Wuliangye Yibin Co., Ltd.

Interim Report 2025

Chairman of the Board: Zeng Congqin

August 28, 2025

Part I Important Notes, Table of Contents and Definitions

1. The Board of Directors (or the “Board”) as well as the directors and senior management ofWuliangye Yibin Co., Ltd. (hereinafter referred to as the “Company”) hereby guarantee that thecontents of this Report are true, accurate and complete and free of any misrepresentations, misleadingstatements or material omissions, and collectively and individually accept legal responsibility forsuch contents.

2. Zeng Congqin, the Company’s legal representative, Zhang Xin, the Company’s ChiefFinancial Officer, and Liu Min, head of the Company’s accounting department, hereby guarantee thatthe financial statements carried in this Report are true, accurate and complete.

3. Ten directors were supposed to attend the board meeting for the review of this Report. Eightof them were present at the meeting in person while Mr. Han Chengke and Mr. Ding Nan voted byway of telecommunication for they were unable to be present due to work reasons.

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

5. This Report has been prepared in Chinese and translated into English. Should there be anydiscrepancies or misunderstandings between the two versions, the Chinese version shall prevail.

Table of Contents

Part I Important Notes, Table of Contents and Definitions ...... 2

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

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

Part IV Environmental, Social and Governance Information ...... 21

Part V Significant Events ...... 24

Part VI Share Changes and Shareholder Information ...... 30

Part VII Bonds ...... 34

Part VIII Financial Statements ...... 35

Part IX Other Reported Information ...... 146

Documents Available for ReferenceThe following documents are available for shareholders at the relevant department of theCompany:

1. The financial statements that have been signed and stamped by the legal representative, theChief Financial Officer, and the head of the accounting department.

2. All the Company’s documents and announcements that were disclosed on China SecuritiesJournal, Shanghai Securities News and Securities Times during the Reporting Period.

3. Interim Report 2025 of the Company.

Definitions

Part II Corporate Information and Key Financial InformationI Corporate Information

II Contact Information

III Other Information

1. Contact Information of the Company

Indicate whether any change occurred to the registered address, office address and their zip codes, websiteaddress, email address and other contact information of the Company in the Reporting Period.

□ Applicable ? Not applicable

No change occurred to the said information in the Reporting Period, which can be found in Annual Report2024.

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

Indicate whether any change occurred to the information disclosure media and the place for lodging theCompany’s periodic reports in the Reporting Period.

□ Applicable ? Not applicable

The website of the stock exchange, the media and other website where the Company’s periodic reports aredisclosed, as well as the place for lodging such reports did not change in the Reporting Period. The said informationcan be found in Annual Report 2024.

3. Other Information

Indicate whether any change occurred to other information in the Reporting Period.

□ Applicable ? Not applicable

IV Key Financial Information

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

□ Yes ? No

Note: This is primarily driven by a higher percentage of cash in payments received during the Reporting Period,while the same period of last year saw a higher percentage of bank acceptance bills instead.V Accounting Data Differences under China’s Accounting Standards for Business Enterprises(CAS) and International Financial Reporting Standards (IFRS) and Foreign AccountingStandards

1. Net Profit and Equity under CAS and IFRS

□ Applicable ? Not applicable

No difference for the Reporting Period.

2. Net Profit and Equity under CAS and Foreign Accounting Standards

□ Applicable ? Not applicable

No difference for the Reporting Period.

VI Exceptional Gains and Losses

? Applicable □ Not applicable

Unit: RMB

Particulars about other items that meet the definition of exceptional gain/loss:

□ Applicable ? Not applicable

No such cases for the Reporting Period.

Explanation of why the Company reclassifies as recurrent an exceptional gain/loss item listed in the

Explanatory Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to thePublic—Exceptional Gain/Loss Items:

□ Applicable ? Not applicable

No such cases for the Reporting Period.

Part III Management Discussion and AnalysisI Principal Operations of the Company during the Reporting PeriodThe Company is principally engaged in Baijiu production and sales. According to the Guidelines for theIndustry Classification of Listed Companies issued by the China Securities Regulatory Commission, the Baijiuindustry falls into the category of the “liquor & wine, beverage, and refined tea production industry” (C15). Nochange occurred to the principal operations of the Company during the Reporting Period. “Wuliangye”, the primaryproduct of the Company, is a classic strong-flavor Chinese Baijiu. Additionally, the Company has developed, basedon different production techniques and market needs, Wuliang NongXiang Baijiu products such as Wuliang Chun(Spring), Wuliang Chun (Rich Flavor), Wuliang Tetouqu, and Mianrou Jianzhuang with complete categories andunique tastes to meet the diverse needs of different consumers in pursuit of a better life.The Company is subject to the disclosure requirements for the food and wine & liquor production industry inGuidelines No. 3 of the Shenzhen Stock Exchange for the Self-Regulation of Listed Companies—Industry-specificInformation Disclosure.

1. Brand Operation

(1) Wuliangye-branded Baijiu Products

In the first half of 2025, the Company adhered closely to its overarching goal of “the Year of MarketingExecution Enhancement” and continued to deepen its marketing strategy of “boosting sell-through, stabilizingprices, improving cost-effectiveness, and transforming working styles”. As a result, the Wuliangye brand saw astronger market presence and successfully achieved more than half of the annual targets for revenue and net profit.Firstly, the product mix continued to improve, and efficiency was boosted by innovations in productdevelopment and operation. The product mix was renewed, with the launch of a series of new products such as YiFan Feng Shun and Zhu Jun Jin Bang Ti Ming, in addition to accelerating the launch of Wuliangye (29% vol). The“1+3” product structure was optimized, with the 8th-generation Wuliangye enjoying the most stable market sharein the RMB1,000 price range. The bottle-cracking participants and banquet events of Wuliangye 1618 andWuliangye (39% vol) both increased steadily. Regarding Classic Wuliangye, the Company was fully committed tobuilding model markets in Beijing, Shanghai, Chengdu, Guangzhou, Shenzhen and other cities.Secondly, brand presence was continuously expanded, and momentum built up in marketing. TheCompany deeply participated in high-end events such as the Boao Forum for Asia, the Expo 2025 Osaka, the APECCEO Summit with carefully planned branding activities, and successfully held IP events such as the First HarmonyWedding Ceremony and the Fourth Wuliangye Harmony Cultural Festival. Also, it partnered with China CentralTelevision (“CCTV”) to carry out the “Harmony Gifts” interactive event during the Spring Festival Gala, attractingover 100 million participants. In addition, the Company led the “Sichuan Liquor Global Tour” into countries suchas France, the Netherlands, and Germany, consistently improving brand reputation and presence.Finally, channel layout was continuously optimized, and market share steadily increased. Meticulousefforts were made in channel development, with a new addition of 7,990 point-of-sale terminals. Meanwhile, theCompany seized business opportunities in banquet scenarios, with the banquet events and the bottle-cracking andQR code-scanning participants both maintaining a two-digit year-on-year growth in the first half of the year, servingover 2,830,000 consumers. A total of 60 corporate customers were developed during the period. The “Three Stores,One House” model was continuously promoted, with a new addition of 242 sales outlets in total, filling the gap in18 prefectures and counties. Direct delivery from point-of-sale terminals was implemented in 20 major cities, andthe orders of these point-of-sale terminals increased steadily.

(2) Wuliang NongXiang products

In the first half of 2025, Wuliang NongXiang Company adhered to the strategic guideline of “innovation withintegrity while expanding territories, and making more contributions”. Focusing on key tasks such as product sell-through, the revaluation of brand, market segmentation and hierarchy construction, brand culture promotion, andmarket foundation consolidation, the company achieved steady progress and improvements in various dimensions.

Firstly, the bottle-cracking and QR code-scanning participants increased rapidly. With sell-through as thekey, the company seized opportunities during peak seasons such as the Chinese New Year and the Dragon BoatFestival and launched events such as “Get into the Festive Spirit, Scan and Win More Prizes”, with the daily averageparticipants of bottle cracking and QR code scanning maintaining a two-digit year-on-year growth.

Secondly, the market foundation was continuously strengthened. Market segmentation and hierarchyconstruction was promoted according to local conditions, strategic highland markets and key model markets were

built, and point-of-sale terminals were constantly enhanced. Market coverage further increased, and emergingchannels such as e-commerce, supermarkets and group buying continued to yield results.Thirdly, the brand presence was increasingly strong. The brand actively integrated into and enrichedWuliangye’s “Harmony” culture, making strategic branding trajectories more specific, branding paths clearer, andbranding measures more flexible.

Finally, consumer development methods became more diverse. An innovative “3K” operation model,featuring Key Opinion Consumer (KOC), Key Opinion Sales (KOS), and Key Opinion Leader (KOL), has beenimplemented to build a new customer relationship ecosystem and achieve dual empowerment of product reputationand sell-through.

2. Major Sales Models of the Company

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

Direct-to-consumer model: This includes the group purchase model, where products are sold directly togroups of consumers, the exclusive store model for the retail end and consumer groups, and the online sales model,where products are sold through e-commerce platforms such as Tmall and JD.

3. Distribution Model

? Applicable □ Not applicable

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

Unit: RMB

By sales model

Of which:

Wuliangye-brandedBaijiu products

(2) Number of Distributors

East China

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

(3) Main Settlement Methods and Dealing Methods of Distributor Customers

A distribution model is mainly used, with a “payment before delivery” settlement method. In the ReportingPeriod, the total sales revenue from the top five distributors reached RMB30.061 billion, accounting for 56.96% ofthe total sales revenue.

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

? Applicable □ Not applicable

5. Online Direct-to-consumer Sales

? Applicable □ Not applicable

Wuliangye-branded Baijiu products:

Indicate whether any of the major products that accounted for more than 10% of the total operating revenue inthe current period saw a 30% or greater change in its selling price compared to the prior reporting period.

□ Applicable ? Not applicable

6. Purchase Model and Purchased Items

Unit: RMB

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

□ Applicable ? Not applicable

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

□ Applicable ? Not applicable

7. Main Production Models

The Company’s Baijiu products are all produced by itself.

Commissioned processing and production:

□ Applicable ? Not applicable

8. Breakdown of Cost of Sales

Unit: RMB

9. Production Volume and Inventory

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

Note 1: The liquor referred to in the table above is all commercial liquor.Note 2: This is primarily because the Spring Festival in 2025 was earlier than that in 2024, and the Companyactively stocked up for sales in the Spring Festival, leading to a higher opening inventory. Meanwhile, to furthermeet the needs from market segments, the Company took the initiative to increase the stock of differentiated liquorproducts, resulting in an increase in the closing inventory.

Note 3: This is primarily because the Baijiu industry was in deep adjustment, mid- and low-priced productswere more favored by consumers, and sales of these products increased accordingly.

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

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

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

The Company’s unique five major competitive edges of the regions of production, ancient fermentation pitclusters, quality, brands, and consumer base constitute its irreplicable core competitiveness. During the ReportingPeriod, the Company’s core competitiveness continued to strengthen.

The first is the geographical competitiveness. The Yibin region of production, where the Company is situated,boasts a uniquely favorable natural ecological distilling environment of “water, soil, air, climate, and biology”. Ithas been recognized by United Nations Educational, Scientific and Cultural Organization (UNESCO) and Food andAgricultural Organization (FAO) as “the most suitable region in the same latitude for producing high-quality, puredistilled Baijiu”, making it one of the world’s top ten regions of production of spirits. In 2023, it was awarded thetitle of “China’s Wuliang NongXiang Baijiu Core Region of Production”. In view of the development of the liquorindustry, the government of the region of production has stepped up resource integration and policy support in theregion of production, with the region of production being selected into the first batch of the key cultivation list ofregions of production for traditional advantageous food and local specialty food industries, which is released by theMinistry of Industry and Information Technology of China.

The second competitive edge lies in the ancient fermentation pit clusters. The ancient fermentation pitclusters of the Yuan and Ming dynasties, represented by Changfasheng and Lichuanyong, are the earliest and largestcave-type ancient fermentation pits in China with uninterrupted production. The “Archaeological Wuliangye”project, which has been selected into the “Compass Plan” launched by the Ministry of Science and Technology andthe Ministry of Culture and Tourism of China, has been successfully completed, tracing the history of the ancientfermentation pit back to 1276 (the early Yuan Dynasty). This means that these fermentation pits have beenproducing liquor continuously for 749 years.

Quality represents the third competitive edge. The Company follows the five principles of “planting,distilling, selecting, aging and blending” in the production of its Baijiu, which is the world’s first liquor

distilled from five grains—sorghum, rice, glutinous rice, wheat and corn. Also, it possesses the unique “1366”traditional production technique that has been identified as a national intangible cultural heritage, with 93process steps, 310 working procedures, and 218 quality inspection points. A through-life quality managementmodel “from seed to liquor” has been established. And Wuliangye is the only Baijiu producer that has won theNational Quality Award four times and was shortlisted for the Fifth China Quality Award. Additionally, it isamong the first to be included in the protection list of the China-EU Geographical Indications Agreement.During the Reporting Period, the on-site review of the Company for the EFQM Global Award (EGA) wassuccessfully completed, and the Quality Requirement for Geographical Indication Product—Wuliangye Baijiuwas officially implemented.

The fourth is the brand strength. Wuliangye’s brand culture has profound historical roots, beginning in theTang dynasty, emerging in the Song dynasty, refined in the Yuan dynasty, becoming well-known in the Mingdynasty, and establishing the brand name in the Qing dynasty. In 1932, it was the first in the industry to registerChinese and English trademarks. During the Reporting Period, the Company deeply participated in high-end eventssuch as the Boao Forum for Asia and the Expo 2025 Osaka, and successfully held IP events such as the FirstHarmony Wedding Ceremony and the Fourth Harmony Cultural Festival. Also, it partnered with China CentralTelevision (“CCTV”) to present the TV show Etiquette China and released the Common Prosperity·Song ofHarmony. In addition, the Company led the “Sichuan Liquor Global Tour” into countries such as France, theNetherlands, Japan, Germany, and Seychelles. The advocacy of a harmonious culture of “harmonious commonprosperity” continues to be prominently displayed. In Brand Finance Global 500 2025, Wuliangye is ranked the73rd, climbing up two places compared with the same period of last year. Its Brand Strength Index (BSI) has helpedit secure an AAA+ brand rating, the highest worldwide. In addition, Wuliangye was selected into the first batch ofChina’s Famous Consumer Goods list by the Ministry of Industry and Information Technology and included in theHistorical Classic Industries for cultivation.

The last is a broad consumer base. Strong-flavoured Baijiu is the Baijiu category with the highest marketshare and the largest consumer base. Being famous worldwide for its unique style of “lasting aroma, mellow,pleasant and smooth taste, and harmonious, well-balanced and comprehensive flavours”, Wuliangye has a wide andsolid consumer base. Notably, the industry’s pioneering low-alcohol Baijiu possesses a unique competitiveadvantage in cultivating a young consumer demographic and an overseas mainstream demographic.III Analysis of Principal Operations

Overview: please refer to the contents under the heading “I Principal Operations of the Company during theReporting Period” above.

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

Unit: RMB

equivalents

Note 1: This is primarily driven by greater investments in R&D projects such as production techniques.Note 2: This is primarily driven by a higher percentage of cash in payments received during the ReportingPeriod, while the same period of last year saw a higher percentage of bank acceptance bills instead.Note 3: This is primarily driven by the Company’s 2024 interim dividend payout of RMB9.999 billion duringthe Reporting Period.

Indicate whether any significant change occurred to the profit structure or sources of the Company in theReporting Period.

□ Applicable ? Not applicable

No such cases in the Reporting Period.

2. Breakdown of Operating Revenue

Unit: RMB

Note 1: This is primarily driven by the increased external business volume of printing upon iterative upgrades.

Note 2: This is primarily because output of the Baijiu industry declined due to external macroeconomic factors.

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

? Applicable □ Not applicable

Unit: RMB

Data of principal operations for the prior period (H1 2024) adjusted according to the changed methods ofmeasurement that occurred in the Reporting Period:

? Applicable □ Not applicable

Unit: RMB

Reasons for the changed methods of measurement: In order to deepen the reform as a state-owned enterprise,the Company integrated 27 marketing regions into three major regions: North China, South China and East China,establishing a vertical management and control system of “headquarters-regional centers-point of sale terminals” toenhance its market response capabilities.

The Company is subject to the disclosure requirements for the food and wine & liquor production industry inGuidelines No. 3 of the Shenzhen Stock Exchange for the Self-Regulation of Listed Companies—Industry-specificInformation Disclosure.

4. Breakdown of Selling Expense

Unit: RMB

5. Advertising Expense

During the Reporting Period, the Company’s primary advertising means included TV, broadcasting, Internet,outdoor ads and exhibitions. The expenses on online, offline and TV ads were RMB122 million, RMB482 millionand RMB318 million, respectively.

IV Analysis of Non-Core Businesses

□ Applicable ? Not applicable

V Analysis of Assets and Liabilities

1. Significant Changes in Asset Composition

Unit: RMB

2. Major Assets Overseas

□ Applicable ? Not applicable

3. Assets and Liabilities Measured at Fair Value

? Applicable □ Not applicable

Unit: RMB

Contents of other changes:

The Company classified the portion of bank acceptance bills received that were to be endorsed or discountedas receivables financing, and other changes during the period represented the net amount recognized and utilizedduring the period.Indicate whether any significant change occurred to the measurement attributes of the major assets in theReporting Period.

□ Yes ? No

4. Restricted Assets as at the Period-end

Unit: RMB

VI Investment Analysis

1. Total Investment Amount

□ Applicable ? Not applicable

2. Significant Equity Investments Acquired in the Reporting Period

□ Applicable ? Not applicable

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

□ Applicable ? Not applicable

4. Financial Investments

(1) Securities Investments

□ Applicable ? Not applicable

No such cases in the Reporting Period.

(2) Investments in Derivative Financial Instruments

□ Applicable ? Not applicable

No such cases in the Reporting Period.

5. Use of Raised Funds

□ Applicable ? Not applicable

No such cases in the Reporting Period.

VII Sale of Major Assets and Equity Investments

1. Sale of Major Assets

□ Applicable ? Not applicable

No such cases in the Reporting Period.

2. Sale of Major Equity Investments

□ Applicable ? Not applicable

VIII Principal Subsidiaries and Joint Stock Companies

? Applicable □ Not applicable

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

Unit: RMB

Unit: RMB

Subsidiaries acquired or disposed of in the Reporting Period:

□ Applicable ? Not applicable

IX Structured Entities Controlled by the Company

□ Applicable ? Not applicable

X Risks Facing the Company and Countermeasures

Firstly, there may be uncertainties in the environment at home and abroad; secondly, valid demand may not berecovering in an expected pace; and finally, the Baijiu industry continues to undergo deep change. In response, theCompany will adhere to its strategic focus, implement the “135” development strategy in depth, and persist inadapting to changes and seeking progress in changes. Also, it will find the intersection of supply-side structuralreforms and changes in consumption trends, and meet, create and lead demand with high-quality supply.XI Formulation and Implementation of Market Value Management Rules and ValuationEnhancement PlanIndicate whether the Company has formulated market value management rules.? Yes □ NoIndicate whether the Company has disclosed a valuation enhancement plan.

□ Yes ? No

In order to enhance investment value, increase investor returns, and strengthen market value management, theCompany has formulated the Market Value Management Rules, which has been approved at the Fourth Meeting ofthe Sixth Board of Directors in 2025. These rules mainly cover the specific departments or personnel responsiblefor market value management, the responsibilities of directors and senior management, the methods of market valuemanagement, and the monitoring and early warning arrangements for key indicators such as market value, price-to-earnings ratio, and price-to-book ratio. For details, please refer to the Market Value Management Rules disclosedby the Company on March 6, 2025.XII Implementation of the Action Plan for “Dual Enhancement of Development Quality andInvestor Returns”

Indicate whether the Company has disclosed its Action Plan for “Dual Enhancement of Development Qualityand Investor Returns”.

? Yes □ No

In order to comprehensively implement the guiding principles of the Political Bureau meeting on “activatingthe capital market and boosting investor confidence” and the State Council Executive Meeting on “vigorouslyenhancing the quality and investment value of listed companies, adopting more effective measures, focusing onstabilizing the market and confidence”, the Company disclosed the Action Plan for “Dual Enhancement ofDevelopment Quality and Investor Returns” (Announcement No.: 2024/No. 002) on March 7, 2024. Theimplementation of the action plan is as follows.

1. Strengthen development and strive to accelerate the journey to become a world-leading enterprise

Firstly, the Company has maintained steady and robust growth in operating performance. The Companyadhered to the working principles of “seeking progress in stability, maintaining stability with progress, improvingquality and efficiency, and making more contributions”, solidly carried out its work, and took scientific actions,achieving new heights in corporate development. In the first half of 2025, the Company achieved operating revenueof RMB52.771 billion, an increase of 4.19% year on year; and the net profit attributable to its shareholders wasRMB19.492 billion, an increase of 2.28% year on year. The Company maintained steady growth in operating

performance.

Secondly, the Company continued to deepen innovation. It continued to advance technologicalbreakthroughs in key areas. Breakthroughs were achieved in the application of modern biotechnology to replicateold fermentation pit mud, enabling improved production quality and efficiency of new fermentation pit mud.Furthermore, the Company accelerated the launch of new products such as Wuliangye (29% vol), Baijiu for the Yearof the Horse, Wuliangye (29% vol, Online Version), and the 8th-generation Wuliangye Bubugaosheng LightweightVersion.Thirdly, branding efforts yielded remarkable results. The Company deeply participated in high-end eventssuch as the Boao Forum for Asia and the Expo 2025 Osaka, and successfully held IP events such as the FirstHarmony Wedding Ceremony and the Fourth Harmony Cultural Festival. Also, it partnered with China CentralTelevision (“CCTV”) to present the TV show Etiquette China and released the Common Prosperity·Song ofHarmony. In addition, the Company led the “Sichuan Liquor Global Tour” into countries such as France, theNetherlands, Japan, Germany, and Seychelles, with an improving brand reputation and stronger brand presence. InBrand Finance Global 500 2025, Wuliangye is ranked the 73rd, climbing up two places compared with the sameperiod of last year. Its Brand Strength Index (BSI) has helped it secure an AAA+ brand rating, the highest worldwide.In addition, Wuliangye was selected into the first batch of China’s Famous Consumer Goods list by the Ministry ofIndustry and Information Technology and included in the Historical Classic Industries for cultivation.Finally, the high-quality and fast growth program was steadily carried out. The Company continued toadvance major projects under construction. Distilling workshops 1-9 and 12-15 of Phase II of the 100,000-tonEcological Distillery Project topped out. Section I of the Chinese Baijiu Cultural Sanctuary Project was completed,and the commercial area of the gateway project progressed as scheduled.

2. Strengthen compliance and continuously improve corporate governance

Firstly, the information disclosure continued to be strengthened. The Company continued to strengthen itslearning of the Company Law, the Stock Listing Rules and other applicable laws and regulations, and strengtheninformation disclosure management. It has won the highest level (A) assessment of information disclosure from theShenzhen Stock Exchange for 10 consecutive years. In the first half of 2025, the Company compiled and disclosed68 periodic reports and current announcements, conveying relevant information on its production and operation ina timely manner with increasing transparency.

Secondly, the governance system continued to be optimised. In the first half of 2025, the Companycompleted the re-election of the Sixth Board of Directors; convened eight Board meetings, deliberating on 31proposals, including matters related to profit distribution and related-party transactions; actively implemented thefunctions of the Board of Directors, ensuring efficient and orderly management of the Company.

Finally, the supervision mechanism continued to be sound. In the first half of 2025, the independentdirectors attended one special meeting of independent directors to issue opinion on matters such as related-partytransactions. They continued to pay attention to the Company’s information disclosure work, objectively evaluatedthe timeliness and accuracy of information disclosure, and independently and prudently expressed opinions toensure the normative, compliant, and effective operation of the Board of Directors. The Company’s SupervisoryCommittee independently exercised its powers in accordance with the law, supervised the Company’s lawfuloperations, financial status, related-party transactions, external guarantees, and actively safeguarded the legitimaterights and interests of all shareholders, the Company, and employees.

3. Strengthen returns and continuously increase shareholder returns

The Company continued to uphold the core value of “creating returns for investors”. While focusing on itsown development and improving operating performance, it actively shared the yield of development with allshareholders. In July 2025, the Company made the 2024 final dividend payout of RMB12.301 billion in cash, whichwas completed on July 18, 2025. This, plus the 2024 interim dividend payout of RMB9.999 billion, totaled a full-year dividend payout of RMB22.3 billion in cash for 2024, representing a cash dividend payout ratio of 70.01%.Both the dividend amount and the dividend payout ratio were the highest since the Company went public

4. Strengthen confidence with the largest shareholder increasing its shareholding in the Company again

On April 9, 2025, Wuliangye Group carried out another plan to increase its shareholding in the Company, andhad cumulatively purchased 4,763,666 additional shares as of July 12, 2025 with an amount of RMB613.5204million, accounting for 0.12% of the Company’s total share capital. As of now, the shareholding increase plan hasnot been fully implemented, and Wuliangye Group will continue to increase its holdings in accordance with theplan.

5. Strengthen communication and continuously optimise investor relations management

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

trustworthiness”, continuously optimised investor relations management, and built various communicationplatforms. During the Reporting Period, the Company held the “2024 Annual and 2025 First Quarterly ResultsBriefing” and the “2024 Annual General Meeting of Shareholders”, actively listening to investors’ opinions andsuggestions, improving the effectiveness and pertinence of communication, and ensuring the equal participation ofminority shareholders. During the Reporting Period, the Company communicated with a total of more than 700investors through the annual general meeting of shareholders, one-on-one meetings, securities firms’ investmentconferences, conference calls and other forms. The Company will continue to implement relevant measures of theAction Plan for “Dual Enhancement of Development Quality and Investor Returns”, strive to realise the concept of“investors first” through good performance, standardised corporate governance, and active investment returns,effectively fulfill the responsibilities and obligations of a listed company, enhance investor confidence, and achievesustained high-quality development of the Company.

Part IV Environmental, Social and Governance InformationI Change of Directors, Supervisors and Senior Management? Applicable □ Not applicable

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

□ Applicable ? Not applicable

The Company has no interim dividend plan, either in the form of cash or bonus issue.III Equity Incentive Plans, Employee Stock Ownership Plans or Other Incentive Measures forEmployees

? Applicable □ Not applicable

1. Equity Incentives

Not applicable

2. Employee Stock Ownership Plans

? Applicable □ Not applicable

Outstanding employee stock ownership plans during the Reporting Period:

Shareholdings of directors, supervisors and senior management under employee stock ownership plans duringthe Reporting Period:

In April 2018, the Company carried out an employee stock ownership plan through a private placement, andcertain in-service directors, supervisors and senior management participated in the employee stock ownership plan.As of the end of the Reporting Period, non-transaction transfers had been completed.

Change of the asset management agency during the Reporting Period:

□ Applicable ? Not applicable

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

□ Applicable ? Not applicable

3. Exercise of Shareholder Rights during the Reporting Period

□ Applicable ? Not applicable

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

□ Applicable ? Not applicable

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

□ Applicable ? Not applicable

The financial impact of employee stock ownership plans on the Company and the relevant accountingtreatments during the Reporting Period:

□ Applicable ? Not applicable

Termination of employee stock ownership plans during the Reporting Period:

□ Applicable ? Not applicable

Other information: None.

4. Other Incentive Measures for Employees

□ Applicable ? Not applicable

IV Environmental Information Disclosure

Indicate whether the listed company or any of its major subsidiaries is included in the list of companies thatare required by law to disclose environmental information.

? Yes □ No

V Corporate Social Responsibility (CSR)

The Company has firmly shouldered its political responsibility for providing bottom-line assistance, adheringto the guiding principle of “five-approach support” (i.e., building consensus in ideas, solving problems together,working together on industries, co-developing projects, and cultivating talent together) and following the overallarrangements of the provincial and municipal Party committees and people’s governments. The Company hasprovided bottom-line assistance to Litang and Shiqu counties in Ganzi Prefecture and Yuexi County in LiangshanPrefecture outside the city, and helped support 54 towns and villages in Xuzhou District, Jiang’an County, PingshanCounty, and other districts and counties within the city. A total of 33 supporting officials has been dispatched.

1. Improved the support work mechanism and advanced work in an orderly manner

Firstly, the Company persisted in high-level promotion. The Company attaches great importance to the bottom-line assistance work and has included it in its key agenda. It has held eight meetings to advance the work, with themain leaders conducting four field research and guidance visits to the counties.

Secondly, the Company insisted on the “Three-level Assistance” model. The Company has enhanced thecoordination of subordinate companies and related units under the leadership of the task force office. The membersof the task force have implemented the “1+N+2” three-level joint assistance system under supervision, withassistance projects such as hot spring hotels, homestays, and Bailu Liquor in Litang County, Yuexi County, andPingshan County, steadily progressing.

Thirdly, the Company insisted on systematic planning. With the “Baijiu +” industry support model, theCompany has dynamically optimized the “One Enterprise, One Policy” support plan. Through the 2025 AssistancePlan, the Company’s Party Committee has set out an “8+8+2+N” portfolio of assistance projects, forming anassistance pathway that combines “local specialty projects” with “projects aligned to the Company’s strengths”.

2. Increased resource investment to boost industrial development

Firstly, the Company focused on projects that combine “core business advantages + regional characteristics”to fully support the development of the Baijiu industry in Litang County and Yuexi County. The Company investedRMB2 million in Litang County to jointly innovate and develop the “Shangxuan” series of sea buckthorn andmatsutake mushroom liquor, and sea buckthorn and Cistanche deserticola liquor. In Yuexi County, a custom Baijiuproduct “Wuliangyuan” was launched in January. The Company invested RMB10 million to build a Baijiu bottlingline, set up a Baijiu task force, conducted field research and guidance, and assisted local state-owned liquorenterprises in the sale of Baijiu products with an additional RMB5 million to support the development of the localspecial industry in Yuexi County.

Secondly, the Company focused on exploring projects that combine “cultural tourism industry + publicwelfare”. In Litang County, the Company invested RMB10 million to support the development of special industries.It provided ongoing guidance for the construction of major and supporting facilities of Oxygen Chamber HomestayHotel in Genie Town and the hot spring hotel in Chaka Village. Additionally, the Company sponsored RMB1 millionfor the Litang “August 1st” Horse Racing Cultural Festival to continuously enhance the region’s cultural tourismbrand influence, and allocated RMB0.2 million to upgrade the sports and cultural square in Mula Town, improvingpublic infrastructure and well-being. In Yuexi County, the Company launched the “20℃ Yuexi Tour” campaign,organizing in-depth visits to showcase local cultural tourism resources and stimulate high-end tourism consumption.In Pingshan County, the Company invested RMB6 million to support the construction of the “Wuliangye TorchSquare” in Qingping Yi Ethnic Township and infrastructure improvements in Yingxiong Village, continuouslyenhancing public well-being and people’s sense of happiness.

Thirdly, the Company focused on the innovation of projects that combine “agricultural specialties + expandedsales channels”. In the first half of 2025, the Company procured RMB12.1249 million worth of agriculturalspecialties from Litang County, Yuexi County, Pingshan County, and Jiang’an County. It expanded sales channelsthrough initiatives such as internal employee trade fairs, launching the online store of Wuliangye Home, andassisting the Yuexi County Bureau of Culture and Tourism in promoting the Torch Festival at the Group, helpingsell nearly RMB35,000 worth of agricultural specialties. The Company allocated about RMB30,000 to support theproduction of Yuexi’s special natural mineral water. Leveraging its resource network, the Company facilitated thesigning of the Strategic Cooperation Agreement for the Yuexi Pepper Industry between the People’s Government ofYuexi County and Sichuan Teway Food Group Co., Ltd.

3. Strengthened talent development to unlock growth potential

The Company continued to implement educational support plans, granting RMB0.1 million in scholarships to20 outstanding university students in need from Litang County. The Company also launched the “Young EaglesPlan” to train returning university students, recruiting 17 new members for grassroots practice in 2025 followingthe 11 recruited in 2024, with the goal of cultivating local talent. Furthermore, a government-enterprise trainingclass was organized in collaboration with the People’s Government of Yuexi County, planning to send six corporatemanagement personnel to the Company for exchange and learning.

Part V Significant EventsI Undertakings of the Company’s Actual Controller, Shareholders, Related Parties andAcquirers, as well as the Company Itself and other Entities Fulfilled in the Reporting Period orOngoing at the Period-end? Applicable □ Not applicableBased on its confidence in the Company’s continuously stable development and recognition of the Company’slong-term investment value, Wuliangye Group has undertaken to increase its shareholdings in the Company withinsix months from April 9, 2025. Wuliangye Group and its acting-in-concert party Yibin Development Group haveundertaken not to reduce their shareholdings in the Company during the said period of shareholding increase. Andthe undertakings were honored continuously.II Occupation of the Company’s Funds by the Controlling Shareholder or Any of Its RelatedParties for Non-Operating Purposes

□ Applicable ? Not applicable

No such cases in the Reporting Period.

III Irregularities in the Provision of Guarantees for External Parties

□ Applicable ? Not applicable

No such cases in the Reporting Period.IV Appointment and Dismissal of CPA FirmIndicate whether the interim financial statements are audited.

□ Yes ? No

The interim financial statements are unaudited.V Statements Made by the Board of Directors and the Supervisory Committee Regarding theIndependent Auditor’s “Modified Opinion” on the Financial Statements of the ReportingPeriod

□ Applicable ? Not applicable

VI Statement Made by the Board of Directors Regarding the “Modified Opinion” of anIndependent Auditor on Financial Statements of Last Year

□ Applicable ? Not applicable

VII Insolvency and Reorganization

□ Applicable ? Not applicable

No such cases in the Reporting Period.VIII Legal Matters

Significant lawsuits and arbitrations:

□ Applicable ? Not applicable

No such cases in the Reporting Period.

Other legal matters:

? Applicable □ Not applicable

against the first-instancejudgment. The second-instancecourt dismissed the appeal andupheld the original judgment.Xi’an Construction EngineeringGroup Co., Ltd. has paid thecompensation in full to theCompany.

Note 1: The amount involved in the case increased due to an increase in storage fees paid by ChengduPomegranate Agricultural Products Development Co., Ltd. to Yibin Wuliangye Xianlin Ecological Liquor Co., Ltd.

Note 2: The amount involved in the case changed due to Sichuan Yibin Global Group Shenzhou Glass Co.,Ltd. receiving a refund of the case acceptance fee and the property preservation fee from the court.IX Penalties and Rectifications

□ Applicable ? Not applicable

No such cases in the Reporting Period.

X Credit Standings of the Company as well as Its Controlling Shareholder and ActualController

? Applicable □ Not applicable

The Company as well as its controlling shareholder and actual controller were in good credit standing duringthe Reporting Period.

XI Significant Related-Party Transactions

1. Continuing Related-Party Transactions

? Applicable □ Not applicable

See “5. Related-Party Transactions” under “XIV Related Parties and Related-Party Transactions” of Part VIII.

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

□ Applicable ? Not applicable

No such cases in the Reporting Period.

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

□ Applicable ? Not applicable

No such cases in the Reporting Period.

4. Amounts Due to and from Related Parties

□ Applicable ? Not applicable

No such cases in the Reporting Period.

5. Transactions with Related Finance Companies

? Applicable □ Not applicable

Making deposits:

Note: The amount incurred in the period is presented on a net basis, which means such transactions areeliminated as the same company withdrawing a deposit and making another deposit of a different kind, or companiesincluded in the consolidated financial statements making transfers via Wuliangye Group Finance.

Receiving loans: The Company received no loans from Wuliangye Group Finance during the Reporting Period.

Receiving credit (inclusive of discounting) or other financial services:

Note: On January 1, 2025, the Company and Wuliangye Group Finance signed a Supplementary Agreement tothe Financial Service Agreement, agreeing that the daily deposit balance with Wuliangye Group Finance shall notexceed RMB55 billion in 2025, and that the daily total balance of outstanding loans and unused credit withWuliangye Group Finance shall not exceed RMB10 billion in 2025.The “amount incurred” in the Reporting Period includes the bank acceptance bills of RMB61.8570 millionissued by Wuliangye Group Finance (undue bank acceptance bills as of June 30, 2025: RMB61.8570 million).

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

□ Applicable ? Not applicable

No such cases in the Reporting Period.

7. Other Significant Related-Party Transactions

□ Applicable ? Not applicable

No such cases in the Reporting Period.

XII Significant Contracts and Execution

1. Entrustment, Contracting and Leases

(1) Entrustment

□ Applicable ? Not applicable

No such cases in the Reporting Period.

(2) Contracting

□ Applicable ? Not applicable

No such cases in the Reporting Period.

(3) Leases

□ Applicable ? Not applicable

No significant leases in the Reporting Period.

2. Significant Guarantees

□ Applicable ? Not applicable

No such cases in the Reporting Period.

3. Cash Entrusted for Wealth Management

□ Applicable ? Not applicable

No such cases in the Reporting Period.

4. Other Significant Contracts

□ Applicable ? Not applicable

No such cases in the Reporting Period.

XIII Other Significant Events

□ Applicable ? Not applicable

No such cases in the Reporting Period.

XIV Significant Events of Subsidiaries

? Applicable □ Not applicable

The Company’s Sixth Board of Directors approved at its fifth meeting in 2025 to invest in the establishmentof Yibin Wuliangye Technology Innovation Co., Ltd. (hereinafter referred to as “Wuliangye TechnologyInnovation”). Wuliangye Technology Innovation was officially established on July 17, 2025 with a registered capitalof RMB100 million. The Company holds 100% equity in Wuliangye Technology Innovation.

Part VI Share Changes and Shareholder Information

I Share Changes

1. Share Changes

Unit: share

Reasons for share changes:

? Applicable □ Not applicableIn accordance with the latest regulatory requirements, the Company abolished the Supervisory Committee in

June 2025, and the locked shares of relevant personnel increased.Approval of share changes:

□ Applicable ? Not applicable

Transfer of share ownership:

□ Applicable ? Not applicable

Progress on any share repurchase:

□Applicable ? Not applicable

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

□Applicable ? Not applicable

Effects of share changes on the basic earnings per share, diluted earnings per share, equity per share attributableto the Company’s ordinary shareholders and other financial indicators of the latest year and the latest accountingperiod, respectively:

□ Applicable ? Not applicable

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

□ Applicable ? Not applicable

2. Changes in Restricted Shares

? Applicable □ Not applicable

Unit: share

II Issuance and Listing of Securities

□ Applicable ? Not applicable

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

Unit: share

5% or greater shareholders, top 10 shareholders and top 10 unrestricted public shareholders involved inrefinancing shares lending:

□Applicable ? Not applicable

Changes in top 10 shareholders and top 10 unrestricted public shareholders due to refinancing shareslending/return compared with the prior period:

□Applicable ? Not applicable

Indicate whether any of the top 10 ordinary shareholders or the top 10 unrestricted ordinary shareholders ofthe Company conducted any promissory repurchase during the Reporting Period.

□ Yes ? No

No such cases in the Reporting Period.

IV Changes in Shareholdings of Directors, Supervisors and Senior Management

□Applicable ? Not applicable

No changes occurred to the shareholdings of the directors, supervisors and senior management in the ReportingPeriod. See Annual Report 2024 for more details.

V Change of the Controlling Shareholder or the Actual Controller

Change of the controlling shareholder in the Reporting Period:

□ Applicable ? Not applicable

No such cases in the Reporting Period.

Change of the actual controller in the Reporting Period:

□ Applicable ? Not applicable

No such cases in the Reporting Period.

VI Preference Shares

□ Applicable ? Not applicable

No preference shares in the Reporting Period.

Part VII Bonds

□ Applicable ? Not applicable

Part VIII Financial StatementsI Independent Auditor’s Report

Indicate whether the interim financial statements are audited.

□ Yes ? No

The interim financial statements are unaudited.II Financial StatementsMonetary unit for the financial statements and the statements in the notes thereto unless otherwise stated: RMB

1. Consolidated Balance Sheet

Prepared by Wuliangye Yibin Co., Ltd. June 30, 2025 Unit: RMB

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

2. Balance Sheet of the Parent Company

Unit: RMB

3. Consolidated Income Statement

Unit: RMB

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

4. Income Statement of the Parent Company

Unit: RMB

5. Consolidated Cash Flow Statement

Unit: RMB

6. Cash Flow Statement of the Parent Company

Unit: RMB

7. Consolidated Statements of Changes in Owners’ Equity

H1 2025

Unit: RMB

H1 2024

Unit: RMB

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

H1 2025

Unit: RMB

H1 2024

Unit: RMB

III Company Profile

1. Place of registration, organizational form and headquarters address

Wuliangye Yibin Co., Ltd. (hereinafter referred to as the “Company”) is a company limited by sharesestablished by Sichuan Yibin Wuliangye Distillery through fund raising on August 19, 1997 with the approval ofDocument CFH (1997) No. 295 issued by the People’s Government of Sichuan Province. The Company isprincipally engaged in the production and sales of “Wuliangye”-branded Baijiu products and other Baijiu series,with a registered capital of RMB3,881.6080 million and registered address: 150 Minjiang West Road, CuipingDistrict, Yibin City, Sichuan Province, China.

The Company issued 80 million ordinary shares (in RMB) on-line by fixed price offering at Shenzhen StockExchange on April 27, 1998. According to the resolution of the extraordinary general meeting of Shareholders inSeptember 1999, the Company, based on the total share capital of 320 million shares on June 30, 1999, transferredcapital reserve to increase share capital, increasing five shares for every ten shares and the total share capital afterthe conversion was changed to 480 million shares. The Company placed 31.2 million ordinary shares (in RMB) tothe original shareholders as approved by Document ZH.J.G.S.Z. [2001] No. 6 issued by the China SecuritiesRegulatory Commission. The total share capital after the placement was 511.2 million shares. In August 2001, theCompany implemented the interim distribution plan 2001 and issued four bonus shares and increased three sharesfor every ten shares by transferring capital reserve to share capital, with 357.84 million bonus shares and sharestransferred from capital reserve in total. The total share capital after the issuance and translation was 869.04 millionshares. In April 2002, the Company implemented the distribution plan 2001 and issued one bonus shares, increasedtwo shares by transferring capital reserve to share capital, and distributed RMB0.25 (tax inclusive) in cash for everyten shares, with 260.712 million bonus shares in total. The total share capital after the issuance and translation was1,129.752 million shares. In April 2003, the Company implemented the distribution plan 2002 and increased twoshares for every ten shares by transferring capital reserve to share capital for all shareholders, increasing the sharecapital by 225.9504 million shares. The total share capital after the translation was 1,355.7024 million shares. InApril 2004, the Company implemented the distribution plan 2003 and issued eight bonus shares and increased twoshares by transferring capital reserve to share capital for every ten shares, with 1,355.7024 million bonus shares intotal. The total share capital after the issuance and translation was 2,711.4048 million shares.

On March 31, 2006, the Company carried out the equity division reform and the shareholding structure afterthe reform was as below: 1,817.7869 million shares for state-owned legal person, taking up 67.04% of the totalshare capital, 493.4 thousand shares for officers, taking up 0.02% of the total share capital, and 893.1245 millionshares for other shareholders, taking up 32.94% of the total share capital. The total share capital remained at2,711.4048 million shares.

In April 2007, the Company implemented the distribution plan 2006 and issued four bonus shares anddistributed RMB0.60 (tax inclusive) in cash for every ten shares, with 1,084.5619 million bonus shares in total. Thetotal share capital after the issuance and distribution was 3,795.96672 million shares. On April 2, 2008, shares forstate-owned legal person decreased by 416.5303 million shares due to the exercise of warrants and became2,128.3714 million shares, taking up 56.07% of the total share capital. Other shareholders held 1,667.5954 millionshares, taking up 43.93% of the total share capital.

According to the Notice on Free Transfer of Shares Held by State-owned Shareholders of Wuliangye YibinCo., Ltd. of the State-owned Assets Supervision and Administration Commission of Sichuan Province(CH.G.Z.CH.Q. [2012] No. 88) and the Reply on Free Transfer of Shares Held by State-owned Shareholders ofWuliangye Yibin Co., Ltd. of the State-owned Assets Supervision and Administration Commission of the StateCouncil (G.Z.CH.Q. [2012] No. 889), Yibin State-Owned Assets Operation Co., Ltd. (renamed as YibinDevelopment Holding Group Co., Ltd. in 2021) transferred 761,823,343 shares held by it in the Company to Sichuan

Yibin Wuliangye Group Co., Ltd. for free on October 10, 2012. After this free transfer of shares, Yibin DevelopmentHolding Group Co., Ltd. still held 36% shares of the Company (i.e. 1,366,548,020 shares) and was the first majorityshareholder of the Company; Sichuan Yibin Wuliangye Group Co., Ltd., holding 20.07% shares of the Company(i.e. 791,823,343 shares), was the second majority shareholder of the Company.According to the Reply on Free Transfer of 49% Shares Held by Sichuan Yibin Wuliangye Group Co., Ltd.(Y.G.Z.W. [2016] No. 32), the State-owned Assets Supervision and Administration Commission of the People’sGovernment of Yibin City transferred 49% shares held by it in Sichuan Yibin Wuliangye Group Co., Ltd. to YibinDevelopment Holding Group Co., Ltd. for free in 2016. This transfer of shares did not involve the change of sharesheld by both parties in the Company, without changing the controlling shareholder and actual controller of theCompany.According to the resolutions of the 11th meeting of the 5th Board of Directors, annual general meeting ofShareholders 2015, the 19th meeting of the 5th Board of Directors, the 24th meeting of the 5th Board of Directors,and annual general meeting of Shareholders 2016 of the Company and as approved by the License ZH.J.X.K. [2017]No. 1910 issued by the China Securities Regulatory Commission, the Company issued 85,641,285 shares by non-public offering by means of targeted issue on April 12, 2018. The total share capital after the issuance was 3,881.608million shares, including 2128.3714 million shares for state-owned legal person, taking up 54.83% of the total sharecapital, and 1,753.2366 million shares for other shareholders, taking up 45.17% of the total share capital.According to the Reply on Approval of Free Transfer of Shares Held by Wuliangye Yibin Co., Ltd. (Y.G.Z.W.[2020] No. 157), issued by The State-owned Assets Supervision and Administration Commission of the People’sGovernment of Yibin City, the transfer was approved in principle. On August 24, 2020, Yibin Development HoldingGroup Co., Ltd. transferred 30,000,000 shares held by it in the Company to Sichuan Yibin Wuliangye Group Co.,Ltd. for free. After this transfer of shares, Yibin Development Holding Group Co., Ltd. still held 34.43% shares ofthe Company (i.e. 1,336,548,020 shares) and was the first majority shareholder of the Company; Sichuan YibinWuliangye Group Co., Ltd., holding 20.40% shares of the Company (i.e. 791,823,343 shares), was the secondmajority shareholder of the Company. This transfer of shares did not change the controlling shareholder and actualcontroller of the Company.Sichuan Yibin Wuliangye Group Co., Ltd. has, during the period from December 14, 2023 to the close oftrading on June 12, 2024, cumulatively increased its shareholding in the Company by 3,406,668 shares (or 0.09%of the Company’s current total share capital of 3,881,608,005 shares) through the trading system of the ShenzhenStock Exchange by way of centralized bidding with an amount of RMB500.0016 million. Upon completion of theimplementation of the shareholding increase plan, Yibin Development Holding Group Co., Ltd. still holds a 34.43%interest in the Company (i.e. 1,336,548,020 shares), being the largest shareholder of the Company; and SichuanYibin Wuliangye Group Co., Ltd. holds a 20.49% interest in the Company (i.e. 795,230,011 shares), being thesecond largest shareholder of the Company. Therefore, the controlling shareholder and the actual controller of theCompany have remained unchanged.On April 9, 2025, Sichuan Yibin Wuliangye Group Co., Ltd. (Wuliangye Group) carried out another plan toincrease its shareholding in the Company, and had cumulatively purchased 4,763,666 additional shares as of July12, 2025 through the trading system of the Shenzhen Stock Exchange by way of centralized bidding with an amountof RMB613.5204 million, accounting for 0.12% of the Company’s total share capital of 3,881,608,005 shares. Uponcompletion of the implementation of the shareholding increase plan, Yibin Development Holding Group Co., Ltd.still holds a 34.43% interest in the Company (i.e. 1,336,548,020 shares), being the largest shareholder of theCompany; and Sichuan Yibin Wuliangye Group Co., Ltd. holds a 20.61% interest in the Company (i.e. 799,993,677shares), being the second largest shareholder of the Company. Therefore, the controlling shareholder and the actualcontroller of the Company have remained unchanged.

2. Principal operations of the Company

The Company is engaged in the beverage production industry and its business scope is: Production andoperation of liquor products and relevant auxiliary products (bottle caps, trademarks, logos and packaging products).Its primary products are “Wuliangye”-branded Baijiu products and other Baijiu series.

3. The Company’s parent company and ultimate controller

The Company’s parent company is Yibin Development Holding Group Co., Ltd., and ultimate controller isThe State-owned Assets Supervision and Administration Commission of the People’s Government of Yibin City.

4. Approval organ and approval date of financial statements

These financial statements have been approved for issue by General Meeting of Shareholders of the Companyon August 26, 2025.

IV Preparation Basis for Financial Statements

1. Preparation basis

The financial statements are prepared on the assumption that the Company is a going concern, based on actualtransactions, in accordance with the relevant provisions of the Accounting Standards for Business Enterprises, andbased on the significant accounting policies and accounting estimates described below.

2. Going concern

The Company has the ability of going concern for at least 12 months from the end of the Reporting Period,and there is no major event affecting the ability of going concern.

V Significant Accounting Policies and Accounting Estimates

The Company is subject to the disclosure requirements for the food and wine & liquor production industry inGuidelines No. 3 of the Shenzhen Stock Exchange for the Self-Regulation of Listed Companies—Industry-specificInformation Disclosure.

Specific accounting policies and accounting estimates:

The contents disclosed below cover the specific accounting policies and accounting estimates formulated bythe Company according to the actual production and operation characteristics.

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

The financial statements prepared on the above-mentioned basis comply with the requirements of the latestAccounting Standards for Business Enterprises, application guidelines, interpretations and other related regulationsissued by the Ministry of Finance (collectively referred to as the “Accounting Standards for Business Enterprises”,which truly and completely reflect the Company’s financial position, operating results, cash flows and other relevantinformation.

In addition, these financial statements have been prepared by reference to the presentation and disclosurerequirements of the Preparation Rules for Information Disclosure by Companies Offering Securities to the PublicNo. 15 - General Provisions on Financial Reports (2023 revision) issued by the China Securities RegulatoryCommission.

2. Accounting period

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

3. Operating cycle

The Company’s operating cycle is 12 months.

4. Bookkeeping base currency

RMB is adopted as the recording currency of the Company.

5. Methods for determining materiality standards and selection criteria:

? Applicable □ Not applicable

6. Accounting methods for business combinations involving entities under and not under common control

(1) Accounting methods for business combinations involving entities under common controlFor a business combination under the common control achieved through step-by-step implementation ofmultiple transactions by the Company, the assets and liabilities acquired in a business combination are measured atthe carrying amount of the acquiree in the consolidated financial statements of the ultimate controlling party at thedate of combination. The difference between the carrying amount of the net assets obtained by the Company andthe carrying amount of consideration paid for the combination (or total par value of the shares issued) is adjustedagainst the capital reserve; if the capital reserve is not sufficient for writing down, the retained earnings shall beadjusted.

(2) Accounting methods for business combinations involving entities not under common controlOn the acquisition date, the difference between the combination costs and the fair value share of theidentifiable net assets of the acquiree obtained in the merger is recognized as goodwill. If the combination costs areless than the fair value share of the identifiable net assets of the acquiree obtained in the combination, firstly, thefair value of identifiable assets, liabilities and contingent liabilities of the acquiree and the measurement ofcombination costs are reviewed. If the combination costs are still less than the fair value share of identifiable netassets of the acquiree obtained in the merger after review, the difference is recorded in current profit or loss.Business combinations not under the same control achieved step by step through multiple transactions shouldbe treated in the following order:

1) Adjusting the initial investment cost of long-term equity investment. If the equity held prior to the date ofpurchase is accounted under the equity method, the equity is remeasured at the fair value on the purchase date, and

the difference between the fair value and its carrying amount is included in the investment income of the currentperiod; if the equity in the acquiree held prior to the purchase date involves other comprehensive income or changesin other owners’ equity under the equity method of accounting, it is converted into income for the current period onthe purchase date, except for other comprehensive income arising from the re-measurement of the investedcompany’s net liabilities of the defined benefit pension plan or changes in net assets of the defined benefit plan andchanges in the fair value of investments in other equity instruments held.

2) Determining the goodwill (or the amount included in the current profit or loss) When comparing the initialinvestment cost of long-term equity investments adjusted in the first step with the share of the fair value of theidentifiable net assets of the subsidiary on the purchase date, if the former is more than the latter, the differencebetween the former and the latter is recognized as goodwill; if the former is less than the latter, the difference isincluded in the current profit or loss.Step-by-step disposal of equity through multiple transactions that results in loss of control over the subsidiary:

1) Principles for determining whether transactions in the process of step-by-step disposal of equity that resultsin the loss of control over a subsidiary constitute a “package deal”

The multiple transactions are generally regarded as a “package deal” in accounting treatment if the clauses,conditions, and economic impacts of various transactions fall under one or more of the following circumstances:

① These transactions were entered into simultaneously or considering their mutual influence;

② The transactions as a whole can achieve a complete commercial outcome;

③ The occurrence of one transaction is contingent upon the occurrence of at least one other transaction;

④ One transaction is uneconomical on its own, but it is economical when taken together with othertransactions.

2) Accounting methods when transactions in the process of step-by-step disposal of equity that results in theloss of control over a subsidiary constitute a “package deal”

If the transactions in the disposal of equity of a subsidiary that results in the loss of control constitute a packagedeal, each transaction should be accounted for as a transaction that disposes of and loses control over a subsidiary;however, the difference between the disposal price and the share of the net assets of the subsidiary correspondingto the disposal of the investment for each disposal prior to the loss of control should be recognized as othercomprehensive earnings in the consolidated financial statements and transferred to profit or loss for the currentperiod when the Company lost the control.

In the consolidated financial statements, the remaining equity should be remeasured at fair value on the dateof loss of control. The sum of the consideration obtained from the disposition of equity and the fair value of theresidual equity minus the Company’s portion of net assets in the former subsidiary calculated from the date ofcombination on an ongoing basis at the original shareholding ratio is included in the return on investment for thecurrent period when the Company lost the control. Other comprehensive income related to the equity investmentsin the former subsidiary should be included in the return on investment or retained earnings for the current periodwhen the Company lost the control.

3) Accounting methods when transactions in the process of step-by-step disposal of equity that results in theloss of control over a subsidiary do not constitute a “package deal”

If the Company disposes of investments made in its subsidiary without losing control over the subsidiary, inthe consolidated financial statements, the difference between the payment for equity disposed of and the Company’scorresponding portion of net assets in the subsidiary is included in the capital reserve. If the capital reserve isinsufficient for writing down, the retained earnings should be adjusted.

If the disposal of investments made in its subsidiary results in a loss of control over the subsidiary, in theconsolidated financial statements, the remaining equity should be remeasured at the fair value on the date of loss of

control. The sum of the consideration obtained from the disposal of equity and the fair value of the remaining equityminus the Company’s portion of net assets in the former subsidiary calculated from the date of combination on anongoing basis at the original shareholding ratio is included in the return on investment for the current period whenthe Company lost the control. Other comprehensive income related to the equity investments in the formersubsidiary should be included in the return on investment or retained earnings for the current period when theCompany lost the control.

7. Judgement criteria for control and methods for preparing consolidated financial statementsThe scope of consolidation of the Company’s consolidated financial statements shall be determined on thebasis of control.Control means that the Company has the power over the invested company, gets variable return byparticipating in related activities of the invested company and has the ability to influence the amount of the returnby its power over the invested company. Related activities refer to activities that have a significant impact on thereturns of the invested company. The related activities of the invested company should be judged based on thespecific circumstances, and usually include the sale and purchase of goods or services, the management of financialassets, the purchase and disposal of assets, research and development activities, and financing activities.The Company will judge whether these entities have been controlled by the investee based on itscomprehensive consideration of relevant facts and circumstances. Should any changes in such facts andcircumstances alter the elements defining control, a reassessment is promptly conducted. Relevant facts andcircumstances mainly include: (1) the purpose of the investee’s establishment; (2) the investee’s activities and howdecisions regarding them are made; (3) whether the rights held by the investor currently enable it to dominate theinvestee’s activities; (4) whether the investor receives variable returns from participating in the investee’s activities;

(5) whether the investor has the ability to use its power over the investee to affect the amount of its returns; (6) therelationship between the investor and other parties.

The consolidated financial statements are based on the financial statements of the parent company and itssubsidiaries and are prepared by the Company in accordance with Accounting Standard No. 33 for BusinessEnterprises - Consolidated Financial Statements based on other relevant information.The parent company shall prepare the consolidated financial statements based on its financial statements andthose of its subsidiaries and according to other relevant information. The share of the subsidiaries in currentprofit/loss attributable to non-controlling interests shall be presented in the consolidated income statement as “netprofit attributable to non-controlling interests” under the net profit. The share in current comprehensive income ofthe subsidiaries which is attributable to non-controlling interests shall be presented in the consolidated incomestatement as “total comprehensive income attributable to non-controlling interests” under the total othercomprehensive income.For subsidiaries and businesses of the parent company added by business combination involving enterprisesunder the common control during the Reporting Period, the revenue, expenses, and profits of such subsidiaries andbusinesses from the beginning to the end of the period of business combination shall be recorded into theconsolidated income statement. Cash flows of such subsidiaries and businesses from the beginning to the end of theyear of business combination shall be recorded into the consolidated cash flow statement, and relevant items of thestatements shall be adjusted through comparison of the statements, as if the reporting entity after the combinationhad been existing from control of the final controlling party after the combination comes into effect.For subsidiaries and businesses added by business combination involving enterprises not under the commoncontrol or other means, the revenue, expenses, and profits of such subsidiaries and businesses from the date ofacquisition to the end of Reporting Period shall be recorded into the consolidated income statement. Cash flows ofsuch subsidiary from the date of acquisition to the end of the Reporting Period shall be recorded into the consolidated

cash flow statement.When the parent company disposes subsidiaries and businesses during the Reporting Period, the revenue,expenses, and profits of such subsidiary and business from the beginning of the Reporting Period to the date ofdisposal shall be recorded into the consolidated income statement; and the cash flow of such subsidiary and businessfrom the beginning of the Reporting Period to the date of disposal shall be recorded into the consolidated cash flowstatement.In the consolidated financial statements, when the parent company acquires the equity held by the minorityshareholders in the subsidiary, the difference between the long-term equity investment obtained by acquiring non-controlling interests and the share of the net assets to be enjoyed and continuously calculated from the date ofacquisition or combination according to the new increase in shareholding proportion shall be adjusted against thecapital reserve (capital premium or share premium). If the capital reserve is not sufficient for writing down, theretained earnings shall be adjusted.

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

(1) Identification and classification of joint arrangements

Joint arrangement refers to an arrangement under the joint control of two or more participants. A jointarrangement has the following characteristics: 1) Each participant is bound by the arrangement; 2) two or moreparties of the joint arrangement exercise joint control over the arrangement. No one party can control thearrangement alone, and any party with joint control over the arrangement can prevent the other party or combinationof parties from controlling the arrangement alone.Joint control refers to the common control of an arrangement in accordance with the relevant agreement, andrelated activities of the arrangement must be agreed upon by the parties sharing control rights before they can makedecisions.

Joint arrangements are divided into joint operations and joint ventures. A joint operation is a joint arrangementwhereby the party to joint arrangement has rights to the assets, and obligations for the liabilities related to thearrangement. A joint venture is a joint arrangement whereby the party to joint arrangement has rights to the netassets of the arrangement.

(2) Accounting treatment of joint arrangements

A party to a joint operation shall recognize the following items related to its share of interest in the jointoperation and conduct accounting treatment for them in accordance with the relevant provisions of the AccountingStandard for Business Enterprises: 1) Recognition of assets held separately and of assets held jointly in proportionto its share; 2) recognition of liabilities incurred separately and of liabilities incurred jointly in proportion to itsshare; 3) recognition of revenue from the sale of its share of the output of the joint operation; 4) recognition ofrevenue from the sale of output of the joint operation in proportion to its share; 5) recognition of expenses incurredseparately and of expenses incurred in the joint operation in proportion to its share.

The party to a joint venture should conduct accounting treatment in accordance with relevant provisions ofthe Enterprise Accounting Standard No. 2 - Long-term Equity Investments.

9. Recognition criteria of cash and cash equivalents

Cash in the cash flow statements refers to cash on hand and deposits that can be used for payment at any time;cash equivalents refer to the short-term (usually no more than three months since the date of acquisition) and highlyliquid investments that are readily convertible into known amounts of cash and that are subject to an insignificantrisk of change in value.

10. Foreign currency transaction and foreign currency statement translation

(1) Conversion of foreign currency business

Transactions denominated in foreign currency are converted into RMB at the spot exchange rate at thetransaction date at initial recognition. At the balance sheet date, the foreign monetary items are converted at the spotexchange rate at the balance sheet date, and the exchange difference arising from exchange rate difference, exceptfor the exchange difference arising from principal and interest of foreign currency special borrowings relating topurchasing assets satisfying capitalization conditions, is included in current profit or loss; the foreign non-monetaryitems measured at historical cost are still converted at the spot exchange rate at the transaction date, and its RMBamount will not be changed; the foreign non-monetary items measured at fair value are converted at the spotexchange rate at the fair value determination date, and the difference is included in current profit or loss or othercomprehensive income.

(2) Conversion of foreign currency financial statements

The assets and liabilities in the balance sheet are converted at the spot exchange rate at the balance sheet date;the owners’ equity items, other than retained earnings, are converted at the spot exchange rate at the transactiondate; the incomes and expenses in the income statement are converted at the spot exchange rate at the transactiondate. The foreign currency financial statement conversion difference arising from the aforementioned translation isrecognized as other comprehensive income.

11. Financial instruments

(1) Recognition and de-recognition of financial instruments

The Company recognizes a financial asset or liability when it becomes a party of the relevant financialinstrument contract.

The purchase and sale of financial assets under the normal ways shall be recognized and stopped to berecognized respectively at the price of transaction date. Regular acquisitions or sales of financial assets meandelivering financial assets within the time limit of laws, regulations, or usual market practices and in line withcontract terms. The transaction date refers to the date when the Company promises to acquire or sell financial assets.

A financial asset (or a part of the financial assets, or part of a group of similar financial assets) will bederecognized, that is, a previously recognized financial asset is transferred from the balance sheet, when meetingthe following conditions:

1) The rights to receive cash flows from financial assets have expired;

2) The rights to receive cash flows from the financial assets are transferred, or the obligations to pay the fullamount of cash flows received to a third party in a timely manner are assumed under a “pass-through agreement”;and (a) substantially almost all the risks and returns of its ownership of the financial assets are transferred, or (b)control over the financial asset is relinquished, although substantially all the risks and returns of its ownership ofthe financial assets are neither transferred nor retained.

If the obligation of financial liabilities has been assumed, revoked, or terminated, financial liabilities shall bederecognized. If the current financial liabilities are replaced with other financial liabilities under substantiallydifferent terms by the same creditor, or almost all current liabilities terms are substantially revised, such replacementor revision shall be taken as the derecognition of original liabilities and recognition of new liabilities, and thedifferences are included in the current profit or loss.

(2) Classification and measurement of financial assets

At initial recognition, according to the business model of managing financial assets and the contractual cashflow characteristics of financial assets, financial assets of the Company are classified into the following categories:

Financial assets measured at the amortized cost, financial assets measured at fair value through other comprehensive

income of the current period, and financial assets measured at fair value through current profit or loss. Thesubsequent measurement of financial assets depended on their categories.The Company’s classification of financial assets is based on the Company’s business model for managingfinancial assets and the cash flow characteristics of the financial assets.

1) Financial assets measured at amortized cost

Financial assets that meet both of the following conditions shall be classified as financial assets measured atthe amortized cost: The Company’s business model of managing financial assets aims at obtaining contractual cashflows; and, as stipulated by term contract of the financial assets, the cash flows generated on a specific date aremerely for the payment of principal or the interest from the unpaid principal. Such financial assets are subsequentlymeasured at the amortized cost using the effective interest method. Gains or losses arising from derecognition oramortization using the effective interest method are included in current profit or loss.

2) Investments in debt instruments measured at fair value through other comprehensive income

Financial assets that meet all the following conditions shall be classified as financial assets measured at fairvalue through other comprehensive income: The Company’s business model of managing the financial assets aimsat obtaining contractual cash flows as well as selling financial assets; and, as stipulated by contract clauses of thefinancial assets, the cash flows generated on a specific date are merely for the payment of principal or interest fromthe unpaid principal. Such financial assets shall be subsequently measured at fair value. The discount or premiumis amortized using the effective interest method and recognized as interest income or expense. Changes in the fairvalue of such financial assets are recognized as other comprehensive income until the financial asset is derecognized,at which time the cumulative gain or loss is transferred to current profit or loss, except for impairment losses andexchange differences on monetary financial assets denominated in foreign currencies, which are recognized incurrent profit or loss. Interest income related to such financial assets is included in profit or loss for the currentperiod.

3) Investments in equity instruments measured at fair value through other comprehensive income

For financial assets measured at fair value through other comprehensive income that are irrevocably chosenand designated by the Company from some non-trading equity investments, the relevant dividend income is includedin the current profit or loss, and changes in the fair value are recognized as other comprehensive income, until thefinancial assets are derecognized when accumulative gains or losses shall be transferred to retained earnings.

4) Financial assets measured at fair value through profit or loss of the current period

The aforementioned financial assets measured at the amortized cost and financial assets other than thosemeasured at fair value through other comprehensive income are classified as financial assets at fair value throughprofit or loss. At initial recognition, in order to eliminate or significantly reduce accounting mismatch, financialassets can be designated as financial assets measured at fair value through the profit or loss for the current period.Such financial assets shall be measured at fair value, and all changes in fair value are included in the current profitor loss.

Only when the Company changes the business model of managing financial assets, shall relevant financialassets that are affected be reclassified.

For financial assets at fair value through profit or loss, transaction costs are directly included in the currentprofit or loss. For other types of financial assets, related transaction costs are included in their initial recognizedamounts.

(3) Classification and measurement of financial liabilities

At initial recognition, the financial liabilities of the Company are classified into the following categories:

Financial liabilities measured at the amortized cost, and financial liabilities measured at fair value through thecurrent profit or loss.

Any financial liability meeting any of the following conditions can be designated upon initial measurement asthe financial liabilities at fair value through profit or loss: 1) This designation can eliminate or significantly reduceaccounting mismatch; 2) According to the risk management or investment strategy of the Company as stated informal written document, the portfolio of financial liabilities or the portfolio of financial assets and financialliabilities is managed and evaluated on the basis of fair value, and reported to the key management on the basis ofthis inside the Company; 3) This financial liability contains embedded derivative to be separately split.The Company shall determine the classification of the financial liabilities upon initial recognition. Forfinancial liabilities measured at fair value through the current profit or loss, transaction costs are directly includedin current profit or loss. For other types of financial liabilities, related transaction costs are included in their initialrecognized amounts.The subsequent measurement of financial liabilities depends on their categories:

1) Financial liabilities measured at amortized cost

Such financial liabilities are subsequently measured at the amortized cost with the effective interest method.

2) Financial liabilities measured at fair value through the current profit or loss

Financial liabilities measured at fair value through profit or loss for the current period include held-for-tradingfinancial liabilities (including derivatives that are financial liabilities) and financial liabilities designated as at fairvalue through profit or loss at initial recognition.

(4) Financial instrument offset

When the following conditions are met at the same time, the financial assets and financial liabilities shall bepresented as net amount after offset in the balance sheet: The Company has the legal rights to offset the recognizedamount and may exercise such legal rights currently; the Company plans to settle with net amount or realize thefinancial asset and pay off the financial liability simultaneously.

(5) Impairment of financial assets

The Company shall recognize impairment for loss of the financial assets measured at the amortized cost,investment in debt instruments through other comprehensive income and financial guarantee contracts based on theexpected credit loss. Credit loss refers to the difference between all contractual cash flows discounted at the originaleffective interest rate and receivable according to the contract and all cash flows expected to be collected of theCompany, i.e. the present value of all cash shortfalls.

The Company considers all reasonable and substantiated information, including forward-looking information,and estimated the expected credit losses of the financial assets measured at the amortized cost, and the financialassets (debt instruments) measured at fair value through other comprehensive income by individual items orportfolios.

1) General model of expected credit loss

If the credit risk of the financial instrument is increased significantly since the initial recognition, the Companymeasures its loss reserves according to the amount equivalent to the expected credit losses of the financial instrumentin the whole duration; if the credit risk of the financial instrument is not increased significantly since the initialrecognition, the Company measures its loss reserves according to the amount equivalent to the expected credit lossesof the financial instrument in the next 12 months. The consequent increases or reversals of loss reserves are includedin the profit or loss for the current period as an impairment loss or gain. For the specific assessment of credit riskby the Company, please refer to notes to the financial statements “Part VIII, XII Risks Related to FinancialInstruments”.

On the balance sheet date, the Company measured the expected credit loss of financial instruments at differentstages, respectively. If the credit risk of a financial instrument has not increased significantly since the initialrecognition, the financial instrument is in Stage 1, and the Company measures the provisions for loss according to

the 12-month expected credit loss; if the credit risk of a financial instrument has increased significantly but thecredit impairment has not yet occurred since the initial recognition, the financial instrument is in Stage 2, and theCompany measures the provisions for loss according to the lifetime expected credit losses; if the financial instrumenthas suffered credit impairment since the initial recognition, it is in Stage 3, and the Company measures theprovisions for loss according to the lifetime expected credit loss.For a financial instrument with low credit risk on the balance sheet date, the Company assumes that the creditrisk has not increased significantly since the initial recognition, and the Company measures the provisions for lossaccording to the 12-month expected credit loss.

For financial instruments with low credit risk in Stage 1 and Stage 2, the Company shall calculate the interestincome according to the carrying amount and effective interest rate before deducting the provisions for impairment.For financial instruments in Stage 3, the Company shall calculate the interest income according to the amortizedcost and effective interest rate of the carrying amount after withdrawing the provisions for impairment.

2) Accounts receivable and lease receivables

The Company applies a simplified model of expected credit loss to accounts receivable as prescribed byAccounting Standards for Business Enterprises No.14 – Revenues, excluding significant financing components(including cases where financing components within contracts not exceeding one year are disregarded under thestandard), and always measures its losses based on the amount of expected credit losses over the entire life of theaccounts receivable.

For accounts receivable containing a significant financing component and lease receivables regulated byAccounting Standards for Business Enterprises No. 21 —Leases, the Company makes an accounting policy choiceto adopt the simplified model of expected credit loss, i.e., measuring the loss provision equivalent to the expectedcredit loss over the entire life of the accounts receivable.

① Accounts receivable

(a) At the end of the Reporting Period, if there is objective evidence indicating that impairment has occurredin an account receivable, impairment test shall be carried out separately on it, such as accounts receivable in disputewith counterparties or involved in litigation or arbitration; if there is obvious indication that the debtor is likely tofail to comply with the repayment obligation, the impairment loss shall be recognized and the bad debt provisionsshall be made based on the balance between the present value of future cash flows and its carrying value.

(b) If there is no objective evidence indicating that impairment or the credit loss of a single financial assetcannot be evaluated at reasonable cost, the accounts receivable shall be classified into several groups bycharacteristics of credit risk. The expected credit loss shall be calculated based on the combinations and the accountages. Basis for determining the combinations is as below:

Bank acceptance bill group

Letter of credit group

Commercial acceptance bills group

Accounts receivable group

Accounts receivable group

Other receivables group

Other receivables group

Other receivables group

For accounts receivable divided into risk groups, the Company, with reference to historical experience incredit loss and based on current situation and forecast of future economic situation, shall prepare a comparison tablebetween the aging of accounts receivable and the lifetime expected credit loss rate to calculate the expected creditlosses. For other groups, the Company, with reference to historical experience in credit loss and based on currentsituation and forecast of future economic situation, shall calculate the expected credit losses according to theexposure at default and the 12-month or lifetime expected credit loss rate.

② Debt investments and other debt investments

For debt investment and other debt investments, the Company shall calculate the expected credit lossaccording to the nature of investment, types of counterparty and risk exposure, exposure at default and the 12-monthor lifetime expected credit loss rate.The Company shall include the provision or reversal for loss made or included in current profit or loss. Forinvestment in debts instruments at fair value through other comprehensive income, the Company shall adjust othercomprehensive income when the impairment loss or gain is included in current profit or loss; for financial assetsmeasured at amortized cost, the provision for loss shall offset the carrying value of such financial assets.

12. Inventory

(1) Classification of inventory

Inventories include finished goods or goods held for sale in the ordinary course of business, work in processin the production process, materials or supplies to be consumed in the production process, or the rendering ofservices.

(2) Valuation method of shipped inventory

Grains, raw coal and auxiliary materials for producing Baijiu are measured at actual cost, and shippedinventories are priced by weighted average method; paper, printing ink, and auxiliary materials for producingprinted matters are measured at planned cost when purchased and shipped, with the difference between actual costand planned cost included in “materials cost difference”. The difference to be amortized by the materials shippedshall be calculated by materials cost difference by category at the end of the month, so as to adjust cost of thematerials shipped into actual cost; goods in process, self-manufactured semi-finished products, and finishedproducts are measured at actual cost and priced by weighted average method when shipped.

(3) Inventory system of inventories

The perpetual inventory system is adopted.

(4) Amortization method for low-value consumables and packaging materials

The one-off amortization method is adopted.

(5) Determination basis and methods for provision of inventory falling price reserves

On the balance sheet date, the inventories shall be measured at the lower of cost and net realizable value. Ifcost of the inventories is higher than the net realizable value, a provision for inventory falling price reserves shallbe made and included in current profit or loss.

Net realizable value refers to the amount after deducting the cost estimated until completion, estimated sellingexpenses, and relevant taxes from the estimated selling price of the inventory.

The Company shall determine the net realizable value of inventories based on solid evidence obtained andafter taking into consideration the purpose for which the inventory is held, and the impact of post-balance sheetevents. Materials held for use in the production of inventories are measured at cost if the net realizable value of thefinished products in which they will be incorporated is higher than their cost; decline in the price of materialsindicates that the cost of the finished products exceeds their net realizable value, the materials are measured at netrealizable value. The net realizable value of inventory held to satisfy sales or service contracts is based on thecontract price. If the quantities held by the Company is higher than the quantities of inventories specified in sales

contracts, the net realizable value of the excess portion of inventories shall be based on general selling price.Any of the following circumstances usually indicates that net realizable value of an inventory is lower thanthe cost:

1) Market price of the inventory declines continuously and there is no hope of rising in the foreseeable future;

2) The cost of products produced by the Company with such raw materials is higher than the selling price ofthe product;

3) The raw material inventory no longer satisfies the needs of new products due to upgrade of products, andthe market price of the raw material is lower than the book cost;

4) The market price declines gradually due to obsolete goods or service provided by the Company, or changeof market demands due to change of consumer preference; and

5) Other circumstances which are sufficient to prove substantial impairment of the inventory.

The Company shall usually determine the falling price reserves of inventories on an item-by-item basis. Forinventories in large amount and low unit price, provision for inventory falling price reserves may be made bycategory of the inventories. For item of inventories relating to a product line that is produced and marketed in thesame geographical area, have the same or similar end uses or purposes, and cannot be practically measuredseparately from other items, provision for inventory falling price reserves may be made on an aggregate basis.

The Company shall determine the net realizable value of inventories on the balance sheet date. When factorscausing written-down of the inventory value disappear, the amount written down shall be recovered and will bereversed from the provided inventory falling price reserves. The amount reversed will be included in current profitor loss.

13. Assets held for sale

(1) Recognition criteria and accounting methods for non-current assets or disposal groups held for sale

The Company classifies group components (or non-current assets) that meet the following conditionssimultaneously as assets held for sale: 1) Assets or disposal groups can be sold immediately under current conditionsbased on the practice of selling such assets or disposal groups in similar transactions; 2) The sale is very likely tooccur, that is, the Company has already made a resolution on a sale plan and obtained a certain acquisitioncommitment, and the sale is expected to be completed within one year. (A certain acquisition commitment refers toa legally binding acquisition agreement signed by an enterprise and other parties, which includes important termssuch as transaction price, time and sufficiently severe default penalties, so as to make it extremely unlikely that theagreement will be significantly adjusted or revoked.) It has been approved by relevant authorities or regulatoryauthorities in accordance with relevant regulations.

The Company adjusts the expected net residual value of assets held for sale to reflect the net amount of fairvalue minus selling costs (but not exceeding the original carrying amount of the asset held for sale). The differencebetween the original book value and the adjusted expected net residual value is recognized as an impairment lossand included in the current profit or loss, with a corresponding impairment provision for the asset held for sale. Theamount of asset impairment loss recognized for disposal groups held for sale shall be offset against the carryingamount of goodwill in the disposal group first, and then against the carrying value of each non-current assetproportionately according to the proportion of the carrying value of each non-current asset in the disposal group asdefined in the applicable measurement of the Accounting Standards for Business Enterprises No. 42—Non-currentAssets Held for Sale, Disposal Groups, and Discontinued Operations.

If, after follow-up balance sheet dates, the fair value less costs to sell of non-current assets held for saleincreases, the previously recognized impairment loss shall be reversed. The amount of the reversal is transferredfrom the impairment loss recognized for assets classified as held for sale, and the reversal amount is recognized incurrent profit or loss, follow-up balance sheet date Impairment losses recognized before an asset is classified as held

for sale shall not be reversed. If the net amount of fair value minus selling costs for assets held for sale or disposalgroups increases after the follow-up balance sheet date, previously recognized impairment losses should be reversed,and the reversal should be applied in accordance with the measurement regulations for non-current assets classifiedas held for sale, as stated in Accounting Standards for Business Enterprises No. 42—Non-current Assets Held forSale, Disposal Groups, and Discontinued Operations, and the reversal amount is recognized in the current profit orloss. The carrying amount of goodwill that has been impaired, and the impairment losses of non-current assetsrecognized before being classified as held for sale, as per Accounting Standards for Business Enterprises No. 42—Non-current Assets Held for Sale, Disposal Groups, and Discontinued Operations., cannot be reversed. The reversalof asset impairment losses recognized for assets held for sale in a disposal group should be proportionally increasedbased on the carrying value of each non-current asset in the disposal group, excluding goodwill, in accordance withtheir respective carrying amounts under the measurement regulations of Accounting Standards for BusinessEnterprises No. 42—Non-current Assets Held for Sale, Disposal Groups, and Discontinued Operations. If anenterprise loses control over a subsidiary due to the sale of its investment in a subsidiary or other reasons, regardlessof whether the enterprise retains part of the equity investment after the sale, when the investment in the subsidiaryto be sold satisfies the classification conditions of the held-for-sale the parent company category, the investment inthe subsidiary shall be classified as held for sale as a whole in individual financial statements of the parent Company,and all assets and liabilities of the subsidiary shall be classified as held for sale in the consolidated financialstatements.

(2) Recognition criteria and presentation of discontinued operations

Discontinued operation refers to a component of an enterprise that meets one of the following conditions, canbe distinguished separately, and has either been disposed of or classified as held for sale: 1) The componentrepresents a major separate business or a major geographical area of operation; 2) The component is part of a planto dispose of a major separate business or a major geographical area of operation; 3) The component is a subsidiaryacquired specifically for resale.The definition of discontinued operations includes the following three aspects:

1) Discontinued operations must be a distinct component of the enterprise. The operations and cash flows ofthis component should be clearly distinguishable from other parts of the enterprise when preparing financialstatements and conducting business operations.

2) Discontinued operations must have a certain scale. Discontinued operations should represent anindependent major business or a separate major operating region, or part of a related plan to dispose of such abusiness or operating region.

3) Discontinued operations must meet certain timing requirements. A component meeting the definition ofdiscontinued operations should belong to one of the following two conditions: it has already been disposed of beforethe balance sheet date, including being sold or ended (e.g., shut down or scrapped); or it has been classified as heldfor sale before the balance sheet date.

14. Long-term equity investments

(1) Determination of initial investment cost

1) For business combinations under common control, if the combining party considers that it makes paymentin cash, transfers non-cash assets, assumes its liabilities, or issues equity securities on the date of combination, itregards the share of the carrying amount of the owners’ equity of the combined party included in the consolidatedfinancial statements of the ultimate controlling party as the initial cost of the investment. The share premium of thecapital reserve shall be adjusted with the difference between the initial investment cost of the long-term equityinvestment and the carrying amount of the consideration paid or the par value of shares issued. If the share premiumof the capital reserve is insufficient for writing down, the retained earnings shall be adjusted.

In cases of step-by-step implementation of business combinations under common control, the initialinvestment cost of the investment shall be the share of the acquired entity’s owners’ equity attributable to theacquiring entity on the acquisition date, calculated based on the ownership percentage. The difference between theinitial investment cost and the sum of the carrying amount of the original long-term equity investments and thecarrying value of any additional consideration paid for further shares acquired on the acquisition date is adjusted toshare premium (capital surplus or share premium). If the share premium is insufficient for writing down, the retainedearnings shall be used for writing down.

2) For business combinations not under the same control, the fair value of the combination consideration paidby it on the acquisition date shall be its initial investment cost.

3) Except for business combinations: If it is acquired by paying cash, the actual acquisition price shall be takenas its initial investment cost; if it is acquired by issuing equity securities, the fair value of the issued equity securitiesshall be taken as its initial investment cost; if it is acquired by the investment of the investors, the value agreed inthe investment contract or agreement shall be taken as its initial investment cost (except when the agreed value isconsidered unfair).

(2) Subsequent measurement and profit & loss recognition methods

For long-term equity investments in invested companies over which the Company has control, the cost methodis used in the Company’s individual financial statements; for long-term equity investments with joint control orsignificant influence, the equity method is applied.

Under the cost method, long-term equity investments are valued at the initial investment cost. Except for theprice actually paid at the acquisition of investment or the declared but undistributed cash dividends or profitsincluded in the consideration, the Company recognized the return on investment of the current period in accordancewith the cash dividends or profits declared and distributed by the invested company, with consideration given to theimpairment of long-term investments based on applicable impairment policies.

For long-term equity investment accounted for using the equity method, if the initial cost of long-term equityinvestment is greater than the fair value of identifiable net assets of the invested company gained from theinvestment, the excess shall be included in the initial investment cost of the long-term equity investment. If theinitial investment cost is smaller than the fair value of identifiable net assets of the invested company gained fromthe investment, the difference shall be included in the current profit or loss, and the cost of long-term equityinvestments shall be adjusted.

Under the equity method, after acquiring long-term equity investments, the investment gains or losses arerealized based on the share of net profit or loss that the invested company shall be entitled to or share. The long-term equity investment’s carrying amount is adjusted accordingly. When the share of the net profits and losses ofthe invested company is recognized, the fair value of the invested company’s identifiable assets at the time ofobtaining the investment shall be used as the basis. This is done in accordance with the Company’s accountingpolicies and accounting period, and internal transaction gains and losses with joint ventures and associates are offsetbased on the ownership proportion attributable to the investing company (except when internal transaction lossesare related to asset impairment losses, in which case they shall be fully recognized). Subsequent to adjusting the netprofits of the invested institution after recognition. The investor reduces the carrying amount of long-term equityinvestments correspondingly when calculating the portion to be received based on the cash dividends or profitsdeclared to be distributed by the invested company. The Company shall recognize the net losses of the investedcompany until the carrying amount of the long-term equity investment and other long-term rights and interestswhich substantially form the net investment made to the invested company are reduced to zero, unless the Companyhas the obligation to undertake extra losses. As for other changes in owners’ equity except for the net profit and lossof the invested company, the Company shall adjust the carrying amount of the long-term equity investment and

include it in the owners’ equity.

(3) Determination basis of control and significant influence on the invested companyControl means that the investor has power over the invested company, enjoys variable returns by participatingin the relevant activities of the invested company, and has the ability to use the power over the invested companyto affect the amount of returns. Significant influence means that the investor has the rights to participate in thedecision-making of the financial and operating policies of the invested company, but cannot control or jointlycontrol the formulation of these policies with other parties.

(4) Disposal of long-term equity investments

1) Partial disposal of long-term equity investments in a subsidiary without losing controlIn the case of a partial disposal of long-term equity investments in a subsidiary without losing control, thevariance between the disposal proceeds and the corresponding carrying amount of the disposed investment isrecognized as current investment income.

2) Partial disposal of equity investments or other reasons for losing control of a subsidiaryIn cases where control over a subsidiary is lost due to the disposal of equity investments or other reasons, thecarrying amount of long-term equity investments corresponding to the disposed equity shall be transferred. Thedifference between the proceeds from the sale and the carrying value of the disposed long-term equity investmentshall be recognized as investment income (loss). At the same time, the remaining equity shall be recognized at itscarrying value as long-term equity investments or other related financial assets. If the remaining equity after thedisposal can exercise joint control or significant influence over the subsidiary, accounting treatment shall beconducted in accordance with relevant regulations on the conversion from the cost method to the equity method.

(5) Impairment test method and impairment provision method

Investments in subsidiaries, associates, and joint ventures should be assessed for impairment at the balancesheet date if there is objective evidence indicating impairment. The corresponding impairment provision should berecognized based on the difference between the carrying amount and the recoverable amount.

15. Fixed assets

(1) Recognition conditions

Fixed assets refer to tangible assets which are held for producing goods, providing services, renting or operationand management and with service life of more than one accounting year and high unit value.

Costs of outsourced fixed assets include purchase price, import duty and other relevant taxes, and otherexpenditures incurred before and for making the fixed assets reach its intended condition for use directly attributableto such assets.

Book value of self-constructed fixed assets shall be the necessary expenditures incurred before and for makingthe fixed assets reach its intended condition for use.

Book value of fixed assets invested by investors shall be the value recognized by the investors.

Subsequent expenditures related to fixed assets shall be included in the cost of fixed assets if meeting therecognition conditions for fixed assets, and shall be included in current profit or loss if not meeting the recognitionconditions for fixed assets.

Fixed assets are recorded at actual cost at the time of acquisition and depreciated using the straight-line methodfrom the second month after they reach their intended serviceable condition.

(2) Depreciation method

(3) Impairment testing method and impairment provision method for fixed assets

If there are signs that fixed assets have been impaired on the balance sheet date, a corresponding impairmentprovision shall be made based on the difference between the book value and the recoverable amount.

16. Construction in progress

(1) From the date when the construction in progress is ready for its intended use, based on factors such as theproject budget, cost, or actual cost, it is transferred to fixed assets based on the estimated value and depreciatedaccording to the Company’s fixed asset depreciation policy. Adjustment shall be made to the originally andprovisionally estimated value based on the actual cost after the completion settlement is handled, but depreciationalready provided shall not be adjusted.

(2) If there are signs that construction in progress has been impaired on the balance sheet date, a correspondingimpairment provision shall be made based on the difference between the book value and the recoverable amount.

17. Borrowing costs

(1) Recognition principles of capitalization of borrowing costs

The borrowing costs that have occurred and can be directly attributed to the acquisition, construction orproduction of assets eligible for capitalization are capitalized by the Company and recorded in relevant cost of assets;other borrowing costs are recognized as expenses based on the amount incurred when they occur, and shall berecorded in current profit or loss.

(2) Capitalization period of borrowing costs

1) Capitalization begins when the borrowing costs meet the following conditions at the same time: 1) Assetexpenditure has already occurred; 2) Borrowing costs have already occurred; 3) Acquisition and constructionactivities necessary to bring the assets to the intended condition for use or sale have already begun.

2) If the acquisition, construction or production of assets eligible for capitalization is continuously suspendedfor over three months for abnormal reasons, capitalization of the borrowing costs shall be suspended; borrowingcosts incurred during the suspension shall be recognized as the current costs until the acquisition, construction orproduction of assets is resumed.

3) When the assets with the acquisition, construction or production meeting the capitalization conditions reachthe expected available or marketable status, the capitalization of the borrowing costs shall be suspended.

(3) Capitalized amount of borrowing costs

For borrowings exclusively for the acquisition and construction or production of assets eligible forcapitalization, the to-be-capitalized amount of interest is determined in light of the actual interest expenses incurred(including amortization of premium or discount based on effective interest method) of the special borrowings in thecurrent period less the interest income on the unused borrowings as a deposit in the bank or as a temporaryinvestment; where a general borrowing is used for the acquisition and construction or production of assets eligiblefor capitalization, the Company calculates and determines the to-be-capitalized amount of interests on the generalborrowing by multiplying the weighted average asset expenditure of the part of the accumulative assetdisbursements less the general borrowing by the capitalization rate of the general borrowing used.

18. Intangible assets

(1) Service life and the basis for its determination, estimation, amortisation methods or review procedures

Externally acquired intangible assets shall be measured at the actual cost when acquired and averagelyamortized during the expected service life since the month when the intangible assets is acquired; book value of theself-developed intangible assets shall be the sum of the expenditures during the research and development stage ofinternal research and development projects of the Company which are eligible for capitalization and theexpenditures incurred before reaching the intended condition for use, and be averagely amortized over the expectedservice life since the month in which the intangible asset is ready for use.Service life of intangible assets shall be analysed and determined when acquired. Intangible assets with limitedservice life shall be amortized over period during which they may bring economic interests; if the period duringwhich the intangible assets may bring economic benefit to the enterprise is unforeseeable, such intangible assetsshall be considered as intangible assets with uncertain service life and shall not be amortized.Impairment test: At the end of each year, the Company shall recheck the service life and amortization methodof the intangible assets. Intangible assets with uncertain service life shall be subject to impairment test every yearwhether there is any indication of impairment.

(2) Scope of research and development expenditures and related accounting treatmentThe scope of research and development expenditures includes staff salaries for research and developmentpersonnel, direct input costs, depreciation and amortisation expenses, and other expenses. The expenditures of theCompany’s internal research and development projects are divided into research phase expenditures anddevelopment phase expenditures.

Research phase expenditures of internal research and development projects shall be included in current profitor loss when incurred. Development phase expenditures of internal research and development projects can berecognized as intangible assets only when meeting all of the following conditions: 1) It is technically feasible tocomplete this intangible assets so that it can be used or sold; 2) The Company has the intention to complete theintangible assets and use or sell them; 3) The way in which intangible assets generate economic benefits, includingthe ability to prove that the products produced using the intangible assets exist in the market or the intangible assetsthemselves exist in the market, and the intangible assets will be used internally, can prove their usefulness; 4)sufficient technical, financial resources and other resources support to complete the development of the intangibleasset and the ability to use or sell the intangible asset; and 5) the expenditure attributable to the development phaseof the intangible asset can be reliably measured.

19. Long-term asset impairment

For the long-term equity investments, investment properties, fixed assets, construction in progress, intangibleassets, and other long-term assets measured at cost model, if there are signs of impairment, an impairment test shallbe conducted on the balance sheet date. If the recoverable amount of the asset is less than its carrying value accordingto the test, provision for impairment will be made at the difference and included in impairment loss. Recoverableamount is the higher of the net amount of fair value of an asset deducting the disposal expenses and the presentvalue of estimated future cash flow of the asset. The provision for impairment of assets is calculated and made onan individual basis. If it is difficult for the Company to estimate the recoverable amount of the individual asset, therecoverable amount of an asset group, to which the said asset belongs, shall be determined. Asset group is thesmallest asset group that can independently generate cash inflows.

For goodwill, impairment test shall be conducted at least at the end of each year. Impairment test shall becarried out in combination with the relevant asset group or combination of asset group.

The carrying value of goodwill caused by business combination is amortized to relevant asset groups with areasonable method from the date of acquisition when the Company carries out impairment test on goodwill; oramortized to relevant combination of asset groups if it is difficult to be amortized to relevant asset groups. When

the carrying value of goodwill is amortized to the relevant assets group or combination of assets groups, it shall beevenly amortized according to the proportion of the fair value of each assets group or combination of assets groupsin the total fair value of the relevant assets groups or combinations of assets groups. Where the fair value cannot bereliably measured, it should be amortized according to the proportion of the carrying value of each asset group orcombination of assets groups in the total carrying value of assets groups or combinations of assets groups.When making an impairment test on the relevant assets groups or combination of assets groups containinggoodwill, if any indication shows that the assets groups or combinations of assets groups may be impaired, theCompany shall first conduct an impairment test on the assets groups or combinations of assets groups not containinggoodwill, calculate the recoverable amount and compare it with relevant carrying value to recognize thecorresponding impairment loss. Then the Company shall conduct an impairment test on the assets groups orcombinations of assets groups containing goodwill, and compare the carrying value of these assets groups orcombinations of assets groups (including the carrying value of the goodwill apportioned thereto) with therecoverable amount. Where the recoverable amount of the relevant assets groups or combinations of assets groupsis lower than the carrying value thereof, the Company shall recognize the impairment loss of goodwill.The above asset impairment losses shall not be reversed in subsequent accounting periods once recognized.

20. Long-term prepaid expense

Long-term prepaid expense is recorded according to the actual amount incurred and amortized over the benefitperiod or the stipulated amortization period by the straight-line method. If a long-term deferred expense item cannotbenefit a later accounting period, the amortized value of the item that has not been amortized shall be transferred tothe current profit or loss; long-term prepaid expense such as expenditure for improvement of fixed assets underoperating lease shall be amortized averagely within the benefit period.

21. Contract liabilities

The Company presents contract assets or contract liabilities in the balance sheet based on the relationshipbetween its performance obligations and customers’ payments. The Company presents the obligation of transferringgoods to or providing services for customers for consideration received or receivable as a contract liability. Revenueis recognized from contract liabilities when the Company performs its obligation to transfer goods or provideservices to the customer.

22. Employee benefits

(1) Accounting treatment of short-term remuneration

Short-term remuneration refers to the payroll which is expected to be paid in full by the enterprise within 12months after the end of the year in which the employee provided relevant services.

During the accounting period when employees serve the Company, the actual short-term remuneration isrecognized as liabilities and included in current profit or loss or costs of relevant assets.

(2) Accounting treatment of post-employment benefits

Post-employment benefits refer to various compensations and benefits to be provided by the enterprise afterretirement from or termination of the labour relation with the enterprise in exchange for the service provided by theemployee. Post-employment benefits are divided into two types: Defined contribution plans and defined benefitplans.

1) Defined contribution plan: Contribution which shall be made by the Company separately on the balancesheet date in exchange for the service provided by the employee during the accounting period shall be recognizedas payroll liabilities and included in current profit or loss or relevant asset cost.

2) Defined benefit plan: Based on the formula determined by expected cumulative welfare unit method, thebenefit obligations arising from the defined benefit plan shall be attributable to the period in which the employeeprovides service and included in current profit or loss or cost of relevant asset; changes due to remeasurement ofthe net liabilities or net assets of the defined benefit plan shall be included in other comprehensive income and shallnot be reversed to profit or loss in subsequent accounting periods.

(3) Accounting treatment of dismissal benefits

Dismissal benefits refer to the compensation paid to the employee by the enterprise for termination of thelabour contract with the employee prior to expiration, or encouraging the employee to accept downsizing voluntarily.

If the enterprise provides dismissal benefits, payroll liabilities arising from dismissal benefits shall berecognized and included in current profit or loss on the earlier date of:

1) The date when the enterprise could not unilaterally withdraw the dismissal benefits which offered by theplan or layoff proposal due to termination of the labour relation.

2) The date when the enterprise recognizes the cost or expense related to the reorganization related to paymentof the dismissal benefits.

(4) Accounting treatment of the other long-term employee welfare

Other long-term employee benefits refer to all payrolls except for short-term remuneration, post-employmentbenefits, and dismissal benefits, including long-term paid absences, long-term disability benefits, long-term profitsharing plan, etc.

The other long-term employee benefits provided by the enterprise shall be recognized and measured as netliability or net asset of other long-term employee benefits according to relevant provisions of the defined benefitplan, except for those meetings the conditions of defined contribution plan.

23. Provisions

(1) Recognition criteria for provisions

When obligations related to contingencies meet the following conditions, the Company shall recognize themas provisions:

1) The obligation is the current obligation assumed by the Company.

2) The performance of this obligation may result in the outflow of economic benefits.

3) The amount of this obligation can be reliably measured.

(2) Measurement method of provisions

Considering the risks, uncertainties, and time value of money related to contingencies, the provisions shall beinitially measured at the best estimate of the required expenditure for the performance of current obligation. If thetime value of money is significant, the best estimate shall be determined after discounting relevant future cashoutflow. The Company shall check the carrying value of the provisions on the balance sheet date, and adjust thecarrying value to reflect current best estimate.

24. Revenue

(1) Recognition of revenues

Revenue is the total inflow of economic benefits arising from the Company’s ordinary activities that wouldresult in an increase in shareholders’ equity and are unrelated to capital contributions by shareholders.

The Company recognizes revenue when it has fulfilled its performance obligations under the contract, that is,when the customer obtains control of the relevant goods. Obtaining control over related goods means being able todominate the use of the goods and obtain almost all economic benefits from them.

If the contract contains two or more performance obligations, the Company will allocate the transaction price

to each individual performance obligation according to the relative proportion of the individual selling price of thegoods or services promised under each individual performance obligation on the contract commencement date, andmeasure the revenue according to the transaction price allocated to each individual performance obligation.Transaction price is the amount of consideration that the Company is expected to be received due to the transferof goods or services to customers, excluding the amount collected on behalf of third parties. In determining thetransaction price of a contract, if variable consideration exists, the Company will determine the best estimate of thevariable consideration based on the expected or most likely amount and include in the transaction price in an amountnot exceeding the amount that the accumulated recognized revenue will most likely not be significantly reversedwhen the relevant uncertainty is eliminated. If there is a significant financing component in the contract, theCompany will determine the transaction price according to the amount payable by the customer in cash whenobtaining the control right of the goods. The difference between the transaction price and the contract considerationwill be amortized by the effective interest rate method during the contract period. If the interval between the transferof control right and the payment price by the customer does not exceed one year, the Company will not considerthe financing component.

Performance obligations are fulfilled within a certain period if any of the following conditions is met:

1) The customer acquires and consumes the economic benefits of the Company’s performance at the sametime as the Company’s performance;

2) The customer controls the goods under construction during the performance of the Company; or

3) The goods produced by the Company during the performance of the contract have irreplaceable uses, andthe Company has the right to collect money for the accumulated performance that has been completed so far duringthe whole contract period.

For performance obligations performed within a certain period, the Company recognizes revenue accordingto the performance progress within that period, except that the performance progress cannot be reasonablydetermined. The Company considers the nature of the goods and uses either the output approach or the inputapproach to determine the appropriate performance progress.

For performance obligations performed at a certain point in time instead of within a certain period, theCompany recognizes revenue at the point when the customer obtains control of the relevant goods.

When judging whether the customer has acquired control of goods or services, the Company will consider thefollowing indications:

1) The Company has a present right to receive payment for the goods, i.e. the customer has a present obligationto pay for the goods.

2) The Company has transferred legal ownership of the goods to the customer, i.e. the customer has legalownership of the goods.

3) The Company has physically transferred the goods to the customer, i.e. the customer has taken physicalpossession of the goods.

4) The Company has transferred to the customer the principal risks and rewards of ownership of the goods,i.e., the customer has acquired the principal risks and rewards of ownership of the good.

5) The customer has accepted the goods.

6) There are other signs that the customer has gained control of the goods.

(2) Recognition policies of revenues of the Company

1) Recognition methods of revenues for distribution model

The Company arranges logistics delivery to the customer’s designated location, delivers the goods to the buyeraccording to the contract, and recognizes revenue after the buyer signs for it.

2) Recognition methods of revenues for direct sales model

Group purchase sales: Revenue is recognized when the Company delivers the goods to the buyer and receivespayment or acquires the right to receive payment.

On-line sales; Revenue is recognized when the Company receives the payment transferred from the e-commerce platform from the consumer.

25. Government subsidy

(1) Government subsidies include asset-related government subsidies and income-related governmentsubsidies.

(2) If the government subsidy is a monetary asset, it shall be measured at the amount received or receivable;if the government subsidy is a non-monetary asset, it shall be measured at fair value. If the fair value cannot beobtained reliably, it shall be measured at the nominal amount.

(3) Government subsidies shall be measured using the gross amount method:

1) Asset-related government subsidies

The asset-related government subsidies refer to the government subsidies obtained by the Company and usedfor acquisition or construction or for formation of long-term assets in other ways, including the financial allocationfor purchasing fixed assets or intangible assets, the financial discount for special loan of fixed assets and others.

The specific standard of the Company for classifying the government subsidies as asset-related subsidies:

government subsidies obtained by the Company and used for acquisition or construction or for formation of long-term assets in other ways.

If the government documents do not specify the target of the subsidies, the basis that the Company classifiesthe government subsidies as asset-related subsidies or income-related subsidies were as follows: Whether thesubsidies are used for acquisition or construction or for formation of long-term assets in other ways.

Timing of recognition of asset-related government subsidies of the Company: Government subsidies, whenactually received, shall be recognized as deferred income and transferred equally to current profit or loss based onthe expected service life of the long-term assets when the long-term assets are available for use.

The asset-related government subsidies are recognized as deferred income, and included in current profit orloss by stages based on the service life of the assets acquired and constructed. If the related asset is sold, transferred,scrapped or damaged before the end of the service life, the deferred income balance not yet distributed shall betransferred to the profits and losses of the period in which the assets are disposed.

2) Income-related government subsidies

Income-related government subsidies refer to all the government subsidies other than asset-related governmentsubsidies.

The specific standard of the Company for classifying the government subsidies as income-related subsidies:

All the government subsidies other than asset-related government subsidies.

Timing of recognition of income-related government subsidies of the Company: Government subsidies, whenactually received, shall be included in current profit or loss if used to compensate the relevant expenses or losses ofthe Company in the subsequent period; included in current profit or loss directly when acquired if used tocompensate relevant expenses or losses incurred by the Company.

Income-related government subsidies used to compensate the relevant expenses or losses of the Company inthe subsequent period shall be recognized as deferred income when acquired; included in current profit or loss inthe period in which relevant expenses are recognized; those used to compensate relevant expenses or losses incurredby the Company, shall be directly included in profit or loss directly when they are received.

If it is used to compensate for related expenses or losses in future periods, it shall be recognized as deferredincome and included in profit or loss during the period in which the related expenses are recognized; if it is used tocompensate for related expenses or losses that have already occurred, it shall be directly included in profit or loss.

For a government subsidy that includes both asset-related and income-related portions, different portions shallbe distinguished and accounted for separately; if it is difficult to distinguish, it shall be classified as an income-related government subsidy as a whole.

The government subsidies related to daily activities of the Company shall be included in other income or usedto offset relevant costs and expenses according to the substance of the economic business. The government subsidiesirrelevant to the daily activities of the Company shall be included in non-operating income/expenses.

26. Deferred income tax assets/deferred income tax liabilities

(1) The Company recognizes the deferred income tax assets or deferred income tax liabilities in accordancewith the applicable tax rate during the estimated period of recapturing the assets or paying the liabilities for thedifferent amount between the carrying amount of assets or liabilities and its tax base (for items not recognized asassets and liabilities, if its tax basis can be determined according to the tax law, the tax basis is recognized as thedifferent amount).

(2) The recognition of deferred income tax assets is subject to the amount of taxable income obtained to offsetthe deductible temporary differences. On the balance sheet date, deferred income tax assets without recognitionduring the former accounting period shall be recognized if there are definite indications representing that it isprobable to have sufficient taxable income to offset the deductible temporary differences during the future period.

(3) The Company reviews carrying amount of deferred income tax assets on the balance sheet date. If it isdetermined that the Company is not likely to obtain adequate taxable income to offset benefits from deferred incometax assets, the book values of deferred income tax assets are written down. Such write-downs are reversed when itbecomes probable that sufficient taxable income should be available.

(4) The current income tax and deferred income tax of the Company shall be included in the current profit orloss as income tax expenses or incomes, excluding the income taxes incurred in the following circumstances: 1)Business combinations; 2) transactions or events directly recognized in the owner’s equity.

27. Leases

(1) Accounting treatment with the Company as the lessee

On the commencement date of the lease term, except for short-term leases and leases of low-value assets beingadopted simplified treatment, the Company recognises right-of-use assets or lease liabilities for the lease.

Right-of-use assets shall be initially measured at costs, including: 1) The initial measurement amount of thelease liabilities; 2) the lease payment paid on or before the commencement date of the lease term. If there is a leaseincentive, the amount related to the lease incentive taken should be deducted; 3) the initial direct cost incurred bythe lessee; 4) the estimated cost that the Company will use to pull down and remove the leasehold property, andrestore the site of the leasehold property or restore the leasehold property to the state agreed in the lease clauses(excluding the costs incurred by inventories for production).

The lease liabilities shall be initially measured at the present value of the unpaid lease payment from thecommencement date of the lease term. When calculating the present value of lease payments, the Company uses theinterest rate implicit in lease as the rate of discount. If the interest rate implicit in lease cannot be determined, theCompany’s incremental lending rate is used as the rate of discount.

After the commencement date of the lease term, the Company subsequently measures the right-of-use assetsat cost model, and the right-of-use assets are subject to depreciation by using the straight-line method. Meanwhile,the interest expenses of the lease liabilities in each period of the lease term are calculated, and shall be included inthe profit or loss for the current period, unless otherwise stipulated to be included in underlying asset costs. Variablelease payments that are not covered in the measurement of the lease liabilities are included in current profit or losswhen actually incurred, unless otherwise stipulated to be included in underlying asset costs.

For short-term leases within 12 months and leases of low-value assets, the Company chooses not to recogniseright-of-use assets and lease liabilities. The relevant lease expenditures are included in relevant asset cost or theprofit or loss for the current period in the straight-line method in each period of the lease term.

(2) Accounting treatment of leases with the Company as the lessor

1) Classification of lease

The Company classifies leases into finance leases and operating leases at the inception of leases. A financelease refers to a lease where almost all the risks and rewards, related to the ownership of the leased asset, aresubstantially transferred, regardless of whether the ownership is eventually transferred or not. An operating leaserefers to all leases other than finance leases.

2) Accounting treatment of financial lease

On the commencement date of the lease term, the Company recognises the finance lease receivables for thefinance lease and derecognises the leased asset of the finance lease. In the initial measurement of finance leasereceivables, the sum of the unsecured residual value and the present value of the lease payments receivable not yetreceived on the commencement date of the lease term discounted at the interest rate implicit in lease is the bookvalue of the finance lease receivables. The Company calculates and recognises the interest income in each periodwithin the lease term at a fixed interest rate implicit in the lease. The received variable lease payments that are notincluded in the measurement of the net investment in the lease are included in profit or loss for the current periodwhen they are actually incurred.

3) Accounting treatment of operating lease

The Company recognises the lease payments receivable of the operating lease as rental earning in each periodwithin the lease term on a straight-line basis or according to other systematic and reasonable methods. The initialdirect costs related to the operating lease are capitalised, amortised within the lease term on the same basis as therecognition of rental earning, and included in profit or loss for the current period. The received variable leasepayments related to the operating lease that are not included in the lease payments receivable are included in profitor loss for the current period when they are actually incurred.

28. Changes to Significant Accounting Policies and Estimates

(1) Changes to Significant Accounting Policies

□ Applicable ? Not applicable

(2) Changes to Significant Accounting Estimates

□ Applicable ? Not applicable

(3) Adjustments to Financial Statement Items at the Beginning of the Year of the First Implementation of anyNew Accounting Standard Implemented since 2025

□ Applicable ? Not applicable

VI Taxes

1. Main taxes and tax rates

Note on disclosure of taxpayer applying different corporate income tax rates:

2. Tax preference

(1) Value added tax (VAT)

In January 2007, Sichuan Yibin Global Gelasi Glass Manufacturing Co., Ltd. obtained the certificate of socialwelfare enterprise “F.Q.ZH.Z. No. 51004121049” issued by the Department of Civil Affairs of Sichuan Province.The Company, conforming to relevant provisions of G.SH.F. [2016] No. 33 and the Notice on VAT PreferentialPolicy for Promoting the Employment of the Disabled of the Ministry of Finance and the State Administration ofTaxation (C.SH. [2016] No. 52), enjoys the drawback policy of value-added tax. Recoverable value-added tax ofeach month = Number of disabled people employed by the taxpayer in current month x quadruple of the minimumwage of current month. The amount of value-added tax refunded in the first half of 2025 was RMB3,869,080.00.

According to the Circular on Improving the Comprehensive Resource Utilisation VAT Policy (Circular No.No. 40 of 2021 of the Ministry of Finance and the State Administration of Taxation), Sichuan Yibin WuliangyeEnvironmental Protection Industry Co., Ltd. enjoys the 70% drawback policy of value-added tax for providingcomprehensive utilisation of resources for wastewater treatment.

(2) Corporate income tax

Sichuan Yibin Wuliangye Jingmei Printing Co., Ltd., Sichuan Yibin Plastic Packaging Materials CompanyLimited, and Sichuan Yibin Wuliangye Environmental Protection Industry Co., Ltd. conforming to theAnnouncement of the Ministry of Finance and the State Taxation Administration on Continuing the CorporateIncome Tax Policies for the Large-Scale Development of Western China (Announcement [2020] No. 23 of theMinistry of Finance, the State Taxation Administration and the National Development and Reform Commission)has been filed with the Taxation Bureau of Yibin for preferential corporate income tax and pays the corporateincome tax at 15%.

Yibin Xinxing Packaging Co., Ltd., Sichuan Jiebeike Environmental Technology Co., Ltd., Sichuan JinwuxinTechnology Co., Ltd., and Sichuan Yibin Plastic Packaging Products Co., Ltd., comply with the provisions of theAnnouncement of the State Taxation Administration and the Ministry of Finance on Further Supporting Small andMicro Enterprises and Individual Industrial and Commercial Businesses through Relevant Tax and Fee Policies(Announcement No. 12 of 2023 of the Ministry of Finance and the State Taxation Administration). They are eligiblefor a 25% reduction in the calculation of taxable income for small and micro-profit enterprises, and they are subjectto a 20% enterprise income tax rate, continuing until December 31, 2027.VII Notes to the Consolidated Financial Statements

1. Monetary assets

Unit: RMB

A liquor/wine production enterprise should disclose in detail whether there is any special interest arrangementwhere the Company and any of its stakeholders have a joint account for funds, etc.

□ Applicable ? Not applicable

2. Notes receivable

(1) Notes receivable presented by category

Unit: RMB

(2) Notes receivable by method of establishing allowance for doubtful account

Unit: RMB

Allowances for doubtful notes receivable established using the general model of expected credit loss:

□ Applicable ? Not applicable

(3) Allowances for doubtful accounts established, recovered or reversed in the period

The Company had no allowances for doubtful accounts established, recovered or reversed in the period.

(4) Notes receivable in pledge at the end of the period

The Company had no notes receivable pledged by the Company at the end of the period.

(5) Notes receivable endorsed or discounted by the Company at the end of the period and not expired yet onthe balance sheet date

The Company had no notes receivable endorsed or discounted by the Company at the end of the period andnot expired yet on the balance sheet date.

(6) Notes receivable actually written off in the period

The Company had no notes receivable actually written off in the period.

3. Accounts receivable

(1) Accounts receivable presented by aging

Unit: RMB

(2) Accounts receivable by method of establishing allowance for doubtful account

Unit: RMB

Allowances for doubtful accounts established on an individual basis:

Unit: RMB

Allowances for doubtful accounts established on a grouping basis:

Unit: RMB

Allowances for doubtful accounts receivable established using the general model of expected credit loss:

□ Applicable ? Not applicable

(3) Allowances for doubtful accounts established, recovered or reversed in the period

Allowances for doubtful accounts in the period:

Unit: RMB

Significant recovered or reversed allowances for doubtful accounts in the period:

No such cases in the Reporting Period.

(4) Accounts receivable actually written off in the period

No such cases in the Reporting Period.

(5) Top five entities with respect to accounts receivable and contract assets

Unit: RMB

4. Receivables financing

(1) Receivables financing presented by category

Unit: RMB

(2) Receivables financing by method of establishing allowance for doubtful account

Unit: RMB

The Company had no receivables financing for which allowances for doubtful accounts are established on an individual basis as at the end of the period.

Allowances for doubtful accounts established on a grouping basis:

Unit: RMB

(3) Allowances for doubtful accounts established, recovered or reversed in the periodThe Company had no allowances for doubtful accounts established, recovered or reversed in the period.

(4) Receivables financing in pledge at the end of the period

The Company had no receivables financing in pledge at the end of the period.

(5) Receivables financing endorsed or discounted by the Company at the end of the period and not expiredyet on the balance sheet date

Unit: RMB

5. Other receivables

Unit: RMB

(1) Other receivables

1) Other receivables classified by nature

Unit: RMB

2) Other receivables presented by aging

Unit: RMB

3) Other receivables by method of establishing allowance for doubtful account? Applicable □ Not applicable

Unit: RMB

Allowances for doubtful accounts established on an individual basis:

Unit: RMB

Allowances for doubtful accounts established on a grouping basis:

Unit: RMB

Allowances for doubtful accounts established using the general model of expected credit loss:

Unit: RMB

Gross amounts with significant changes in loss allowances in the period:

□ Applicable ? Not applicable

4) Allowances for doubtful accounts established, recovered or reversed in the periodAllowances for doubtful accounts in the period:

Unit: RMB

5) Other receivables actually written off in the period

No such cases in the Reporting Period.

6) Top five entities with respect to other receivables

Unit: RMB

6. Prepayments

(1) Prepayments presented by aging

Unit: RMB

The Company had no prepayments with significant amounts aged over three years at the end of the period.

(2) Top five entities with respect to prepayments

Unit: RMB

7. Inventory

Indicate whether the Company is subject to the information disclosure requirements for the real estate sector.No.

(1) Classification of inventory

Unit: RMB

The Company is subject to the disclosure requirements for the food and wine & liquor production industry in Guidelines No. 3 of the Shenzhen Stock Exchangefor the Self-Regulation of Listed Companies—Industry-specific Information Disclosure.

(2) Classification of merchandise on hand

Unit: RMB

(3) Inventory valuation allowances and impairment allowances for contract performance costs

Unit: RMB

(4) Note on closing balance of inventory containing the capitalized amount of borrowing costsNone

(5) Notes of the amount of contract performance costs amortized for the periodNone

8. Other current assets

Unit: RMB

9. Long-term equity investments

Unit: RMB