泸州老窖：2021年半年度报告（英文版）.PDF

2021 Interim Report of Luzhou Laojiao Co., Ltd. 1 Luzhou Laojiao Co., Ltd. 2021 Interim Report August 2021 2021 Interim Report of Luzhou Laojiao Co., Ltd. 2 Section I Important Statements, Contents and Definitions The Board of Directors, Board of Supervisors, as well as directors, supervisors and senior management other than the following directors, supervisors and senior management that have expressed dissent against this report guarantee that the information presented in this report is free of any false records, misleading statements or material omissions, and shall individually and together be legally liable for truthfulness, accuracy and completeness of its contents. Liu Miao, responsible person for the Company, Xie Hong, responsible person for accounting work and Yan Li, responsible person for the Companys financial affairs (Accounting Supervisor) have warranted that the financial statements in this report are true, accurate and complete. All the directors attended the board meeting to deliberate this report by themselves. Affected by risks, uncertainties and assumptions, the forward-looking statements concerning business objectives and future plans made in this report based on the subjective assumptions and judgments of the future policies and economic conditions may be significantly different from the actual results. Such statements shall not be considered as virtual promises of the Company to investors, and the investors and relevant persons shall maintain adequate risk awareness and shall understand the differences between plans, forecasts and commitments. In this report, the potential risks in the operation of the Company have been disclosed. Investors are kindly reminded to pay attention to possible investment risks. The Company has no interim dividend plan, either in the form of cash or stock. This report has been prepared in both Chinese and English. Should there be any discrepancies or misunderstandings between the two versions, the Chinese version shall prevail. 2021 Interim Report of Luzhou Laojiao Co., Ltd. 3 Contents Section I Important Statements, Contents and Definitions . 2 Section II Company Profile and Key Financial Results . 6 Section III Management Discussion and Analysis . 10 Section IV Corporate Governance . 25 Section V Environmental and Social Responsibility . 27 Section VI Significant Events . 34 Section VII Changes in Shares and Information about Shareholders. 41 Section VIII Preferred Shares . 47 Section IX Information about Bond . 48 Section X Financial Report . 52 2021 Interim Report of Luzhou Laojiao Co., Ltd. 4 Documents Available for Reference 1. Financial statements signed and stamped by the responsible person for the Company, the responsible person for accounting work and the responsible person for the Companys financial affairs (Accounting Supervisor); 2. The originals of all company documents and announcements that are disclosed to the public during the reporting period. 2021 Interim Report of Luzhou Laojiao Co., Ltd. 5 Definitions Term Reference Definition Company, the Company, Luzhou Laojiao Refer to Luzhou Laojiao Co., Ltd. Laojiao Group Refer to Luzhou Laojiao Group Co., Ltd. XingLu Group Refer to Luzhou XingLu Investment Group Co., Ltd. SASAC of Luzhou Refer to State-owned Assets Supervision and Administration Commission of Luzhou Huaxi Securities Refer to Huaxi Securities Co., Ltd. Sales Company Refer to Sales Company of Luzhou Laojiao Co., Ltd. Brewing Company Refer to Luzhou Laojiao Brewing Co., Ltd. 2021 Interim Report of Luzhou Laojiao Co., Ltd. 6 Section II Company Profile and Key Financial Results 1. Corporate information Stock abbreviation Luzhou Laojiao Stock code 000568 Changed stock abbreviation (if any) - Stock exchange where the shares of the Company are listed Shenzhen Stock Exchange Name of the Company in Chinese 泸州老窖股份有限公司 Abbr. of the Company name in Chinese (if any) 泸州老窖 Name of the Company in English (if any) Luzhou Laojiao Co., Ltd. Abbr. of the Company name in English (if any) LZLJ Legal representative Liu Miao 2. Contact us Secretary of the board Representative for securities affairs Name Wang Hongbo Wang Chuan Address Luzhou Laojiao Marketing Network Command Center, Nanguang Road, Luzhou City, Sichuan Province, China Tel. (0830)2398826 (0830)2398826 Fax (0830)2398864 (0830)2398864 E-mail 2021 Interim Report of Luzhou Laojiao Co., Ltd. 7 3. Other Information 3.1. Contact Information of the Company Whether any change occurred to the registered address, office address and their zip codes, website address and email address of the Company in the reporting period. Applicable N/A No change occurred to the said information in the reporting period, which can be found in the 2020 Annual Report. 3.2. Information disclosure and place where the interim report is kept Whether any change occurred to the information disclosure and place where the interim report is kept Applicable N/A No change occurred to the newspapers designated by the Company for information disclosure, the website designated by the CSRC for disclosing the interim report and the place where the interim is kept in the reporting period. The said information can be found in the 2020 Annual Report. 4. Key accounting data and financial indicators Whether the Company performed a retroactive adjustment to or restatement of accounting data. Yes No H1 2021 H1 2020 Change Operating revenues (CNY) 9,317,097,027.05 7,634,482,901.87 22.04% Net profits attributable to shareholders of the Company (CNY) 4,226,316,722.25 3,220,452,190.27 31.23% Net profits attributable to shareholders of the Company before non-recurring gains and losses (CNY) 4,208,650,132.88 3,233,951,849.05 30.14% Net cash flows from operating activities (CNY) 2,738,237,039.90 728,815,422.24 275.71% Basic earnings per share (CNY/share) 2.89 2.20 31.36% Diluted earnings per share (CNY/share) 2.89 2.20 31.36% Weighted average ROE 16.78% 15.32% 1.46% 30 June 2021 31 December 2020 Change Total assets (CNY) 37,504,080,677.67 35,009,203,823.45 7.13% 2021 Interim Report of Luzhou Laojiao Co., Ltd. 8 Net assets attributable to shareholders of the Company (CNY) 24,307,106,220.71 23,074,858,552.59 5.34% 5. Differences in accounting data under domestic and overseas accounting standards 5.1. Differences in the net profits and net assets disclosed in the financial reports prepared under the international and China accounting standards Applicable N/A 5.2. Differences in the net profits and net assets disclosed in the financial reports prepared under the overseas and China accounting standards Applicable N/A 5.3. Reasons for accounting data differences above Applicable N/A 6. Non-recurring gains and losses Applicable N/A Unit: CNY Item Amount Note Gain or loss from disposal of non-current assets (including the write-off portion of the impairment provision) 180,849.31 See Section XI Note 5.42 for details. Government grants accounted for, in the profit or loss for the current period (except for the government grants closely related to the business of the Company and given at a fixed amount or quantity in accordance with the national uniform standards) 7,226,821.19 See Section XI Note 5.39 for details. Other non-operating income and expenditure except above-mentioned items 17,427,895.75 See Section XI Note 5.43, 5.44 for details. Less: Corporate income tax 6,139,307.70 Minority interests (after tax) 1,029,669.18 Total 17,666,589.37 - Explain the reasons if the Company classifies an item as a non-recurring gain/loss according to the definition in the Explanatory Announcement No. 1 on Information Disclosure for Companies Offering 2021 Interim Report of Luzhou Laojiao Co., Ltd. 9 Their Securities to the Public-Non-Recurring Gains and Losses, or classifies any non-recurring gain/loss item mentioned in the said explanatory announcement as a recurring gain/loss item. Applicable N/A No such cases for the reporting period. 2021 Interim Report of Luzhou Laojiao Co., Ltd. 10 Section III Management Discussion and Analysis 1. Business scope in the reporting period The Company operates within the baijiu subdivision industry which belongs to the liquor, beverage and refined tea manufacturing industry with specialized baijiu product design, production and sales as its main business model. Its primary products include baijiu series such as National Cellar 1573 and Luzhou Laojiao, and its main comprehensive performance indicators rank high in the baijiu industry. As the COVID-19 pandemic eases, the baijiu industry gradually returns to normal. In the future, the total market volume will shrink, consumption will be upgraded, and the market share will continue to be concentrated in the industry leaders. The industry competition will become the competition between systems. The shortcomings in corporate supply chain and ecosystem chain must be addressed. The era of joint operations of strategic product line mix and market has arrived. The Company shall comply with the disclosure requirements of the Guidelines No. 14 of the Shenzhen Stock Exchange on Industry Information DisclosureListed Companies Engaging in Business Related to Food & Liquor and Wine Production. For H1 2021, operating revenue amounted to CNY 9.317 billion, up 22.04% year on year; and the net profit attributable to the shareholders of the listed company reached CNY 4.226 billion, up 31.23% year on year. Holding 20 food business licenses, the Company is primarily engaged in the research and development, production and sales of baijiu series such as National Cellar 1573 and Luzhou Laojiao. Its core competitiveness lies in the geographical, cellars and brewing technique, brand, quality and R&D, and talent advantages. In recent years, the baijiu industry, mainly characterized by slower growth, centralized differentiation and fiercer competition, is gradually having younger generation as its main consumer group. During the reporting period, the Company closely focused on the development theme of “increasing efficiency by lean management, and expanding the market by precise marketing”, and calmly coped with the adverse effects of the constant fluctuation of the pandemic. The Company steadily and orderly advanced various tasks, achieved sustainable and healthy growth in operating results, provided consumers with high-quality products and services, and continued to meet peoples needs for a better life. The Companys production model is self-production. For the purchase of raw materials, it has the cooperative model, the unified pricing model, and the bid invitation model. And for sales models, it has the traditional channel operation model and the emerging channel operation model. Brand operations The Company thoroughly implemented the brand revival project, and focused on the strategy of dual brands, three product series, and major single products with great clarity. National Cellar 1573 continued to lead the brand recognition. The market share, product profit, brand image and high-end 2021 Interim Report of Luzhou Laojiao Co., Ltd. 11 value continued to increase; the returning trend of Luzhou Laojiao brands value and consumer confidence gradually took shape. The marketing management reform of the Touqu and Erqu series achieved remarkable results; innovative product series continued to meet the diversified and segmented market needs. The Company has managed to cover various product price zones. And it will continue to rejuvenate and promote value return of the brand. Main sales models: Currently, the Company has two main sales models: 1. Traditional channel operation model: It is mainly authorized distribution of the offline distributors. The Company establishes cooperative relationships with the distributors by product lines and regions. The Company directly supplies goods to the distributors, and then distributors sell them to consumers and terminal outlets. 2. Emerging channel operation model: It is mainly online sales operations. The Company establishes cooperative relationships with e-commerce platforms, self-media and webcasters, and sells the goods to consumers through flagship stores, specialty stores, live streaming rooms on online platforms and other network terminals. Distribution models: Applicable N/A 1. Main sales models Unit: CNY Operating revenue Cost of sales Gross profit margin YoY change of operating revenue YoY change of cost of sales YoY change of gross profit margin By sales model Traditional channel operation model 8,663,483,014.70 1,169,109,178.74 86.51% 19.03% -8.96% 4.15% Emerging channel operation model 531,759,619.22 117,339,362.75 77.93% 84.71% 52.90% 4.59% 2. Distributors Unit: Number Region Number of distributors at the end of the reporting period Increased number during the reporting period Decreased number during the reporting period YoY change of number of distributors (%) Reason for any significant change Domestic 1,899 340 488 -11.05 Overseas 108 3 0 5 3. Main settlement method for distributors and distribution method 2021 Interim Report of Luzhou Laojiao Co., Ltd. 12 The Companys main settlement method for distributors is payment before delivery. The distribution method is authorized distribution. 4. Main customers Total sales to top five customers（CNY） 6,302,696,056 Total sales to top five customers as % of the total sales 67.65% Total sales to related parties among top five customers as % of the total sales 0% 5. Information on top five customers No. Customer Sales amount (CNY) As % of the total sales for the year 1 Customer A 4,747,209,850.52 50.95% 2 Customer B 771,559,092.03 8.28% 3 Customer C 456,988,131.13 4.91% 4 Customer D 241,439,592.44 2.59% 5 Customer E 85,499,389.88 0.92% Total - 6,302,696,056.00 67.65% Store sales terminals accounted for more than 10% Applicable N/A Online direct sales Applicable N/A For the sales of the Companys main products, please refer to Section III Business segment, products or geographical segments contributing over 10% of the operating revenues or profits. The Companys complete series of products are sold online. Its main cooperation platforms included JD.com and Tmall. Sales price of main products contributing over 10% of the total operating revenues for the current period changed by more than 30% from the previous reporting period Applicable N/A Purchase model and purchase content Unit: CNY Purchase model Purchase content Amount of main purchase content Organic raw grains are purchased through cooperative model and supplied by organic raw grain bases; other raw grains and packaging materials are purchased through bid invitation Raw materials 2,154,099,305.00 2021 Interim Report of Luzhou Laojiao Co., Ltd. 13 Purchase based on the unified pricing of the Development and Reform Commission of Luzhou and the price bureau, and purchase through bid invitation Fuels and energies 70,179,239.95 Purchase through bid invitation Low-value consumables 26,671,543.91 The purchase of raw materials from cooperatives or farmers accounted for more than 30% of