities/ESG information disclosure
level shall be improved continuously.The Company grasped new opportunities started a new journey and forged ahead to open a new situation. The Company learned hard from advanced typical expe-
rience in social responsibilities governance strengthened the performance of social responsibilities and further improved ESG levels. It also demonstrated its social
responsibilities as state-owned enterprise with practical actions and was devoted to reach joint sustainable development between enterprises and the society.Social Responsibility Management
To reach high-quality development at higher level and accelerate its steps in building a green innovative and leading world-class enterprise the Company focused
on the overall improvement of the governance level of social responsibilities on the basis of actual situation combined its reality with development strategy planned
an enforceable development path for social responsibilities with key points and guided the implementation of its social responsibilities on all fronts.
35 36ABOUT WULIANGYE SPECIAL SUBJECT: INHERITANCE · TIME-HONORED GOVERNANCE · CELLAR PROSPERITY THROUGH TECHNIQUE · PREMIUM PRODUCTS THROUGH ENVIRONMENT · PRESERVATION OF RIVERS IN THEIR NATURAL STATE SOCIETY · EXTENSIVE BROTHERHOOD THROUGH BRAND THAT BEARS "RED" HERITAGES ANCIENT AND MODERN GOVERNANCE ANCIENT AND MODERN EFFORTS THROUGH ANCIENT AND MODERN CULTIVATION ANCIENT AND MODERN CULTIVATION WULIANGYE YIBIN CO. LTD.
Participation by Stakeholders Stakeholders Issues of Concern Ways and Demonstration of Communication
The Company shall recognize issues of concern of all stakeholders on the basis of business and operation realities keep an open mind to listen and communicate
actively and response with efficiency to the concerns from all stakeholders on the topic of the Company's social responsibilities. Health and safety Optimizing labor management
Remuneration and benefits Improvement of compensation and benefits system
Career training and development Improving employee training and career development
Democratic communication system
Wuliangye's Communication with Stakeholders Employees Care for employees Guaranteeing the smoothing operation of labor union and
the congress of workers and staff
Carrying out employee activities
Stakeholders Issues of Concern Ways and Demonstration of Communication
Energy conservation and consumption Establishing "Zero-carbon Liquor Enterprise"
reduction Ensuring compliant emission
Emission reduction and pollution Carrying out public welfare activities
Tax payment according to laws Active efforts to pay tax in accordance with law The Public reduction
Compliant operation Improvement of corporate governance Supporting community development
Anti-corruption Carrying out risk control on all fronts
Promotion of economic develop- Extensive employment
ment Carbon emission reduction throughout the whole pro-
Governments and Climate action cess Substantive issue analysis
regulators Poverty alleviation Innovation in rural revitalization mode
Public welfare and charity Proactively participating in social undertakings
In 2021 Wuliangye carried out investigations on stakeholders and identified key and concrete topics on the important basis of which the Company continued to carry
out social responsibility management and information disclosure of social responsibilities.Improvement of return of invest- Increasing cash dividend
ment Holding general meeting of shareholders Substantive issue analysis
Providing shareholder services Innovation and improvement in information disclosure
Shareholders and Equitable access to information mode
investors
Meeting multiple needs Increasing innovation and R&D Quality control
Party Building
Guaranteeing product quality Improvement of quality control
Provide high-quality service Guarantee service quality Brand Building Zero-carbon Liquor Enterprise Corporate Governance
Customers Accountable Marketing Advocating rational drinking
Culture Inheritance
Environmental Protection Business Performance
Establishment of Modern Industrial System Safe Production Common Prosperity
Supply Chain Management Rural RevitalizationOccupational Health
Fair and just procurement Establishing open and transparent procurement mecha- Accountable Marketing
Abiding by business ethics nism
Integrity and mutual benefit Improvement of industry-university-research-application Rational Drinking
Promotion of industry development cooperation General Charity and Welfare
Suppliers and the Common industrial progressParticipation in the formulation of industry standard
industry Promotion of joint progress of the industry
Degree of attention of stakeholders
3738
Degree of impact on the Company's sustainable developmentABOUT WULIANGYE SPECIAL SUBJECT: INHERITANCE · TIME-HONORED GOVERNANCE · CELLAR PROSPERITY THROUGH TECHNIQUE · PREMIUM PRODUCTS ENVIRONMENT · PRESERVATION OF RIVERS IN THEIR NATURAL STATE SOCIETY · EXTENSIVE BROTHERHOOD THROUGH BRAND THAT BEARS "RED" HERITAGES ANCIENT AND MODERN GOVERNANCE THROUGH ANCIENT AND MODERN EFFORTS THROUGH ANCIENT AND MODERN CULTIVATION ANCIENT AND MODERN CULTIVATION WULIANGYE YIBIN CO. LTD.
03Techniques Premium Products through Ancient and Modern Efforts
Innovative products inheriting craftsmanship long-standing distillation techniques and
quality control supported by technology make the world-renowned representative of
Chinese strong flavor Baijiu - Wuliangye. As a famous national brand Wuliangye has
always been committed to the protection research and dissemination of traditional
Chinese Baijiu culture making baijiu a carrier to enhance friendship and cultural ex-
changes among people from all over the world so that the world can continue to feel
the charm of the "harmony" culture of Chinese Baijiu.· Craftsmanship-embedded Innovation
· Technique Inheritance
· Quality Management
· Culture Inheritance
39 40ABOUT WULIANGYE SPECIAL SUBJECT: INHERITANCE · TIME-HONORED GOVERNANCE · CELLAR PROSPERITY THROUGH TECHNIQUE · PREMIUM PRODUCTS ENVIRONMENT · PRESERVATION OF RIVERS IN THEIR NATURAL STATE SOCIETY · EXTENSIVE BROTHERHOOD THROUGH BRAND THAT BEARS "RED" HERITAGES ANCIENT AND MODERN GOVERNANCE THROUGH ANCIENT AND MODERN EFFORTS THROUGH ANCIENT AND MODERN CULTIVATION ANCIENT AND MODERN CULTIVATION WULIANGYE YIBIN CO. LTD.
Craftsmanship-embedded Innovation In 2021
· Formulated 4 enterprise standards with a yoy increase of 100%.Published 28 scientific research papers with a yoy increase of 47.37%.While inheriting craftsmanship-embedded products and techniques Wuliangye empowers future development with innovation implements the requirements for
high-quality development of Baijiu takes the consumer market demand as the guidance and meets the diversified demands of consumers for Baijiu. · Applied for 265 new patents including 23 invention patents 20 utility model patents and 222 appearance design patents.· Had 238 authorized patents including 5 invention patents 15 utility model patents and 218 appearance design patents.· Won 3 awards including the Best Style Award of the Most Beautiful Winebottle Design and the silver and bronze awards of the Most Beautiful Winebottle
Guaranteeing continuous innovation by improving regulations Design
· Won 2 awards including the golden and bronze awards of 2021 Tianfu Baodao Industrial Design Competition.· Wuliangye's technical center won the top in the liquor industry with 82.3 points in the 2021 Annual Appraisal Results of the National Enterprise Technol-
Wuliangye adheres to pragmatic efficient innovative open and inclusive work ethics and sees transferring basic application research and scientific achievements
into actual innovations fundamental for its development. It has formulated multiple policies including the Regulations on Scientific and Technological Research Man- ogy Center issued by the National Development and Reform Commission.agement (Trial) and the Regulations on Research Expenditure (Trial) to standardize the management of innovation processes including industry-university-research · Wuliangye's appearance design patent Winebottle (for New Wuliangye Product 181) (i.e. the 8th-generation Wuliangye winebottle) won the third prize of
cooperations management of scientific and technological equipment and awarding and protection of scientific and technological achievements. 2020 Sichuan Patent Award.· Wuliangye's "Research and Application of Wuliangye Baobaoqu Quality Improvement Technology" Project won the first prize of 2020 Science and
Technology Award of China National Food Industry Association.· Wuliangye's "Research and Application of Exogenous Food Safety Risk Assessment Method for Brewing" Project won the second prize of 2020
Science and Technology Progress Award of China National Light Industry Council.An innovation management system
Industry-university-research cooperations
Wulianye revised three regulations related to the key national laboratory of solid-state distillation of strong
flavor Baijiu of the Chinese light industry including the Regulations on the Management of Post-doctoral Sci- Industry-university-research cooperation
Whole-process manage- ence and Technology R&D Stations and the Work Regulations for the Key National Laboratory of Solid-state
ment Brewing of Strong Flavor Baijiu of Chinese Light Industry. In 2021 Wuliangye integrated external R&D resources and continued to enhance enterprise-university-research cooperations with Sichuan University of Science &
Wuliangye formulated the Regu- Engineering Jiangnan University and Beijing Technology and Business University as well as the conversion of innovation results seeing a record high of its innova-
lations on Scientific and Techno- tive scientific and technological achievements.logical Research Management
(Trial) and the Regulations on Management of scientific and technological equipment
Research Expenditure (Trial) Wuliangye formulated the Regulations on Management and Disposal of Test (Experimental) Devices for Sci- Case Improving the quality of Baijiu in cooperation with Sichuan University of Science & Engineering
to clarify the whole-process entific Projects (Trial) to standardize the handling procedures for scientific and technological equipment and
management procedures for integrate its idle equipment for science and technology R&D greatly improving the success rate of R&D. Wuliangye working with Professor Luo Hui's team from Sichuan University of Science & Engineering had a systematic study and on the microbial flora of
science and technology R&D Wuliangye Baobaoqu. They tackled key problems and made significant progress in the research of the driving forces of the microbial community succession.projects and ensure the smooth The research result Environmental factors and interactions among microorganisms drive microbial community succession during fermentation of Nongxiangx-
carrying-out of the projects. Awarding of scientific and technological achievements ing daqu was published in Bioresource Technology an international journal of biological engineering and application of microbiology (affecting factors 9.642
Wuliangye revised the Implementation Rules on Awarding Scientific and Technological Achievements and the TOP journal of Zone 1 of the Chinese Academy of Sciences).Implementation Rules on Awarding Minor Innovations and Progresses forming a preliminary system of full
coverage and clear hierarchies to award innovation achievements. This study result is the latest achievement in the in-depth and comprehensive cooperation between Wuliangye and Sichuan University of Science & Engineer-
ing the promotion of further enterprise-university integration and the resolution of important scientific problems in industrial development. It is of significant sci-
entific value for the control of microbial flora of Baobaoqu in the fermentation process the improvement of Daqu's quality and the advancement of the increase
Protection of scientific and technological achievements of Baijiu's high quality rate and will further boost the technological progress and quality improvement of Baijiu.Wulianye formulated the Implementation Rules on Trademark Management Implementation Rules on Patent
Management and Implementation Rules on Copyright Management to create a healthy environment for sci-
entific and technological innovation.
41 42ABOUT WULIANGYE SPECIAL SUBJECT: INHERITANCE · TIME-HONORED GOVERNANCE · CELLAR PROSPERITY THROUGH TECHNIQUE · PREMIUM PRODUCTS ENVIRONMENT · PRESERVATION OF RIVERS IN THEIR NATURAL STATE SOCIETY · EXTENSIVE BROTHERHOOD THROUGH BRAND THAT BEARS "RED" HERITAGES ANCIENT AND MODERN GOVERNANCE THROUGH ANCIENT AND MODERN EFFORTS THROUGH ANCIENT AND MODERN CULTIVATION ANCIENT AND MODERN CULTIVATION WULIANGYE YIBIN CO. LTD.
Case Revealing the secret of good liquor in cooperation with Jiangnan University Intellectual property management
Wuliangye worked with Professor Xu Yang's research group from Jiangnan University to tackle key problems in industry-university-research cooperation and As the pilot enterprise of standardization and standard implementation of intellectual property management among Sichuan enterprises Wuliangye implements stan-
has published The Ecological Adaptability of Caproic Acid Contributes to Its Dominant Position in Anaerobic Fermentation System and Caprobacter Lactate: A dards in an all-around manner following the Regulations on Enterprise Intellectual Property Management and has timely revised the Intellectual Property Manage-
New Microbial Species Isolated from the Cellar Mud for the Production of Strong Flavor Chinese Baijiu on international authoritative journals. The former is the ment Handbook Procedural Document and other system documents refined 12 control procedures including the procedures for trademark management and patent
first to discover and successfully identify a new species of hexanoic acid bacteria the main body of strong flavor Baijiu distillation and further reveals the flavor control and obtained the IPMS (Intellectual Property Management System) certificate.and alcohol genes of Baijiu from the scientific perspective marking a breakthrough in the scientific and technological innovation in the field of food and fermen-
tation industry in China. The latter makes available scientific and standardized naming and accurate annotation for the species and scientific classification of
hexanoic acid the main body of strong flavor Baijiu distillation that had puzzled Chinese Baijiu researchers for over half a century.IPMS certificate
Case Improving all employees' awareness of intellectual property protection by organizing training
In order to actively improve all employees' awareness of intellectual property protection Wuliangye organized the 2021 Intellectual Property Publicity Week
themed on "comprehensively strengthening intellectual property protection and promoting the construction of a new development pattern" and offered special
training on the building and operation of the intellectual property management system and brand intellectual property risk control covering technical innovation
contract management advertising and marketing and other contents related to intellectual property for full-time and part-time intellectual property personnel in
relevant functional departments subsidiaries and workshops. It also engaged provincial and municipal intellectual property protection centers to offer special
training on high-quality patent mining and patent technology document writing for R&D and technical personnel.Jiangnan University-Wuliangye Collaborative Innovation Laboratory Meanwhile Wuliangye played educational intellectual property videos on all its LED screens and in all its elevators and publicized intellectual property knowl-
edge to all employees on its legal service column in Wuliangye Family OA knowledge platform WeChat group QQ group and other carriers from different
perspectives through different channels and in different forms so as to improve the awareness of intellectual property protection.Case Guaranteeing industry-university-research cooperations by building the international scientific joint flavor laboratory
With the support of International Joint Research Center of Quality and Safety of Alcoholic Beverages and the guidance of foreign experts Wuliangye estab-
lished Wuliangye International Scientific Joint Flavor Laboratory (Wuliangye Scientific Collaborative Flavor Innovation Center) following international standards
and equipped it with a number of globally leading high-end equipment and first-class supporting facilities for the scientific research of flavor. The laboratory has
become a cutting-edge innovation platform to promote the high-quality development of Wuliangye and lead the flavor research of traditional Chinese Baijiu.In 2021 the team of the lab guided by foreign experts attended the three famous international professional academic conferences namely the ACS (Amer-
ican Chemical Society) IFT (International Institute of Food Science and Technology) and Weurman and presented posters playing an active role in building
the platform for academic exchanges between Wuliangye and domestic and foreign peers. The team published a scientific paper on Molecules a well-known
foreign journal in which it for the first time among peers put forward a new method for the research of Baijiu flavor that is easy to operate and has good repro-
ducibility. It is of great significance for the quality improvement of Baijiu and will effectively enhance global consumers' awareness of the scientific innovation
and quality management of Chinese Baijiu represented by Wuliangye.Training on the practice of intellectual property standard implementation
43 44ABOUT WULIANGYE SPECIAL SUBJECT: INHERITANCE · TIME-HONORED GOVERNANCE · CELLAR PROSPERITY THROUGH TECHNIQUE · PREMIUM PRODUCTS ENVIRONMENT · PRESERVATION OF RIVERS IN THEIR NATURAL STATE SOCIETY · EXTENSIVE BROTHERHOOD THROUGH BRAND THAT BEARS "RED" HERITAGES ANCIENT AND MODERN GOVERNANCE THROUGH ANCIENT AND MODERN EFFORTS THROUGH ANCIENT AND MODERN CULTIVATION ANCIENT AND MODERN CULTIVATION WULIANGYE YIBIN CO. LTD.
Providing innovative products based on demands Case Launching Harmony-series to pay tribute to Chinese culture
Harmony-series products are based on excellent traditional Chinese culture integrate the history and culture cultural customs and landmarks of different prov-
In 2021 Wuliangye following the principle of "three characteristics and one recognition" and based on the investigation and analysis results of market demands as inces municipalities directly under the central government autonomous regions and special administrative regions focus on high-end consumption scenarios
well as product development strategies focused on the development of innovative products such as 39° Wuliangye 1618 Wuliangye and Wuliangye Harmony-series with regional characteristics with regional and cultural properties as well as rareness and topicality so as to strengthen the correlation between Wuliangye and
products which aiming at high end internationalization and youth meet customers' demands at all levels. regional markets and scenarios.Wuliangye's main brand products
In 2021 Wuliangye continued to enhance the development of two core pillar products for the high-end market namely the 8th-generation Wuliangye and Classic
Wuliangye and has basically completed the building of the main product structure to meet the diversified demands of consumers.Case Meeting consumer demands by enriching the product structure
In order to meet the diversified demands of consumers including collection and gifting Wuliangye sold limited-edition Wuliangye Bubu Gaosheng packages
containing one 50ml product one 100ml product one 250ml product one 375ml product one 500ml product one 750ml product and one 1000ml product in
addition to its core product the 8th-generation Wuliangye. Bubu Gaosheng packages symbolize promotion and prosperity and are loved and praised by con-
sumers.(Harmony Wuliangye) Wuhan (Harmony Wuliangye) Macao
NongXiang series Baijiu
In 2021 Wuliangye gathered superior design resources to develop single star products and launched 2nd-generation Wuliang Chun (Spring) series MingMen series
Wuliang Chun (Rich Flavor) ChunPin series Jian zhuang 1911 Renyin Lunar Tiger Year series and popular concept series enriching the brand product matrix and
providing consumers with diversified choices.Case Meeting consumers' demands by upgrading Wuliang Chun (Spring)-series products
In the first half of 2021 Wuliangye upgraded Wuliang Chun (Spring)-se-
ries products to 2nd-generation Wuliang Chun (Spring)-series products in
response to market changes. The package design of the products was the
upgrade strategy of the 8th-generation Wuliangye with minor adjustments
and updates making no subversive changes to the overall image. All the
products were included in the "one code for one bottle" traceable marketing
system and were provided with anti-counterfeiting box labels specific to the
structural characteristics of the new package design.Wuliangye Bubu Gaosheng 2nd-generation Wuliang Chun (Spring)-series products
45 46ABOUT WULIANGYE SPECIAL SUBJECT: INHERITANCE · TIME-HONORED GOVERNANCE · CELLAR PROSPERITY THROUGH TECHNIQUE · PREMIUM PRODUCTS ENVIRONMENT · PRESERVATION OF RIVERS IN THEIR NATURAL STATE SOCIETY · EXTENSIVE BROTHERHOOD THROUGH BRAND THAT BEARS "RED" HERITAGES ANCIENT AND MODERN GOVERNANCE THROUGH ANCIENT AND MODERN EFFORTS THROUGH ANCIENT AND MODERN CULTIVATION ANCIENT AND MODERN CULTIVATION WULIANGYE YIBIN CO. LTD.
Case Launching the popular 2021 concept series focusing on emerging consumers Case Improving consumer experience in an all-around way by making innovations at the source
In 2021 based on the brand position of taking popular liquors as "entry At the very beginning of designing Wuliang Chun (Spring) MingMen-series products Wuliangye took full consideration of consumer experience including
luxury liquors" Wuliangye successfully launched the popular 2021 concept opening experience and tactile experience. It adopted a non-destructive opening method for the package box of the product and adopted integral one-off un-
series and sold only 10000 limited-edition bottles of the series to emerging screwing for the cap. It also extended the handling part of opening so that consumers can open it easier. For the box it adopted new paper-plastic-combined
consumers interested in entry luxuries in 2021 through online operation. The technology leather-feel-imitated materials and other new technologies and materials to further improve the tactile experience of the box.popular 2021 concept series paid tribute to the high-end and fashionable
brand tone and exquisite lifestyle with a new productism and from the indi-
viduation perspective meeting diversified demands of high-end consumer
groups and creating the choicest sophisticated liquor in the industry.Popular 2021 concept series
Optimizing consumer experience by upgrading the package
In 2021 Wuliangye fully upgraded the package opening structure and design to improve consumer experience and provide consumers with better opening and tactile
experience.Wuliang Chun (Spring) MingMin-series products
Case Improving opening experience by upgrading the package structure
While upgrading the 8th-generation Wuliangye Wuliangye re-designed the cap structure so that consumers can remove the outer cap with bare hands without
using special tools. The inner cap in the package can still be destroyed at once but an ergonomic opening puller is provided so that consumers can easily Technique Inheritance
remove the cap which comprehensively improves consumer experience while meeting the demand for anti-counterfeiting.The traditional Baijiu-making techniques of Wuliangye are listed as a national intangible cultural heritage. Wuliangye always guards the honor of "Time-honored Brand
of China". In producing its products Wuliangye follows the "nature-oriented time-honored inherited and developed craftsmanship-embedded and skillful" traditional
techniques and adheres to the ancient motto of "excellent materials proper timing in-place work and find method" so that the traditional distillation techniques of
Wuliangye can be passed down from generation to generation.Sticking to inheritance for ancient and modern strong-flavor liquors
Adhering to the modern production philosophy of "high quality high yield low consumption balance and safety" Wuliangye summarizes and extracts its techniques
characterized by "five-grain formula Baobaoqu block circular fermentation solid-state vinasse renewal mud pit fermentation level-based vinasse removal mixed
steaming and boiling level-based vinasse input quality-based liquor selection quality-based blending grade-based storage and carefully blending" and the four-word
essence namely "distillation selection rest and blending" of its traditional distillation techniques. Oral tutoring and passing on from generation to generation give birth
to Wuliangye's style of "long-lasting aroma rich flavor and well-balanced and clear taste".Optimizing the opening method
47 48ABOUT WULIANGYE SPECIAL SUBJECT: INHERITANCE · TIME-HONORED GOVERNANCE · CELLAR PROSPERITY THROUGH TECHNIQUE · PREMIUM PRODUCTS ENVIRONMENT · PRESERVATION OF RIVERS IN THEIR NATURAL STATE SOCIETY · EXTENSIVE BROTHERHOOD THROUGH BRAND THAT BEARS "RED" HERITAGES ANCIENT AND MODERN GOVERNANCE THROUGH ANCIENT AND MODERN EFFORTS THROUGH ANCIENT AND MODERN CULTIVATION ANCIENT AND MODERN CULTIVATION WULIANGYE YIBIN CO. LTD.
Technique characteristics
Representative inheritors of the representative projects of Wuliangye's traditional distillation techniques declared in 2021:
Zhao Dong and Fan Guoqiong were recognized as representative inheritors of provincial intangible cultural heritage;
1. Five-grain formulas 2. Baobaoqu block 3. Circular fermentation Liu Ming Li Xi and Shi Degang were recognized as representative inheritors of municipal intangible cultural heritage;
36% of sorghum 22% of rice 18% of glutinous Wuliangye has prepared Baobaoqu a fermen- Vinasse is taken out of one pit and put into the Fu Gangyuan Chenqiao Zhangjie and other four were recognized as representative inheritors of district intangible cultural heritage.
rice 16% of wheat and 8% of corn. tation starter with good quality wheat under pit next to it or the alternate pit for next fermen-
medium to high temperature. Baobaoqu is tation after leveling so that vinasse of different
seen as a remarkable achievement in artificial nutritional compositions and structures can
cultivation due to its bulge-shaped appear- flow and circulate between different pits which
ance. balances and enhances the fermentation lev- Exploring perfect techniques with craftsmanship
els of all operating pits.Wuliangye always sticks to traditional techniques continuously improves the recognition of cultural identity of producers has formulated relevant standards and poli-
cies cultivates core skills of "vinasse-based ingredient making" "distillation of grains in retorts" "quality-based liquor selection" and "quality-based blending" follows
the apprenticeship model in daily work and keeps exploring and carrying forward its perfect techniques in inheritance.
6. Level-based vinasse removal 5. Mud pit fermentation 4. Solid-state vinasse renewal
Vinasse is removed from different levels Mud pits are used as the fermentation equip- New raw and auxiliary materials are added to Skill-passing-on methods
including top upper medium lower and dou- ment. With the national treasure fermentation fermented vinasse at a reasonable proportion
ble-round bottom based on their sensorial pit dated back to the start of the Ming Dynasty to ensure appropriate physical contents and
characteristics so as to ensure that vinasse the largest ancient fermentation pit group of nutritional compositions of the materials of the Implementing the "Young Employee Cultivation" Building the "Craftsmen Incubator" platform
of different fermentation features will not be the industry Wuliangye continues live-state next round so as to ensure a reasonable and apprenticeship program
homogenized unexpectedly. distillation till today enabling the benign itera- controllable fermentation process.tive evolution of "cultivating pits with vinasse Wuliangye established the "Craftsmen Incubator" named after crafts- Wuliangye implemented the "one-to-one" apprenticeship model to
and cultivating vinasse with pits" which en- men and gave full play to the role of "Craftsmen Incubator" skill leaders require excellent skill group leaders to sign apprenticeship agreements
dows the strong old pit flavor of Wuliangye that as "leading wild geese". with young employees for paired-tutoring. Tutors teach apprentices
is classic and elegant. skills to inherit traditional techniques.
7. Mixed steaming and boiling 8. Level-based vinasse input 9. Quality-based liquor selection Case Inheriting traditional distillation techniques and improving employees' skills
It is not only the gelatinization process of the Wuliangye puts vinasse into different levels of Subtle color aroma and flavor differences
newly added raw materials for distillation but the same fermentation pit in accordance with of liquor in different parts inside the pit are
In order to promote high-quality development of traditional distillation techniques while inheriting the techniques and making innovations Wuliangye intensified
also the separation and concentration process the methods and structures of vinasse-based distinguished through observation smelling
the targeted training on production process operation production site management and distillation tasting and evaluation skills for production management
of alcohol and flavor substances in fermented ingredient making as well as operation control. and tasting and unblended liquor is selected
personnel and team leaders in all workshops based on its actual situation and routine training for example training on vinasse-based ingredient making un-
vinasse which emphasizes the retention of the based on quality and location. Liquor on the
blended liquor quality evaluation distillation of grains in retorts liquor selection and blending Qu-preparation management and Daqu quality evaluation. The
unique characteristics of vinasse of different very top and bottom will be discarded.training was mainly in the form of on-site practice training with point-to-point on-site demonstration. Employees attending the training had their professional
levels.skills improved through on-site training visiting comparison of physicals and on-site communication.
12. Careful blending 11. Level-based storage 10. Quality-based blending
Wuliangye first creates the blending technique Unblended liquor is separately stored in differ- As per principles "like dissolves like" and har-
of "blending liquors with liquors" and mixes ent zones in line with its grade determined so mony principles Wuliangye calculates how to
and flavors different basic liquors from the that it can mature in a natural way to make it mix unblended liquor in order to create a good
aspects of vision smell and taste so as to easier for later blending. taste and typical style that almost or already
ensure and stabilize Wuliangye's style of "rich reaches quality standards.and well-balanced flavor". Qu-preparation under medium to high Vinasse-based ingredient making Distillation of grains in retorts 5th Municipal
temperature (Shaping bacterium skill competition skill competition Unblended liquor tasting and evalua-
culture) skill competition tion skill competition
49 50ABOUT WULIANGYE SPECIAL SUBJECT: INHERITANCE · TIME-HONORED GOVERNANCE · CELLAR PROSPERITY THROUGH TECHNIQUE · PREMIUM PRODUCTS ENVIRONMENT · PRESERVATION OF RIVERS IN THEIR NATURAL STATE SOCIETY · EXTENSIVE BROTHERHOOD THROUGH BRAND THAT BEARS "RED" HERITAGES ANCIENT AND MODERN GOVERNANCE THROUGH ANCIENT AND MODERN EFFORTS THROUGH ANCIENT AND MODERN CULTIVATION ANCIENT AND MODERN CULTIVATION WULIANGYE YIBIN CO. LTD.
Quality Control Case Establishing the Technical Committee on Standardization to standardize quality control standards
In January 2021 Wuliangye established the Technical Committee on Standardization and its Office. In the committee the Secretary of Party Committee acted
as the Director Chairman as the Deputy Director Deputy General Manager as the Secretary-General and heads of the design department production depart-
Wuliangye always implements the quality concept that quality is life and every drop of liquor must be made out of dedication and follows the quality-first principle that ment quality department technical research department and testing department as the members. The Office of the Technical Committee on Standardization
allows only the best grains to be used upholds century-old craftsmanship and pursues optimal liquor production. In 2021 Wuliangye achieved the work objectives of was managed by the Quality Management Department with the Deputy General Manager as the Director the head of the Quality Management Department as
100% ex-factory pass rate of products 100% product qualification rate in national provincial municipal and third-party supervisory sampling inspections and 0 food the Deputy Director and personnel engaging in quality production design testing and technical research as the members. Moreover Wuliangye formulated
safety accidents. the Regulations on Formulation and Revision of Technical Standards to standardize its work procedures for formulation and revision of technical standards so
as to ensure the applicability and operability of its quality control standards.Strengthening mechanisms and upgrading the management system
Wuliangye strictly abode by the Food Safety Law Product Quality Law and other national and local laws and regulations related to food quality and safety estab- In 2021 Wuliangye obtained quality and food HACCP management system certificate and manufacturer's certificate from the China
lished the whole-process management policies covering food quality and safety including the Regulations on Food Quality and Safety Management Regulations on Quality Mark Certification Group Sichuan Co. Ltd. and also passed the measurement management system annual inspection conducted
Finished Liquor Quality Management and Regulations on Packaging Material Quality Management and a good quality management system including 34 procedural by China Certificate Center for Metrology and Measurement.documents 20 prerequisite programs and the HACCP plan.Quality management system Strict food safety control
Wuliangye added indicators for plasticizers bisphenol A solids heavy metals and food safety stricter than international limits to the testing process of raw and auxil-
At the beginning of the year Wuliangye distributed the work objectives for food quality and safety signed food quality and safety iary materials unblended liquor outgoing liquor packaging materials semi-finished goods and finished goods to ensure product quality with process quality. Besides Implementing
responsibility letters with relevant units and required every employee to assume respective responsibilities so as to ensure the Wuliangye strictly controlled the food quality and safety of outgoing liquor ensured that outgoing products of the same batch not only meet domestic standards but management
thorough fulfillment of respective duties. also meet the standards of any country or region it exported the products to so that it realized the same lines same standards and same quality of products in do-objectives
mestic and foreign markets.Quality control procedures
In accordance with the Food Safety Self-inspection Policy Wuliangye organized regular tour visits and inspections over all units to
Internal quality implement the self-inspection duty of each unit. It formulated and strictly implemented quality control measures and carried out blind
sample assessments and standard sample assessments by the five assaying categories covering almost all assaying items from Strengthening the quality and safety super- Strengthening the quality supervision and Strengthening the preventive management control
raw materials to semi-finished goods and to finished goods. vision of production water management of raw and auxiliary materials of the production process of products
Quality safety supervision Quality control process management
· Conducted random sampling inspections over · Built the 1 million-mu base especially for · Tested and analyzed each batch of liquor;
Problem Problems identified in quality supervision and inspections and results achieved were summarized and analyzed systematically and the acceptance and storage management of grains established the product whole-life-cycle T ested the hygienic indicators of packaging
summary and submitted in the form of brief reports or special reports. For new products packaging materials packaging production process con- water-involving products implementation of quality system from seed to liquor realizing materials in direct contact with liquor;
improvement trol and after-sales product quality feedback special quality analysis meetings were held to identify the causes of problems find out routine water quality monitoring of workshop 100% pre-inspection traceability and controlla- · Carried out special inspections of the package
crucial reasons and propose preventive measures. and food safety prevention to identify problems bility of unprocessed grains. production line;
in time and urge remediation; · Carried out occasional sampling assessments · Inspected the quality of incoming finished
· Extracted outgoing water water at the end and fixed on-site supervisory inspections over liquor.of the pipe network and slurry water and major workshops of raw and auxiliary materials
In 2021 18635 measuring instruments were inspected/calibrated and 3258 certificates were issued. All measuring instruments entrusted an external party to inspect them. All acceptance to intensify sampling inspections of
Management were timely sent for inspection as entrusted by requesting units and the 100% weekly inspection rate was maintained. Besides inspection results met the standards. heavy metals and storage quality of grains.of measuring measuring instruments were managed more strictly and the warehousing of new measuring instruments was strictly controlled with
instruments 100% inspection rate of newly purchased measuring instruments.
51 52ABOUT WULIANGYE SPECIAL SUBJECT: INHERITANCE · TIME-HONORED GOVERNANCE · CELLAR PROSPERITY THROUGH TECHNIQUE · PREMIUM PRODUCTS ENVIRONMENT · PRESERVATION OF RIVERS IN THEIR NATURAL STATE SOCIETY · EXTENSIVE BROTHERHOOD THROUGH BRAND THAT BEARS "RED" HERITAGES ANCIENT AND MODERN GOVERNANCE THROUGH ANCIENT AND MODERN EFFORTS THROUGH ANCIENT AND MODERN CULTIVATION ANCIENT AND MODERN CULTIVATION WULIANGYE YIBIN CO. LTD.
Case Studying risk assessment methods and refining the safety risk control mechanism
In order to guarantee food safety Wuliangye carried out the Research and Application of Methods on Evaluating Exogenous Food Safety Risks in Liquor Pro-
duction in which it fully assessed the possible risk factors in production and transportation of raw and auxiliary distillation materials and sales of finished liquor
during the shelf life and put forward corresponding solutions forming a systematic risk assessment plan for the production of Baijiu. It also formulated the cor-
responding food safety standards to fill the gap in the field of risk control in distillation in the Baijiu industry. In 2020 Wuliangye was awarded the second prize
for scientific and technological integration of the Chinese light industry.Based on the results of the study Wuliangye developed and refined a set of risk assessment and identification methods formulated the food safety risk as-
sessment procedure carried out a general and comprehensive inspection over the potential safety hazards in liquor-related production of raw and auxiliary
distillation materials and stainless steel products plastic products and ceramic pots (ceramics) in contact with liquor during production (e.g. migrations pes-
Special meetings on quality analysis Quality-related training ticide residues mycotoxins and antibiotics) and took the lead in establishing the product whole-life-cycle quality system from seed to liquor realizing 100%
pre-inspection traceability and controllability of all production processes and fully guaranteeing the food safety of products.Case Improving the awareness and capabilities of quality control by carrying out the quality month activity
In September 2021 Wuliangye carried out the quality month activity themed on "taking in-depth quality improvement actions to vigorously promote building a
powerful country with quality". In the activity Wuliangye participated in the overall arrangement of the provincial and municipal quality month activities and sent
experts to liquor enterprises in Chengdu to offer special training on improvement.All departments based on their actual situation promoted and organized activities related to the quality month to convey quality management knowledge and Implementing the standardized quality management model for packaging materials in contact with liquor to ensure the
Case
quality laws regulations and standards to employees guide employees to improve quality awareness through WeChat SMS QQ internal network system safety of packaging materials
blackboard posters meetings LED screens and other media. Through position skill competitions position drills and knowledge contests employees' quality
awareness quality skills and operational skills were generally improved and a good atmosphere of full participation and highlighting quality was created. In 2021 on the basis of the results of the Control on Baijiu Liquor Exposed to Hazardous Substances of Process Material project Wuliangye starting with
packaging materials in contact with liquor and by establishing a strict quality control system for materials in contact with liquor and formulating quality testing
methods and standards for glass ceramic and plastic packaging materials in contact with liquor systematically implemented the standardized quality manage-
ment model for packaging materials in contact with liquor thus strictly preventing Baijiu products from quality problems due to the introduction of hazardous
substances such as exogenous heavy metals phthalate esters and bisphenols effectively guaranteeing the product quality of all packaging materials in
contact with liquor during Baijiu production and ensuring no product quality problems in municipal provincial and national sampling inspections of Wuliangye's
Baijiu products.In 2021
100% ex-factory pass rate of products.
100% product qualification rate in national provincial municipal and third-party supervisory sampling inspections.
0 food safety accidents.
Won the "National Quality Award" issued by the China Association for Quality.Product packaging quality competition
53 54ABOUT WULIANGYE SPECIAL SUBJECT: INHERITANCE · TIME-HONORED GOVERNANCE · CELLAR PROSPERITY THROUGH TECHNIQUE · PREMIUM PRODUCTS ENVIRONMENT · PRESERVATION OF RIVERS IN THEIR NATURAL STATE SOCIETY · EXTENSIVE BROTHERHOOD THROUGH BRAND THAT BEARS "RED" HERITAGES ANCIENT AND MODERN GOVERNANCE THROUGH ANCIENT AND MODERN EFFORTS THROUGH ANCIENT AND MODERN CULTIVATION ANCIENT AND MODERN CULTIVATION WULIANGYE YIBIN CO. LTD.
Intelligent upgrading to ensure quality improvement Case Traceable distillation to guard distillation quality with big data
In 2021 the grain base of Wuliangye in Yibin covered a total area of over 510000 mu. For 100% pre-inspection traceability and controllability of unprocessed
In 2021 Wuliangye gave full play to its strengths as a leading enterprise and promoted the construction of the intelligent packaging workshop and the liquor blending grains Wuliangye built the distillation grain base traceability management system from five perspectives of remote sensing analysis precision meteorology
and storage warehouse guaranteeing both capacity and quality improvement. standard planting field management and plot management and added "e-identity" quality control labels to the grains produced in the base so as to track reg-
ularly or from time to time the whole process from seed selection and cultivation and scientific planting to field management and collection and transportation
which effectively prevented unqualified planting and grains of poor quality from entering the distillation process.The infrastructure project to guarantee quality improvement
· A new silo milling workshop work tower and ancillary facilities will be built in the project;
· After completion the project can realize the storage capacity of 48000 tons of unprocessed grains and the production capacity of
Automatic storage 600000 tons of milled powder which will benefit the stable supply of high-quality unprocessed grains make intelligent grain stor-
and milling of un- age and milling available optimize the production environment and improve the production efficiency.processed grains
· The production capacity of solid unblended liquor will be increased by 100000 tons to further meet the market demand for high- Intelligent agriculture display platform of Wuliangye's grain base
end high-quality Baijiu;
· F ive new liquor production workshops will be built in one of the project stages which after completion will produce about 20000
Distillation base tons of high-quality unblended liquor per year thus facilitating the continuous improvement of production capacity of high-quality Case Managing sample liquor scientifically and refining the product traceability system
Expansion unblended liquor and enhancement of Wuliangye's core competitiveness.In order to respond to the state's call for building the national Baijiu quality and safety traceability system Wuliangye exerted efforts in management standard
formulation information-based system building and hardware facility improvement and built the product traceability system centering on the management of
sample liquor. Wuliangye realized scientific sample liquor management by giving each bottle of sample liquor a unique sample information code and location
code rapidly connecting such location code and information code with a PDA and timely uploading them to the information management system. Since the
1980s Wuliangye has extracted and retained nearly 200000 bottles of liquor samples that serve its product authentication quality management product de-
· 14 new half-open liquor storehouses will be built; velopment after-sales handling information traceability standard formulation and quality improvement.· After completion the blending and storage capacity of unblended liquor will be increased by 360000 tons which will benefit the
expansion of the storage capacity of base liquor quality guaranteeing of liquor to be packaged stabilization of high-quality base
Base liquor stor-
liquor and supply of liquor to be packaged and will make available intelligent base liquor storage blending and transport.age capacity
Increase
· A new intelligent packaging workshop intelligent 3D warehouse storehouse for liquor to be packaged and storehouse for packag-
ing materials will be built;
· T he project has two stages. After completion the annual packaging capacity will be about 210000 tons the annual finished liquor
storage capacity will be 36000 tons and the daily shipment capacity will be 1500 tons which will facilitate the quality guaranteeing
Packaging and and supply stability of finished liquor as well as improvement of production efficiency and will make finished liquor packaging and
storage intelligent storage automated and intelligent.distribution
Sample liquor storage
55 56ABOUT WULIANGYE SPECIAL SUBJECT: INHERITANCE · TIME-HONORED GOVERNANCE · CELLAR PROSPERITY THROUGH TECHNIQUE · PREMIUM PRODUCTS ENVIRONMENT · PRESERVATION OF RIVERS IN THEIR NATURAL STATE SOCIETY · EXTENSIVE BROTHERHOOD THROUGH BRAND THAT BEARS "RED" HERITAGES ANCIENT AND MODERN GOVERNANCE THROUGH ANCIENT AND MODERN EFFORTS THROUGH ANCIENT AND MODERN CULTIVATION ANCIENT AND MODERN CULTIVATION WULIANGYE YIBIN CO. LTD.
Culture Promotion Three major directions for corporate culture development in 2021
Cultural studies Cultural communication Cultural protection
As a unique cultural symbol and spiritual totem of China Baijiu plays the role of a messenger of cultural communication between the East and the West. By guarding
cultural heritage and carrying forward the Baijiu culture Wuliangye undertakes the responsibility for exporting excellent traditional Chinese culture and Baijiu culture to · Implement the "Exploring Wuliangye's · Deeply tap into the brand culture · Efficiently promote cultural relics protection
the world. Historic Values" project · Strengthen the construction of the cultural · Coordinate all parties to apply for the
· Continuously promote the studies on front inclusion of Baijiu in the world heritage list
culture · O rganize the publication of Wuliangye's · Enhance the echelon building of intangible
Cultural cultivation to enrich the brand connotation · Streamline and establish the cultural brand culture books heritage inheritors
system
Wuliangye actively practices the culture-based development strategy continuously refines its corporate culture system continuously promotes the development of
brand culture from three aspects of cultural inheritance cultural communication and cultural protection and supports the creative transformation and innovative devel-
opment of excellent Chinese liquor culture.Corporate culture system
Corporate vision
Case Hold the special expert lecture on Wuliangye culture to deeply tap into the brand culture
In pursuit of long-lasting business Wuliangye is committed to developing into a green innova-
tive world-leading enterprise that keeps developing in a high-quality sustainable and rapid way
On 27 September 2021 Professor Li Houqiang a well-known economist and academic leader was invited to hold a special lecture on Wuliangye culture. He
systematically expounded on the academic foundation and rich connotation of Wuliangye culture explained in detail the core essence and value of times of
Wuliangye culture and discussed with representatives attending the lecture the epochal character guiding significance in practice and innovative communica-
tion of Wuliangye culture.Corporate Spirits Corporate Mission
Stay true to original aspirations remain realistic and Promote our historic legacy co-create a life of enjoy-
pragmatic keep making progress and innovation Corporate ment
culture
system
The special lecture on Wuliangye culture Prof. Li Houqiang delivered a keynote speech
Carry forward the liquor history and guard the cultural heritage
Core Value Ideas Core Values
Create happiness for employees create outstanding Stay honest and quality-oriented and advocate crafts-
experiences for customers and create returns for manship and inheritance-inspired creation In 2021 Wuliangye carried forward and guarded the cultural heritage. Internally it accelerated the revision of the Wuliangye Ancient Fermentation Pit Site's Protection
investors Plan and applied for the inclusion in the 2022 List of Major Historical and Cultural Sites Protected at the National Level. Externally it signed the Consensus on Jointly
Applying for the Inclusion of Chinese Baijiu in the World Heritage List.
57 58ABOUT WULIANGYE SPECIAL SUBJECT: INHERITANCE · TIME-HONORED GOVERNANCE · CELLAR PROSPERITY THROUGH TECHNIQUE · PREMIUM PRODUCTS ENVIRONMENT · PRESERVATION OF RIVERS IN THEIR NATURAL STATE SOCIETY · EXTENSIVE BROTHERHOOD THROUGH BRAND THAT BEARS "RED" HERITAGES ANCIENT AND MODERN GOVERNANCE THROUGH ANCIENT AND MODERN EFFORTS THROUGH ANCIENT AND MODERN CULTIVATION ANCIENT AND MODERN CULTIVATION WULIANGYE YIBIN CO. LTD.
Implementing the "Exploring Wuliangye's Historic Values" project Progress in applying for the inclusion of Baijiu in the world heritage list
In 2021 Wuliangye releases the results of the "Exploring Wuliangye's Historic Values" project. It laid a solid foundation for Wuliangye's future protection of major cul-
tural relics and promotion of traditional culture. Wuliangye participated in the preparatory meeting for The Industrial Culture Development Center of MIIT led
the application for the inclusion of Baijiu in the world a visit to Wuliangye to study the joint application and
June heritage list reached five consensuses and signed the October reached a consensus on the background significance
Results of the "Exploring Wuliangye's Historic Values" project Consensus on Jointly Applying for the Inclusion of Chi- policy support strategies and work arrangements for the
nese Baijiu in the World Heritage List. next step of the application.· Trace back the production and living time of the urban area of Yibin City back to the early and middle Shang Dynasty;
01 · Find a cultural accumulation layer about 3500 years ago in Zhangwanhe Workshop Area of Wuliangye through the investigation and analy-
sis of the soil samples of the cultural layer.· Enrich the physical materials of the development history of Yibin City since the Han Dynasty;
02 · Wuliangye discovered the city wall of the Ming Dynasty storefront buildings of the Qing Dynasty large municipal drainage facilities
of the Ming and Qing dynasties and other relics which is conducive to enriching and improving the development history of Yibin City.· Wuliangye dated back the distillation technology based on crypt-type fermentation pits its upper history limit to the Yuan Dynasty;
03 · W uliangye provided evidence for the historical age of Yibin's multi-grain Daqu distillation technology characterized by crypt-type fermenta-tion pits and Wuliangye's ancient pit groups dating back to the Yuan Dynasty providing clues for tracing the history of Baijiu making in Yibin
and even in South China.Consensus on Jointly Applying for the Inclusion of Chinese Baijiu in the World Heritage List
Protecting the cultural heritage
In order to strengthen the protection of Wuliangye's ancient fermentation pit site and other precious cultural relics Wuliangye revised the Wuliangye Ancient Fermen-
tation Pit Site's Protection Plan in 2021 assessed the safety of Changfasheng and Lichuanyong ancient pits and auxiliary buildings and wrote the safety assessment
and identification report.Press conference to release the results of the "Exploring Wuliangye's Historic Values" project
Advancing the application of Baijiu for inclusion in the world heritage list
Wuliangye actively advanced the joint application of Chinese Baijiu for inclusion in the world heritage list. In 2021 it signed the Cooperation Framework Agreement on
Jointly Application for the Inclusion of Chinese Baijiu in the World Heritage List Raised by Time-honored Chinese Baijiu Workshops contributing to the promotion of Safety Assessment and Identification Report on Changfasheng Ancient Safety Assessment and Identification Report on Lichuanyong Ancient Fermen-
Baijiu culture around the world. Fermentation Pit and Auxiliary Buildings tation Pit and Auxiliary Buildings
59 60ABOUT WULIANGYE SPECIAL SUBJECT: INHERITANCE · TIME-HONORED GOVERNANCE · CELLAR PROSPERITY THROUGH TECHNIQUE · PREMIUM PRODUCTS ENVIRONMENT · PRESERVATION OF RIVERS IN THEIR NATURAL STATE SOCIETY · EXTENSIVE BROTHERHOOD THROUGH BRAND THAT BEARS "RED" HERITAGES ANCIENT AND MODERN GOVERNANCE THROUGH ANCIENT AND MODERN EFFORTS THROUGH ANCIENT AND MODERN CULTIVATION ANCIENT AND MODERN CULTIVATION WULIANGYE YIBIN CO. LTD.
Promoting Baijiu culture all around the world Case Holding the 25th Liquor Sage Ceremony to honor excellent traditional Chinese culture
In December 2021 Wuliangye held its 25th Liquor Sage Ceremony in Mount
Chinese Baijiu culture is an important part of excellent traditional Chinese culture. By virtue of China's "Belt and Road Initiative" and the "Going Global Together" strat- Jiusheng which was themed on "inheriting the liquor history and culture and
egy of the provincial Party Committee and government of Sichuan for Sichuan dishes and Sichuan liquor Wuliangye seized the opportunity and actively built strategic unfolding the new chapter of harmony". The ceremony worshiped the heaven
alliances with well-known overseas enterprises to promote Chinese Baijiu culture around the world. and earth and the Liquor Sage and included a liquor initiation part and group
worship part. Through gun salute music and dance worship incense burning
with clean hands offering the holy five grain articles three tributes and other
The overseas cultural communication system solemn ceremonies Wuliangye expressed its reverence for craftsmanship
and pursuit of the ultimate craftsmanship inherited from generation to gen-
eration and showed its inheritance and integration of Chinese liquor culture
and Wuliangye culture.· Overseas exhibitions: Wuliangye held tasting events in the UK Russia Georgia Japan and other countries and invited local political The 25th Liquor Sage Ceremony
and business celebrities to taste its liquor together.Offline ex- · E xchanges with representatives in China: In 2021 the Consul General of Germany and the Consul General of The Republic of
changes Korea in Chengdu visited and had exchanges with Wuliangye and Wuliangye participated in the event to celebrate the 26th anniver-
sary of the establishment of the sister-province relation between Sichuan Province and Brussels-Capital Region as well as the 2021 Case Performing the world's excellence in Boao Forum
National Day Reception of the People's Government of Sichuan Province.· Foreign-related activities: Wuliangye participated in the China session of the 2021 "International Tea Day" event. In April 2021 Wuliangye as an honorary strategic partner and working with Boao Forum for Asia presented itself at the welcome dinner for forum members
and partners and the diplomatic envoy dinner and participated in important events such as the opening ceremony of the annual conference of the forum and
parallel sessions. It gave full play to its responsibility and role as a strategic partner promoted mutual respect and mutual learning between Chinese and
foreign cultures and supported forum participants to gather Boao views and form Boao solutions making contributions to boosting global economic recovery
improving global governance and advancing global cooperations and illustrating the new pattern of Chinese Baijiu brands and enterprises going global.· In May 2021 Wuliangye opened the "Wuliangye International" official WeChat account to promote Wuliangye's brand culture and ac-
Improving tivities and exhibitions to dealers and fans at home and abroad and has published a number of articles on Wuliangye's history and
online commu- culture till now.nication · In September 2021 Wuliangye completed its overseas social media matrix (covering three major international social media plat-
forms as Facebook Twitter and Instagram) and put it into operation.· Establishing Wuliangye restaurants: Wuliangye opened Tokyo Wuliangye Restaurant and Hong Kong Wuliangye Restaurant and is
Establishing orderly advancing the preparation works for South Korea Wuliangye Restaurant Milan Tasting Center in Italy and Dusseldorf Tasting
the communi- Center in Germany which will form the platform to promote Wuliangye and Chinese Baijiu culture.cation plat- · E nhancing international cooperation in marketing: Wuliangye reached a strategic cooperation with Pernod Ricard and marketed
form products together in Thailand Singapore and Malaysia. Opening ceremony of the 2021 annual conference of Boao Forum for Asia Welcome dinner for diplomatic envoys
Case Present the charm of Chinese Baijiu at the World Expo
· As at the end of 2021 Wuliangye has obtained registration protection in 88 countries and regions including the United States the
Ensuring European Union and South Korea and has 469 international registered trademarks. Dubai World Expo 2020 (hereinafter referred to as the "World Expo") kicked off on 1 October 2021 and the "Light of China" China Hall was officially opened on
smooth com- · It has also established a multi-dimensional monitoring defending and protection system to actively and dynamically monitor the the same day. As an official partner and designated liquor of China Hall at the World Expo Wuliangye made a wonderful appearance together with China Hall
munication trademark registration of its core brand "Wuliangye" at home and abroad and accurately identify infringement so that it can take the deepening cooperation with the World Expo and contributing the strong-flavor harmonious power of China to the harmonious development of the world with
initiative to protect its rights in accordance with the law. Baijiu as the medium.
61 62ABOUT WULIANGYE SPECIAL SUBJECT: INHERITANCE · TIME-HONORED GOVERNANCE · CELLAR PROSPERITY THROUGH TECHNIQUE · PREMIUM PRODUCTS THROUGH ENVIRONMENT · PRESERVATION OF RIVERS IN THEIR NATU- SOCIETY · EXTENSIVE BROTHERHOOD THROUGH BRAND THAT BEARS "RED" HERITAGES ANCIENT AND MODERN GOVERNANCE ANCIENT AND MODERN EFFORTS RAL STATE THROUGH ANCIENT AND MODERN CULTIVATION ANCIENT AND MODERN CULTIVATION WULIANGYE YIBIN CO. LTD.
04Environment Preservation of Rivers in Their Natural State through Ancient and
Modern Cultivation
Wuliangye is a fine Chinese Baijiu liquor that is derived from the earth. Blessed by na-
ture Wuliangye has always cherished its green aspirations and is the first to propose
the idea of building a "Zero-carbon Liquor Enterprise". It creates environmentally friendly
ecological wetlands and builds spatial patterns and production methods that are re-
source-efficient and environment-friendly in an effort to pursue a green environmentally
friendly low-carbon and sustainable development path and bring good liquor back to
good mountains good water and good rivers thereby establishing itself as a devoted
liquor enterprise with a balance of five elements and a return of five senses to truth.-Environmental Management
-Zero-carbon Liquor Enterprise
-Ecological Conservation
-Green Logistics
63 64ABOUT WULIANGYE SPECIAL SUBJECT: INHERITANCE · TIME-HONORED GOVERNANCE · CELLAR PROSPERITY THROUGH TECHNIQUE · PREMIUM PRODUCTS THROUGH ENVIRONMENT · PRESERVATION OF RIVERS IN THEIR NATU- SOCIETY · EXTENSIVE BROTHERHOOD THROUGH BRAND THAT BEARS "RED" HERITAGES ANCIENT AND MODERN GOVERNANCE ANCIENT AND MODERN EFFORTS RAL STATE THROUGH ANCIENT AND MODERN CULTIVATION ANCIENT AND MODERN CULTIVATION WULIANGYE YIBIN CO. LTD.
Environmental Management Zero-carbon Liquor Enterprise
The Company places great emphasis on environmental protection management and under the guidance of green development builds an energy environment and Adhering to the national target of "carbon emission peak and carbon neutrality" the Company is the first to put forward the vision of "Zero-carbon Liquor Enterprise". It
greenhouse gas management system that operates efficiently. It also continues to improve its management system and actively carries out training emergency drills takes active steps to explore low-carbon solutions and fully promotes green and low-carbon energy aiming to be the pioneer of "carbon neutrality" culture in China's
daily inspections and other environmental protection practices with a view to achieving the harmonious development of corporate value and ecological value. brewing industry.Establishing a safeguard mechanism to explore smart zero carbon
To advance the work of zero carbon in an orderly manner the Company has established a carbon emission management mechanism consisting of "quantitative
monitoring - qualitative plan - regular disclosure" to create a comprehensive and intelligent carbon emission management system. In the formulation of the standard
the Company actively solicited the opinions of stakeholders and experts and put in place an incentive system to encourage employees to jointly explore the plan of
building a "Zero-carbon Liquor Enterprise".Three stages of creating a "Zero-carbon Liquor Enterprise"
Environmental management system was certified by China Quality Certification Center
Stage 1 Stage 3
The Company aims to become a "zero carbon factory" by managing The Company is involved in the formulation of a carbon neutrality stan-
A total of 16 environmental training sessions were organized in 2021 reaching more than 30000 people. carbon emissions from production and participating in market transac- dard system for the brewing industry.It is the first company in the industry honored as the "Green Design Demonstration Enterprise for Industrial Products" tions to achieve its own carbon emissions neutrality.by the Ministry of Industry and Information Technology of China.It has been awarded the title of "Environmental Integrity Enterprise” in Sichuan Province for five straight years.It was granted the Enterprise of Outstanding Contribution to Environmental Protection in 2021.Stage 2
The Company aims to create a "zero carbon supply chain" and promote
green supply chain management.Case Coordinating different levels of the Company to solidify the cornerstone of ecological conservation
To advance environmental management in an orderly manner the Company held seven meetings of the Environmental Management Committee and 17 spe-
cial meetings on environmental protection during the Reporting Period. Additionally the leaders led more than 90 on-site work sessions and dedicated them- Work mechanism for carbon emission control
selves to creating a more complete environmental management system throughout the Company.Quantitative Qualitative Periodic
·T op-level design: With the "low-carbon circular ecological benchmark" policy as the guideline the Company set up a leadership group headed by the Sec- monitoring solutions disclosure
retary of Party Committee and Chairman of the Board and formulated the Ecological and Environmental Protection Work Plan and other policy documents to Internal monitoring: -C arry out corporate carbon neutral planning. -D isclose environmental information in periodic
provide guidance for the orderly implementation of environmental protection work. -Verify annual greenhouse gas emissions. -F ormulate greenhouse gas management sys- reports such as semi-annual reports annual
- Grassroots promotion: A total of 17 key remediation tasks were identified and 14 people from grassroots units were assigned to engage in environmental External monitoring: tem and emission reduction program based on reports and social responsibility reports.monitoring and on-site supervision to ensure the implementation of the remediation work. To date the remediation tasks have been fully completed. -V erify the Company's greenhouse gas emis- the status quo and planning of the industrial -P eriodically disclose environmental information
- Philosophy publicity and implementation: To further transmit the concept of ecological civilization the Company produced five large outdoor environ- sions by third-party verification agencies. park. pursuant to the Regulations on Administration
mental protection posters compiled and made more than 30 theme display boards and repeatedly played environmental protection information and ecological -M onitor energy consumption of key energy-us- -D evelop a water electricity and heat supply of Pollutant Discharge Permits and the Admin-
civilization slogans on electronic display screens to urge all employees to keep in mind the importance of ecological conservation. ing units online. system plan that incorporates cost energy istrative Measures for the Legal Disclosure of
consumption and emission reduction targets. Enterprise Environmental Information.
65 66ABOUT WULIANGYE SPECIAL SUBJECT: INHERITANCE · TIME-HONORED GOVERNANCE · CELLAR PROSPERITY THROUGH TECHNIQUE · PREMIUM PRODUCTS THROUGH ENVIRONMENT · PRESERVATION OF RIVERS IN THEIR NATU- SOCIETY · EXTENSIVE BROTHERHOOD THROUGH BRAND THAT BEARS "RED" HERITAGES ANCIENT AND MODERN GOVERNANCE ANCIENT AND MODERN EFFORTS RAL STATE THROUGH ANCIENT AND MODERN CULTIVATION ANCIENT AND MODERN CULTIVATION WULIANGYE YIBIN CO. LTD.
Energy & environmental protection strategy
Fully implement digitalization and create a digital application scenario of
"integrated intelligent energy + carbon neutrality + blockchain".Energy
Manage-
ment side
Fully launch green energy supply Fully push forward the electric energy
Energy
covering distillers grains biomass Energy substitution and energy efficiency im-
cogeneration and biogas power Supply side
Consumer
provement projects and ensure the
side
generation with the aim of achieving comprehensive energy consumption
renewable energy for electricity and indicators reach the industry leading
heat. level.Greenhouse gas verification statement
Case Putting our heads together to contribute to low-carbon development
To boost the motivation of all employees in putting forward reasonable suggestions to the Company the Company has implemented the Implementation Rules
on Awarding Minor Innovations and Progresses and encouraged employees to propose new ideas on existing production equipment production techniques
management methods with respect to improving the level of resource utilization and reducing pollution emissions through the activity of "Golden Ideas" for
energy conservation and emission reduction with a view to providing new approaches to the Company's target of zero carbon. Four award levels and amounts
were established for the Achievement Award to motivate employees to provide input and contribute to the creation of a green future.Embracing a green future powered by energy
The Company constantly improves the energy management system actively develops a new energy structure and properly performs energy consumption data moni-
toring and disclosure to achieve omni-port control and omni-channel management.Energy Management System Certification
67 68ABOUT WULIANGYE SPECIAL SUBJECT: INHERITANCE · TIME-HONORED GOVERNANCE · CELLAR PROSPERITY THROUGH TECHNIQUE · PREMIUM PRODUCTS THROUGH ENVIRONMENT · PRESERVATION OF RIVERS IN THEIR NATU- SOCIETY · EXTENSIVE BROTHERHOOD THROUGH BRAND THAT BEARS "RED" HERITAGES ANCIENT AND MODERN GOVERNANCE ANCIENT AND MODERN EFFORTS RAL STATE THROUGH ANCIENT AND MODERN CULTIVATION ANCIENT AND MODERN CULTIVATION WULIANGYE YIBIN CO. LTD.
Case Online monitoring of energy consumption is introduced to facilitate government energy planning Pollutant governance
In response to government calls the Company has strengthened daily energy monitoring and management and conducted energy audits energy efficiency
benchmarking and energy measurement reviews. Additionally it has completed the access terminal building of the online energy consumption monitoring sys- Waste- - The wastewater is treated and purified at multiple levels through treatment stations deep treatment areas and ecological wetlands and the final pollutant indicator of
tem during the Reporting Period which transmitted energy and environmental protection data from the enterprise-end equipment to the higher-level system water the discharged water conforms to the Water Pollutant Discharge Standard for Minjiang and Tuojiang River Basins in Sichuan Province.thus facilitating the government to conduct energy macro analysis and strategic planning work and also providing data support for enterprises to further ex-
plore the scope of potential energy saving.Ex- -U ltra-low emissions of boiler exhaust gas is achieved by switching from coal to gas burning clean energy such as natural gas while adopting low nitrogen combustors.haust -T he odor and biogas produced in the process of wastewater treatment are collected in a classified manner for adsorption and purification and comprehensive utilization.gas -B are soil coverage at construction sites and wet work during soil breaking are implemented to effectively prevent and control dust generated during the project con-
Digital technology is further integrated with business scenarios to create a "Zero-carbon Liquor Enterprise" with green struction.Case and low-carbon efforts
The Company has promoted the integration of technologies such as applied 5G artificial intelligence and edge computing with business scenarios through stra-
Solid -T he general solid waste generated by the Company is mainly distillers grains wastewater sludge and waste packaging materials. Specifically distillers grains are re-
tegic cooperation with third parties and continued to build Wuliangye smart stores. Wuliangye Smart Store Project (Phase I) has already been up and running
waste cycled for the production of reformulated liquor and fodder. Wastewater sludge is disposed of by incineration and waste packaging materials are recycled by qualified
and continued to be updated to improve user experience. Phase II will focus on data governance and business control capability improvement deeply integrate third parties.business flows of data and marketing system so as to upgrade procedures with data enhance efficiency with procedures promote innovation with procedures
thus enabling business to be visualized. Meanwhile focusing on the target of "carbon emission peak and carbon neutrality" the Company will build a platform
for monitoring intelligent energy and environmental protection to achieve comprehensive testing and analysis of the Company's energy and environmental pro- Haz- -T he Company has implemented standardized management of hazardous waste and appointed legally qualified third-party professional companies to carry out compe-
tection data thereby continuously promoting green and low-carbon governance and sustainable development. ardous tent disposal.waste
During the Reporting Period
Case Biogas power generation is implemented to turn waste into treasure Zero 100 %
Environmental pollution incidents of mi- Total pollutant emission compliance rate
To better tackle biogas the Company converted the pollutant biogas generated by anaerobic fermentation at each wastewater station into electricity through nor and above
gas-fired generator sets and comprehensively utilized biogas from Wuliangye wastewater treatment stations to generate approximately 8.2 million kWh of
electricity in 2021 resulting in a reduction of CO2 emissions by approximately 4300 tons. The biogas power generation project has achieved the comprehen- 100 % 100 % 100 %
sive utilization of combustible organic pollutants and promoted the use of clean energy while treating wastewater which contributes to the Company's energy Exhaust emission compliance rate Wastewater discharge compliance rate Noise emission compliance rate
structure transformation.Case Through resource utilization of solid waste distiller's grains can be used to realize circular economy
During the brewing process a large amount of distiller's grains are generated
and the Company uses them as raw material to brew reformulated liquor
Ecological Conservation thus realizing the full utilization of residual sugar and precipitation in distiller's grains. By producing approximately 8000 tons of reformulated liquor per year
the Company effectively achieves the resource utilization of distiller's grains
as a solid waste of production representing an integral part of Wuliangye's
Baijiu making has a natural dependence on the regional resources and natural ecological environment of the region and is subject to extremely strict requirements. In circular economy.the view of Wuliangye people "protecting the ecology at all costs and with all efforts" is the foundation for the Company to achieve one glory after another and is also
the premise for the sustainable development of the Company. During the Reporting Period the Company strictly complied with the emission regulations ensured the
compliant disposal of all types of waste improved the recycling rate of waste conserved resources protected water and soil and worked hard to build a home with Distiller's grains recycling
blue sky lush land and lucid water.
69 70ABOUT WULIANGYE SPECIAL SUBJECT: INHERITANCE · TIME-HONORED GOVERNANCE · CELLAR PROSPERITY THROUGH TECHNIQUE · PREMIUM PRODUCTS THROUGH ENVIRONMENT · PRESERVATION OF RIVERS IN THEIR NATU- SOCIETY · EXTENSIVE BROTHERHOOD THROUGH BRAND THAT BEARS "RED" HERITAGES ANCIENT AND MODERN GOVERNANCE ANCIENT AND MODERN EFFORTS RAL STATE THROUGH ANCIENT AND MODERN CULTIVATION ANCIENT AND MODERN CULTIVATION WULIANGYE YIBIN CO. LTD.
Case Songgong River dredging project protects the lucid water of Changjiang River Green Logistics
In response to the remediation action of the Changjiang River outfall traceability the Company invested approximately RMB2.35 million to dredge and desilt the
4500-meter-long Wuliangye section of the Songgong River. It also implemented the renovation of the underground river channel re-found the slope hardened
construction to resolve the problem of river siltation and suspended sediment deposition. The project construction was completed during the Reporting Period. Anji Logistic Group a subsidiary of Wuliangye has been providing holistic logistics solutions for Wuliangye for many years. In the course of business development
It will be combined with a long-term river maintenance mechanism to ensure smooth river flow enhance the flooding and drainage capacity of the river and it has introduced advanced logistics technologies planned logistics activities wisely promoted the green development of logistics management product packaging
further enhance the ecological environment of the Songgong River Basin. storage and transportation thereby minimizing the impact of logistics on the environment.Green logistics system
-F ormulate environmental protection management -I mplement packaging reduction and no excessive
system and assessment methods and promulgate packaging.policies and regulations on environmental safety -G ive packaging waste a second life by putting
environmental health and resource conservation. used paper and cardboard into the recycling area
-O rder management is done on the system making followed by recycling and reuse by professional
it paperless through digitalization. Green Green manufacturers.management packaging
Green Green trans-
-A chieve full coverage of LED energy-saving lighting warehousing portation - Committed to changing the mode of energy depen-
in the warehouse which further reduces energy dence for logistics and transportation vehicles. As
consumption. of now the new energy vehicles have accounted
-A utomated scanning and weighing equipment is set up in the for more than 10% of the total vehicles.warehouse. With data exchange with Anji Logistic Group's WMS - It is projected that by the end of the 14th Five-Year
system the data connection between warehouse logistics oper- Plan new energy vehicles will account for more
ations and downstream logistics carriers is achieved resulting in than 70% of the service vehicles in the Wuliangye
savings in transportation costs and fast and accurate shipments. Industrial Park.During the Reporting Period
Anji Logistic Group was awarded the Level 1 Green Warehouse Certification by the China Association of Warehousing and
Distribution.Twenty-one environmental training sessions were conducted for full-time drivers with a total of 1274 partici-
pants.The coverage reached 100%.Songgong River Wetland
71 72ABOUT WULIANGYE SPECIAL SUBJECT: INHERITANCE · TIME-HONORED GOVERNANCE · CELLAR PROSPERITY THROUGH TECHNIQUE · PREMIUM PRODUCTS THROUGH ENVIRONMENT · PRESERVATION OF RIVERS IN THEIR NATURAL STATE SOCIETY · EXTENSIVE BROTHERHOOD BRAND THAT BEARS "RED" HERITAGES ANCIENT AND MODERN GOVERNANCE ANCIENT AND MODERN EFFORTS THROUGH ANCIENT AND MODERN CULTIVATION THROUGH ANCIENT AND MODERN CULTIVATION WULIANGYE YIBIN CO. LTD.
05Society Extensive Brotherhood through Ancient and Modern Cultivation
Originating in Yibin with a history of more than 4000 years of Baijiu Wuliangye cul-
ture as an important bearer of Baijiu civilization is constantly exploring the balance
between its development and sustainable economic and social progress. While offer-
ing consumers great Baijiu Wuliangye advocates the concept of healthy and rational
drinking develops sustainably with the power of responsibility and contributes to the
economic development social progress and the good life of the people to the best of
our ability bringing "harmony" to life and spreading warmth to all families.· Supplier Management
· Dealer Support
· Consumer Service
· Employee Recruitment and Development
· Investor Relations Management
· Industrial Progress
· Rural Revitalization
· Charities
73 74ABOUT WULIANGYE SPECIAL SUBJECT: INHERITANCE · TIME-HONORED GOVERNANCE · CELLAR PROSPERITY THROUGH TECHNIQUE · PREMIUM PRODUCTS THROUGH ENVIRONMENT · PRESERVATION OF RIVERS IN THEIR NATURAL STATE SOCIETY · EXTENSIVE BROTHERHOOD BRAND THAT BEARS "RED" HERITAGES ANCIENT AND MODERN GOVERNANCE ANCIENT AND MODERN EFFORTS THROUGH ANCIENT AND MODERN CULTIVATION THROUGH ANCIENT AND MODERN CULTIVATION WULIANGYE YIBIN CO. LTD.
Supplier Management Transparent procurement initiatives
Guided by the idea of "extensive consultation joint contribution and shared benefits" the Company strictly manages its suppliers to ensure product quality according Organizing occasional integrity talks and work sessions
to its business development needs and empowers our suppliers to achieve win-win cooperation. Signing an integrity commitment with suppliers External Internal Organizing visits to integrity bases for party members
and cadres
Strict management to ensure the product quality
During the Reporting Period the Company optimized our management system in improving grain quality and strengthening risk response and insisted on transparent During the Reporting Period
procurement to protect the legitimate rights and interests of suppliers. Supplier contract performance rate was 100%.Occurrence of 0 quality and food safety incidents due to purchased packaging.Optimization of supplier management
Reinforcing targeted management Optimizing the assessment system Enhancing risk response
Empowering and fueling industry development
We made independent management We reduced the weight of financial assess- In response to the status quo of zero
systems for major areas including storage ment strengthened the guiding attributes inventory base we strengthened the control
management quality management grain of the assessment work and the application of Yibin's local storage resources and The Company is committed to working with suppliers to enhance product quality while empowering the upstream and downstream industry to build a win-win industrial
quality food safety assurance and grain of results rewarded partners with excellent enhanced the construction of the supply chain and promote industrial development and upgrading.traceability management for more refined assessment results and punished suppliers chain's anti-risk capability.and targeted management. with poor assessment results accordingly.Supplier empowerment practices
Learning Conducting Strengthening
Policies Training Exchange
We organized suppliers to study the Com- We conducted training on SRM system op- We organized supplier conferences select-
pany's food hygiene and safety system and eration and safety management for qualified ed outstanding suppliers and strengthened
qualified suppliers of piecemeal materials in suppliers in the warehouse. exchanges and learning among suppliers.the warehouse to study the newly revised
Management Measures for Suppliers of
Piecemeal Materials.
75 76ABOUT WULIANGYE SPECIAL SUBJECT: INHERITANCE · TIME-HONORED GOVERNANCE · CELLAR PROSPERITY THROUGH TECHNIQUE · PREMIUM PRODUCTS THROUGH ENVIRONMENT · PRESERVATION OF RIVERS IN THEIR NATURAL STATE SOCIETY · EXTENSIVE BROTHERHOOD BRAND THAT BEARS "RED" HERITAGES ANCIENT AND MODERN GOVERNANCE ANCIENT AND MODERN EFFORTS THROUGH ANCIENT AND MODERN CULTIVATION THROUGH ANCIENT AND MODERN CULTIVATION WULIANGYE YIBIN CO. LTD.
Distributor Support Case Extensive consultation joint contribution and shared benefits on a new journey
With the theme of "New Era New Journey New Action" the 25th 12·18 Conference of Extensive Consultation Joint Contribution and Shared Benefits was
held in Yibin. Continuing to adopt a combined online and offline method the conference was held at main venue of the Wuliangye Yibin International Confer-
The Company upholds the cooperation philosophy of "extensive consultation joint contribution and shared benefits" prioritizes dealer training and assessment insists ence Centre and 27 online branch venues simultaneously with a total of approximately 2500 participants including leaders and guests at all levels heads of
on high-quality marketing results continuously strengthens communication and training establishes routine training in the area and occasional video conference train- relevant provincial and municipal authorities brand operators partners investors and media representatives. The Company extensively exchanged and coop-
ing system solves dealers' problems and promote win-win development between the Company and dealers through the new product launch conference key dealer erated with dealers listened to their voices and strived to provide first-class policies first-class services and first-class environment for all dealers.exchange seminars online training sessions etc.Updating dealer management policy documents
Management Rules for the General Distribution Brand Operator
We clarified the entry threshold assessment mechanism operation and management codes negative action list etc.
2021
Management Measures for Access to Dealers of Self-operated Brands
Dealer Management
Policy Documents We make clear the investment principles investment criteria etc. optimized the dealer audit inspection mechanism to ensure
Updated Content 100% passing rate of the audit.Annual Assessment and Reward Measures for Dealers
We defined the award categories award quotas award criteria etc. which is the basis and code for the implementation of
Zeng Congqin Secretary of the Party Committee and Chairman of the Board of Directors of the Company attended the 25th 12·18 Conference of Extensive
annual assessment and reward.Consultation Joint Contribution and Shared Benefits
Case Building a regular communication mechanism to promote communication among dealers
During the Reporting Period the Company established a regular interaction mechanism in the segment of other Baijiu series with core dealers holding a num-
During the Reporting Period more than 20 dealer training sessions were conducted covering more than 300 dealers. ber of communication meetings with core dealers of the Wuliang Chun (Spring) brand Wuliang Chun (Rich Flavor) brand Jianzhuang brand and general distri-
bution brand to convey the Company's strategies listen to the voices of dealers deepen communication and interaction and solve problems for distributors in
a practical manner.Case Win-win development stimulates and fuel high-quality marketing
In order to strengthen the contractual awareness of dealers and better play the role of incentive mechanism the Company issued the Annual Assessment
and Reward Measures for Dealers during the Reporting Period using it as the basis and code for the implementation of annual assessment and reward for
dealers. The Measures dominated by the quantitative indicators which are supplemented by qualitative indicators guide the Company to assess individually or
comprehensively the dealers' contract performance rate year-on-year sales growth rate and market management ability to set the "12-18 reward" and "year-
end market support" according to the actual marketing work and to downgrade or disqualify from reward dealers in breach of contract thus guiding dealers to
constantly improve brand image expand market channels better cultivate and serve consumers.Wuliang Chun (Spring) core dealers’ meeting Wuliang Chun (Rich Flavor) core dealers’ meeting
77 78ABOUT WULIANGYE SPECIAL SUBJECT: INHERITANCE · TIME-HONORED GOVERNANCE · CELLAR PROSPERITY THROUGH TECHNIQUE · PREMIUM PRODUCTS THROUGH ENVIRONMENT · PRESERVATION OF RIVERS IN THEIR NATURAL STATE SOCIETY · EXTENSIVE BROTHERHOOD BRAND THAT BEARS "RED" HERITAGES ANCIENT AND MODERN GOVERNANCE ANCIENT AND MODERN EFFORTS THROUGH ANCIENT AND MODERN CULTIVATION THROUGH ANCIENT AND MODERN CULTIVATION WULIANGYE YIBIN CO. LTD.
Case Empowering dealers to tell the Wuliangye story Digital achievements
In order to enhance the ability of the dealer team to tell the Wuliangye culture story well the local dealer associations together with the marketing zones car- · Covering the entire sales process data the analysis has produced more than 300 reports of various types to guide business development.ried out Wuliangye culture knowledge learning sessions organized dealers to systematically study the Wuliangye brand culture and product knowledge and · Digital tools such as the "Marketing Decision Command Centre" "Self-service Analysis Platform" and "Sales Detail Enquiry" have been built to support pre-
helped dealers to improve their abilities in advertising terminal construction consumer cultivation etc. ensuring that everyone in the marketing team could tell cise policy making.would tell and indeed tells the Wuliangye story well.Digital
Business
Business Procedures
Digitization Standard-
ization
· Dealers and offline business at all levels were integrated into online · T he implementation standards synergy mechanisms key control points
management to digitally assign tasks identify breaches and monitor the and indicators for each business and management process of the mar-
process. keting system were defined.Wuliangye culture knowledge learning session · An online decomposition mechanism for sales targets was established · T he design of process standardization and re-processing for 21 market-
and the policy of "individual responsibility and follow-up by day" was im- ing zones 9 business areas and more than 240 key control points was
plemented through digital tracking. completed.Consumer Services
During the Reporting Period 16 online learning courses were developed with 501 participants and a total of 7487
hours of learning time with a per capita learning time of 14 hours.Adhering to the consumer service concept of "attracting consumers with culture and impressing customers with service" the Company protects consumer rights and Examinations were conducted nine times with over 6000 participants covering the entire Wuliangye marketing system.interests and improves the whole process of service creating a "warm Baijiu enterprise" for consumers.Digital empowerment to enhance consumer experience Case Information technology supports staff growth and knowledge empowerment is effective
During the Reporting Period the Company continued to integrate knowledge management innovation management awareness and business scenarios and
During the Reporting Period the Company carried out and completed the second phase of its digital marketing transformation project with "digital re-processing" as
disseminated and shared knowledge in multiple forms. The Company internally provided online training services for nearly 1100 employees in the marketing
the starting point integrated data into processes and organizations established a model of direct sales channels and tapped into market increment achieving the
system and externally for more than 6500 exclusive store staff applying information technology to empower the organization and employees to improve their
three core value objectives of high-quality growth new mode of sales and efficient operations injecting the power of big data into consumer services through digital
knowledge and service quality.business capability enhancement and uses technology and creating a more convenient and better consumer experience for consumers.Leveraging digital achievements Building Smart Retail
Since its digital transformation the Company has been actively building a smart retail system employing data governance to improve operating capability of exclusive
The Company innovates in service management approaches and leverages the power of digital technology to transform marketing business into visual node data and
stores building smart stores with smart devices and using the power of technology to create a quality consumer environment. At present the Company has carried
data analysis results into marketing strategies which helps the marketing team to make precise decisions boost market response speed and provide services in a
out smart retailing pilot in 20 exclusive stores in three zones namely Sichuan Jiangsu and Henan.more targeted manner.
79 80ABOUT WULIANGYE SPECIAL SUBJECT: INHERITANCE · TIME-HONORED GOVERNANCE · CELLAR PROSPERITY THROUGH TECHNIQUE · PREMIUM PRODUCTS THROUGH ENVIRONMENT · PRESERVATION OF RIVERS IN THEIR NATURAL STATE SOCIETY · EXTENSIVE BROTHERHOOD BRAND THAT BEARS "RED" HERITAGES ANCIENT AND MODERN GOVERNANCE ANCIENT AND MODERN EFFORTS THROUGH ANCIENT AND MODERN CULTIVATION THROUGH ANCIENT AND MODERN CULTIVATION WULIANGYE YIBIN CO. LTD.
Store Smart Retail System Case Information technology enhances user experience
During the Reporting Period Wuliangye's new retail APP was accessed more than 10000 times 16 interactive games were launched in the consumer club
Exclusive Store Operation Management Cockpit System customer service handled online responses more than 550000 times nearly 100000 self-service invoices were issued by consumers and the total number of
consumers reached by special activities on virtual rights exceeded 10000. Digital information technology provided consumers with fast shopping rich online
Gathering data from more than 1500 exclusive stores across the country the visualization interface displays a number of indicators activities intelligent online consultation and efficient after-sales service.including sales warning lists red and black lists etc. making operation management more transparent.Intelligent Store Patrol System
With 5G AI cloud computing and other technologies the system makes available online customer flow statistics remote store patrol
temperature and humidity monitoring and early warning reminding stores to maintain a comfortable consumer reception environment at
all times to enhance the consumer shopping experience.Purchase Sales and Inventory System
Organizing online events
We optimized the code-scanning in/ex-warehouse function integrated the code-scanning action originally required through the smart
system and terminal club system into the purchase sales and inventory system making it more convenient for exclusive store consum-
ers to operate.Drinking rationally and adhering to responsible marketing
Cloud Store The Company upholds the principle of honest operation ensuring that products are not exaggerated or falsely advertised in the marketing process and that consum-
ers' rights are not infringed upon. Under the concept of responsible marketing the Company takes up the social responsibility as an alcohol company by widely publi-
1524 cloud stores were built online to facilitate consumers to redeem their rights and self-service transactions at all times; product ap- cizing that non-adults are not allowed to drink alcohol opposing alcohol abuse and drink-driving and advocating healthy and rational drinking.
praisal service stations were also established on the cloud store platform to make available online appraisal appointments to safeguard
the legitimate rights and interests of the Company and consumers.Responsible marketing tools
Building a new digital retail Policies Strategy Concept
Security Require- Promotion
ments
Based on "new thinking new users new scenarios new products and new models" the Company is building a multi-dimensional consumer cultivation system with
more accurate digital construction building Wuliangye's core consumer base deepening the construction of vertical ecological empowerment platforms and broaden- We made the "Regulations on Advertising ·We offered banned words for brand advertis- The promotion of rational drinking is rein-
ing consumer touch points; the Company is also launching the "Wuliangye New Retail" WeChat video account to further improve the interaction chain with consumers and Publicity" to strictly prohibit the use of ing to ensure that product quality and effects forced by the prohibition of underage drinking
and enhance the effectiveness of brand marketing upgrading and optimizing the "Consumer Club" to enrich consumer rights and benefits and improve consumer ambiguous concepts to mislead consumers are not exaggerated. and the exclusion of underage consumers
value perception introducing automatic message response robots and upgrading consumer-related order management invoicing management and logistics man- about the quality of products in product pro- · All product packages merchant manuals from access to consumer rights.agement information systems to increase the information management paths positively iterated. By continuing to cultivate new digital retailing the Company has motion and sales. and brochures are labelled with the risk
been able to adjust its market identity and marketing strategy improve its products and services and continuously enrich the online experience of consumers thus warning that "excessive alcohol consump-
strengthening the emotional link between the brand and consumers. tion is harmful to health".
81 82ABOUT WULIANGYE SPECIAL SUBJECT: INHERITANCE · TIME-HONORED GOVERNANCE · CELLAR PROSPERITY THROUGH TECHNIQUE · PREMIUM PRODUCTS THROUGH ENVIRONMENT · PRESERVATION OF RIVERS IN THEIR NATURAL STATE SOCIETY · EXTENSIVE BROTHERHOOD BRAND THAT BEARS "RED" HERITAGES ANCIENT AND MODERN GOVERNANCE ANCIENT AND MODERN EFFORTS THROUGH ANCIENT AND MODERN CULTIVATION THROUGH ANCIENT AND MODERN CULTIVATION WULIANGYE YIBIN CO. LTD.
Case A month of rational drinking activities is carried out to promote moderate drinking Take customer satisfaction as the benchmark to ensure service
quality
During the National Rational Drinking Campaign Month in the Reporting Period the Company launched activities on refusing to drink-driving preventing un-
derage drinking and drinking in moderation actively promoting a new culture of civilized and rational drinking and promoting harmony between the alcohol
industry society drinking and consumer health. The Company attaches great importance to consumer opinions takes customer satisfaction as an important indicator improves product quality and service methods
in a targeted manner and creates elaborate quality and heartfelt service to create outstanding experiences for consumers.During the Reporting Period the Company's customer satisfaction was measured by the Sichuan Association for Quality with a
result of 94.99
It was up 0.17 compared with the previous year's result of 94.82.Customer satisfaction improvement initiatives
· Performance assessment: Strictly implement performance assessment to motivate staff to do reception service well in every respect.· T he Company provided training to popularize knowledge of consumer rights protection enhance customer service personnel’s un-
derstanding of consumer rights and strengthen customer service awareness.· Holiday care: the Company carried out consumer care work before holidays including telephone greetings gifts and other means.· Regular call-back: the Company paid regular call-back visits to understand consumer needs collect suggestions and make appropri-
ate improvements.· O ffline visits: the Company paid quarterly offline visits to consumers who have met certain requirements presented gifts and collect-
ed suggestions.· Rewards for filling in the questionnaire: Consumers were encouraged to scan the card sent with the goods to fill in the questionnaire
which was summarized and adjusted by the Company every month.· Increased frequency: The frequency is increased to four consumer satisfaction survey return visits per month to improve consumer
perception of the brand.· Feedback on comments: Customer service staff was required to respond to consumer comments on different products in a timely
manner every day and to categorize them and to summarize product comments each month and make appropriate adjustment ac-
cordingly.National Rational Drinking Campaign Month
8384
External strengthening Internal
improvement
Feedback Survey CareABOUT WULIANGYE SPECIAL SUBJECT: INHERITANCE · TIME-HONORED GOVERNANCE · CELLAR PROSPERITY THROUGH TECHNIQUE · PREMIUM PRODUCTS THROUGH ENVIRONMENT · PRESERVATION OF RIVERS IN THEIR NATURAL STATE SOCIETY · EXTENSIVE BROTHERHOOD BRAND THAT BEARS "RED" HERITAGES ANCIENT AND MODERN GOVERNANCE ANCIENT AND MODERN EFFORTS THROUGH ANCIENT AND MODERN CULTIVATION THROUGH ANCIENT AND MODERN CULTIVATION WULIANGYE YIBIN CO. LTD.Case Quality service to enhance the consumer experience Privacy and Data Security Protection System
The Company has always been adhering to the consumer service attitude of "excellent quality heartfelt service unity of mind and staff" to create outstanding A data supervision and management office has been established to manage data storage
experiences for consumers. To further learn about the voice of consumers the Company regularly conducted consumer satisfaction surveys and organized Management system transmission and usage and specify relevant assessment and supervision mechanisms to en-
customer service training activities to continuously improve the quality of the Company's consumer services; the Company also organized regular consumer Construction sure consumer information security.interaction activities and provided holiday wishes and gifts to consumers. Given the different levels of consumers the Company strived to launch marketing
activities targeted at different circles and provided a series of services with the core value idea of "good life" to create a model of good life for Wuliangye con-
sumers. Privacy and
Data Staff Data Study of data regulations and systems and safety training were regularly organized for relevant
Security Pro- Safety training staff including the compliant and rational data use.tection
Transmission of consumer-related information was encrypted and restrictions were made on
Privacy protection
information access parties by signing privacy protection agreements and grading account au-
Initiative
thority.After-sales Service System
Service Beliefs A customer-focused warm Baijiu company.Customer service training activities Online interactive activities for consumers on the Chinese Valentine's Day
Systematic training Comprehensive and systematic training was provided to raise service awareness and improve service quality.Our after-sales support channels include telephone hotlines fax letters personal visits and lines for reporting coun-
Diversified after-sales service channels
Protection of rights and interests to put consumers' mind at ease terfeit products.Efficient complaint handling system The service process was continuously optimized and graded plans were developed to improve response capa-
bility.The protection of consumer rights and interests is the core foundation of the Company's business development and is the primary responsibility of the Company to the
market. In terms of management Wuliangye New Retail has set an operation management department to coordinate the implementation of customer service improve
the quality of after-sales service protect consumer privacy and data security and create a reassuring consumer experience.Consumer Rights Protection System During the Reporting Period over 95% of complaints were addressed to the satisfaction of customers.Case Secure quality consumption by strict selection and production
After-sales Protection Data Security Protection
The Company adhered to the principle of "three characteristics and one recognition" and the requirement of "three focuses" in the segment of other Baijiu
Stop Loss and Compensation Policy System Measures the Administration of Business Infor-
series and continued to optimize its products. During the Reporting Period the Company withdrew 7 general distribution brands and 509 products. At present
After-sales Service Management System mation (for trial implementation)
the Company has reduced the number of brands to 36 and the number of products to 500 forming a development pattern in which the four strategic national
After-sales Management System for E-Com- Information Technology Management System
brands are the core and the growing brands and general distribution brands are strategically synergetic with the co-prosperity and co-existence of multiple
merce Platforms (for trial implementation)
brands so as to select better quality products and more reliable dealers for consumers and guarantee the quality of the entire consumption process.
85 86ABOUT WULIANGYE SPECIAL SUBJECT: INHERITANCE · TIME-HONORED GOVERNANCE · CELLAR PROSPERITY THROUGH TECHNIQUE · PREMIUM PRODUCTS THROUGH ENVIRONMENT · PRESERVATION OF RIVERS IN THEIR NATURAL STATE SOCIETY · EXTENSIVE BROTHERHOOD BRAND THAT BEARS "RED" HERITAGES ANCIENT AND MODERN GOVERNANCE ANCIENT AND MODERN EFFORTS THROUGH ANCIENT AND MODERN CULTIVATION THROUGH ANCIENT AND MODERN CULTIVATION WULIANGYE YIBIN CO. LTD.
Employee Recruitment and Development
We safeguard the legal rights
Diversified employment Equal employment
and interests of employees
Wuliangye upholds a strategy of empowering itself through talents. Resting on the core value idea of creating happiness for employees we strictly implemented an · Employment mechanism: dominated by labor · Fair opportunities: Policies on "stability on six · A nti-Forced Labor: the Measures for the Imple-
"equal pay for equal work" philosophy and are recruiting more people while keeping existing positions intact. We take employee empowerment and welfare into care- contract system and supplemented by diversi- key fronts " and "security in six key areas" are mentation of Paid Annual Leave for Employ-
ful consideration and try to develop more medium and long-term incentives in order to build a common future for employer and employee to share benefits and risks fied employment methods. implemented and special campus recruitment ees the Notice on the (Temporary) Treatment
and to boost the organization's healthy development for coming decades. · R ecruitment mechanism: dominated by social activities are held; fair employment opportu- of Staff on Layoff and the Measures for the
recruitment and campus recruitment and nities are provided for people with disabilities Administration of Internal Layoff and Recu-
supplemented by headhunting and internal positively. peration for Seriously Ill Employees (for trial
Awards received Organizer recruitment. · Provision of job opportunities: In 2021 14 implementation).· Management system: The Recruitment Man- ex-servicemen and their dependents were
agement System the Management Measures recruited to work in the Company and ap-
Wuliangye Family's Digital Labor Union was rated as one of the Top Ten Platforms for Enter- All-China Federation of Trade Unions Cyberspace
for Internal Competitive Recruitment (for trial propriate jobs were provided for people with
prises Administration of China implementation) and the Management Mea- disabilities.sures for Retired Employees are all in place.National Demonstration Enterprise of Safety Culture Construction China Association of Work Safety
Department of Human Resources and Social
Sichuan Provincial Highly-Skilled Technician Training Construction Project Security of Sichuan Province
Sichuan Provincial Finance Department
Department of Human Resources and Social 28% 44% 29%
Gold Medal Mediation Organization for Labor Disputes Security of Sichuan Province
Sichuan Federation of Trade Unions
Company em-
Company em-
Highest Grade I Enterprise for Outstanding Achievements in Wage Budget Management in ployees distribu-
SASAC Yibin ployees distribu-
2020 tion by academic tion by gender
degree College and above
Enterprise with the Highest Evaluation Grade A in Labor Security Law Compliance and Good Yibin Human Resources and Social Security Female Senior high school to
college
Faith in Yibin in 2020 Bureau 72% Male
Middle school and
27% below
A Working Environment that Features Diversity and Fairness 34% 15%
The Company practices equal and diversified employment and equal opportunities and adopts democratic management and communication to meet employees' 12%
reasonable demands and create a democratic and fair working environment.Company em-
ployees distribu- 30 years old and below
tion by age 31 to 40 years old
Employment with compliance
41 to 50 years old
51 years and above
Wuliangye has formulated and issued a series of policy documents focusing on creating a diversified working environment advocating fair opportunities insisting on
stabilizing and expanding employment and providing more job opportunities for society through high-quality development. 39%
87 88ABOUT WULIANGYE SPECIAL SUBJECT: INHERITANCE · TIME-HONORED GOVERNANCE · CELLAR PROSPERITY THROUGH TECHNIQUE · PREMIUM PRODUCTS THROUGH ENVIRONMENT · PRESERVATION OF RIVERS IN THEIR NATURAL STATE SOCIETY · EXTENSIVE BROTHERHOOD BRAND THAT BEARS "RED" HERITAGES ANCIENT AND MODERN GOVERNANCE ANCIENT AND MODERN EFFORTS THROUGH ANCIENT AND MODERN CULTIVATION THROUGH ANCIENT AND MODERN CULTIVATION WULIANGYE YIBIN CO. LTD.
Democratic management and communication Case Building a "Gold Medal Mediation Organization for Labor Disputes" to resolve conflicts and disputes
The Company has established a democratic system and communication channels for employees to well receive information from superior leaders and express In 2021 the Wuliangye Labor Dispute Mediation Committee was officially
their opinions and responded positively objectively and enthusiastically to employees' demands and opinions. awarded as one of the first 13 "Gold Medal Mediation Organizations for
Labor Disputes" in Sichuan. The establishment of a network of mediation
organization for labor disputes strengthened communication efficiency and
Improvement of the democratic system resolved conflicts and disputes at the grassroots level and at the source.· System of meetings of staff representatives: The system of meetings of staff representatives at multiple levels (group level department level work-
shop level and subsidiary level) has been improved. 13 proposals have been considered and adopted at the group level through staff meetings meetings of
staff representatives and staff group meetings.Granting of the "Gold Medal Mediation Organization for Labor Disputes”
· T he system of staff supervisors: staff supervisors have been equipped in accordance with the law to fully express their opinions and exercise their voting
rights in the supervisor meeting participate in special research and inspection work of the Supervisory Committee and report to the staff council on their
performance of duties etc. Employee care creating a happy working environment
Adherence to the openness of factory affairs The Company continues to improve its welfare system and develop a comprehensive professional talent training system and incentive mechanism to help employees
improve their techniques and career development and enhance their well-being and sense of belonging.· Mechanism: We have a leadership mechanism based on the party committee a public mechanism based on the administration a supervision mechanism
based on the disciplinary committee and the labor union and an appraisal mechanism based on employees. Staff welfare
· Content: We make publicly available the development plan of the Company the major decision-making schemes and important rules and regulations for
Wuliangye provides differentiated welfare support for employees actively carries out various sympathy activities and corporate culture building activities lays care and
production and operation the annual production and operation targets and their completion the bidding of engineering and construction projects the pro-
concern efforts for employees meets the needs and expectations of employees and continuously improves the living standards of employees.curement and supply of bulk materials the conclusion renewal change and fulfilment of collective contracts and employment contracts the recruitment and
dismissal of employees the evaluation and appointment of persons with professional and technical titles the conditions procedures quantity and results of
the selection of outstanding and advanced employees the training plan for employees safety production and labor protection and measures to prevent and
control occupational diseases selection and appointment of middle-level leaders and personnel in important positions etc. Mandated benefits Employee benefits Full employee benefits Benefits for special groups
· Forms: meetings of staff representatives seminars open boards suggestion boxes documents broadcasts television newspapers boards Wuliangye's · Five insurance and house fund: · L eave benefits: seniority leave · Financial subsidies: application · W omen's benefits: mommy &
official website the Wuliangye Family's Digital Labor Union platform and WeChat public account. we paid pension insurance un- blood donation leave parental for settlement and business start- baby room quarterly female work-
employment insurance medical leave etc. up subsidies for the introduction of er supplies family education lec-
insurance work injury insurance · F inancial benefits: corporate an- talents with Master's and Doctor's tures fun competitions for female
and matern i ty insurance for nuity scheme high temperature degrees. workers etc.employees and established a allowance etc. · Living benefits: application for the · Benefits for young workers: train-
working group for supplementary · G rowth benefits: technique up- qualification of talent flat for the ing and learning opportunities
payment of pension insurance. grading training further training introduction of talents with Mas- technique enhancement programs
· Paid leave: national statutory etc. ter's and Doctor's degrees and sports and competition programs
Broadening communication channels for employees holidays annual leave maternity · Facility benefits: welfare book- coordination for the schooling of living services etc.leave marriage leave parental store gymnasium psychological their children. · B enefits for workers in need:
· Labor dispute mediation: The Company has a labor dispute mediation committee formed by the labor union human resources department and staff repre- leave etc. counselling etc. · Honor recognition: various talents Wuliangye education fund subsi-
sentatives; grassroots units have labor dispute mediation groups; front-line teams have part-time mediators; all these have formed a three-tier labor dispute · Supportive welfare: physical are recommended to participate in dized funds for workers in need
mediation network system covering the Company workshops and teams. examination legal assistance honor evaluation. mutual help and hardship fund
psychological counselling birthday internal layoff and recuperation for
· Listening to the voices of employees: we implemented the "Staff Visiting Day" system and received suggestions and suggestions from employees offerings cultural and sports activ- seriously ill workers etc.through the Wuliangye Family's Digital Labor Union platform and carried out various research activities on staff canteen meals shift dormitories drinking ities etc.water at work and frontline staff in the marketing system.
89 90ABOUT WULIANGYE SPECIAL SUBJECT: INHERITANCE · TIME-HONORED GOVERNANCE · CELLAR PROSPERITY THROUGH TECHNIQUE · PREMIUM PRODUCTS THROUGH ENVIRONMENT · PRESERVATION OF RIVERS IN THEIR NATURAL STATE SOCIETY · EXTENSIVE BROTHERHOOD BRAND THAT BEARS "RED" HERITAGES ANCIENT AND MODERN GOVERNANCE ANCIENT AND MODERN EFFORTS THROUGH ANCIENT AND MODERN CULTIVATION THROUGH ANCIENT AND MODERN CULTIVATION WULIANGYE YIBIN CO. LTD.
Case Organizing elderly activities and caring for retired employees Education
In 2021 the Company allocated RMB418000 (including RMB60000 for funeral expenses) for special activities for the Wuliangye Elderly Sports Association Wuliangye empowers its employees and supports employee development through a wide range of orientation programs and training sessions for new employees.provided 1150 square meters of dedicated activity space for the Association distributed holiday gifts and offerings during the Dragon Boat Festival Mid-Au-
tumn Festival and Spring Festival and arranged for 4814 people to undergo health examinations throughout the year to implement the Company's policy of
Care and Happiness for the Elderly and protect and enrich the lives of retirees in their twilight years.· Pre-job training: A combination of online and offline training activities are organized for new recruits including lectures case stud-
Training for ies practical exercises and outreach training covering corporate culture rules and regulations professional ethics professional
newcomers etiquette social responsibility quality management safety precautions and other aspects.· Job rotation system: new college graduates are organized to have rotation studies in the frontline of marketing and production.· Vocational skill training: We vigorously implement the vocational skill upgrading project make full use of national encouragement
policies and organize liquor production workshops and new employees to receive work-based training.Elderly activities On-the-job · T alent training channels: The "Management Measures for the Training of Baijiu Tasting and Evaluation Talents (for trial imple-
training mentation)" were introduced to encourage young employees with a talent for tasting and evaluating Baijiu to master tasting and
evaluation skills and to explore channels for training tasting and evaluation talents across job types positions and functions.Case We organized cultural and sports activities to enrich the lives of employees
During the Reporting Period the labor union organized 73 sports and cultural activities such as fishing mountain climbing flower arranging and healthy runs
while employees also initiated and carried out 430 "Interest League" activities such as fitness Tai Chi badminton and basketball through the Wuliangye Family · Sound internal competitive recruitment mechanism: Wuliangye has issued the "Management Measures for Internal Competitive
with 6853 participants enhancing employees' sportsmanship and awareness of exercise. Recruitment (for trial implementation)" to smooth the internal promotion channel and implement internal competitive recruitment
Talent Man- for some middle-level management positions in the Company.agement · Establishment of a reserve talent pool: In order to realize the stratified graded and classified management of outstanding talents
Wuliangye has issued the "Measures for the Introduction and Training of Talents (for trial implementation)" and established a re-
serve talent pool.Table Tennis Competition
During the Reporting Period the Company established 396 practical projects such as salary reform and occupational health
394 of which have been completed and 2 are being implemented to address the urgent needs and aspirations of employees
and to effectively respond to practical demands for employees.Quality development for new college graduates Training courses for new college graduates
91 92ABOUT WULIANGYE SPECIAL SUBJECT: INHERITANCE · TIME-HONORED GOVERNANCE · CELLAR PROSPERITY THROUGH TECHNIQUE · PREMIUM PRODUCTS THROUGH ENVIRONMENT · PRESERVATION OF RIVERS IN THEIR NATURAL STATE SOCIETY · EXTENSIVE BROTHERHOOD BRAND THAT BEARS "RED" HERITAGES ANCIENT AND MODERN GOVERNANCE ANCIENT AND MODERN EFFORTS THROUGH ANCIENT AND MODERN CULTIVATION THROUGH ANCIENT AND MODERN CULTIVATION WULIANGYE YIBIN CO. LTD.
Case Implementing Craftsmen Incubator Program for Enhancing Skill Sets Safe production and protection of employees' health
In 2021 the number of Craftsmen Incubator Program was expanded to 16 covering the Company's starter propagation liquor production tasting and blending
liquor design machinery manufacturing bottle making and other sectors and the number of leading technicians and members has increased to 282. The Com- During the Reporting Period the Company promoted system improvement and practical actions on the two major employee responsibility issues: production safety
pany carried out 67 apprenticeship training sessions with more than 1100 participants to enhance the professional skills of employees. and occupational health and strictly implemented pandemic prevention and control to safeguard the health and safety of employees.On 8 May the Company held a meeting for the promotion the reform of the industrial workforce construction and for the summary and commendation of the
Craftsmen Incubator Program for 2020 commending 65 technicians at all levels including model workers artisans and Baijiu evaluators for 2020 and 86 out-
standing leading technicians and members for 2020 to enhance the sense of gain and happiness of outstanding talents.· The overall safety profile of the Company was stable throughout the year with 0 large and above production safety accidents 0 general and above
equipment safety accidents and 0 fire accidents achieving 37 straight years without fire since records were kept.· Wuliangye continued to maintain the Company's occupational health and safety management system certificates.· A total of 20168 employees were covered by health examinations throughout the year at a cost of over RMB14.99 million of which
10457 people in contact with food production positions participated in the examinations with an on-the-job health examination rate of
100%.
· We have established health examination files for food workers with 10457 people eligible for health certificates at a total cost of
Craftsmen Incubator Program Summary and Commendation of the Craftsmen Incubator Program for 2020
RMB803600.· We organized occupational health examinations for 2278 people at a cost of RMB1.58 million.Salary incentive
Wuliangye emphasizes a skill-value oriented salary distribution system where staff performance pay skill allowances and one-off skill rewards are
directly or indirectly linked to skill levels.Performance bonus packages are allocated according to teams
of technicians with workshops and teams with higher technical · We were awarded National Demonstration Enterprise of Safety Culture Construction Advanced Production Safety Entity
competence and producing more quality Baijiu being given more among Central and Provincial Key Enterprises Excellent Entity of Sichuan Production Safety Month Advanced Entity in
performance bonuses. Safety Production Target Management among Municipal State-owned Enterprises in 2021 and other honors.· T he Five Entries (entry into rural areas communities enterprises schools and families) of safety publicity passed the
Performance pay inspection of Sichuan Provincial Safety Office.· We won the first prize in Yibin's emergency storytelling competition of Celebrating the Centennial of the Party and Building
a New Civilized City".Salary distribution system
· We won the third prize in the Yibin Knowledge Contest on the Newly Revised Production Safety Law.Skill allowance Honors and Awards · The employee-created video work on occupational health communication titled My Voices on Occupational Health won the
first prize in the national "2nd Occupational Health Communication Campaign.Skill allowances are paid on a monthly basis according to the Craftsmen and masters who have achieved outstanding scientific
level of technical certificates held by technicians including: senior and technological innovation and outstanding skill contribution are
worker technician and senior technician. publicly commended and given a one-off skill reward of varying
amounts with sufficient incentive.
93 94ABOUT WULIANGYE SPECIAL SUBJECT: INHERITANCE · TIME-HONORED GOVERNANCE · CELLAR PROSPERITY THROUGH TECHNIQUE · PREMIUM PRODUCTS THROUGH ENVIRONMENT · PRESERVATION OF RIVERS IN THEIR NATURAL STATE SOCIETY · EXTENSIVE BROTHERHOOD BRAND THAT BEARS "RED" HERITAGES ANCIENT AND MODERN GOVERNANCE ANCIENT AND MODERN EFFORTS THROUGH ANCIENT AND MODERN CULTIVATION THROUGH ANCIENT AND MODERN CULTIVATION WULIANGYE YIBIN CO. LTD.
Health and Safety Initiatives Health and safety practices
The Company adheres to the concept of Putting People And Their Lives First and the occupational health and safety policy of Safety First Precaution Crucial Full The Company carried out various safety inspections safety publicity safety training and emergency drills to strengthen occupational health and safety management.Participation No Failure and conscientiously implements the Five Normalizations including normalized education investigation rectification punishment and account-
ability to continue to optimize our management mechanism and working environment to ensure the health and safety of our employees in all aspects.
01 System constructionWe have established and operated an occupational health and safety management system in accordance with the requirements of GB/T45001-2020/ISO45001:2018 standard.
02 System guaranteeWe have formulated and are implementing more than 30 production safety management rules and regulations including the Production Safety Management System Fire Safety Management Regulations and Production Safety Management Performance Assessment Measures. The Company's leaders led safety inspections
03 Organizational guaranteeThe Production Safety Committee and the Production Safety Supervision Department have been established to provide adequate protection in people money and materials required for occupational health and safety.
04 Emergency guaranteeWe laid efforts on the emergency response team emergency equipment emergency response capability emergency plans and drills striving to promote the modernization of emergency management capability.
Special safety inspections were carried out
Hidden Danger Management
05 We have established a dual prevention mechanism of graded risk management and control and hidden danger investigation and management implemented risk management and control in four grades: red orange yellow and blue and carried out standardized hidden danger investigation Case Production Safety Month activities were organized to raise staff safety awareness
and management according to relevant national laws regulations and standards to nip hidden dangers in the bud.The Company carried out Production Safety Month "119" Fire Fighting Awareness Month "Production Safety Law" Promotion Week and other thematic activi-
ties to promote the new "Production Safety Law" and "Fire Prevention Law" and raise employees' safety awareness.
06 Safety cultureWe create a safety culture with unique corporate characteristics build a safety publicity team and earnestly organize the "Five Entries" of safety publicity and a series of safety publicity activities to enhance the safety awareness of all staff.
07 Working environment guaranteeWe improved the appearance of workshops upgraded the toilets and washrooms in the factory.
08 Eco-environmental constructionThe Company's industrial park is a national AAAA grade industrial tourism scenic area; the coal-to-gas boiler project was implemented; an eco- "Launching ceremony of "Production Safety Monthlogical wetland park was constructed.
95 96ABOUT WULIANGYE SPECIAL SUBJECT: INHERITANCE · TIME-HONORED GOVERNANCE · CELLAR PROSPERITY THROUGH TECHNIQUE · PREMIUM PRODUCTS THROUGH ENVIRONMENT · PRESERVATION OF RIVERS IN THEIR NATURAL STATE SOCIETY · EXTENSIVE BROTHERHOOD BRAND THAT BEARS "RED" HERITAGES ANCIENT AND MODERN GOVERNANCE ANCIENT AND MODERN EFFORTS THROUGH ANCIENT AND MODERN CULTIVATION THROUGH ANCIENT AND MODERN CULTIVATION WULIANGYE YIBIN CO. LTD.
Case Safety knowledge training was organized to improve staff's safety capability Pandemic prevention and control efforts
The Company conducted 82 training sessions on safety management of related parties management of the production safety responsibility listing system and During the recurrence of the pandemic the pandemic prevention and control office of the Company continued to strengthen organizational leadership to make clear
the new version of the occupational health management manual and procedure documents with 6137 participants to improve the safety skills and safety op- the responsibility of pandemic prevention and control at all levels to strictly guard against the pandemic and to make greater efforts for the regular prevention and
eration capacity of employees. control measures in a strict and detailed manner so as to effectively protect the health and safety of all employees and fulfil the responsibility and commitment of a
state-owned enterprise.Strengthen organizational leadership Put in place
Strengthen supervision and inspection
Build a pandemic prevention and control Normalized prevention and control
Implement management responsibilities
system measures
· Organizational system: a leading group for · Staff management: The passage of staff is · Supervision and inspection: We keep records
pandemic prevention and control has been es- accompanied by temperature measurement and report information supervise and inspect
tablished for overall responsibility and unified health code presentation scanning to strength- the implementation of pandemic prevention
command. The leading group for pandemic en staff track management and to control and control measures in all units constantly
prevention and control governs a compre- third-party staff and key areas. identify risk points and weak links in prevention
hensive coordination group a pandemic · Health control and management: we imple- and control and make up for shortcomings and
prevention and control group a health control ment measures such as wearing masks daily loopholes in a timely manner.group and a material supply group functioning cleaning ventilation and disinfection strength- · Specify the responsible person: In accordance
through close cooperation. en food safety and well secure materials and with the principle of "whoever manages is
· Emergency management: we formulated the supplies. responsible" we provide timely guidance to
"COVID-19 Prevention and Control Emergen- · Control all kinds of gatherings: we uphold rectify problems found during inspections and
Special equipment safety management training cy Plan" and carried out emergency drills to the principle of "whoever hosts a gathering is hold accountable units and relevant respon-
improve the Company's emergency response responsible" and strictly control the frequency sible persons who fail to perform their duties
capability for pandemic prevention and control. and size of meetings. and neglect their work by following the relevant
· Pandemic prevention strategy: We adhere · Strengthen publicity education and scientific regulations.Case Carrying out AIDS awareness campaign to the daily "Pandemic Report" publish and prevention: we carry out health promotion and
inform the actual situation and problems of education activities and promote vaccination
Taking World AIDS Day on 1 December as an opportunity the Company organized a series of AIDS awareness activities in all units to prevent and control the pandemic prevention and control and adjust for all staff.infestation of HIV at source and secure the health of employees. the direction of the Company's pandemic pre-
vention in a timely manner.Investor Relation Management
The Company strictly follows the Company Law the Securities Law the Guidelines of the Shenzhen Stock Exchange for the Investor Relations Management by Listed
Companies and other applicable laws regulations and regulatory provisions the Articles of Association the Information Disclosure Management System the Investor
Relations Management System and other systems to announce information to the public through the designated media within the prescribed time and in accordance
with the prescribed procedures and methods and to ensure that the information disclosed is true accurate complete and timely. The Company also proactively orga-
nizes various investor relations activities to strengthen communication and exchanges with investors with particular emphasis on shareholder returns and protection
AIDS awareness campaign of the interests of small and medium-sized investors and is committed to maximizing the legitimate rights and interests of the Company its shareholders and other
relevant stakeholders.
97 98ABOUT WULIANGYE SPECIAL SUBJECT: INHERITANCE · TIME-HONORED GOVERNANCE · CELLAR PROSPERITY THROUGH TECHNIQUE · PREMIUM PRODUCTS THROUGH ENVIRONMENT · PRESERVATION OF RIVERS IN THEIR NATURAL STATE SOCIETY · EXTENSIVE BROTHERHOOD BRAND THAT BEARS "RED" HERITAGES ANCIENT AND MODERN GOVERNANCE ANCIENT AND MODERN EFFORTS THROUGH ANCIENT AND MODERN CULTIVATION THROUGH ANCIENT AND MODERN CULTIVATION WULIANGYE YIBIN CO. LTD.
Sharing the development fruits with investors We hold preparatory meetings for the preparation of periodic reports to safeguard the legitimate rights and interests of Case investors
In 2021 the Company held a preparatory meeting for the preparation of each periodic report including two preparatory meetings for the preparation of the
2020 annual report and two preparatory meetings for the preparation of the 2021 third quarterly report. The Chairman of the Company personally called and
The Company focuses on shareholder returns and always shares the development fruits with investors. The total cash dividends in 2020 reached chaired the meetings attaching great importance to the work related to information disclosure ensuring the quality of disclosure of periodic reports and safe-
guarding the legitimate rights and interests of investors.RMB10.015 billion for the first time accounting for 50.19% of the net profit attributable to the parent company in the year. Since its listing
in 1998 the Company has distributed cash dividends 18 times with a cumulative cash distribution of RMB49.597 billion 13 times the total
amount of RMB3.815 billion raised.The Company's profit distribution plan for 2021 is to distribute cash dividends of RMB30.23 (pre-tax) for every 10 shares to all shareholders based on
the existing total share capital amounting to RMB11.734 billion (pre-tax).Investor Communication Channels
Annual Report Working Meeting The first working meeting for the third quarterly report
Disclosure of
Meetings Response Reception and
Information to Enquiries Research
Periodic Reports Brokerage Strategy Q&A session with the Shen- Field research
Interim Announcement Sessions zhen Stock Exchange Telephone Research
Conference Calls Official Email
Investor Hotline For the year 2021
The Company in relation to investor interaction:
Initiatives to protect the interests of small and medium-sized investors Responded to 428 online questions from investors through the interactive platform of the Shenzhen Stock Exchange and exchanged with investors via
calls for more than 1000 times.Optimizing structure of the Protecting investors' right to Unblock communication Communicated with domestic and overseas fund companies securities companies QFII (Qualified Foreign Institutional Investors) and individual sharehold-
Board of Directors be informed channels
ers in 66 batches including a total of 1799 persons.· A dd three independent directors · Continued live general meeting of sharehold- · The annual performance presentation was In relation to information disclosure:
· Four independent directors provide more ers held online
professional advice and suggestions on the · The general meeting was held by means of · During the Reporting Period the Company For 6 consecutive years we were awarded A grade in the annual information disclosure assessment of listed companies by the Shenzhen Stock Ex-
standardized operation of the Board of Direc- live broadcast to facilitate the participation of for the third consecutive year held its 2020
change.tors to improve the scientific decision-making investors especially small and medium-sized Annual Report and 2021 First Quarter Report
capability of the Board of Directors and the investors enhance the transparency of the performance presentation in the form of an
We disclosed a total of 73 periodic and interim reports.corporate governance and further prevent Company and actively safeguard investors' online text Q&A session and live photos while
We were awarded the Best Investor Relations Award of China Listed Companies and the Best Board of Directors for Investor Relations of Chinese
decision-making risks. right to be informed. opening the floor to all investors to ask ques-
· Our general meeting received high attention tions so that small and medium-sized investors Companies Listed on the Main Board.from the capital market with 146900 viewers can communicate directly with the Company's
up 18900 compared to the Annual General management to further protect their rights and We were awarded the Best Practice Case of 2020 Annual Performance Presentation for Listed Companies and the Best Practice
Meeting 2019. interests. Case of 2021 Board of Directors of Listed Companies by the China Association for Public Companies.
99 100ABOUT WULIANGYE SPECIAL SUBJECT: INHERITANCE · TIME-HONORED GOVERNANCE · CELLAR PROSPERITY THROUGH TECHNIQUE · PREMIUM PRODUCTS THROUGH ENVIRONMENT · PRESERVATION OF RIVERS IN THEIR NATURAL STATE SOCIETY · EXTENSIVE BROTHERHOOD BRAND THAT BEARS "RED" HERITAGES ANCIENT AND MODERN GOVERNANCE ANCIENT AND MODERN EFFORTS THROUGH ANCIENT AND MODERN CULTIVATION THROUGH ANCIENT AND MODERN CULTIVATION WULIANGYE YIBIN CO. LTD.
Common Industrial Progress Name of Association Position
National Technical Committee 532 on Brand Evaluation of the Standardization Administration of China (SAC/
A Committee Member Organization
TC532)
National Technical Committee 471 on Brewing of the Standardization Administration of China (SAC/TC471) A Committee Member
Wuliangye continues to lead industrial development with a more open attitude more innovative thinking and a more forward-looking vision demonstrating the respon-
sibility of a state-owned enterprise. Moreover through measures such as actively participating in industry discussions and in the preparation of industry standard and Subcommittee 7 on Winy Reference Materials of National Technical Committee 118 on Reference Materials of A Member Organization
assisting local liquor enterprises Wuliangye shares innovation achievements promotes the R&D and innovation of the industry continuously improves the standard the Standardization Administration of China
and leads industrial development in a high-quality way. Sub-committee 2 on Strong Flavor Baijiu of National Technical Committee 358 on Baijiu of the Standardization A Member Organization
Administration of China (TC358/SC2)
Industry Exchange Sharing Building and Moving Forward Together
Case Moutai's Visit to Wuliangye for In-Depth Exchanges on Future Development of the Enterprise and the Industry
Wuliangye actively joins various kinds of associations hosts and participates in various kinds of industry exchange activities and cooperates with famous liquor enter-
prises with mutual trust and assume responsibilities together continuously contributing Wuliangye's wisdom to the realization of high-quality industry development.On 10 December 2021 Moutai Group held a discussion and exchange
meeting with the Company. On the meeting Ding Xiongjun Secretary of
Various Associations Joined by Wuliangye Party Committee and Chairman of Moutai Group made in-depth exchanges
on future development of the enterprise and the industry with Li Shuguang
the then Chairman of Wuliangye Group and Secretary of Party Committee
Name of Association Position of Yibin Wuliangye. Both sides agreed that Moutai and Wuliangye as the
China Alcoholic Drinks Association A Vice Chairman Organization leading enterprises of Chinese Baijiu should apply themselves on a new
development stage implement a new development concept and build a new
China National Light Industry Council A Vice Chairman Organization Specially Invited development pattern further improve mutual exchange and communication
China National Association for Liquor and Spirits Circulation A Vice Chairman Organization mechanism promote the traditional friendship of Moutai and Wuliangye to
China Chamber of International Commerce A Vice Chairman Organization be played in a higher level and a larger range create a new cooperation sit-
uation of Maotai and Wuliangye and bring new vitality into the high-quality
China Association for the Promotion of Patriotism and Support for the Armed Forces A Vice Chairman Organization
development of Chinese Baijiu.China Enterprise Confederation China Enterprise Directors Association A Member Organization The Discussion and Exchange Meeting between Moutai and Wuliangye
Beijing Intellectual Property Judicial Protection Association A Member Organization
The China Council for Brand Development (CCBD) A Member Organization Undertaking the "14th Five-Year Plan" Strategic Development Seminar of Chinese Strong Flavor Baijiu to Contribute the
China Trademark Association A Standing Director Organization Case Strength of Wuliangye to High-quality Development of the Industry
China Intellectual Property Society A Member Organization
On 6 April 2021 the "14th Five-Year Plan" Strategic Seminar of Chinese
China Association for Public Companies A Vice Chairman Organization Strong Flavor Baijiu sponsored by China Alcoholic Drinks Association and
China Institute of Internal Audit A Member Organization undertaken by Wuliangye was held in Chengdu. The representatives of
China Association of Work Safety A Member Organization some famous liquor enterprises such as Song Shuyu Chairman of China
Alcoholic Drinks Association Li Shuguang the then Chairman of Wuliangye
China Fire Protection Association A Member Organization Group and Secretary of Party Committee of Yibin Wuliangye Zhang Lian-
Chinese Society for Environmental Sciences A Member Organization dong Deputy Secretary of Party Committee and Chairman of Yanghe Stock
China Ecological and Environmental Protection Facilitation Alliance A Standing Director Organization Liu Miao Secretary of Party Committee and Chairman of Luzhou Laojiao
and Zhou Qingwu Deputy Secretary of Party Committee of Gujing Group
The Industry Association for the Golden Triangle of Chinese Liquor A Vice Chairman Organization and General Manager of Gujing Distillery attended the seminar. On the
Committee of Traditionally Fermented Foods Chinese Institute of Food Science and Technology A Vice Chairman Organization seminar the representatives of all liquor enterprises shared their opinions
China Trade Association for Anti-counterfeiting A Member Organization on how Strong Flavor Baijiu can bring good wine to the good life contribute
their strength to the high-quality development of the industry and contribute
The China Association for Quality (CAQ) A Vice Chairman Organization
their wisdom and strength to the healthy and sustainable development of
China National Food Industry Association A Vice Chairman Organization The "14th Five-Year Plan" Strategic Development Seminar of Chinese Chinese Nongxiangxing Baijiu and Chinese Baijiu industry.Strong Flavor Baijiu
101 102ABOUT WULIANGYE SPECIAL SUBJECT: INHERITANCE · TIME-HONORED GOVERNANCE · CELLAR PROSPERITY THROUGH TECHNIQUE · PREMIUM PRODUCTS THROUGH ENVIRONMENT · PRESERVATION OF RIVERS IN THEIR NATURAL STATE SOCIETY · EXTENSIVE BROTHERHOOD BRAND THAT BEARS "RED" HERITAGES ANCIENT AND MODERN GOVERNANCE ANCIENT AND MODERN EFFORTS THROUGH ANCIENT AND MODERN CULTIVATION THROUGH ANCIENT AND MODERN CULTIVATION WULIANGYE YIBIN CO. LTD.
Case Undertaking The 10th Chinese Baijiu Top Summit to Point a Way toward the Development of Baijiu Industry Formulate Standards to Improve Industrial Standardization
On 23 April 2021 The 10th Chinese Baijiu Top Summit was held in Yibin Sichuan. The main person in charge of China Alcoholic Drinks Association and the
nine main persons in charge of large enterprises in Baijiu industry exchanged ideas on high-quality development of Chinese Baijiu industry during the "14th Wuliangye actively participates in the formulation of industry standards to make industry standards more specific scientific and complete in the aspects such as
Five-Year Plan" period centering on the theme of "New Beginning and New Layout for New Accomplishments". Li Shuguang the then Chairman of Wuliangye technology and technique quality control testing methods labels packaging and storage strongly devoting outstanding contribution to the promotion of achieving
Group and Secretary of Party Committee of Yibin Wuliangye made an exchange speech on the theme of "Creating a New Situation of High-quality Develop- high-quality development of the industry.ment of Chinese Baijiu under the Guideline of 'Three New' Theory". There were nine consensuses agreed in the summit pointing a way toward the develop-
ment of Baijiu industry. The Revision of Standards Led and Participated by Wuliangye during the Reporting Period
Type of Standard Name of Standard Release
Quality Requirements for Baijiu Part 1: Nongxiangxing Baijiu Official Release
National Standards
Terminology of Baijiu Industry Official Release
Sichun Liquor (Nongxiangxing) Age Liquor Terminology Official Release
Local Standards Sichun Liquor (Nongxiangxing) Age Liquor Production Technique
Official Release
Specifications
Have been reported to the Ministry of Industry and Information
Industrial standards Specification for Baijiu Quality Safety Traceability System Technology by China Light Industry Information Center and
been in the phase of approval and release
Help Liquor Enterprises and Assume Responsibility
In 2021 Wuliangye carried out technical consultation assistance for two "Xiaojinhua" liquor enterprises of "Xiaojiaolou" and "Jiangkouchun" in Pingchang County
Bazhong City. On the basis of "Wuliangye" technology combined with the actual situation of the enterprises assisted Wuliangye carried out a series of consultant
services such as fermentation pit and mud fermentation technique product research and development quality system and staff training. At present the production
level quality control level and staff skills of the assisted enterprises have been greatly improved highly recognized by local governments leaders of industry associa-
tions and the assisted enterprises thus fully reflecting the responsibility of the leading enterprise and further upgrading the social image of the state-owned enterprise
Wuliangye.Assist in improving traditional fermentation Assist in improving the management sys- Assist in improving professional quality of
technique and standardize the foundation tem of the product and elevate the quality the staff and enhance technical training of
development of fermentation pit management talents
· F ermentation pit and mud: Assist Xiaojiaolou in · Research and development of new products: · K now-how training: Regularly or irregularly or-
building new fermentation pit; guide Jiangkouchun Assist liquor enterprises in revising and improving ganize and help the staff of liquor enterprises to
to culture and produce fermentation liquor in a technique documents of new product research participate in relevant know-how training of dis-
staggered way. and development; cooperate with Xiaojiaolou tilled yeast making liquor making evaluating and
· D istilled yeast making: Assist Jiangkouchun in up- in the development and research of new forest blending.grading technical improvement of equipment for ecological products and new low-drunken degree · O n-site learning: Organize and select technical
distilled yeast making and rectifying the workshop products of Xiaojiaolou and assist in the sample management backbones of assisted enterprises
for distilled yeast making. selection and technical blending of base liquor for to visit Wuliangye workshop for on-site learning
· F ermentation technique: Assist liquor enterprises Jiangkouchun Chunhe series new products. so as to effectively improve the professional skills
in revising and improving the quality management · P roduct filling: Assist Jiangkouchun in managing and quality control level of employees.system documents such as production technique and improving on-site quality control process and
and operation procedures and provide regular system and combine on-site guidance and spot
and irregular on-site technical guidance. check to promote the improvement of its produc-
The 10th Chinese Baijiu Top Summit tion volume and qualification rate year on year.
103 104ABOUT WULIANGYE SPECIAL SUBJECT: INHERITANCE · TIME-HONORED GOVERNANCE · CELLAR PROSPERITY THROUGH TECHNIQUE · PREMIUM PRODUCTS THROUGH ENVIRONMENT · PRESERVATION OF RIVERS IN THEIR NATURAL STATE SOCIETY · EXTENSIVE BROTHERHOOD BRAND THAT BEARS "RED" HERITAGES ANCIENT AND MODERN GOVERNANCE ANCIENT AND MODERN EFFORTS THROUGH ANCIENT AND MODERN CULTIVATION THROUGH ANCIENT AND MODERN CULTIVATION WULIANGYE YIBIN CO. LTD.
Rural Revitalization Three Models
Wuliangye insists on strengthening the Party's leading role constructing a new development model of "Party building with characteristic industry" "Party building with
Wuliangye has always been actively devoted to the main battlefield of rural revitalization with a high sense of political responsibility and historical mission. The Compa- grass-roots governance" and "Party building with talent training" and forming a new atmosphere of rural revitalization of "industries enrich agriculture organizations
ny gives first priority to industrial assistance and continues to promote the development and improvement of people's livelihood in assisted regions helping to realize boost agriculture and talents assist agriculture"."industrial prosperity ecological livability rural civilization effective governance and affluent living".Develop new business forms through "Party
Poverty Alleviation Honors building with characteristic industry"
Awarding unit Honors
Build the base based on long term Explore markets online and offline Strengthen quality to build brands
The CPC Central Committee and State Council National Advanced Individual for Poverty Alleviation
The Poverty Alleviation Office of the State Council Top 50 Comprehensive cases of accurate Poverty Alleviation by Enterprises · C onstruct bases: Build a more than · S trengthen enterprise cooperation: · Shape brands: Strengthen the exca-
The CPC Sichuan Provincial Committee and Government National Advanced Individual for Poverty Alleviation 1 million mu of special grain base for Strengthen cooperation with large vation and cultivation of "San Pin Yi
State-owned Assets Supervision and Administration Com- liquor making; build a bamboo and tea enterprises online and offline such as Biao" agricultural products and assist
Top Ten Characters of State-owned Enterprises for Poverty Alleviation in Sichuan Province
mission of Sichuan Province raw material base covering the whole Fresh Hema JD and Zhuhai Agricultur- the poverty-alleviation areas to build re-
Yibin City; build a 42 mu of fruit and al Investment Holdings Group. gional special brands of "Qingshanyan"
Sichuan Provincial Economic and Information Department Sichuan Provincial Advanced Collective for Poverty Alleviation in Industrial Field
vegetable base of Wuliangye in Litang and "Zangziyuan".Organizing Committee of China Agricultural Brand Annual
2021 China Agriculture Award for Ten Outstanding Contributions to Rural Revitalization Qinghai-Tibet Plateau and a 1100 mu · Put up sales platforms: Hold special
Award Ceremony of bamboo forest industrial demonstra- sales exhibitions and internal purchase · Improve the quality: Improve the prod-
tion base of Wuliangye in Qingshanyan. fairs for employees and build a sales uct quality system for assisted products
Master the overall assistance in poverty alleviation through efficient area for poverty-alleviation products and introduce mature and leading brand
· C onstruct industrial road: Build a 1054 through labor union platform. packaging and marketing management.management kilometers of rural revitalization industri-
al road.Wuliangye set up a leading group for paired assistance to coordinate the assistance made a series of arrangements to consolidate and expand the achievements of
poverty alleviation linked up with rural revitalization effectively strengthened the organization and leadership and solidly promoted paired assistance.Establish a new mechanism through "Party
building with grass-roots governance"
The leading organization system of assistance in poverty alleviation
The Secretary of Party Committee of the Company took charge personally and served as the leader of the leading group for paired assistance in rural revitalization. Long-term effective leading mechanism Interest connection mechanism Capital leverage mechanism
Through task setting of the Party Committee pairing of the grass-roots Party organizations and implementation of the front-line Party members and cadres the trinity
assistance organization system of "headquarters staff office and combat team" was comprehensively constructed.· Improve the "two committees" construc- · G uarantee farmers' earnings: Donate · Develop collective economy: Leverage
The leading organization system of assistance in poverty alleviation tion in the village: Select and send the RMB2.25 million of poverty alleviation more than RMB14 million of social
assisted cadres to the assisted areas funds to Litang County and Xingwen capital by means of capital income
serving as Deputy Secretary of Party County with the equity quantified as the assistance capital verification based
Secretary of Party Committee Leader of the Leading Group Committee of the county and First Sec- capital held by rural collective organiza- on physical inventory and the enclave
retary of the village respectively. tions and farmers. economy model.Deputy Secretary of Party Committee Deputy Leader of the Leading Group
· Broaden the Party building platform: · L ink the interests of various parties: · Realize large-scale operation: Convert
Leadership of the Company Members of the Leading Group Build the demonstration site for joint Promote various ways of interests the transferred land infrastructure
construction of villages enterprises and linking such as "farmers' shares buy-in supporting facilities of industrial devel-
Head of Party-Mass Working Department Director of the Office Party building as well as multiple Par- with guaranteed income and dividends opment and so on into shares of rural
ty-masses services centers and homes by shares" and "order acquisition with collective organizations.Party-Mass Working Department Administration Office Financial Management Department
Office Member Organization of the masses. dividends".Family Planning and Logistics Service Department Purchasing and Materials Service Center etc.
105 106ABOUT WULIANGYE SPECIAL SUBJECT: INHERITANCE · TIME-HONORED GOVERNANCE · CELLAR PROSPERITY THROUGH TECHNIQUE · PREMIUM PRODUCTS THROUGH ENVIRONMENT · PRESERVATION OF RIVERS IN THEIR NATURAL STATE SOCIETY · EXTENSIVE BROTHERHOOD BRAND THAT BEARS "RED" HERITAGES ANCIENT AND MODERN GOVERNANCE ANCIENT AND MODERN EFFORTS THROUGH ANCIENT AND MODERN CULTIVATION THROUGH ANCIENT AND MODERN CULTIVATION WULIANGYE YIBIN CO. LTD.
Cultivate new villagers through "Party building
Develop consumption related assistance
with talent training"
· Increase product procurement: Actively purchase high-quality agricultural products in assisted regions by means of normalized purchasing instead of
donating centralized procurement for important solar terms and pre-purchase orders in canteen etc.Make improvement to attract outside Set up platforms to pave the way to Make good use of talents without limita-
· O rganizing product sales through exhibition: Hold special exhibitions of agricultural products organize the products in assisted regions to appear in the ex-
investment and talents talents cultivation tion to any type
pressway airport and supermarket.· Create an employment platform: Pro- · F unds donation: Donate more than · Cultivate and train talents: Encourage · Explore sales channels: Participate in various large-scale exhibitions and sales activities and display the products on "832" platform.vide a high-quality platform for local RMB28 million of education aid funds and guide farmers to participate in the
talents to return home for self-employ- to support "prevent dropout and ensure actual operation of enterprises such as
ment and employment. compulsory education" in Tibet related production management funds seeking
· Set up special funds: Donate RMB1 prefectures and counties; establish and markets exploration. Adhere to the bottom line of poverty alleviation
million to Xinlong County and Yajiang Wuliangye Educational Fund. · Strengthen demonstration and
County in Ganzi Prefecture and Leibo · S chool construction: Build net informa- guidance: Select 5 experts who "love · Do a good job in assisting students with love: Provide scholarship awards and subsidies to students and families in difficulty from different catego-
County in Liangshan Prefecture respec- tion schools. agriculture understand technology and ries and levels so as to ensure the effectiveness of educational assistance projects such as "Wuliangye Educational Fund" and "Litang Aid Fund for Univer-
tively to set up special funds for talent be good at management" to grow into sity Students in Difficulty".development. leaders of assisting villages to become · Improve the infrastructure: Help and support a number of targeted and effective infrastructure construction projects to effectively improve the living en-
rich. vironment.Assist truly and implement the assistance plan Key assistance in 2021
In 2021 the Company invested RMB681 million in total in industry consumption education and other aspects continued to undertake the assistance in Litang County
Wuliangye plans the assistance projects to lay the foundation promote development and manage in long term focusing on industrial assistance continuing to pro- Ganzi Prefecture and Pingshan County Yibin City and continuously promoted the long-term development and improvement of people's livelihood in assisted regions.mote the long-term effective development and improvement of people's livelihood in assisted regions promoting the overall revitalization of rural industries talents
culture ecology and organizations in assisted regions and helping to realize the common prosperity.Key assistance achievements in 2021
Five-year plan for paired assistance
Wuliangye focused on the construction of industrial base and continu-
ously released the vitality of industrial revitalization
The Company had drawn up a five-year plan (2021-2025) for paired assistance. According to the resource endowment current industrial situation and development
needs in the assisted counties the Company planned the direction and content of paired assistance in a targeted way and continued to promote the development and · W uliangye consolidated the construction achievements of industrial base for fruits and vegetables (mushrooms) in Qinghai-Tibet
improvement of people's livelihood in assisted regions. Plateau: It drove economic income in rural collective organizations to reach more than RMB5 million provided more than 30 fixed employment positions
and more than 100 seasonal employment positions with total payroll of nearly RMB1 million paid annually average income of over RMB20000 for migrant
Paired assistance regions workers and dividends of RMB500000 for 74 households of farmers and herdsmen.Naisha Village Mula Town Litang County Ganzi Prefec-
Hero Village Qingping Yi Nationality Town Pingshan County Yibin City (city paired assistance)
ture (provincial paired assistance) · W uliangye actively participated in the planning and construction of vegetable supply base "vegetable basket" in Litang County: It
took Naisha Village as the pilot built a whole industrial-chain vegetable park featured by "branding of front-end channel systematization of local production
and sales regionalization of radiating surroundings" and revitalized 25 winter-warm vegetable greenhouses and 609 mu land driving the average annual
Key work direction and content of "Five-Year Plan" income of Naisha village to exceed RMB10000.· Wuliangye promoted the development of bamboo forest (seedling nursery) industrial demonstration base in Qingshanyan: It con-
Cultivate and expand industries tinuously conducted the development of multiple industries implemented the planting of Tricholoma matsutake and Dictyophora indusiata and introduced
and planted Bambusa vulgaris Schrader ex Wendland 'Wamin'. The scale of the project construction reached tens of mu.· Construction of industrial base: Focus on the construction of characteristic industrial demonstration base for fruits and vegetables of Wuliangye in Qin-
ghai-Tibet Plateau and industrial demonstration base for high mountains and forest land of Wuliangye in Yi Nationality Town etc. · Wuliangye assisted the sustainable development of bamboo industry and tea industry in Yibin region: It took over nearly 1 million ton of
· Development of industrial base: Further develop the effects of special grain base for liquor making bamboo material acquisition base tea raw material bamboo materials from Pingshan County Xingwen county Gong County Cuiping District and other counties and districts in Yibin.procurement and so on to increase farmers' earnings.
107 108ABOUT WULIANGYE SPECIAL SUBJECT: INHERITANCE · TIME-HONORED GOVERNANCE · CELLAR PROSPERITY THROUGH TECHNIQUE · PREMIUM PRODUCTS THROUGH ENVIRONMENT · PRESERVATION OF RIVERS IN THEIR NATURAL STATE SOCIETY · EXTENSIVE BROTHERHOOD BRAND THAT BEARS "RED" HERITAGES ANCIENT AND MODERN GOVERNANCE ANCIENT AND MODERN EFFORTS THROUGH ANCIENT AND MODERN CULTIVATION THROUGH ANCIENT AND MODERN CULTIVATION WULIANGYE YIBIN CO. LTD.
Wuliangye extended the consumption related assistance path
to effectively explore the product consumption markets Public Welfare and Charity
· W uliangye activated the vitality of its domestic sales: It purchased tens of categories of agricultural special products in Litang County Pingshan
County and Xingwen County by means of normalized purchasing instead of donating centralized procurement for important solar terms pre-purchase orders In 2021 Wuliangye actively launched public welfare and charity activities devoting itself to public welfare and charity in poor areas and assisting poor groups with
in canteen and launch of "Wuliangye Family" APP etc. with the procurement amount of more than RMB12.6 million. compassion. Meanwhile the Company actively fulfilled its social responsibilities to support national defense and military construction and vigorously promoted the in-
· W uliangye explored the export channels of products: It assisted agricultural special products such as mushrooms and Auricularia auricula in depth development of military-civilian integration.Litang County etc in exploring online and offline consumption markets by means of holding special sales exhibitions for agricultural special products orga-
nizing the assisted products to participate in large-scale agricultural theme activities such as China Agricultural Brand Annual Award Ceremony and Sichuan
Agricultural Expo and strengthening the connection with product channels such as supermarkets etc. Honors Organizer
The Third Sichuan Charity Award - The Most Charitable Contributor The People's Government of Sichuan Province
The Third Sichuan Charity Award - The Most Influential Charitable
Wuliangye strengthened the construction of grass-roots organizations The People's Government of Sichuan ProvinceOrganization
to significantly improve the efficiency of rural governance
Sichuan Provincial Committee for Caring for Next Generation
Compassion Enterprise Award for Caring for Next Generation in
· Wuliangye strengthened the construction of grass-roots Party organizations: It selected five cadres stationed in the village to serve as Depu- Bureau of Veteran Cadres of the CPC Sichuan Provincial CommitteeSichuan
ty Secretary of Party Committee of the countryside and town and First Secretary stationed in the village respectively focused on strengthening the construc- Sichuan Spiritual Civilization Development Office
tion of Party organizations and publicized the policies of the Party and policies of benefiting farmers and the people in a long term through on-site lectures
by Party members on-site listening by the masses and on-site answers by cadres etc. Advanced Collective for Yibin Three-year Transportation Campaign The Work Leading Group Office for Construction of Yibin as a Mega Transportation City
· Wuliangye strengthened the collective economic organization construction: It continued to play the capital leverage effect of the special
industrial funds donated to Litang County in the early stage continued to leverage nearly RMB1 million to develop collective economy in 2021 elevated
the anti-risk ability of collective economy improved the agriculture linking mechanism and ensured the stable earnings of farmers driving the industry to Assistance in relief to promote charity
increase the average annual earnings exceeding RMB5000 for more than 5000 farmers and herdsmen in 4 villages.Wuliangye actively developed public welfare and charity projects from the aspects of poverty relief teaching assistantship to assist education disaster relief and as-
sistance and assistance in the elderly and the orphans implemented the effective linking between consolidation and exploration of poverty alleviation achievements
Education assistance with love and enthusiasm for more solid
and rural revitalization and promoted social harmony and economic growth.support to regional talents
· W uliangye improved basic education level: It donated RMB200 million mainly used to subsidize basic education promotion projects of 10 urban Poverty relief
and rural areas in 4 central urban districts of Sanjiang New District Cuiping District Nanxi District and Xuzhou District in Yibin; donated RMB120000 worth
of schoolbags books laptops and other educational and teaching materials to the Central School of Mula Town by means of visiting and discussing as well Wuliangye assisted and subsidized the groups in difficulty helped the families orphans the disabled and the elderly and promoted the harmonious development of
as on-the-spot investigation. society.· W uliangye continued to do a good job in love education program: It delivered RMB100000 grants to 20 college students in Litang County with
the standard of RMB5000 for the fourth consecutive year; provided financial aid to seven students in difficulty in Hero Village Qingping Yi Nationality Town Wuliangye participated in the donation project of China Police Martyrs and Heroes Foundation and supported the casual-
Pingshan County with the standard of RMB2000 per person; organized the cadres in the village to hand over 300 sets of "love education packages" to the Case ty pension of police martyrs
students in Wuliangye Hope Primary School in Xingwen County and Jinping Town Central Primary School in Pingshan County.Wuliangye donated RMB10 million and set up "Wuliangye Love" Special Fund for Preferential Care and Assistance of Police Martyrs in China Police Martyrs
and Heroes Foundation specially used to condole assist and rescue police martyrs and heroes with outstanding performance in the process of maintaining
social security and stability and the safety of people's lives and property as well as policemen who sacrificed and got disabled with extreme poverty and their
families so as to contribute its strength as a state-owned enterprise to the casualty pension of police martyrs.Wuliangye enriched and expanded publicity carriers to enable the
social assistance atmosphere to become increasingly strong
Teaching assistantship to assist education
· Wuliangye prepared and published the first targeted poverty alleviation report.· Wuliangye made elaborately and exhibited assistance feature films.· Wuliangye widely promoted foreign media publicity. Wuliangye actively participated in the construction of basic education in poverty-stricken regions assisted students from needy families to finish their studies devoted
itself to poverty alleviation through education and promoted the high-quality development of talent cultivation.
109 110ABOUT WULIANGYE SPECIAL SUBJECT: INHERITANCE · TIME-HONORED GOVERNANCE · CELLAR PROSPERITY THROUGH TECHNIQUE · PREMIUM PRODUCTS THROUGH ENVIRONMENT · PRESERVATION OF RIVERS IN THEIR NATURAL STATE SOCIETY · EXTENSIVE BROTHERHOOD BRAND THAT BEARS "RED" HERITAGES ANCIENT AND MODERN GOVERNANCE ANCIENT AND MODERN EFFORTS THROUGH ANCIENT AND MODERN CULTIVATION THROUGH ANCIENT AND MODERN CULTIVATION WULIANGYE YIBIN CO. LTD.
Wuliangye participated in the kindergarten construction project in the central urban region of Yibin city to assist develop- Wuliangye subsidized the construction project of football playground in Bowangshan No. 2 Kindergarten in Xingwen
Case ment of basic education in urban and rural regions of Yibin Case County to support the development of sports
Wuliangye made financial assistance of RMB200 million mainly used to subsidize the construction of ten kindergartens in four central urban areas of Yibin Wuliangye donated RMB2 million to subsidize the construction project of football playground in Bowangshan No. 2 Kindergarten in Xingwen County. In Sep-
including Lizhuang shaping Baishawan and other urban-rural combination regions of Yibin so as to accelerate basic construction of a public service system tember 2021 the football field was put into use smoothly with a total area of 4956 sqm and a standard of seven-person system which solved the problem
of pre-school education with wide coverage basic guarantee and quality in urban and rural regions assisting the long-term development of basic education in of the shortage of sports ground for more than 1600 students in Yanyang Primary School open to the public for free during holidays strongly supporting the
urban and rural regions of Yibin. The overall building area of the kindergarten project covers 43941 sqm. After completion there will be 3510 new children's development of education and sports in Xingwen County.degrees added providing a strong guarantee for the development of basic education in urban and rural regions of Yibin.Donation for education assistance and foundation ceremony of kindergarten building project in central urban region of Yibin
Wuliangye participated in the acrobatic education-based poverty alleviation project in Yibin to set up the patriotism of
Case The football field of Bowangshan No. 2 Kindergarten was put into use teenagers
Wuliangye moved into the base of acrobatic education-based poverty alleviation project in Yibin and carried out a learning project of Party history for acro-
batic teenagers. After the learning the staff from Wuliangye Charitable Foundation gave children books stationery and other articles for study and daily use. Case Wuliangye participated in the project of Provincial Poverty Relief Fund in Yibin to escort students in difficulty with love
Wuliangye told stories about the Party revolution and heroes in a pleasant interesting and funny way and deeply planted the emotion of loving the Party the
country and socialism guiding teenagers to follow words of the Party and move forward with the Party.Wuliangye donated RMB1 million to subsidize public welfare activities of Provincial Poverty Relief Fund to sponsor education in Yibin from year 2021 to 2023
to escort students in difficulty with love. Wuliangye had carried forward the fine tradition of the Chinese nation featured by helping the poor and fostering virtue
through moral education further expanded the scale of public welfare activities of Provincial Poverty Relief Fund to sponsor education and broadened the cov-
erage of assisting poor college students.Wuliangye set up special funds of Teaching Assistantship to Assist Education thus balancing the development of educa-
Case tion and the building of teaching staff
Wuliangye donated RMB10 million to set up a special fund of Teaching Assistantship to Assist Education in Sichuan Education Foundation to reward model
teachers who had made outstanding achievements in education subsidize excellent teachers who had difficulties in family life due to special reasons such as
illness and poverty and actively create a social atmosphere of respecting teachers and valuing education thus balancing the development of education and
Education propaganda of history learning of the Party the building of teaching staff as well as improving the material conditions of rural education and characteristic education.
111 112ABOUT WULIANGYE SPECIAL SUBJECT: INHERITANCE · TIME-HONORED GOVERNANCE · CELLAR PROSPERITY THROUGH TECHNIQUE · PREMIUM PRODUCTS THROUGH ENVIRONMENT · PRESERVATION OF RIVERS IN THEIR NATURAL STATE SOCIETY · EXTENSIVE BROTHERHOOD BRAND THAT BEARS "RED" HERITAGES ANCIENT AND MODERN GOVERNANCE ANCIENT AND MODERN EFFORTS THROUGH ANCIENT AND MODERN CULTIVATION THROUGH ANCIENT AND MODERN CULTIVATION WULIANGYE YIBIN CO. LTD.
Case Wuliangye set up the project of Friends of Tsinghua-Yibin Scholarship for Young Talents to promote talent training Wuliangye assisted the elderly and the orphans
Wuliangye donated RMB600000 to establish Friends of Tsinghua-Yibin Scholarship for Young Talents. From 2021 to 2023 Wuliangye appropriates Caring about the elderly with full love Wuliangye donated RMB700000 used to support the first art exhibition of the elderly in Sichuan contributing to the undertaking
RMB200000 to Tsinghua University every year to support its development of education and teaching promote the career of talent cultivation and encourage of assisting the elderly and the orphans. The works in the exhibition reflected the fruitful achievements made by all fronts since the founding of the Communist Party
students to keep forging ahead and pursue excellence. for 100 years the founding of the People's Republic of China for 72 years the reform and opening up as well as the 18th National Congress of the Communist Party
of China. It successively made itinerant exhibitions in Yibin and Chengdu attracting more than 20000 old comrades to attend the exhibition promoting the develop-
ment of art career and even cultural career related to the elderly in the whole province enriching the life of the elderly and building a positive and good social environ-
ment through calligraphy creation.Disaster relief Volunteer services for a harmonious society building
Wuliangye went to the front line of disaster relief actively participated in disaster relief provided strong support for the resumption of work and production in disas-
ter-affected areas and assisted needy families and people in special poverty caused by natural disasters so as to promote social harmony and economic stability. With the aim of contributing to the enterprise and serving the society the Youth League Committee of the Company organized young volunteers to carry out a series
of thematic volunteer services including assistance in COVID-19 control environment protection serving the community respecting the old and loving the young
civilized persuasion and venue volunteer services so as to assist in building a harmonious society.Case Wuliangye participated in flood fighting and disaster relief in Henan to support local flood control and disaster relief
In July 2021 many regions in Henan suffered from heavy rain. Wuliangye donated RMB60 million to support flood fighting and disaster relief in Henan. At the
beginning of August 8 vehicles fully loaded with Wuliangye donated materials for flood fighting and disaster relief such as epidemic masks medicines and A total of more than 340 volunteer services were organized and carried out throughout the year with staff volunteers of
protective clothing rushed to disaster areas in Henan. Through the arrangement of Henan Charity Federation they completed the delivery of donated materials 2898 participating and the service duration of 17118 hours in total.in Zhengzhou Kaifeng Hebi and other places providing strong support for the flood control and disaster relief in Henan. On 18 October Henan Charity Feder- The voluntary service project of Wuliangye Love Action was rated as Excellent Voluntary Service Project by Yibin Spiritual Civilization
ation granted Wuliangye with Outstanding Contribution Award in Charitable Donation for Flood Fighting and Disaster Relief in Henan. Development Office.Volunteer service activities organized and conducted in 2021
Number of activities: 164 Number of activities: 100
Service duration: 6576 Warm winter Learning from Service duration: 6163.5
Number of participants: 843 action Lei Feng Number of participants: 1503
Assistance in flood relief materials in Henan 2021
Volunteer Service
Activities
Wuliangye supported COVID-19 prevention and control in Nanxi District to assist in the fighting against the pandemic in
Case Yibin Number of activities: 24 Number of activities: 57
Cuiping
12·18
Facing the severe situation of repeated pandemic in Nanxi District Yibin Wuliangye donated RMB2 million to the Red Cross in Nanxi District Yibin which was Service duration: 432 Mountain Service duration: 3946.5
Volunteer
specifically used to support COVID-19 control and the resumption of work and production n Nanxi District Yibin assisting Yibin to resolutely win the blocking Number of participants: 72 Civilized per-
and protracted war of COVID-19 control. suasion service
Number of participants: 480
113 114ABOUT WULIANGYE SPECIAL SUBJECT: INHERITANCE · TIME-HONORED GOVERNANCE · CELLAR PROSPERITY THROUGH TECHNIQUE · PREMIUM PRODUCTS THROUGH ENVIRONMENT · PRESERVATION OF RIVERS IN THEIR NATURAL STATE SOCIETY · EXTENSIVE BROTHERHOOD BRAND THAT BEARS "RED" HERITAGES ANCIENT AND MODERN GOVERNANCE ANCIENT AND MODERN EFFORTS THROUGH ANCIENT AND MODERN CULTIVATION THROUGH ANCIENT AND MODERN CULTIVATION WULIANGYE YIBIN CO. LTD.
Wuliangye held a symposium of heart-warming action with the theme of Bringing the Warmth of the Party to the Hearts of
Case Veterans to care for retired veterans
On the eve of the Centennial birthday of the Party Wuliangye invited volunteers to resist U.S. Aggression and Aid Korea the retired military personnel who had
been awarded Citation for Merit Class II or higher and disabled military personnel to the Company viewed development and construction of the Company
observed the drills of military subjects for basic militia of the Company held a symposium of heart-warming action with the theme of Bringing the Warmth of the
Party to the Hearts of Veterans and listened to veterans telling their own experiences of war history touching deeds and participation in the process of devel-
opment and growth of the Company. The Company delivered sympathy funds and items to 18 veterans attending the meeting totaling RMB54000.Volunteer services for Wuliangye 12·18 Annual Convention Activities caring for left-behind children
Civilized persuasion actions in Cuiping Mountain Home cleaning into community
Support the military to promote the military-civilian integration
Wuliangye actively fulfilled its social responsibilities to support national defense and military construction and vigorously promoted the in-depth development of
military-civilian integration solidly carried out the work to support the military and families attached great importance to the work for retired military personnel safe-
guarded the legitimate rights and interests of the military and families implemented the idea of strengthening the military in the new era and created a new situation Wuliangye sent the Party's warmth to veterans Sympathy to the retired military personnel on Army Day
of militia building.National defense construction Case Visiting veterans families of active servicemen and other subjects enjoying preferential treatment
Wuliangye carried out the construction of backbone militia of the Company: It invested RMB1370800 funds in total in military equipment and
training of the backbone militia through the whole year. The backbone militia of the Company had participated in emergency tasks such as earthquake relief Taking major festivals as an opportunity Wuliangye conducted discussion and sympathy activities for the retired military personnel and the families of active
flood control and emergency rescue fire fighting and rescue and emergency response for many times. servicemen in the Company to convey its care sympathy and greetings. During the Reporting Period the Company conducted sympathy activities to 4246
people of retired military personnel on the job military personnel who left the Company or get retired and the families of active servicemen and delivered sym-
pathy funds and items totaling RMB2681600.Service station construction
Wuliangye built the service station into a home for retired military personnel: Considering handling practical work paying attention to practical
results and solving difficulties as important principles of the service station work the Company continuously carried out in-depth information collection assis-
tance in solving difficulties of the poor and visit and sympathy activities and solidly conducted visiting and reception work. Case Wuliangye conducted visit and sympathy activities to the stationed troops and cared for the military personnel
Caring scheme Taking major festivals such as the Spring Festival and the Army Day as an opportunity Wuliangye conducted visit and sympathy activities to the stationed
troops. Combined with COVID-19 control requirements Wuliangye carried out the visits and discussions with the theme of Co-construction and Mutual Integra-
Visit for caring scheme: The Company regularly carried out visit and sympathy activities for the families of retired military personnel and active service-
tion Development of the Military and Enterprises to the stationed troops such as military divisions People's Armed Forces Department of Cuiping District Army
men for example the retired military personnel who were in difficulty and left the post for recuperation due to serious illness and the stationed military troops.Aviation the PLA Rocket Force and the armed police detachment recognized the actual difficulties in the life and training of the stationed troops and quickly
Caring scheme: The Company delivered sympathy funds and items to the retired military personnel the families of active servicemen and other special
organized targeted sympathy materials to the stationed troops. During the Amy Day the Company visited eight stationed troops and emergency forces and
care objects totaling RMB2681600 and visited the stationed military troops during major festivals and distributed sympathy materials according to the actual
held three symposiums delivering sympathy funds and items such as air conditioners cool drinks and training equipment totaling RMB350000.needs of the military.
115 116ABOUPTE RWFUOLRIAMNAGNYCEE SPECIAL SUBJECT: INHERITANCE · TIME-HONORED GOVERNANCE · CELLAR PROSPERITY THROUGH TECHNIQUE · PREMIUM PRODUCTS THROUGH ENVIRONMENT · PRESERVATION OF RIVERS IN THEIR NATURAL STATE SOCIETY · EXTENSIVE BROTHERHOOD THROUGH BRAND THAT BEARS "RED" HERITAGES ANCIENT AND MODERN GOVERNANCE ANCIENT AND MODERN EFFORTS THROUGH ANCIENT AND MODERN CULTIVATION ANCIENT AND MODERN CULTIVATION WULIANGYE YIBIN CO. LTD.
Performance
Economic Performance Social Performance
Indicator Unit 2021 Indicator Unit 2021
Total assets RMB million 135621 Input into rural revitalization RMB'00 million 6.81
Operating revenue RMB million 66209 Total donations RMB'0000 9915.98
Taxes paid RMB million 25451 Volunteer events Times 345
Total profit RMB million 32450
EPS RMB 6.023
Total cash dividends for 2020 RMB million 10015 Environmental Performance
Employee Performance Indicator Unit 2021
Chemical oxygen demand emissions Ton 82
Indicator Unit 2021
Total employees 25803 Ammonia nitrogen emissions Ton 2
Employment contract signing rate % 100 Exhaust gas emissions Billion m3 1.6
Social insurance coverage rate % 100
Sulfur dioxide emissions Ton 0.8
Proportion of female managers % 20
Nitrogen oxide emissions Ton 104
Medical examination coverage rate % 78.16
Total consumption of industrial energy
10000 tce 22.88
Input into employee training RMB'0000 536.49 resources
Input into assistance for employees in
RMB'0000 161.31 Carbon dioxide emissions 10000 tons 51.96
need
117 118ABOUT WULIANGYE SPECIAL SUBJECT: INHERITANCE · TIME-HONORED GOVERNANCE · CELLAR PROSPERITY THROUGH TECHNIQUE · PREMIUM PRODUCTS THROUGH ENVIRONMENT · PRESERVATION OF RIVERS IN THEIR NATURAL STATE SOCIETY · EXTENSIVE BROTHERHOOD THROUGH F URE OUTLOOK BRAND THAT BEARS "RED" HERITAGES ANCIENT AND MODERN GOVERNANCE ANCIENT AND MODERN EFFORTS THROUGH ANCIENT AND MODERN CULTIVATION ANCIENT AND MODERN CULTIVATION WULIANGYE YIBIN CO. LTD.
Future Outlook Pursuing in- · Persist with traditional production techniques constantly improve the cultural identity of producers improve related criteria
novation while and regulations and conduct training in core brewing techniques.carrying on · Carry out the industry-university-research institute research and innovation incentive work to empower future development
the essence with innovation.Throughout the challenging 2021 Wuliangye implemented the decisions and arrangements made by the CPC Central Committee the State Coun- · Strengthen the quality control mechanism and implement whole-process quality inspection and control to ensure food safety.cil the CPC Sichuan Provincial Committee the People's Government of Sichuan Province the CPC Yibin Committee and the People's Govern- · Improve food safety criteria and promote the research and application of the methods for assessing food safety risks.Quality control
ment of Yibin City promoted business development and social responsibilities in parallel and finally achieved new steady development progress. · Upgrade and build the largest brewing base for pure-grain solid fermentation in the industry and constantly increase the fa-
mous liquor rate of Wuliangye.In an important period of window and strategic opportunities for a new round of high-quality development Wuliangye will continue to follow the · Develop a comprehensive professional talent training system and incentive mechanism to help employees improve their tech-
leadership of Party building and work hard with partners. Additionally it will value stability adhere to the general principle of seeking progress while Employee niques and career development.maintaining stability seize each opportunity and pursue innovations while carrying on the essence. By fully building an "ecological high-quality Recruitment · Consistently improve the Company's welfare system and enhance employees' well-being and sense of belonging.cultural digital and honest" brand Wuliangye will effectively fulfill its mission as a state-owned enterprise and exercise its political economic and and · P romote and carry out system improvement around two major responsibility issues namely production safety and occupa-
social responsibility comprehensively. Development tional health and adopt strict pandemic control measures to protect employees' health and safety.· Optimize the supplier management system protect the legitimate rights and interests of suppliers insist on transparent pro-
Value chain curement and strengthen communication and training to empower suppliers.support · Prioritize dealer training and assessment strengthen communication and training update and improve dealer management
· Reinforce full and strict governance over the Party consistently promote the work of "Learning from Cases to Facilitate Im- policies and solve dealers' problems to promote win-win development between the Company and dealers.provements" and improve the system for combating corruption and upholding integrity.Party Building · Optimize the setup of the Party organizations by classification and level in a scientific and dynamic manner to ensure that the
Party organizations that are set up are "essential and practical". Common · Proactively participate in exchange activities in the industry and the assistance campaigns of liquor producers to contribute
· G ive full play to the exemplary role of Party members and enhance the building of the cadre team. industrial the strength of Wuliangye to high-quality development of the industry.progress · Promote the criteria formulation by exploring more detailed standard scientific and comprehensive industry criteria.· Optimize the corporate governance structure and management mechanism and improve the capability of the General Meet- Strengthening
ings of Shareholders the Board of Directors and the Supervisory Board in independent operation and mutual supervision. green man- · Build an energy environment and greenhouse gas management system that operates efficiently and consistently improve Corporate
· Consistently improve the internal control system and the risk control system and incorporate ESG-related risks into the corpo- management regulations.Governance agement
rate risk management.· Strengthen the communication with investors protect the interests of minority investors and be committed to maximizing the
Practicing · Fully build ecological parks and insist on providing ecological products to realize ecological production comprehensively.legitimate rights and interests of the Company shareholders and other stakeholders.Ecological · Strictly comply with emission regulations and ensure the compliant disposal of various waste to fully develop a circular econ-
Conservation omy and become an energy-saving environmentally-friendly liquor producer.· Intensify the building and output of brand culture and tell the stories concerning the quality history and public welfare of
Wuliangye in a systematic manner.Construction · Consistently improve the incentive system for building a "Zero-carbon Liquor Enterprise" optimize the mechanism for carbon
Brand · Insist on the combination of characteristics and fashion enrich the cultural customized product system improve the proce- Zero-carbon emission management and explore low-carbon programs.Building dures for product research and development and develop the market of liquor with a low alcohol content to consistently meet Liquor Enter- · Fully promote green and low-carbon energy and properly perform the monitoring and disclosure of energy consumption data
the consumer demands in the new era.prise to achieve omni-port control and omni-channel management and carbon neutrality.· Insist on both scale and value and consistently upgrade the quality of other Baijiu series to make the "excellent quality within
reach" become the core value idea of Wuliang NongXiang series Baijiu that consumers are familiar with.· Give attention to vulnerable groups and implement public welfare projects concerning education disaster relief and love for
Devotion to the elderly and orphans.Public welfare · Consistently fulfill the social responsibility for supporting national defense and military development carry out concrete work
· Consistently encourage responsible marketing to protect the rights and interests from being infringed. and charity to support the army and give preferential treatment to families of servicemen and deepen the civil-military integration.Consumers · B uild an industry-leading digital marketing system digital management system and digital business system to create more
Services convenient and better experiences for consumers with technologies. · Mainly focus on industrial support instruct local farmers in planting special grain for brewing and continue to improve the
· C arry out periodic consumer satisfaction surveys and organize customer service training activities to continuously improve Services development of assisted regions and people's life.the quality of the Company's consumer services. Rural · Implement the targeted assistance mechanism improve the organization system to steer the assistance work and consoli-
Revitalization date the achievements of poverty alleviation.
119120
Consolidate the development foundation
Contribute to common
prosperity Develop the ecological blueprint Co-create premium productsBENACBHOMUATR WKUSL FIAONRG INYDEICATORS SPECIAL SUBJECT: INHERITANCE · TIME-HONORED GOVERNANCE · CELLAR PROSPERITY THROUGH TECHNIQUE · PREMIUM PRODUCTS THROUGH ENVIRONMENT · PRESERVATION OF RIVERS IN THEIR NATURAL STATE SOCIETY · EXTENSIVE BROTHERHOOD THROUGH BRAND THAT BEARS "RED" HERITAGES ANCIENT AND MODERN GOVERNANCE ANCIENT AND MODERN EFFORTS THROUGH ANCIENT AND MODERN CULTIVATION ANCIENT AND MODERN CULTIVATION WULIANGYE YIBIN CO. LTD.Benchmarks for Indicators
Report content CASS-CSR 4.0 Report content CASS-CSR 4.0
About This Report P1.2/A5 Environmental Management E1.1
A Message from the Senior Management P2.1/P2.2 Environment · Preservation of Rivers in
Zero-carbon Liquor Enterprise E1.3/E1.9/E2.23/E2.24
Their Natural State through Ancient and
Modern Cultivation Ecological Conservation E2.11/E2.13/E2.17/E3.3
About Wuliangye P4.1/P4.3/P4.4/A3
Green logistics E2.21
Party Building M1.1
Inheritance · Time-honored Brand that Supplier Management M3.15/M3.1/M3.2
Bears "Red" Heritages Celebration of the 100th Anniversary of
the Founding of the Communist Party of M1.1
China Distributor Support M2.9
Corporate Governance M1.1 M2.8/M2.9/M2.10/M2.13/M2.14/M2.15/M2.16/Consumer Services
M2.18
Risk Control and Compliance M1.1/S1.1 Employee Recruitment and Develop- S2.1/S2.2/S2.4/S2.8/S2.10/S2.11/S2.12/
Society · Extensive Brotherhood through ment S2.14/S2.17/S2.18/S3.1/S3.3/S3.5/S3.6
Governance · Cellar Prosperity through Combating Corruption and Upholding
Ancient and Modern Cultivation
M1.3
Ancient and Modern Governance Integrity Investor Relation Management M1.4/M1.5
Digital Transformation and Upgrade M2.4
Common industrial progress M3.6
Corporate Social Responsibility Man- G2.1/G2.2/G2.3 Rural Revitalization S4.12
agement G2.4/G6.1
Public welfare and charity S4.1/S4.6/S4.10/S4.11
Craftsmanship-embedded Innovation M2.4/M2.6
Performance S1.5/S2.3/S4.8/S4.13/E2.25/S2.5
Technique Inheritance M2.2
Technique · Premium Products through Future Outlook A1
Ancient and Modern Efforts
Quality control M2.2/M2.3 Benchmarks for Indicators A5
Culture Inheritance G6.3/G2.4 Suggestions and Feedback A6
121 122SUGABGOEUST IWONUSL IANDG YFEEDBACK SPECIAL SUBJECT: INHERITANCE · TIME-HONORED GOVERNANCE · CELLAR PROSPERITY THROUGH TECHNIQUE · PREMIUM PRODUCTS THROUGH ENVIRONMENT · PRESERVATION OF RIVERS IN THEIR NATURAL STATE SOCIETY · EXTENSIVE BROTHERHOOD THROUGH BRAND THAT BEARS "RED" HERITAGES ANCIENT AND MODERN GOVERNANCE ANCIENT AND MODERN EFFORTS THROUGH ANCIENT AND MODERN CULTIVATION ANCIENT AND MODERN CULTIVATION WULIANGYE YIBIN CO. LTD.
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123 124ABOUT WULIANGYE SPECIAL SUBJECT: INHERITANCE · TIME-HONORED GOVERNANCE · CELLAR PROSPERITY THROUGH TECHNIQUE · PREMIUM PRODUCTS THROUGH BRAND THAT BEARS "RED" HERITAGES ANCIENT AND MODERN GOVERNANCE ANCIENT AND MODERN EFFORTS
Yibin · China
Address: 150 Minjiang West Road Cuiping District Yibin City Sichuan Province China
Postal code: 644007
Telephone: (0831) 3567000 3566937 and 3566858
Fax: (0831) 3555958
E-mail: 000858-wly@sohu.com
Website of Wuliangye Official WeChat account of
Website: http://www.wuliangye.com.cn Wuliangye
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