瀘州老窖：2024年年度報告（英文版）.PDF

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1、2024 Annual Report of Luzhou Laojiao Co.,Ltd.1 Luzhou Laojiao Co.,Ltd.2024 Annual Report 【April 2025】2024 Annual Report of Luzhou Laojiao Co.,Ltd.2 2024 Annual Report Section I Important Statements,Contents and Definitions The Board of Directors,Board of Supervisors,directors,supervisors and senior

2、management guarantee that the information presented in this report is free of any false records,misleading statements or material omissions,and shall individually and together be legally liable for truthfulness,accuracy and completeness of its contents.Liu Miao,responsible person for the Company,Xie

3、 Hong,responsible person for accounting work and Song Ying,responsible person for the Companys financial affairs(Accounting Supervisor)have warranted that the financial statements in this report are true,accurate and complete.Other directors attended the board meeting to deliberate this report by th

4、emselves except the following directors.Name of directors who did not attend the meeting in person Position of directors who did not attend the meeting in person Reason for not attending the meeting in person Name of deputies Lin Feng Director Work Xiong Pingting Affected by risks,uncertainties and

5、assumptions,the forward-looking statements concerning business objectives and future plans made in this report based on the subjective assumptions and judgments of the future policies and economic conditions may be significantly different from the actual results.Such statements shall not be consider

6、ed as virtual promises of the Company to investors,and the investors and relevant persons shall maintain adequate risk awareness and shall understand the differences between plans,forecasts and commitments.In the annual report,the potential risks in the operation of the Company have been disclosed.I

7、nvestors are kindly reminded to pay attention to possible investment risks.The profit distribution plan approved by the board of directors:based on 1,471,951,503 shares,a cash dividend of CNY 45.92(tax inclusive)will be distributed for every 10 existing shares held,0 shares of bonus shares(tax inclu

8、sive),and reserves would not be converted into share capital.On January 24,2025,the Company carried out the 2024 interim dividend payout of CNY 13.58(tax inclusive)for every 10 existing shares held,totaling CNY 1,998,910,141.07(tax inclusive).If the said profit distribution plan is approved at a gen

9、eral meeting of shareholders,the total cash dividend payout for 2024 would be CNY 8,758,111,442.85(tax inclusive),accounting for approximately 65.00%of the net profits attributable to shareholders of the Company in 2024.This Report has been prepared in both Chinese and English.Should there be any di

10、screpancies or misunderstandings between the two versions,the Chinese version shall prevail.2024 Annual Report of Luzhou Laojiao Co.,Ltd.3 Contents Section I Important Statements,Contents and Definitions.2 Section II Company Profile and Key Financial Results.6 Section III Management Discussion and A

11、nalysis.12 Section IV Corporate Governance.52 Section V Environmental and Social Responsibility.82 Section VI Significant Events.95 Section VII Changes in Shares and Information about Shareholders.103 Section VIII Preferred Shares.116 Section IX Information about Bond.116 Section X Financial Report.

12、1222024 Annual Report of Luzhou Laojiao Co.,Ltd.4 Documents Available for Reference 1.Financial statements signed and stamped by the responsible person for the Company,the responsible person for accounting work and the responsible person for the Companys financial affairs(Accounting Supervisor);2.Th

13、e original of the auditors report with the seal of the accounting firm,and signed and stamped by CPAs;and 3.The originals of all company documents and announcements that are disclosed to the public during the reporting period.2024 Annual Report of Luzhou Laojiao Co.,Ltd.5 Definitions Term Reference

14、Definition Company,the Company,Luzhou Laojiao Refer to Luzhou Laojiao Co.,Ltd.Laojiao Group Refer to Luzhou Laojiao Group Co.,Ltd.XingLu Group Refer to Luzhou XingLu Investment Group Co.,Ltd.SASAC of Luzhou Refer to State-owned Assets Supervision and Administration Commission of Luzhou Huaxi Securit

15、ies Refer to Huaxi Securities Co.,Ltd.Luzhou Bank Refer to Luzhou Bank Co.,Ltd.Sales Company Refer to Luzhou Laojiao Sales Co.,Ltd.Brewing Company Refer to Luzhou Laojiao Brewing Co.,Ltd.Golden Rudder Refer to Sichuan Golden Rudder Investment Co.,Ltd.2024 Annual Report of Luzhou Laojiao Co.,Ltd.6 Se

16、ction II Company Profile and Key Financial Results 1.Corporate information Stock abbreviation Luzhou Laojiao Stock code 000568 Stock exchange where the shares of the Company are listed Shenzhen Stock Exchange Name of the Company in Chinese 瀘州老窖股份有限公司 Abbr.of the Company name in Chinese 瀘州老窖 Name of

17、the Company in English(if any)Luzhou Laojiao Co.,Ltd.Abbr.of the Company name in English(if any)LZLJ Legal representative Liu Miao Registered address Guojiao Square,Luzhou City,Sichuan Province,China Postal code 646000 Past changes of registered address The Companys registered address has changed fr

18、om 46 Guihua Street,Luzhou City,Sichuan Province,China to Guojiao Square,Luzhou City,Sichuan Province,China in 2000.Business address Luzhou Laojiao Command Center,71 Nanguang Road,Luzhou City,Sichuan Province,China Postal code 646000 Company website E-mail 2.Contact us Secretary of the board Represe

19、ntative for securities affairs Name Li Yong Wang Chuan Address Luzhou Laojiao Command Center,71 Nanguang Road,Luzhou City,Sichuan Province,China Tel.(0830)2398826(0830)2398826 Fax(0830)2398864(0830)2398864 E-mail 2024 Annual Report of Luzhou Laojiao Co.,Ltd.7 3.Information disclosure and place where

20、 the annual report is kept Stock exchange website where this Report is disclosed China Securities Journal,Securities Times,Securities Daily Media and website where this Report is disclosed http:/ Place where the annual report of the Company is kept Board office 4.Company registration and alteration

21、Unified social credit code 91510500204706718H Changes in main business activities since the Company was listed(if any)None Changes of controlling shareholders of the Company(if any)Before September 2009,the controlling shareholder was the SASAC of Luzhou.After the equity transfer in September 2009,t

22、he controlling shareholder was changed to Laojiao Group,but the actual controller is still the SASAC of Luzhou.5.Other relevant information Accounting firm engaged by the Company Name of the accounting firm ShineWing Certified Public Accountants Business address of the accounting firm 8/F,Tower A,Fu

23、hua Building,8 Chaoyangmen North Street,Dongcheng District,Beijing,China Name of accountants for writing signature He Jun,and Ouyang Lihua Sponsors engaged by the Company to continuously perform its supervisory function during the reporting period Applicable N/A Financial adviser engaged by the Comp

24、any to continuously perform its supervisory function during the reporting period.Applicable N/A 6.Key accounting data and financial indicators 2024 Annual Report of Luzhou Laojiao Co.,Ltd.8 Whether the Company performed a retroactive adjustment to or restatement of accounting data.Yes No 2024 2023 Y

25、oY Change 2022 Operating revenues(CNY)31,196,248,208.33 30,233,301,388.26 3.19%25,123,563,271.62 Net profits attributable to shareholders of the Company(CNY)13,472,986,476.01 13,246,394,700.59 1.71%10,365,383,281.80 Net profits attributable to shareholders of the Company before non-recurring gains a

26、nd losses(CNY)13,399,514,669.49 13,150,392,806.65 1.89%10,321,481,236.93 Net cash flows from operating activities(CNY)19,181,768,363.65 10,648,364,935.46 80.14%8,262,648,269.72 Basic earnings per share(CNY/share)9.18 9.02 1.77%7.06 Diluted earnings per share(CNY/share)9.18 9.02 1.77%7.06 Weighted av

27、erage ROE 30.44%35.07%-4.63%33.32%At the end of 2024 At the end of 2023 YoY Change At the end of 2022 Total assets(CNY)68,334,595,564.58 63,294,455,201.60 7.96%51,385,481,354.52 Net assets attributable to shareholders of the Company(CNY)47,388,500,553.46 41,391,410,494.89 14.49%34,207,871,130.03 Whe

28、ther the lower of the net profits before and after non-recurring gains and losses was negative for the last three accounting years,and the latest auditors report indicated that there was uncertainty about the Companys ability to continue as a going concern Yes No Whether the lowest of the audited to

29、tal profits before tax,net profits,and net profits before non-recurring gains and losses for the last accounting year was negative Yes No 7.Differences in accounting data under domestic and overseas accounting standards 2024 Annual Report of Luzhou Laojiao Co.,Ltd.9 7.1.Differences in the net profit

30、s and net assets disclosed in the financial reports prepared under the international and China accounting standards Applicable N/A No such differences for the reporting period.7.2.Differences in the net profits and net assets disclosed in the financial reports prepared under the overseas and China a

31、ccounting standards Applicable N/A No such differences for the reporting period.8.Key financial results by quarter Unit:CNY Q1 Q2 Q3 Q4 Operating revenues 9,188,402,377.79 7,716,482,791.59 7,398,670,017.92 6,892,693,021.03 Net profits attributable to shareholders of the Company 4,573,950,129.90 3,45

32、3,588,035.41 3,565,502,984.74 1,879,945,325.96 Net profits attributable to shareholders of the Company before non-recurring gains and losses 4,552,423,532.38 3,441,687,198.86 3,570,292,253.98 1,835,111,684.27 Net cash flows from operating activities 4,359,428,564.46 3,865,631,648.11 4,239,654,583.54

33、 6,717,053,567.54 Whether there are any material differences between the financial indicators above or their summations and those which have been disclosed in quarterly or semi-annual reports Yes No 9.Non-recurring profits and losses Applicable N/A Unit:CNY Item 2024 2023 2022 Note Profit or loss fr

34、om disposal of non-current assets(including the write-off portion of the impairment 1,058,750.22 44,694,238.37 19,805,093.70 2024 Annual Report of Luzhou Laojiao Co.,Ltd.10 provision)Government grants accounted for,in the profit or loss for the current period(except for the government grants closely

35、 related to the business of the Company and given in accordance with defined criteria and in compliance with government policies,and have a continuing impact on the Companys profit or loss)41,225,885.28 51,950,003.11 34,931,161.52 Gain or loss on fair-value changes in financial assets and liabilitie

36、s held by a non-financial enterprise,as well as on disposal of financial assets and liabilities(exclusive of the effective portion of hedges that is related to the Companys normal business operations)54,342,655.46 68,181,502.73-2,585,156.72 Reversed portions of impairment allowances for receivables

37、which are tested individually for impairment 422,217.14 Other non-operating income and expenditure except above-mentioned items -1,550,111.21-35,875,412.66 7,873,927.25 Less:Corporate income tax 20,932,166.54 31,697,444.12 14,413,895.31 Minority interests(after tax)1,095,423.83 1,250,993.49 1,709,08

38、5.57 Total 73,471,806.52 96,001,893.94 43,902,044.87-Other items that meet the definition of non-recurring gain/loss:Applicable N/A No such cases for the reporting period.2024 Annual Report of Luzhou Laojiao Co.,Ltd.11 Explain the reasons if the Company classifies any non-recurring gain/loss item me

39、ntioned in the Explanatory Announcement No.1 on Information Disclosure for Companies Offering Their Securities to the Public-Non-Recurring Gains and Losses as a recurring gain/loss item.Applicable N/A No such cases for the reporting period.2024 Annual Report of Luzhou Laojiao Co.,Ltd.12 Section III

40、Management Discussion and Analysis 1.Industry overview for the reporting period In 2024,the baijiu industry entered a new adjustment cycle.Over the coming period,the industry is expected to undergo accelerated“differentiation”,with market competition becoming increasingly intense.The industry is tre

41、nding towards younger consumers,lower alcohol content,and a focus on health.Only companies that continue to innovate will be able to seize development opportunities.2.Business scope in the reporting period The Company shall comply with the disclosure requirements for companies engaging in food&liquo

42、r and wine production of the Guidelines No.3 of the Shenzhen Stock Exchange on Self-regulation of Listed CompaniesIndustry-specific Information Disclosure.Holding three food business licenses,the Company operates within the baijiu subdivision industry which belongs to the liquor&wine,beverage and re

43、fined tea production industry with specialized baijiu product design,production and sales as its main business model.The Companys primary products are baijiu series such as National Cellar 1573 and Luzhou Laojiao,and its main comprehensive performance indicators rank high in the baijiu industry.For

44、the reporting period,operating revenue amounted to CNY 31.196 billion,up 3.19%year on year;and the net profit attributable to the shareholders of the listed company reached CNY 13.473 billion,up 1.71%year on year.For the Companys brand operations,please refer to 4.1 Overview under“4.Analysis of main

45、 business”in this section.The Companys main products are classified as follows:Main product types Classification criteria Representative brand name Mid-and high-end baijiu Tax-inclusive sales price CNY 150 per bottle National Cellar 1573,Luzhou Laojiao Tequ,and Century-old Luzhou Laojiao Jiaoling Ba

46、ijiu Other baijiu Tax-inclusive sales price CNY 150 per bottle Luzhou Laojiao Touqu and Luzhou Laojiao Hey Guys 2024 Annual Report of Luzhou Laojiao Co.,Ltd.13 Main sales models:Currently,the Company has two main sales models:1.Traditional channel operation model:It is mainly authorized distribution

47、 of the offline distributors.The Company establishes cooperative relationships with the distributors by product lines and regions.The Company directly supplies goods to the distributors,and then distributors sell them to consumers and terminal outlets.2.Emerging channel operation model:It is mainly

48、online sales operations.The Company establishes cooperative relationships with e-commerce platforms,self-media and webcasters,and sells the goods to consumers through flagship stores,specialty stores,live streaming rooms on online platforms and other network terminals.Distribution models:Applicable

49、N/A 1.Main sales models Unit:CNY Operating revenue Cost of sales Gross profit margin YoY change of operating revenue YoY change of cost of sales YoY change of gross profit margin By sales model Traditional channel operation model 29,573,326,673.25 3,550,217,152.71 88.00%3.20%12.93%-1.03%Emerging cha

50、nnel operation model 1,479,326,664.30 294,200,778.24 80.11%4.16%-13.66%4.10%2.Distributors Region Number of distributors at the end of the reporting period Increased number during the reporting period Decreased number during the reporting period YoY change of number of distributors(%)Reason for any

51、significant change Domestic 1701 183 192-0.53 Overseas 85 11 30-18.27 2024 Annual Report of Luzhou Laojiao Co.,Ltd.14 3.Main settlement method for distributors and distribution method The Companys main settlement method for distributors is payment before delivery.The distribution method is authorize

52、d distribution.4.Top five distributors The Company had no accounts receivable from the top five distributors at the end of the period.For details,please refer to Section III 4.2.8.Main customers and suppliers.Store sales terminals accounted for more than 10%Applicable N/A Online direct sales Applica

53、ble N/A For the sales of the Companys main products,please refer to Section III 4.2.1.Breakdown of operating revenues.The Companys complete series of products are sold online.Its main cooperation platforms included JD.com and Tmall.Sales price of main products contributing over 10%of the total opera

54、ting revenues for the current period changed by more than 30%from the previous reporting period Applicable N/A Purchase model and purchase content Unit:CNY Purchase model Purchase content Amount of main purchase content Organic raw grains are purchased through cooperative model and supplied by organ

55、ic raw grain bases;other raw grains and packaging materials are purchased through bid invitation Raw materials 3,907,073,658.46 Purchase based on the unified pricing of the National Development and Reform Commission and the price bureau,and purchase through bid invitation Fuels and energies 186,003,

56、014.55 Purchase through bid invitation Low-value consumables 69,781,382.75 The purchase of raw materials from cooperatives or farmers accounted for more than 30%of the total purchase amount Applicable N/A The price of main raw materials purchased externally changed by more than 30%year-on-year Appli

57、cable N/A Main production model:2024 Annual Report of Luzhou Laojiao Co.,Ltd.15 The Companys main production model is self-production.Commissioned processing and production Applicable N/A Main breakdown items of cost of sales Unit:CNY By business segment Item 2024 2023 YoY Change Amount As%of cost o

58、f sales Amount As%of cost of sales Baijiu Raw materials 3,088,023,001.56 80.32%2,938,909,467.97 84.34%5.07%Baijiu Labor costs 292,097,887.79 7.60%261,260,432.24 7.50%11.80%Baijiu Manufacturing overhead 464,297,041.59 12.08%284,374,819.89 8.16%63.27%Note:The 63.27%YoY increase in manufacturing overhe

59、ad is mainly because the Intelligent Packaging Center was put into operation during the reporting period.Production volume and inventory 1.Production volume,sales volume and inventory of main products Product classification Production volume(ton)Sales volume(ton)Inventory(ton)YoY change of productio

60、n volume(%)YoY change of sales volume(%)YoY change of inventory Description of major changes Mid-and high-end baijiu 39,441.69 42,990.65 33,002.59 26.18 14.39 -9.71 Other baijiu 65,426.97 60,770.41 10,355.88 24.15 3.54 81.70 Mainly due to the increased stock of Touqu products for the year-end period

61、 2.Inventory at the end of the reporting period Unit:Ton Finished baijiu Semi-finished baijiu(including base baijiu)43,358.47 429,840.35 3.Capacity Unit:Ton Main products Design capacity Actual capacity Capacity in progress Baijiu 170,000 170,000 80,000 3.Analysis of core competitiveness A.Geographi

62、cal advantage Luzhou City,where the Company is located,sits in the transitional area between the southern rim of the Sichuan Basin and the Yunnan-Guizhou Plateau,featuring a warmer and more humid sub-tropical climate compared to other areas at the same latitude,with a temperature above 0 throughout

63、the 2024 Annual Report of Luzhou Laojiao Co.,Ltd.16 year.The unique climate and soil are agreeable to grow grains for baijiu brewing.The glutinous red sorghum and soft wheat grown in this area are the primary raw materials for the baijiu of the Company.The cellars in which the Company brews its baij

64、iu are made of the local loessal clay characterized by strong viscosity,rich minerals and excellent moisture retention.In addition,the abundant and quality water in the region creates a unique geographical advantage for the production of the Companys baijiu.B.Advantage of cellars and brewing techniq

65、ue Aged cellars are the most essential condition for a strong aromatic baijiu maker to produce good quality baijiu.The Cellars of National Treasure 1573,founded in 1573,was granted by the State Council as the first Cultural Relic of National Importance in the industry under the Protection of the Sta

66、te in December 1996.1,619 cellars of Luzhou Laojiao which have been continuously used for over 100 years,together with its 16 ancient brewing workshops and three natural cellar holes,were all selected as the fourth batch of Cultural Relics of National Importance under the Protection of the State in

67、2013.They are unique resources that cannot be replicated.In both 2006 and 2012,Luzhou Laojiao Daqu Cellars were twice selected into the preliminary list of China for World Heritage.In November 2018,Luzhou Laojiao Cellars and Brewing Workshops were selected into Chinas Industrial Heritage List.The ti

68、me-honored Traditional Brewing Technique of Luzhou Laojiao is a 24-generation inheritance and a classic brewing technique for strong aromatic baijiu.This technique was selected as the first batch of National Intangible Cultural Heritage in May 2006.The Cellars of National Treasure 1573 and the Tradi

69、tional Brewing Technique of Luzhou Laojiao together provide the most essential basis and assurance for the quality of the product series of National Cellar 1573 and Luzhou Laojiao.Additionally,Huangyi Brewery Eco-Park has moved into full production in late 2020.Upholding the cultural connotations of

70、“inheritance of ancient ways,pure-grain brewing,traditional techniques,and intelligent technologies”,the Company carried out brewing technical renovation featuring automatic,intelligent and information technology-based transformation.As such,it has established a baijiu brewery eco-park comprising br

71、ewing workshops,leaven making workshops,and base baijiu storage cellars,along with energy and sewage treatment facilities.This brewery eco-park brings with it new production capacities of 100,000 tons of quality pure-grain solid baijiu and 100,000 tons of leaven in addition to a new storage capacity

72、 of 380,000 tons of baijiu per year,marking a substantial increase in the Companys production capacity.2024 Annual Report of Luzhou Laojiao Co.,Ltd.17 3、品牌優勢、品牌優勢 C.Brand advantage Brand is a key business resource for baijiu producers.The Companys reputation is greatly built on its superiority in br

73、and.National Cellar 1573,which is of a connoisseurship level,is a world-famous high-end brand.Luzhou Laojiao Tequ,a classic brand for strong aromatic baijiu,was selected in 1952 by the first national tasting competition judges as one of the four most famous baijiu brands in China.It is the only stro

74、ng aromatic baijiu brand that won the title of“National Famous Baijiu”for five consecutive times,as well as the pioneer with regard to the“Tequ”variety of baijiu.In recent years,the Company has successfully put in place a brand system of“dual brands,three product series,and major single products”wit

75、h great clarity and focus.The programs carried out to promote the brand of National Cellar 1573 and revive the brand of Luzhou Laojiao have produced remarkable results,with significant improvement in brand influence.The Companys baijiu is increasingly known by consumers as a national brand of strong

76、 aromatic baijiu and of authentic flavor.2024 Annual Report of Luzhou Laojiao Co.,Ltd.18 D.Quality and R&D advantage The Company is committed to producing high-quality baijiu,advocating a healthy lifestyle and“making the quality visible”.The first“Organic Sorghum Planting Base”was established and th

77、e six-factor management system(including organic,quality,safety,environment,measurement and energy)was built and improved.The research platforms are established,including National Engineering Research Center of Solid-State Brewing,National Liquor Test Center,National Postdoctoral Workstation,etc.,wh

78、ich all support the innovation and upgrading of products with their strong technical force.In recent years,the Company has put in a lot of efforts in researching Tequ production,informatization and intelligent transformation of brewing and packaging.Relying on the technological innovation platforms

79、such as the National Industrial Design Center,and continuously deepening the cooperation with universities and scientific research institutes including the Chinese Academy of Sciences and the Jiangnan University,the Company has undertaken dozens of national-or provincial-level projects and has been

80、granted hundreds of invention or utility model patents.And remarkable results have been achieved with respect to improvement of the quality of base Baijiu,as well as production efficiency improvement.E.Talent advantage The Company has 1 inheritor of national intangible cultural heritage,4 masters of

81、 Chinese brewing,2 masters of Chinese baijiu,2 Chinese liquor connoisseurs,1 master of Chinese baijiu technique,18 senior professor engineers,8 experts who receive special allowances from the State Council,4 national technicians,3 national model workers,5 national Labor Day Medal winners,4 academic

82、and technologic leaders of Sichuan province,1 expert with outstanding contribution in Sichuan province,1 technology leader of Tianfu,1 excellent engineer of Tianfu,1 skills leader of Tianfu,3 craftsmen of Tianfu,5 craftsmen of Sichuan province,1 technological elite of Tianfu,2 young science and tech

83、nology talents of Tianfu,4 technicians of Sichuan province,as well as hundreds of highly skilled personnel including national baijiu judges,as well as master technicians,senior technicians and technicians in baijiu brewing and tasting.The comprehensive and professional personnel system assures the s

84、ound development of the Company.2024 Annual Report of Luzhou Laojiao Co.,Ltd.19 4.Analysis of main business 4.1.Overview 2024 marked the 700th anniversary of the birth of Luzhou Laojiaos strong aromatic baijiu.The Company remained firmly committed to the annual development theme of“proceeding with c

85、onfidence,overcoming challenges,innovating,and collaborating”,continuously strengthening its internal growth momentum,enhancing market competitiveness,and maintaining a sound and stable development trend.Over the past year,the Company achieved the following key results:A.Multi-pronged efforts yielde

86、d marketing breakthroughs The Company actively implemented the marketing theme of“strategic determination,digital innovation,efficient collaboration,and comprehensive breakthroughs”.Market value was further consolidated and expanded,sales performance grew steadily,and the Companys development resili

87、ence and strength became increasingly evident.Market value advanced steadily.The National Cellar brand firmly maintained its position in the CNY 20 billion echelon,while the Luzhou Laojiao brand surpassed the CNY 10 billion mark.Market coverage and penetration continued to expand.Digital and intelli

88、gent transformation in marketing accelerated.The Company launched five-code products,promoted scenario code application,and reshaped the consumer channel system,driving a shift toward a“right-side strategy”focused on consumer-driven bottle-opening and scanning.Marketing collaboration empowered effic

89、iency.Full collaboration across the sales team was advanced,enabling headquarters to support sales,back-end to support front-end,and teams to support customers,thereby unleashing coordinated growth momentum.Circle development achieved remarkable results.Relying on a three-tier public relations syste

90、m at the headquarters,sales company,and sales unit levels,the Company continuously conducted public relations efforts,achieving notable progress in expanding target customer circles.B.Culture-driven branding elevation Centered around the theme of“Chinese Strong Aromatic Baijiu for 700 Years”,the Com

91、pany extensively carried out various cultural activities to promote the continuous recovery of the value of Luzhou Laojiao as a famous baijiu brand.Brand connotation deepened.The Company meticulously organized the“Chinese Strong Aromatic Baijiu for 700 Years”themed exhibition and vigorously advanced

92、 cultural tourism projects,earning certification as the“Origin of Chinese Strong Aromatic Baijiu”.Branding events were effectively implemented.Leveraging cultural IP events such as the 2024 Annual Report of Luzhou Laojiao Co.,Ltd.20“Baijiu Seal-off Ceremony”,global events including the Paris Olympic

93、s,and the 60th anniversary of China-France diplomatic relations,the Company consistently elevated its brand image.Brand presence was strengthened.By leveraging cultural and artistic resources such as the Chinese Nebula Awards and the Hundred Flowers Awards for Popular Films,the Company infused its b

94、rand with fashion and artistic appeal.Through the“letting the world taste the Chinese flavor”global cultural tour,it continued expanding its international presence.In 2024,National Cellar 1573 was ranked among the top 10 of the Hurun Most Valuable China Brands,and the Luzhou Laojiao brand was listed

95、 on the“Chinas 500 Most Valuable Brands”ranking.C.Enhancing quality and efficiency to strengthen production assurance The Company remained firmly committed to upholding the bottom lines of quality assurance,production capacity assurance,and supply chain assurance,thereby laying a more solid foundati

96、on for high-quality development.Quality assurance continuously strengthened.The eight organic raw grain planting bases successfully passed organic recertification.The external audit pass rate for quality,food safety,and other management systems reached 100%.By focusing on process execution and key c

97、ontrol points,the Company further improved the quality of base Baijiu and upgraded packaging quality.Production capacity assurance was solid and effective.The utilization rate of brewing resources and production efficiency continued to improve.The Luzhou Laojiao 950-mu Technical Upgrade Project of I

98、ntelligent Brewing achieved phased progress,accelerating the steps toward the goal of building a“digital lighthouse factory for baijiu brewing”.Supply chain assurance gained new momentum.The Luzhou Laojiao Intelligent Packaging Center,the first in the baijiu industry constructed to“lighthouse factor

99、y”standards,officially started operations.The Company added a new production capacity of 100,000 tons in intelligent bottling,further solidifying product assurance.Luzhou Laojiao was recognized as the first“National Intelligent Manufacturing Benchmark Enterprise”in the baijiu industry.D.Technologica

100、l innovation stimulating endogenous growth The Company is committed to building a“moat”of technological innovation,leveraging strong technological capabilities to safeguard quality,enhance brand value,and empower sales.An innovation-driven R&D ecosystem has taken shape.The Company fully utilized maj

101、or innovation platforms such as the National Engineering Research Center of Solid-state Brewing and the Sichuan Provincial Technological Innovation Center.By collaborating with top universities and research institutes,the Company tackled and applied key common and frontier-leading technologies,culti

102、vating a large pool of senior scientific and technical talent.The Company officially released the“Top Ten Scientific and Technological Innovation Achievements of Luzhou Laojiao from 2015 to 2024”,showcasing the industry-leading technological strength of the Company.Implementation of innovation proje

103、cts accelerated.The Company led the application for 16 key projects,successfully obtained approval for 11 government-funded science and technology projects,and completed acceptance inspections for 10 projects with a 100%pass rate.R&D achievements continued to emerge.The Company presided over and par

104、ticipated in the formulation and revision of 21 national,industry,association,and local standards.A total of 38 scientific papers were published.The Company submitted 165 patent applications and obtained 53 patent authorizations.The Company received multiple prestigious awards,including the Special

105、Prize for Technological Invention from the China General Chamber of Commerce,First Prize for Employee Technological Innovation Achievements from 2024 Annual Report of Luzhou Laojiao Co.,Ltd.21 the China Association for Science and Technology,First Prize for Scientific and Technological Progress from

106、 the Chinese Institute of Food Science and Technology,and First Prize for Technological Invention from the China Alcoholic Drinks Association.E.Strengthening headquarters capabilities The Company focused on refined management,continuously improving a management framework that integrates authorizatio

107、n,systems,and processes,forming an efficient,sound,and diversified compliance operation system.The corporate governance system was continuously optimized.The Company implemented the deployment of deepening reform and enhancement actions for state-owned enterprises,established and improved the decisi

108、on-making mechanism of“decision-making on major issues,appointment and removal of important personnel,investment decisions on major projects,and use of funds of a large amount”,and ensured the respective roles of the Board of Directors,the Board of Supervisors,general meetings of shareholders and th

109、e management.The Companys Party Committee was honored as an“Outstanding Primary Party Organization in Sichuan Province”,and the Board of Directors won the“Best Practice Case of Listed Company Board of Directors”awarded by the China Association for Public Companies.The Company repeatedly received the

110、 highest A-level rating in the annual information disclosure assessment of listed companies on the Shenzhen Stock Exchange.Foundational management was steadily strengthened.The Company continued to carry out planning control,performance assessment,and investment supervision.The“nine safety responsib

111、ility checklists”were fully implemented,and the incidence of production safety accidents and occupational diseases remained zero throughout the year.Talent-driven momentum was continuously enhanced.The Company focused on three modules“smart HR sharing”,“smart talent management”,and“smart HR operatio

112、ns”and established a“three-pillar”human resources management model.The“Luzhou Laojiao Employees”intelligent labor union platform has been successfully launched,and the digital-intelligent“Employee Paradise”began to show its effectiveness.Digital and intelligent management continued to upgrade.The sm

113、art office collaboration platform is now online and operational,the application of RPA robots was advanced,and financial sharing was continuously upgraded.The Company was honored with the title of“Pioneer”in Chinas industrial data governance and selected as a“Pioneer”case in the digital transformati

114、on of Chinas light industry.F.Proactively fulfilling responsibilities and demonstrating the role of a state-owned enterprise The Company continued to practice the corporate philosophy of“Baijiu for the World,a Shared Future”,earnestly fulfilling its social responsibilities as a state-owned enterpris

115、e.The Company made solid progress in philanthropic initiatives,consistently carrying out social welfare activities such as rural revitalization and assistance for the underprivileged.In implementing bottom-line assistance measures,the Company was recognized as one of the“Top Ten Philanthropic Enterp

116、rises in Sichuan”.The Company remained committed to green,low-carbon,and sustainable development.For four consecutive years,the Company has conducted carbon emission accounting across its organizational boundaries and carried out product carbon footprint assessments.The Company also completed an eva

117、luation of the Action Plan for Carbon Peaking.The ESG system continued to improve.The Company established a Strategy and ESG Committee under the Board of Directors,formulated a medium-and long-term plan for ESG system development,and achieved continuous improvement in the MSCI rating,ranking among t

118、he top in the industry.2024 Annual Report of Luzhou Laojiao Co.,Ltd.22 4.2.Revenues and cost of sales 4.2.1.Breakdown of operating revenues Unit:CNY 2024 2023 YoY Change Amount As%of operating revenues Amount As%of operating revenues Total 31,196,248,208.33 100%30,233,301,388.26 100%3.19%By business

119、 segment Baijiu 31,052,653,337.55 99.54%30,077,278,859.58 99.48%3.24%Other revenues 143,594,870.78 0.46%156,022,528.68 0.52%-7.97%By product Mid-and high-end baijiu 27,585,319,704.62 88.43%26,841,342,073.14 88.78%2.77%Other baijiu 3,467,333,632.93 11.11%3,235,936,786.44 10.70%7.15%Other revenues 143

120、,594,870.78 0.46%156,022,528.68 0.52%-7.97%By geographical segment Domestic 31,010,093,741.29 99.40%30,056,130,668.72 99.41%3.17%Overseas 186,154,467.04 0.60%177,170,719.54 0.59%5.07%By sales model Traditional channel operation model 29,573,326,673.25 94.80%28,657,038,767.86 94.79%3.20%Emerging chan

121、nel operation model 1,479,326,664.30 4.74%1,420,240,091.72 4.70%4.16%2024 Annual Report of Luzhou Laojiao Co.,Ltd.23 Other revenues 143,594,870.78 0.46%156,022,528.68 0.51%-7.97%4.2.2.Business segments,products,geographical segments or sales models contributing over 10%of the operating revenues or p

122、rofits Applicable N/A Unit:CNY Operating revenue Cost of sales Gross profit margin YoY change of operating revenue YoY change of cost of sales YoY change of gross profit margin By business segment Baijiu 31,052,653,337.55 3,844,417,930.95 87.62%3.24%10.33%-0.79%By product Mid-and high-end baijiu 27,

123、585,319,704.62 2,248,007,003.01 91.85%2.77%8.28%-0.42%Other baijiu 3,467,333,632.93 1,596,410,927.94 53.96%7.15%13.35%-2.52%By geographical segment Domestic 31,010,093,741.29 3,862,718,079.68 87.54%3.17%10.01%-0.78%By sales model Traditional channel operation model 29,573,326,673.25 3,550,217,152.71

124、 88.00%3.20%12.93%-1.03%Under the circumstances that the statistical standards for the Companys main business data were adjusted in the reporting period,the Companys main business data in the current year is calculated based on adjusted statistical standards at the end of the reporting period Applic

125、able N/A 4.2.3.Whether revenue from sales of goods is higher than revenue of rendering services Yes No By business segment Item Unit 2024 2023 YoY Change Baijiu Sales volume Ton 103,761.06 96,278.12 7.77%Production volume Ton 104,868.66 83,956.49 24.91%Inventory Ton 43,358.47 42,250.87 2.62%Reason f

126、or any over 30%YoY movements in the data above Applicable N/A 4.2.4.Execution of significant sales or purchase contracts in the reporting period Applicable N/A 2024 Annual Report of Luzhou Laojiao Co.,Ltd.24 4.2.5.Breakdown of cost of sales By business segment Unit:CNY By business segment Item 2024

127、2023 YoY Change Amount As%of cost of sales Amount As%of cost of sales Baijiu Raw materials 3,088,023,001.56 80.32%2,938,909,467.97 84.34%5.07%Baijiu Labor costs 292,097,887.79 7.60%261,260,432.24 7.50%11.80%Baijiu Manufacturing overhead 464,297,041.59 12.08%284,374,819.89 8.16%63.27%Note:The 63.27%Y

128、oY increase in manufacturing overhead is mainly because the intelligent packaging center was put into operation during the reporting period.4.2.6.Change in the scope of the consolidated financial statements for the reporting period Yes No Luzhou Laojiao Whitail Liquor Industry Co.,Ltd.,a subsidiary

129、of the Company,was liquidated and de-registered in June 2024.And it has thus been excluded from the consolidated financial statements of the Company.4.2.7.Major changes in the business,products or services in the reporting period Applicable N/A 4.2.8.Main customers and suppliers Sales to main custom

130、ers of the Company Total sales to top five customers（CNY）21,067,404,089.23 Total sales to top five customers as%of the total sales 67.54%Total sales to related parties among top five customers as%of the total sales 0.00%Information on top five customers No.Customer Sales amount(CNY)As%of the total s

131、ales for the year 1 Customer A 12,843,472,296.80 41.17%2 Customer B 4,035,698,543.60 12.94%3 Customer C 2,538,145,987.32 8.14%4 Customer D 1,017,880,050.74 3.26%5 Customer E 632,207,210.77 2.03%Total -21,067,404,089.23 67.54%2024 Annual Report of Luzhou Laojiao Co.,Ltd.25 Other information on main c

132、ustomers Applicable N/A Main suppliers of the Company Total purchases from top five suppliers（CNY）1,394,524,586.86 Total purchases from top five suppliers as%of the total purchases 33.49%Total purchases from related parties among top five suppliers as%of the total purchases 7.98%Information on top f

133、ive suppliers No.Supplier Purchases(CNY)As%of the total purchases for the year 1 Supplier A 394,394,837.42 9.47%2 Supplier B 332,071,782.49 7.98%3 Supplier C 294,354,553.42 7.07%4 Supplier D 189,509,275.34 4.55%5 Supplier E 184,194,138.18 4.42%Total -1,394,524,586.86 33.49%Other information on main

134、suppliers Applicable N/A 4.3.Expenses Unit:CNY 2024 2023 YoY Change Reason for any significant change Selling and distribution expenses 3,538,382,615.99 3,974,425,526.92-10.97%General and administrative expenses 1,100,779,964.56 1,139,480,677.23-3.40%Finance expenses-488,521,059.32-371,152,206.41 Ma

135、inly due to the reclassification of note discount expenses to investment income R&D expenses 260,975,311.10 225,955,797.33 15.50%The Company shall comply with the disclosure requirements for companies engaging in food&liquor and wine production of the Guidelines No.3 of the Shenzhen Stock Exchange o

136、n Self-regulation of Listed CompaniesIndustry-specific Information Disclosure.2024 Annual Report of Luzhou Laojiao Co.,Ltd.26 4.3.1.Breakdown of selling and distribution expenses Unit:CNY Selling and distribution expenses 2024 2023 YoY Change Reason for any significant change Advertising expenses 1,

137、548,153,847.96 1,614,086,963.33-4.08%Sales promotion expenses 1,109,741,814.61 1,479,620,839.26-25.00%Warehousing and logistics expenses 162,568,387.89 198,741,925.26-18.20%Labor costs 387,418,851.76 297,757,314.24 30.11%Mainly due to the increase in accrued remunerations for sales staff in the year

138、 Other 330,499,713.77 384,218,484.83-13.98%4.3.2.Breakdown of advertising expenses Unit:CNY Advertising Expenses Online advertising(exclusive of TV advertising)140,288,998.95 Offline advertising 317,843,979.92 TV advertising 316,513,059.44 Other(inclusive of branding ideas,exhibitions&showcases,adve

139、rtising materials,activity planning,etc.)773,507,809.65 4.4.R&D investments Applicable N/A Major R&D projects Purpose Progress Specific objectives Expected impact on the Company Thermochemical Energy-and Resource-based Coupled Utilization Technology of Brewing Waste The project is a national key R&D

140、 program during the 13th Five-year Plan period undertaken by Luzhou Laojiao,which aims to realize the energy-and resource-based utilization of brewing waste with thermochemical technology,and develop a complete set of intelligent equipment systems for the resource-and energy-based utilization of bre

141、wing waste.This project successfully passed the acceptance review by the Ministry of Science and Technology in August 2024.Focusing on brewing waste(discarded grains)as the research subject,the project adopted technologies such as high-efficiency drying and thermochemical conversion of biomass to th

142、ermally decompose the discarded grains into pyrolysis gas and biochar.The pyrolysis gas is To develop an intelligent equipment system with packaged technology for the resource-and energy-based utilization of brewing waste,successfully build a demonstration base for the project industrialization,and

143、achieve resource-and energy-based utilization of brewing waste to ensure the low-carbon,green development of the Chinese baijiu industry.Realize a large-scale resource-and energy-based utilization of brewing waste and achieve both ecological and economic benefits.2024 Annual Report of Luzhou Laojiao

144、 Co.,Ltd.27 reused as energy in the distilling process,while the biochar serves as an organic fertilizer for sorghum cultivation.The project established the industrys first demonstration project for the coupled utilization of energy and resources from brewing waste,with an annual processing capacity

145、 of 100,000 tons.It achieved a resource utilization rate of over 90%for brewing waste and a gas energy recycling rate of over 95%,filling the technological gap in thermochemical treatment of brewing waste(discarded grains)and promoting breakthroughs in key general technologies for the efficient conv

146、ersion and safe disposal of organic solid waste under the solid waste resource utilization initiative.Study on the Expression Regulation of Key Genes in Leaven Microorganisms in China and Japan and the Improvement of Chinese Leaven Quality The project is an international project that the Company joi

147、ntly undertook,which studies the evolution pattern and formation mechanism of microbiomes during the natural leaven-marking and fermentation,and screens for microbial strains with specific functions for the production of functional enhanced leaven.This project successfully passed the acceptance revi

148、ew by the Ministry of Science and Technology in August 2024.Centered on the formation mechanism and quality improvement of strong aroma Daqu,light aroma Daqu,and light aroma Xiaoqu,the project carried out a study on the diversity of microorganisms in fermentation starters and systematically analyzed

149、 the To develop functional leaven according to different quality indicator requirements based on functional leaven-marking microorganisms and key gene expression regulation,systematically evaluate the efficacy of leaven and optimize the process.Improve the leaven and baijiu quality and enhance the C

150、ompanys core competitiveness.2024 Annual Report of Luzhou Laojiao Co.,Ltd.28 microbial community structure and metabolic characteristics of fermentation starters.Four strains were isolated;key genes related to starch decomposition and sugar production were studied.The research on fortified Daqu was

151、completed,and functional enhanced fermentation starters were developed.High-value Patent Incubation Center Project of Luzhou Laojiao The project is to implement national standards for intellectual property management,and achieve efficient management of the Company in the creation,application and pro

152、tection of intellectual property.An all-round layout of intellectual property is made around the core key technologies of the industrial chain to promote the creation of high-quality patents and build a patent pool for core technologies.The Company continuously improved the enterprises intellectual

153、property management system,passed the annual supervision and audit of the management system,and strengthened the review of IP clauses in technology contracts.Focusing on key brewing technologies,the Company fully utilized patent analysis tools to conduct competitive situation analysis and layout ana

154、lysis.Patent risk warning measures were reinforced through regular monitoring and analysis of key technical outcomes in relevant branches.The Company also organized high-value patent cultivation training and mining workshops,comprehensively enhancing R&D personnels awareness of innovation,drafting c

155、ompetence,and The Company has strengthened the close integration of intellectual property creation and protection with the whole process of technological innovation,enhanced the capability of the enterprise to create intellectual property and prevent potential intellectual property risks.The Company

156、 has strengthened the analysis and application of patent information,laid out and explored intellectual property around core key technologies,and formed a series of high-value patents with technical,economic,and legal value.The Company has established a sound intellectual property management system,

157、strengthened the creation and protection of intellectual property,and enhanced the core competitiveness of the enterprise.2024 Annual Report of Luzhou Laojiao Co.,Ltd.29 protection capabilities.Establishment of Sichuan Innovation Center for Solid-state Brewing Technologies Luzhou Laojiao took the le

158、ad to jointly build the Sichuan Innovation Center for Solid-state Brewing Technologies with several universities,institutes and other enterprises,aiming to overcome a batch of core technological challenges in solid-state brewing and facilitate the development of the solid-state brewing sector.In res

159、earch areas such as brewing processes and intelligentization,fermentation mechanisms and microbiology,as well as flavor and health,the Company continuously advanced innovation,R&D,and application of key common technologies and cutting-edge leading technologies across the industry chain.These efforts

160、 supported solid-sate brewing technology research,industry exchanges,result transformation and talent training.Relying on the Innovation Center as the carrier,Luzhou Laojiao initiated the establishment of the“Solid-state Brewing Technology Innovation Alliance in the Chengdu-Chongqing Twin City Econo

161、mic Circle”and convened the“2024 Annual Meeting of the Sichuan Innovation Center for Solid-state Brewing Technologies and the Solid-state Brewing Technology Innovation Alliance in the Chengdu-Chongqing Twin City Economic Circle”,at which the Alliances 2024 project proposals were announced.To gatheri

162、ng innovative resources in solid-state brewing,create an innovation alliance in the solid-sate brewing sector,make breakthroughs in core key technologies in the solid-sate brewing sector,and form a science and technology innovation center with national influence.Successfully build a technological in

163、novation platform,thereby improving the Companys scientific and technological innovation capabilities and level.A Study on the Optimization of Key Intelligent Equipment and the System Control for Brewing By applying modern technologies such as intelligent sensing,image recognition,spectral technolog

164、y Luzhou Laojiao carried out industry-university-research cooperation with universities and To build an intelligent brewing demonstration production line.Level up the Companys intelligent brewing and promote the transformation and upgrading of the 2024 Annual Report of Luzhou Laojiao Co.,Ltd.30 and

165、bio-chips,the project aims to develop core technologies for each link of brewing production,including fermentation,vinasse-based ingredient making,distillation of grains in retorts and baijiu selection,and build intelligent brewing production lines with independent optimization,production decision-m

166、aking and execution capabilities to comprehensively upgrade the solid-state brewing technologies in the baijiu industry.research institutes in the field of intelligent brewing,deeply analyzed traditional production processes and fermentation principles,innovatively applied simulation technology,auto

167、mation technology,online testing,industrial robots,big data analysis,intelligent decision-making and other technologies to the brewing engineering renovation project of Luzhou Laojiao.These efforts addressed challenges in data collection,intelligent equipment development,and real-time process optimi

168、zation in traditional brewing,realizing full-process intelligent production covering raw and auxiliary materials storage,brewing operations,distillers grain fermentation,and base Baijiu management.traditional brewing industry.Construction of the Brewing Microbial Resources and Data Platform The proj

169、ect aims to carry out collection of brewing microbial resources,rapid isolation,authentication,review and transfer of microbial resources in the brewing process of baijiu and development of excellent strains for industrial use,establish a brewing microbial strain library and related enzymology libra

170、ry,and promote the Luzhou Laojiao carried out industry-university-research cooperation with universities,and based on the analysis of the metabolic mechanisms of the microbial flora in the mud of the 400-year-old national treasure fermentation pit,completed diversity analysis on over 1,000 brewing s

171、amples,identified and preserved more than 2,000 microbial To establish a brewing microbial strain bank of a certain scale,which can achieve long-term safe preservation of strains and is supplemented by special information technology to manage strain information.Master the core resources of baijiu br

172、ewing microorganisms and enhance the Companys ability to protect and utilize brewing microbial resources.2024 Annual Report of Luzhou Laojiao Co.,Ltd.31 protection,sharing and sustainable utilization of brewing microbial resources.strains,and obtained flavor compound data for over 300 strains and wh

173、ole-genome sequencing data for over 200 strains.The Company screened and obtained a series of new species and key functional microorganisms such as the“Laojiao Lactobacillus”,“Laojiao Syntrophococcus”,and“Laojiao Clostridium”,and filed 21 applications for invention patents related to functional stra

174、ins,of which four have been granted.Information about R&D personnel 2024 2023 YoY Change Number of R&D personnel 475 468 1.50%R&D personnel as%of total employees 12.40%12.55%-0.15%Educational backgrounds of R&D personnel Bachelors degree 276 307-10.10%Masters degree 149 131 13.74%Doctoral degree(inc

175、luding postdoctoral workstations)50 30 66.67%Age structure of R&D personnel Below 30 188 217-13.36%3040 207 204 1.47%Information about R&D investments 2024 2023 YoY Change R&D investments(CNY)280,166,160.16 267,474,647.16 4.74%R&D investments as%of operating revenues 0.90%0.88%0.02%Capitalized R&D i

176、nvestments(CNY)0.00 0.00 0.00%Capitalized R&D 0.00%0.00%0.00%2024 Annual Report of Luzhou Laojiao Co.,Ltd.32 investments as%of total R&D investments Reason for any significant change in the composition of R&D personnel and the impact Applicable N/A Reason for any significant YoY change in the percen

177、tage of the R&D investments in the operating revenues Applicable N/A Reason for any sharp variation in the percentage of the capitalized R&D investments and rationale Applicable N/A 4.5.Cash flows Unit:CNY Item 2024 2023 YoY Change Subtotal of cash inflows from operating activities 41,014,285,259.97

178、 32,865,186,758.61 24.80%Subtotal of cash outflows from operating activities 21,832,516,896.32 22,216,821,823.15-1.73%Net cash flows from operating activities 19,181,768,363.65 10,648,364,935.46 80.14%Subtotal of cash inflows from investing activities 2,277,579,273.71 1,933,604,489.48 17.79%Subtotal

179、 of cash outflows from investing activities 3,660,085,206.26 3,201,722,342.48 14.32%Net cash flows from investing activities-1,382,505,932.55-1,268,117,853.00 Subtotal of cash inflows from financing activities 2,000,079,496.11 6,860,373,039.14-70.85%Subtotal of cash outflows from financing activitie

180、s 12,328,932,533.79 8,078,799,107.43 52.61%Net cash flows from financing activities-10,328,853,037.68-1,218,426,068.29 Net increase in cash and cash equivalents 7,474,638,736.60 8,164,022,685.99-8.44%Explanation of why the data above varied significantly 2024 Annual Report of Luzhou Laojiao Co.,Ltd.

181、33 Applicable N/A Net cash flows from operating activities increased by 80.14%,mainly due to the increased cash received from sales and discounted notes in the current period.Explanation of main reasons leading to the material difference between net cash flows from operating activities during the re

182、porting period and net profit for the year Applicable N/A This is mainly due to the effects of the honoring of due notes,the discounting of notes,and the increased advance payments from suppliers on net cash flows from operating activities in the year.5.Analysis of non-core business Applicable N/A 6

183、.Assets and liabilities 6.1.Significant change of asset items Unit:CNY At the end of 2024 At the beginning of 2024 Change in percentage Reason for any significant change Amount As%of total assets Amount As%of total assets Cash and cash equivalents 33,578,396,831.33 49.14%25,952,025,091.28 41.00%8.14

184、%Accounts receivable 11,022,302.31 0.02%17,461,378.98 0.03%-0.01%Contract assets 0.00%0.00%0.00%Inventories 13,392,794,475.96 19.60%11,622,043,947.46 18.36%1.24%Investment property 50,246,694.16 0.07%37,785,416.77 0.06%0.01%Long-term equity investments 2,801,252,317.93 4.10%2,708,254,833.50 4.28%-0.

185、18%Fixed assets 9,131,776,915.51 13.36%8,613,223,465.46 13.61%-0.25%Construction in progress 807,233,988.90 1.18%1,718,468,880.53 2.72%-1.54%Right-of-use assets 29,254,214.23 0.04%23,260,955.23 0.04%0.00%Short-term loans 0.00%0.00%0.00%Contract liabilities 3,978,131,528.88 5.82%2,672,977,090.30 4.22

186、%1.60%Long-term loans 6,279,900,000.00 9.19%10,000,300,000.00 15.80%-6.61%Mainly due to the repayment of due bank loans,and the 2024 Annual Report of Luzhou Laojiao Co.,Ltd.34 reclassification of bank loans due soon as non-current liabilities due within one year Lease liabilities 24,528,519.13 0.04%

187、22,356,404.47 0.04%0.00%Whether overseas assets account for a larger proportion in total assets Applicable N/A 6.2.Assets and liabilities measured at fair value Applicable N/A Unit:CNY Item Opening balance Changes in fair value through profit or loss Changes in cumulative fair value recorded into eq

188、uity Provision for impairment Amount of purchase Amount of sale Other changes Closing balance Financial asset 1.Held-for-trading financial assets(exclusive of derivative financial assets)1,426,992,098.83 27,528,769.00 2,460,000,000.00 2,220,238,571.86 1,694,282,295.97 4.Investments in other equity i

189、nstruments 402,893,468.80 150,915,802.27 407,194,706.55 6.Accounts receivables financing 5,938,171,007.93 -4,136,223,552.15 1,801,947,455.78 Subtotal of financial assets 7,768,056,575.56 27,528,769.00 150,915,802.27 0.00 2,460,000,000.00 2,220,238,571.86-4,136,223,552.15 1,694,282,295.97 Total 7,768

190、,056,575.56 27,528,769.00 150,915,802.27 0.00 2,460,000,000.00 2,220,238,571.86-4,136,223,552.15 3,903,424,458.30 Financial liability 9,763.87-9,870.60 106.73 0.00 Contents of other changes None Whether measurement attribution of main assets changes significantly in this year 2024 Annual Report of L

191、uzhou Laojiao Co.,Ltd.35 Yes No 6.3.Restricted asset rights as of the end of this reporting period Item Closing balance Reason Other cash and cash equivalents(CNY)10,000,000.00 Restricted security deposits for bank guarantees Other cash and cash equivalents(CNY)1,627,857.48 Restricted security depos

192、its at e-commerce platforms Bank deposits(CNY)181,100,955.95 Accrued interest on term deposits Other cash and cash equivalents(CNY)18,000,003.44 Judicially frozen Total 210,728,816.87 7.Investment 7.1.Total investment Applicable N/A Investment made in the reporting period(CNY)Investment made in the

193、prior year(CNY)YoY change 2,954,722,709.66 3,415,581,665.59-13.49%7.2.Significant equity investment made in the reporting period Applicable N/A 7.3.Significant ongoing non-equity investment in the reporting period Applicable N/A Unit:CNY Item Investment form Whether it is a fixed asset investment In

194、dustry of the investment project Amount of input in the reporting period Accumulated actual input amount by the end of the reporting period Capital source Project progress Projected income Accumulated actual income by the end of the reporting period Reasons for not meeting the schedule and projected

195、 income Date of disclosure(if any)Disclosure index(if any)Luzhou Self-Yes Baijiu 288,541,077,3Self-30.00%0.00 0.00 N/A 13 July Announ2024 Annual Report of Luzhou Laojiao Co.,Ltd.36 Laojiao Technical Upgrade Project of Intelligent Brewing(Phase I)built 2,548.08 98,554.89 financing 2022 cement on the

196、Implementation of Luzhou Laojiao Technical Upgrade Project of Intelligent Brewing(Phase I)by Subsidiary Total -288,542,548.08 1,077,398,554.89-0.00 0.00-7.4.Financial assets investment 7.4.1.Securities investment Applicable N/A Unit:CNY Category of securities Stock code Abbreviation of securities In

197、itial investment cost Accounting measurement model Beginning book balance Changes in fair value recognized in profit or loss Changes in the cumulative fair value recorded into equity Amount of purchase Amount of sale Profit and loss during the reporting period Closing book balance Accounting item Ca

198、pital source Domestic and foreign stock 601211 GTJA 12,719,156.76 Fair value measurement 175,241,715.34 206,921,837.27 6,477,348.35 219,640,994.03 Investments in other equity instruments Own fund Domestic and foreign stock 002246 SNC 1,030,000.00 Fair value measurement 12,805,515.44 14,840,083.24 78

199、,177.75 15,870,083.24 Investments in other equity Own fund 2024 Annual Report of Luzhou Laojiao Co.,Ltd.37 instruments Domestic and foreign stock 01983 LZBANK 51,120,000.00 Fair value measurement 96,733,837.69 27,236,318.99 3,905,280.00 78,356,318.99 Investments in other equity instruments Own fund

200、Domestic and foreign stock 01880 CTG Duty-Free 542,285,380.80 Fair value measurement 84,854,489.68 -91,129,295.64 2,015,648.45 60,069,399.64 Investments in other equity instruments Own fund Total 607,154,537.56-369,635,558.15 0.00 157,868,943.86 0.00 0.00 12,476,454.55 373,936,795.90-7.4.2.Derivativ

201、e investment Applicable N/A No such cases in the reporting period 7.5.Use of funds raised Applicable N/A 7.5.1.General use of funds raised Applicable N/A Unit:CNY 10,000 Year Method Date of securities listing Total amount of funds raised Net proceeds(1)Total amount of raised funds used in the report

202、ing period Accumulated amount of raised funds used(2)Raised funds used as%of total raised funds at the end of the reporting period(3)=(2)/Total amount of re-purposed funds raised in the reporting period Total amount of accumulated re-purposed funds raised Accumulated re-purposed funds raised as%of t

203、otal funds raised Total amount of unused funds raised Purpose and direction of unused funds raised Amount of funds raised idle for more than two years 2024 Annual Report of Luzhou Laojiao Co.,Ltd.38(1)2020 Public offering of corporate bond March 17,2020 150,000 149,000 25,408.69 136,444.23 91.57%0 0

204、 0.00%21,099.08 Deposited in special account for raised funds 0 Total -150,000 149,000 25,408.69 136,444.23 91.57%0 0 0.00%21,099.08-0 Notes for general use of funds raised The total amount of unused funds raised of the corporate bond“20 Laojiao 01”includes interest on some funds raised.7.5.2.Fund r

205、aised for committed projects Applicable N/A Unit:CNY 10,000 Financing project Date of securities listing Committed investment projects and direction of over-raised funds Project nature Whether the project has been changed(including partial change)Total amount of funds raised for committed investment

206、 Adjusted Investment total amount(1)Investment amount in the reporting period Accumulated input by the end of the reporting period(2)Investment progress by the end of reporting period(3)(2)/(1)Date of the projects reach the working condition for their intended use Realized benefits during the report

207、ing period Cumulative realized benefits by the end of the reporting period Whether the expected benefits have been achieved Whether the feasibility of the project has changed significantly Committed investment projects 2020 Public Offering of Corporate Bond for Qualified Investors March 17,2020 Tech

208、nical Renovation Project of Brewing(Phase II)Production and construction No 398,400 398,400 23,174.4 352,672.27 97.77%June 30,2021 N/A N/A Yes No 2020 Public Offering of Corporate Bond for QualifiMarch 17,2020 Project of Intelligent Upgrading and Building of Operation and management No 2,234.28 19,8

209、30.25 N/A N/A N/A No No 2024 Annual Report of Luzhou Laojiao Co.,Ltd.39 ed Investors the Information Management System 2020 Public Offering of Corporate Bond for Qualified Investors March 17,2020 Project of Acquiring Sealing Equipment for the Cellar of Huangyi Brewing Base Production and constructio

210、n No 0 12,043.3 June 30,2021 N/A N/A Yes No 2020 Public Offering of Corporate Bond for Qualified Investors March 17,2020 Project of Acquiring Accessory Equipment for Leaven Making for Huangyi Brewing Base Production and construction No 0 4,980.25 June 30,2021 N/A N/A Yes No Subtotal of committed inv

211、estment projects-398,4001 398,400 25,408.68 389,526.07-Use of over-raised funds None Total -398,400 398,400 25,408.68 389,526.07-0 0-Explain project by project the situation and reason for not reaching plan progress or expected benefits(including N/A 2024 Annual Report of Luzhou Laojiao Co.,Ltd.40 r

212、eason for inputting“N/A”for“Whether the expected benefits have been achieved”)Significant changes of project feasibility N/A Amount,purpose and progress of over-raised funds N/A Change of implementation site of investment projects N/A Adjustment of the implementation mode of raised funds investment

213、projects N/A Situation of advance investment and replacement Applicable On May 14,2019,the Company held the First Extraordinary General Meeting of Shareholders of 2019,which considered and approved the Proposal on Requesting the Companys General Meeting of Shareholders to Fully Authorize Chairman of

214、 the Board or Other Personnel Authorized by the Board to Go Through Procedures for the Public Offering of Corporate Bond.According to the Proposal,in the event of inconsistency between the payment of the raised funds and the progress of the project implementation,the Company may make advance investm

215、ents using other funds(including self-owned funds,bank project loans,etc.)according to the actual situation,and replace fund investment other than capital funds when the raised funds are in place.As of December 31,2024,the Company had replaced advance investments of self-pooled funds of CNY 653,444,

216、758.68 using the raised funds.Idle raised funds used for temporary supplementary liquidity N/A Amount and reason for surplus of funds raised N/A Purpose and whereabouts of unused funds raised The idle raised funds are deposited in the special account No.9550880046723000135 for raised funds in the Ch

217、engdu Branch of China Guangfa Bank Co.,Ltd.,the special account No.517517460013000000860 for raised funds in the Luzhou Branch of Bank of Communications Co.,Ltd.,and the special account No.631395395 for raised funds in the Chengdu Branch of China Minsheng Banking Corp.,Ltd.Problems and other situati

218、on when raised funds are used and disclosed N/A 2024 Annual Report of Luzhou Laojiao Co.,Ltd.41 Note 1:The subtotal of funds raised for committed projects was CNY 3,984 million,which was the combined amount of CNY 4,000 million(CNY 2,500 million of corporate bonds issued in August 2019 plus CNY 1,50

219、0 million of corporate bonds issued in March 2020)minus the total issuance costs of CNY 16 million.Note 2:Because there are uncertainties in the approval and issue time for bond,in order to ensure smooth progress of the projects and protect the interests of the Companys shareholders,the investment s

220、equence and specific amounts of the corresponding raised funds should be determined by the Chairman of the Board as authorized by the general meeting of shareholders or other persons as authorized by the Board of Directors within the scope of the four raised funds investment projects according to th

221、e actual needs,provided that the capital funds for each project is no less than 20%of the total investment.Note 3:As of December 31,2024,the Project of Intelligent Upgrading and Building of the Information Management System was in the process.Note 4:These raised funds investment projects have helped

222、 further expand the Companys production and sales,and increase its comprehensive competitiveness.The economic benefits of these projects cannot be measured separately.7.5.3.Re-purposed funds raised Applicable N/A No such cases in the reporting period 8.Sale of major assets and equity interests 8.1.S

223、ale of major assets Applicable N/A No such cases in the reporting period.8.2.Sale of major equity interests Applicable N/A 2024 Annual Report of Luzhou Laojiao Co.,Ltd.42 9.Analysis of major subsidiaries Applicable N/A Main subsidiaries and joint companies with an over 10%influence on the Companys n

224、et profit Unit:CNY Company name Company type Business scope Registered capital Total assets Net assets Operating Revenue Operating profit Net profit Luzhou Laojiao Sales Co.,Ltd.Subsidiary Sales of baijiu series such as“National Cellar 1573”and“Luzhou Laojiao”100,000,000.00 8,401,258,791.55 2,466,36

225、8,056.96 30,018,996,416.68 13,027,763,327.45 9,732,243,326.25 Acquisition and disposal of subsidiaries during the reporting period Applicable N/A Notes for major holding companies and joint stock companies None 10.Structured entities controlled by the Company Applicable N/A 11.Outlook for the future

226、 development of the Company 11.1.Industry landscape and trends A.According to data from the National Bureau of Statistics and the China Alcoholic Drinks Association,in 2024,baijiu enterprises above the designated size nationwide produced a total of 4.145 million kiloliters of baijiu,representing a y

227、ear-on-year decrease of 1.8%.These enterprises generated sales revenue of CNY 796.384 billion and total profit of CNY 250.865 billion.In recent years,production volume among baijiu enterprises above the designated size has continued to decline,as the baijiu industry undergoes a transformation from e

228、xtensive to refined development,from volume-driven to quality-oriented growth,and from high-speed to high-quality development.B.At present,alcohol consumption has entered a“dual rationality era”characterized by both price rationality and consumption rationality.Consumers are placing greater emphasis

229、 on health factors and social responsibility in alcohol consumption,demanding that companies elevate product and service standards in terms of quality and safety.Baijiu enterprises must continuously adapt,enhance intrinsic value,and explore new growth paths.2024 Annual Report of Luzhou Laojiao Co.,L

230、td.43 C.Baijiu marketing has evolved through the product era and channel era,and is now in a convergence period of the brand era,traffic era,and cultural era.Particularly,as the“traffic era”enters a stage of deep development,enterprises must focus on attracting,converting,and utilizing consumer traf

231、fic,innovating brand communication strategies to enhance brand recognition,reach,and engagement.D.The trend toward younger consumer demographics has increasingly become a key challenge for the sustainable development of the baijiu industry.Younger consumers,especially Gen Z,exhibit more rational con

232、sumption behavior and prefer personalized expressions in alcoholic beverages,“self-love”elements,and favored consumption scenarios.Enterprises need to focus on visual appeal,taste,brand storytelling,and the sensory experience after consumption to meet young consumers motivational needs and desires f

233、or“self-love”.11.2.The Companys development strategy 11.2.1.Development opportunities in the future A.Since 2024,the Party and the government have introduced a series of policy packages to address new situations and challenges in economic operations,aiming to promote stable growth,structural optimiz

234、ation,and positive momentum in the economy.Chinas industrial system remains comprehensive,with strong supporting capabilities and a continued role as the“worlds factory”.The Chinese economy possesses robust resilience and strong capabilities,while domestic consumers retain substantial purchasing pow

235、er.In this context,baijiu consumption maintains both inertia and potential with a solid foundation.B.In recent years,the baijiu industry has continuously enhanced innovation and application of key technologies,facilitating industrial upgrading.The proportion of high-quality base Baijiu has increased

236、 significantly,effectively mitigating risks of declining quality reputation.Through standard-setting,joint risk prevention,and collaborative anti-counterfeiting efforts,the industry has effectively safeguarded intellectual property rights.By pursuing diversified development and differentiated compet

237、ition,a diversified and harmonious brand landscape has been formed,enhancing resilience to consumption adjustments and competition from foreign liquor brands.The future of Chinas baijiu industry will be healthier and more sustainable.C.Digitalization and intelligentization are central themes for fut

238、ure economic and social development,and serve as key drivers of enterprise competitiveness.The Company is actively advancing the construction of“Digital and Intelligent Luzhou Laojiao”,establishing a digital-intelligent ecosystem featuring“one framework,five transformations,and five connected flows”

239、,which has effectively realized digital-intelligent management,intelligent production,and smart marketing,thereby securing a first-mover advantage for future competition.11.2.2.Possible challenges and risks in the future The trend of market concentrationwhere strong players grow stronger and weaker

240、players fall further behindwill become more pronounced in the baijiu industry.Leading production regions,enterprises,and brands will continue to consolidate their market positions.Well-known Baijiu brands face significant challenges of differentiation across product lines.The downward channel expans

241、ion and pricing adjustments by leading brands and regions will intensify competition,prompting brands to optimize strategies,reposition products to attract consumers,and accelerate reshuffling within the industry.2024 Annual Report of Luzhou Laojiao Co.,Ltd.44 11.2.3.The Companys 14th five-year deve

242、lopment strategy No change occurred to the Companys 14th five-year development strategy.For details,see the 2021 Annual Report.11.3.Completion of the business plan in 2024 For the reporting period,operating revenue amounted to CNY 31.196 billion,up 3.19%year on year;and the net profit attributable t

243、o the shareholders of the listed company reached CNY 13.473 billion,up 1.71%year on year.The Company has failed to complete its business target“to achieve a year-on-year increase in operating revenue by at least 15%as set by the Board of Directors at the beginning of the year.This is primarily drive

244、n by the clear shift and divergence in the supply-demand structure of alcohol consumption in recent years.The market has entered a stock-driven phase,and as the economy transitions to new growth drivers,the baijiu industry is also entering a new stage of development.Guided by the principle of high-q

245、uality development,the Company will make every effort to promote the construction of“Digital and Intelligent Luzhou Laojiao”,ensure healthy channel operations and stable pricing systems,and strive to achieve long-term returns on industrial value and sustainable corporate development.11.4.Business pl

246、an in 2025 2025 marks the final and critical year of the Companys 14th Five-Year Plan.In accordance with the 2025 Production and Operation Guidelines approved by the Board of Directors,the Company will focus on the annual theme of“Building Momentum for Breakthroughs,Advancing Stable Growth through I

247、ntensive Cultivation;Seizing Opportunities to Drive Development through Reform and Innovation”.The Company will promote high-quality development with the goal of achieving steady progress in annual operating revenue.(The business plan in 2025 is formulated by the Company according to the 14th five-y

248、ear strategic plan and based on its business capabilities.It does not represent the Companys profit forecast for 2025,and is not a commitment by the Company.Whether it can be achieved depends on many factors such as changes in market conditions and efforts of the operation team.There are great uncer

249、tainties.Investors are kindly reminded to pay special attention).The main work plan is as follows:A.Building momentum for breakthroughs,advancing stable growth through intensive cultivation a.Focusing on three priorities to ensure sales investment First,the Company will vigorously“expand coverage”by

250、 accelerating market and team expansion,intensively cultivating base markets,and continuing to make breakthroughs in strategic markets.The sales team will strengthen talent reserves and expand personnel when appropriate.Second,the Company will vigorously“increase bottle opening”by promoting the five

251、-code correlation and enabling digital intelligence,intensifying public relations efforts,guiding consumption orientation,and encouraging bottle opening and consumption.Third,the Company will vigorously“expand touchpoints”by optimizing distributor selection,broadening channels,and enhancing terminal

252、 display,thereby increasing product availability and ensuring stable and healthy sales growth.b.Focusing on three tasks to maintain healthy market conditions 2024 Annual Report of Luzhou Laojiao Co.,Ltd.45 First,the Company will enhance operational capability by implementing digital-intelligent mark

253、et management,intensifying market inspections and anti-counterfeiting efforts,and safeguarding the core interests of the Company and consumers.Second,the Company will increase channel profitability by closely monitoring customer profitability and maintaining a profit margin higher than that of compe

254、ting products.Third,the Company will strengthen brand image by firmly upholding price stability and brand positioning,ensuring that the National Cellar 1573 maintains its position among the“three high-end baijiu brands”,while Luzhou Laojiao series products remain firmly established in their respecti

255、ve price ranges.c.Seizing three strategic high grounds to build competitive moats First,the Company will seize the cultural high ground by leveraging the historic opportunity of the China Baijiu Museum being established in Luzhou.The Company will enhance the display and presentation of the“Living Du

256、al National Treasures”and historical artifacts,and develop cultural experience scenarios to create strong consumer appeal.Second,the Company will seize the brand high ground by building an integrated internal and external brand communication matrix,updating and upgrading promotional campaigns,enhanc

257、ing evaluation of promotional effectiveness,and creating strong momentum to empower sales.Third,the Company will seize the innovation high ground by unwaveringly advancing“lower alcohol content,younger consumer orientation,scenario-based consumption,and digital and intelligent transformation”,strivi

258、ng to keep pace with rapid innovation cycles and,where appropriate,develop ahead of the curve.B.Seizing opportunities to drive development through reform and innovation a.Enhancing core technologies to strengthen support for development In quality assurance,the Company will uphold solid-state pure g

259、rain fermentation,comprehensive quality management throughout the process,and standards that exceed national requirements.In production assurance,the“Huangyi Brewery Eco-Park”and the“Intelligent Packaging Center”will fully leverage new productive forces and dynamically adjust production output based

260、 on sales demand.In traditional brewing areas,the Company will advance integrated development of production and exhibition.In R&D assurance,the Company will focus on delivering tangible resultstransforming more research into productive capacity,securing more awards through patent applications,and ac

261、tively pursuing provincial and national science and technology accolades.The Company will also strengthen science communication and innovation outreach to deepen consumer understanding and appreciation of baijiu.b.Enhancing core capabilities to win in market competition In service improvement,the Co

262、mpany will shift from traditional control-oriented thinking to service-oriented thinking.The management system must excel both as a“manager”and a“service provider”.In efficiency improvement,the Company will ensure continued safe and sound development while further optimizing systems and processes to

263、 build a modern management system that is responsive and efficient.In talent development,the Company will focus on cultivating,supporting,developing,and empowering its peopleproviding opportunities for those who are motivated,platforms for those who are capable,and incentives for those who deliverth

264、ereby enhancing employees sense of belonging,happiness,and achievement.c.Upholding core principles to ensure steady and sustainable progress 2024 Annual Report of Luzhou Laojiao Co.,Ltd.46 First,the Company will strengthen Party building by enhancing political,ideological,organizational,and institut

265、ional development to foster unity and collective momentum.Second,the Company will reinforce integrity by emphasizing accountability,strengthening oversight,promoting sound conduct,and adopting both preventive and corrective measures to uphold Luzhou Laojiaos positive reputation in the industry.Third

266、,the Company will strengthen safety and environmental protection by comprehensively identifying and addressing issues and laying a solid foundation in these areas.Fourth,the Company will enhance its sense of responsibility by ensuring sound corporate governance that is accountable to shareholders an

267、d by fulfilling its social responsibilities through advancing ESG system development and contributing to a harmonious society.12.Visits paid to the Company for purposes of research,communication,interview,etc.in the reporting period Applicable N/A Date of visit Place of visit Way of visit Type of vi

268、sitor Visitor Main inquiry information and materials provided Index to main inquiry information March 19,2024 Conference Center of Huaxi Securities Field survey Institution Institutional investor Industry trends and company performance http:/ 29,2024 Company Headquarters Communication through an onl

269、ine platform Institution Institutional investor Industry trends and company performance http:/ 9,2024 Company Headquarters Communication through an online platform Other All investors Industry trends and company performance http:/ 27,2024 Company Headquarters Field survey Institution Institutional a

270、nd individual investors and media Industry trends and company performance http:/ 2,2024 Company Headquarters Communication through an online platform Institution Institutional investor Company performance http:/ 12,2024 Company Headquarters Communication through an online platform Other All investor

271、s Industry trends and company performance http:/ 1,2024 Company Headquarters Communication through an online platform Institution Institutional investor Industry trends and company performance http:/ Annual Report of Luzhou Laojiao Co.,Ltd.47 13.Development and implementation of market value managem

272、ent rules and valuation enhancement plan Indicate whether the Company has developed market value management rules.Yes No Indicate whether the Company has disclosed its valuation enhancement plan.Yes No In order to strengthen the Companys market value management,effectively promote the Company to enh

273、ance investment value,enhance investor returns and safeguard investor interests,in accordance with the Company Law of the Peoples Republic of China,the Securities Law of the Peoples Republic of China,the Information Disclosure Management Measures for Listed Companies,the Listed Company Regulatory Gu

274、ideline No.10-Market Value Management and other applicable laws,regulations,normative documents and the Companys Articles of Association,etc.,the Market Value Management Rules of Luzhou Laojiao Co.,Ltd.has been formulated upon approval at the Sixth Meeting of the11th Board of Directors.14.Implementa

275、tion of the action plan for Dual Enhancement of Development Quality and Shareholder Returns Indicate whether the Company has disclosed its action plan for Dual Enhancement of Development Quality and Shareholder Returns.Yes No In accordance with the guiding ideology of further invigorating the capita

276、l market and boosting investor confidence proposed at the Political Bureau meeting of the CPC Central Committee and vigorously improving the quality and investment value of listed companies,taking more powerful and effective measures,and focusing on stabilizing the market and confidence proposed at

277、the State Council Executive Meeting,in order to safeguard the interests of all shareholders,boost investor confidence,and promote the long-term healthy and sustainable development of the Company,Luzhou Laojiao Co.,Ltd.(hereinafter referred to as the Company)has formulated its action plan for Dual En

278、hancement of Development Quality and Shareholder Returns in combination with the Companys development strategy,business picture,and financial condition.The specific measures are as follows:A.Strengthening confidence in strategic planning and aiming at the Companys development goals The Company has f

279、ormulated the 136 strategic plan for the 14th Five-Year Plan based on the development idea of giving play to advantages,tackling areas of weaknesses,improving quality,building strength,and seeking rejuvenation.Specifically,1 refers to one development goal,namely,firmly insisting on the goal of regai

280、ning the Top 3 ranking among the Chinese baijiu industry;3 refers to three major development principles,namely,insisting on brand leadership and fully enhancing the value of Chinese famous baijiu brands,insisting on taking quality as foundation and sparing no efforts to build a core production area

281、of world famous baijiu,and insisting on take culture as the foundation 2024 Annual Report of Luzhou Laojiao Co.,Ltd.48 and striving to build a pilgrimage site for Chinese baijiu culture;6 refers to Six-in-One Luzhou Laojiao,namely,building a strong-brand Luzhou Laojiao,a quality Luzhou Laojiao,a cul

282、tural Luzhou Laojiao,an innovative Luzhou Laojiao,a digital and intelligent Luzhou Laojiao,and a harmonious Luzhou Laojiao.Since the 14th Five-Year Plan period,the Company has firmly implemented the 136 development strategy,won key battles such as expanding production capacity,upgrading brands,and s

283、trengthening teams,and has entered a stage of high-quality development.The National Cellar 1573 brand achieved comprehensive coverage in the domestic market and was fully expanding in overseas markets;the Luzhou Laojiao brand built a strong basis in the granary market,and has gained a stable and pen

284、etrating presence in the opportunity market,with much good news of the revival of famous baijiu;the breakthrough project of expanding key sales areas has been deeply promoted,market consumption has been further activated,and market share has been further increased.In terms of digital marketing and b

285、rand building,channel development and public relations empowerment,online expansion and offline integration,and overseas layout and domestic boosting,a clearer and more effective path has been created with the characteristics of Luzhou Laojiao,which has made contributions to the healthy and rapid de

286、velopment of the Company.During the 14th Five-Year Plan period,the compound growth rate of the Companys net profit attributable to the parent company reached 22.38%.In 2024,operating revenue amounted to CNY 31.196 billion,up 3.19%year on year;and the net profit attributable to the parent company rea

287、ched CNY 13.472 billion,up 1.71%year on year.Various performance indicators reached a new historical high.In the future,the Company will continue to steadfastly implement the principle of growing as fast as possible on the basis of healthy development,and resolutely compete for better performance wh

288、ile benchmarking against outstanding enterprises in the industry and main competitors,and move towards the established goals prudently and meticulously.B.Deeply promoting technological innovation and strengthening the transformation of scientific research achievements In recent years,the Company has

289、 attached great importance to the development mode of innovation leading progress,integrated innovation forces,gathered innovation resources,tackled the frontier and common key technologies of the baijiu industry,and promoted the transfer and transformation of achievements and industry sharing,thus

290、promoting the transformation of the baijiu industry from experience oriented to technological oriented.This has made important contributions to the technological innovation,transformation and upgrading of the baijiu industry in China.First,the Company has successfully established multiple major nati

291、onal-level technological innovation platforms,including the National Engineering Research Centre of Solid-State Brewing,the National Industrial Design Centre,and the National Postdoctoral Workstation.The Company has formed a comprehensive technological innovation platform system with the National En

292、gineering Research Centre of Solid-State Brewing as the R&D core,covering basic R&D,talent cultivation,and engineering transformation in multiple fields,and has built a highland for technological innovation in the entire industry.Second,the Company has continuously increased investment in technologi

293、cal innovation,research and development,and continuously enhanced its independent innovation capabilities.In the past five years,the total R&D investment reached CNY 1,035.4329 million,and the compound annual growth rate of innovation R&D investment reached 26.40%.Third,the Company has actively carr

294、ied out collaborative innovation between the Company,universities and research institutions,establishing cooperative relationships with more than 30 universities and institutions such as Tsinghua University and Shanghai 2024 Annual Report of Luzhou Laojiao Co.,Ltd.49 Jiao Tong University.Through var

295、ious forms including joint laboratory building,joint undertaking of major projects,joint training of talents,and establishment of open projects,the Company has carried out extensive technical exchange and cooperation,forming a good pattern of diversified cooperation,innovative development,and mutual

296、 benefit between universities and the Company.Fourth,the Company has attached great importance to the creation and protection of intellectual property rights,and regarded intellectual property building as an important development strategy for the Company.The number of applications and authorizations

297、 for invention and utility model patents has maintained a rapid growth.Up to now,the Company has been granted 583 patents,including 211 invention patents and 372 utility models,both of which are at the forefront of the industry.In the future,the Company will continue to leverage its advantages in sc

298、ientific research platforms,talent,and publicity to comprehensively consolidate Luzhou Laojiaos leading position in scientific research.C.Highly valuing standardized operations and improving corporate governance level The Company has continuously consolidated the foundation of corporate governance,i

299、mproved the corporate governance structure,actively studied laws and regulations and the latest regulatory policies,and standardized the Companys management system.The Company has also clearly defined the responsibilities and authorities of the Board of Directors,the Board of Supervisors,general mee

300、tings of shareholders and the management in decision-making,execution,and supervision,and regulated the rights and obligations of the Company and shareholders.The Company has vigorously promoted the systematization,standardization,and digitalization of corporate governance,synchronously enhanced the

301、 information-based level in the Board of Directors,the Board of Supervisors and general meetings of shareholders,and incorporated the building of the integrated securities business platform into the digital and intelligent Luzhou Laojiao system,to continuously improve the level of corporate governan

302、ce.In order to further improve the Companys risk management system and ensure that the directors,supervisors,and senior management of the Company fully perform their duties within their scope of responsibilities,the Company has actively promoted the purchase of liability insurances for directors,sup

303、ervisors,and senior management.Meanwhile,the Company has become the first listed company in the industry to sign a liability insurance agreement for directors,supervisors,and senior management which has been approved by a general meeting of shareholders.In the future,the Company will continue to pro

304、mote information technology building to empower corporate governance,continuously improve operational efficiency and scientific decision-making level.D.Fulfilling the information disclosure obligation compliantly and strictly guarding the defense line of insider trading The Company takes standardize

305、d information disclosure as the bottom line,conducts information disclosure with high standards,and effectively respects and safeguards the legitimate rights and interests of investors.First,the Company has established and improved a management system centered on major information internal reporting

306、 system,temporary and periodic report preparation procedure,insider information management system,and other policy documents,and continuously promoted the standardized and procedural business work,to ensure accurate and rigorous information disclosure.Second,the Company has adhered to investor deman

307、d orientation,actively promoted voluntary information disclosure,attached importance to the pertinence,readability,and effectiveness of disclosure content,and continuously improved the transparency of information disclosure of the Company.The Company has been awarded the highest A grade in the infor

308、mation disclosure 2024 Annual Report of Luzhou Laojiao Co.,Ltd.50 assessment of listed companies on the Shenzhen Stock Exchange for several consecutive years.In the future,the Company will continuously improve the transparency of information disclosure and continuously display information on the Com

309、panys operations at multiple levels,angles,and dimensions.E.Efficiently carrying out investor relations activities and conveying the Companys investment value The Company has actively adapted to the needs of investor research and carried out investor relationship management through a combination of

310、inviting in and going out models.It has actively communicated with investors on industry hot topics,the Companys business picture,and development strategies through the Shenzhen Stock Exchange investor interaction platform,establishment of investor hotlines,improvement of investor relationship websi

311、tes,hosting online collective reception days,and on-site investor surveys.In doing so,the Company has conveyed its investment value and safeguarded investors right to know.At the same time,the Company has adhered to investor demand orientation.Based on the continuous growth of overseas shareholders

312、in recent years,the Company has innovatively used overseas accounts such as Facebook,twitter,and IG to simultaneously publish the Companys performance promotion,shortened the disclosure time interval between Chinese and English versions,and conducted overseas roadshows,to ensure the timeliness of in

313、formation acquisition for overseas investors.Going forward,the Company will continue to build a two-way communication mechanism for a deep understanding and positive interaction with the capital market to transmit the Companys value.(The Companys investor relations website has been updated.Investors

314、 are welcome to visit https:/ shareholder returns and safeguarding the legitimate rights and interests of shareholders The Company adheres to the implementation of an active profit distribution policy,attaches importance to reasonable returns to investors while considering the sustainable developmen

315、t of the Company,and maintains the continuity and stability of profit distribution.The Company clearly stipulates in its Articles of Association that the Company may distribute dividend in cash or stocks and the dividend should not be less than 50%of the distributable profit realized for that year,a

316、nd the profit to be distributed in cash should not be less than 30%of the distributable profit realized for that year.By the end of 2024,the Company has paid out a cumulative cash dividend amount of CNY 43.301 billion,with a dividend payout ratio of 60.93%,ranking among the top among more than 5,000

317、 listed companies in the Shanghai and Shenzhen stock markets.This has allowed all shareholders to fully share the Companys development achievements and effectively maintained the Companys good image in the capital market.In order to further improve the profit distribution policy,establish a scientif

318、ic,sustained and consistent shareholder return mechanism and enhance investment value,the Company has formulated the 2024-2026 Shareholder Dividend Plan.The Companys annual cash dividends shall account for no less than 65%,70%and 75%of the net profit attributable to shareholders of the listed compan

319、y in 2024,2025 and 2026,respectively,and shall not be less than CNY 8.5 billion.In principle,cash dividends can be paid twice a year.G.Encouraging the controlling shareholder to actively increase its shareholdings to maintain the stability of the capital market 2024 Annual Report of Luzhou Laojiao C

320、o.,Ltd.51 Based on its recognition of the Companys long-term value and its firm belief in the Companys development prospects,the controlling shareholder of the Company,Luzhou Laojiao Group Co.,Ltd.,increased its holdings in the Company by 1,140,200 shares in total through call auction trading during

321、 the period from December 15,2023 to June 15,2024,accounting for 0.08%of the total share capital of the Company,with a total amount of approximately CNY 200.9629 million.Additionally,Laojiao Group plans to increase its shareholdings in the Company through call auction trading within six months from

322、March 14,2025,using special loans and its own funds.The amount of increase will not be less than CNY 150 million and not more than CNY 300 million.Moving forward,the Company will focus on the development theme of“Building Momentum for Breakthroughs,Advancing Stable Growth through Intensive Cultivati

323、on;Seizing Opportunities to Drive Development through Reform and Innovation”,actively take responsibility,keep diligent,and make solid progress while striving for high-quality development.The Company will also firmly establish a sense of return to shareholders,effectively implement the dual enhancem

324、ent of development quality and shareholder returns action plan,significantly enhance investors satisfaction,and actively contribute to stabilizing the capital market and investor confidence.2024 Annual Report of Luzhou Laojiao Co.,Ltd.52 Section IV Corporate Governance 1.Basic situation of corporate

325、 governance Since it was listed,in accordance with the Corporate Law,the Securities Law,The Listed Company Governance Standards and other laws,administrative regulations and departmental rules and normative documents,the Company has constantly perfected corporate governance structure,standardized it

326、s operation,established the rules and system on the basis of the Companys articles of association whose main framework is the rules of procedure of the shareholders general meeting,rules of procedure of the board of directors and rules of procedure of the board of supervisors,which is formed the man

327、agement system whose main structure is the shareholders meeting,board of directors,board of supervisors and management.During the reporting period,the Company won a number of honors and awards,including“The 26th Golden Bull AwardsBest Investment Value Award”,“The 18th Top 100 Most Valuable Main Boar

328、d Listed Companies”,and“Best Practice Case for Listed Company Boards in 2024”.Any incompliance with the applicable laws and administrative regulations,as well as regulations related to the governance of listed companies issued by the CSRC Yes No There is no incompliance with the applicable laws and

329、administrative regulations,as well as regulations related to the governance of listed companies issued by the CSRC.2.Independency of assets,personnel,finance,organizations and businesses which are separated from the controlling shareholder and the actual controller The Company has an independent and

330、 complete production and operation system and independent decision-making ability.There is no horizontal competition between the Company and the controlling shareholders and its subsidiaries.The Company has daily affiliated transactions with the controlling shareholders and its subsidiaries.Such dai

331、ly affiliated transactions belong to the need of rational allocation of resources and do not affect the independence of the Company.For affiliated transactions,the Company has strictly fulfilled the relevant decision-making procedures and information disclosure obligations,and implemented the system

332、 of Non-executive directors prior examination and avoidance system of related directors(shareholders).2.1 In the aspect of assets Asset integrity.There are clear ownership and independency of the Companys assets invested by controlling shareholders.The Company has an independent and complete product

333、ion,supply,sales system and auxiliary production system and supporting facilities.The industrial property rights,trademarks and non-patented technology and other intangible assets are owned by the Company.There is no situation that the controlling shareholders occupy and transfer the assets of the company.2024 Annual Report of Luzhou Laojiao Co.,Ltd.53 2.2.In the aspect of business Business apart.