五 粮 液：2026年半年度报告（英文版）

Wuliangye Yibin Co., Ltd. Interim Report 2026

Chairman of the Board: Deng Min

August 29, 2026

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 of Wuliangye Yibin Co., Ltd. (hereinafter referred to as the “Company”) hereby guarantee that the contents of this Report are true, accurate and complete and free of any misrepresentations, misleading statements or material omissions, and collectively and individually accept legal responsibility for such contents.

2. Deng Min, the Company’s legal representative, Zhang Xin, the Company’s Chief Financial Officer, and Liu Min, head of the Company’s accounting department (accounting supervisor), hereby guarantee that the financial statements carried in this Report are true, accurate and complete.

3. All directors attended the board meeting for the review of this Report.

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 any discrepancies 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 Governance, Environmental and Social Information....22

Part V Significant Events....26

Part VI Share Changes and Shareholder Information....36

Part VII Bonds....41

Part VIII Financial Statements....42

Documents Available for Reference

The following documents are available for shareholders at the relevant department of the Company:

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

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

3. Interim Report 2026 of the Company.

Definitions

Part II Corporate Information and Key Financial Information

I 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, website address, 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 Report 2025.

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 the Company’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 are disclosed, as well as the place for lodging such reports did not change in the Reporting Period. The said information can be found in Annual Report 2025.

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 1: This was primarily driven by the combined effect of the relatively low profit base in the same period of last year and the sound sell-through of core products during the peak sales season, which benefited from the effective sell-through initiatives adopted during the New Year and Spring Festival period. Note 2: This was primarily driven by the combined effect of the relatively high base in the same period of last year, the decrease in cash received in the Reporting Period following the adjustment of the collection policy in response to market changes, and the year-on-year decrease in the amount of bank acceptance bills maturing.

V Accounting Data Differences under China’s Accounting Standards for Business Enterprises (CAS) and International Financial Reporting Standards (IFRS) and Foreign Accounting Standards

1. Net Profit and Equity under CAS and IFRS

□ Applicable  Not applicable

No difference for the Reporting Period.

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

□ Applicable  Not applicable

No difference for the Reporting Period.

VI Non-recurring Gains and Losses

 Applicable □ Not applicable

Unit: RMB

Particulars about other items that meet the definition of non-recurring gain/loss:

□ Applicable  Not applicable

No such cases for the Reporting Period.

Explanation of why the Company reclassifies as recurring an non-recurring gain/loss item listed in the Explanatory Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the Public—Non-recurring Gain/Loss Items:

□ Applicable  Not applicable

No such cases for the Reporting Period.

Part III Management Discussion and Analysis

I Principal Operations of the Company during the Reporting Period

The Company is principally engaged in Baijiu production and sales. According to the Guidelines for the Industry Classification of Listed Companies issued by the China Securities Regulatory Commission, the Baijiu industry falls into the category of the “liquor & wine, beverage, and refined tea production industry” (C15). No change occurred to the principal operations of the Company during the Reporting Period. “Wuliangye”, the primary product of the Company, is a classic strong-flavor Chinese Baijiu. Additionally, the Company has developed, based on different production techniques and market needs, Wuliang NongXiang Baijiu products such as Wuliang Chun (Spring), Wuliang Chun (Rich Flavor), Wuliang Tetouqu, and Mianrou Jianzhuang with complete categories and unique 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 in Guidelines No. 3 of the Shenzhen Stock Exchange for the Self-Regulation of Listed Companies—Industryspecific Information Disclosure.

1. Brand Operation

(1) Wuliangye-branded Baijiu Products

In the first half of the year, closely following the "One Core, Three Enhancements and Two Goals" marketing policy, the Company advanced in a coordinated manner key initiatives including enhancing brand value, refining product operations and upgrading the channel system, with its operating quality and efficiency improving steadily.

Firstly, the Company deepened the shaping of brand value, and its brand presence improved steadily. It partnered with CCTV for the "Harmony Gifts" interactive event during the Spring Festival Gala for the fourth consecutive year, successfully held the Fifth Harmony Cultural Festival and the 28th Rose Wedding Ceremony, and launched the first "Harmony Voyage" maritime cultural exchange event. It exclusively sponsored the variety show Lifestyle Lab and carried out cross-brand collaborations with the leading domestic animation A Record of a Mortal's Journey to Immortality, achieving new breakthroughs in brand rejuvenation. It also systematically rolled out World Cup-themed marketing campaigns, generating cumulative online exposure of over 1.3 billion views and holding more than 700 "Wuliangye Cup" corporate football matches offline, effectively boosting the international communication of the brand and expanding its reach within the football community.

Secondly, the Company iteratively optimized its product system, with its product operation capabilities improving steadily. In response to the consumption trends toward younger and more internationa consumers, it launched new products including the Wuliangye · Crush on co-branded gift box and 24 World Cup series co-branded products, and continued to optimize its product mix. For the 8th-Generation Wuliangye, it implemented digital marketing and scientifically adjusted planned quotas, which, coupled with activities such as bottle-scanning campaigns, effectively drove sell-through. Propitious Purple Wuliangye consolidated its benchmark position in terms of value in the premium low-alcohol Baijiu segment. Classic Wuliangye continued to cultivate consumers in premium circles. Wuliangye 1618 and Wuliangye (39% vol) deepened their presence in banquet scenarios, with both the number of banquet events and bottles opened continuing to grow. Wuliangye · Crush on expanded into leisure and social scenarios such as bars, continuously broadening its reach in the younger consumer market.

Thirdly, the Company advanced in a coordinated manner the channel quality upgrading, steadily strengthening its channel control capability. It dynamically optimized the layout of exclusive stores, adding

59 new exclusive stores, and launched innovative specialty stores in Chengdu, including the "Wuliang Flame" trendy experience store. It carried out the "Step Into" series group-buying campaigns, connecting with a total of over 4,000 enterprises in key sectors. It deepened direct-supply cooperation with platforms such as JD.com and Tmall, partnered with mainstream instant retail platforms to empower over 500 physical stores nationwide, and started building a unified membership direct-sales system, with user activity and point-of-sale conversion efficiency improving steadily.

(2) Wuliang NongXiang products

In the first half of the year, Wuliang NongXiang Company adhered to the principles of "product purity, packaging consistency, product grades, and brand recognition" and the "three focuses", along with the strategy of building signature products, and systematically advanced business management, brand innovation, marke expansion and other key tasks, with its overall operations making steady progress.

Firstly, the market foundation continued to be consolidated. All brands focused on point-of-sale sellthrough and carried out bottle-scanning incentive campaigns on a regular basis. The cumulative bottle-scanning volume of self-operated brands increased 12% year on year, and the number of scanning participants grew 10% year on year, with product sell-through continuing to improve. Effective point-of-sale terminals expanded to over 750,000, with the quality of point-of-sale terminal operations improving steadily. The Company upgraded the "Nongyougou" mall into the core sales vehicle for its private domain, bringing the private-domain direct-toconsumer sales system to initial scale, and advanced in parallel the instant retail transformation of core point-ofsale terminals, achieving breakthroughs in new business formats.

Secondly, brand communication became more focused. The Company deepened the operation of its proprietary IP system and continued to strengthen its core IP “Get into the Festive Spirit”, achieving total exposure of over 2.4 billion views and 17 million interactions across all channels. Each brand carried out distinctive cultural marketing campaigns based on its own positioning. With the "3K" operations — namely KOLs (Key Opinion Leaders), KOCs (Key Opinion Consumers) and KOSs (Key Opinion Sales) — as the core driver, 53,000 pieces of content were produced in the first half of the year, generating total exposure of over 900 million views and 89 million interactions. As a result, the coverage of customer groups continued to expand, and the emotional bonding with consumers was further deepened.

Thirdly, digital and intelligent operations empowered efficiency. The Company launched digital platforms such as the "Nongyou Share+" mini program and innovatively applied digital tools including the "Nong Xiaowu" AI and digital humans to empower the entire process of business decision-making and refined point-of-sale terminal operations, effectively improving operational efficiency. It had accumulated 28.85 million members, with user engagement and member loyalty continuing to improve.

2. Major Sales Models of the Company

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

Direct-to-consumer model: This includes the group purchase model, where products are sold directly to groups 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 Product Categories

Unit: RMB

(2) Number of Distributors

Note: There is overlap between distributors of Wuliangye-branded Baijiu products and Wuliang NongXiang Baijiu 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 Reporting Period, the total sales revenue from the top five distributors reached RMB10.195 billion, accounting for 35.87% of the 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

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

□ Applicable  Not applicable

Unit: RMB

6. Purchase Model and Purchased Items

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

□ Applicable  Not applicable

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

□ Applicable  Not applicable

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

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: The increase in the sales volume of Wuliangye-branded Baijiu products was primarily driven by the relatively low base in the same period of last year and the sound sell-through during the New Year and Spring Festival peak season, with production volume and sales volume maintaining a relative balance.

Note 3: During the Reporting Period, competition for existing market share in the mid- and low-priced Baijiu segment intensified, resulting in a decline in the sales volume of other liquor products and a corresponding decrease in production volume.

(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 the base liquor for Baijiu and fruit-flavored liquor.

II Core Competitiveness Analysis

The Company’s unique five major competitive edges of the regions of production, ancient fermentation pit clusters, quality, brands, and consumer base constitute its irreplicable core competitiveness. During the Reporting Period, the Company’s core competitiveness remained stable.

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”. It has been recognized by United Nations Educational, Scientific and Cultural Organization (UNESCO) and Food and Agricultural Organization (FAO) as “the most suitable region in the same latitude for producing high-quality, pure distilled Baijiu”. The region of production has also been selected into the first batch of the key cultivation list of regions of production for traditional advantageous food and local specialty food industries, which is released by the Ministry of Industry and Information Technology.

The second competitive edge lies in the ancient fermentation pit clusters. The ancient fermentation pit clusters of the Yuan and Ming dynasties, represented by Changfasheng and Lichuanyong, are the earliest and largest cave-type ancient fermentation pits that have been continuously and actively used in distilling for the longest time in China’s Baijiu industry. “Archaeological Wuliangye”, a continuation project under the “Compass Plan” launched by the National Cultural Heritage Administration, has been successfully completed, tracing the history of the ancient fermentation pit back to 1276 (the early Yuan Dynasty).

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 cultura heritage, with 93 process steps, 310 working procedures, and 218 quality inspection points. A through-life, integrated quality management model “from seed to liquor” has been established. During the Reporting Period, the Company passed the CNAS accreditation scope expansion review, cumulatively obtaining 444 accredited testing capabilities and ranking first among Baijiu enterprises in China. With testing results mutually recognized worldwide, the Company further consolidated the foundation for end-to-end quality control.

The fourth is the brand strength. Wuliangye has a long history and profound cultural heritage. Its origins trace back to the pre-Qin period; it began in the Tang dynasty, emerged in the Song dynasty, was refined in the Yuan dynasty, became well-known in the Ming dynasty, and established its brand name in the Qing dynasty. In 1932, it was the first in the industry to register Chinese and English trademarks. Wuliangye was among the first batch of the China Famous Consumer Goods List issued by the Ministry of Industry and Information Technology, while the Baijiu sector has been designated as a Time-Honored Classic Industry for targeted cultivation and development. During the Reporting Period, the Company continued to deepen its cooperation with CCTV, maintained in-depth participation in high-profile platforms such as the Boao Forum for Asia and the China International Supply Chain Expo, and continued to build signature IPs including the Rose Wedding Ceremony, the Harmony Cultural Festival and the Harmony Global Tour. It went all out for brand promotion around the FIFA World Cup in the United States, Canada and Mexico, with its brand presence and reputation continuing to improve.

The last is a broad consumer base. Strong-flavoured Baijiu is the Baijiu category with the highest market share and the largest consumer base. Being famous for its lasting aroma, mellow, pleasant and smooth taste, and harmonious, well-balanced and comprehensive flavours in particular, Wuliangye has a wide and solid consumer base. Notably, the industry’s pioneering low-alcohol Baijiu possesses a unique competitive advantage 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 the Reporting Period” above.

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

Unit: RMB

Note 1: This was primarily driven by the Company's increased market investment during the Reporting Period in response to market changes.

Note 2: This was primarily driven by the low profit base in the same period of last year and the sound sellthrough of core products during the peak sales season during the Reporting Period, which drove a significant increase in profit and, consequently, higher income tax expense.

Note 3: This was primarily driven by the combined effect of the relatively high base in the same period of last year, the decrease in cash received in the Reporting Period following the adjustment of the collection policy in response to market changes, and the year-on-year decrease in the amount of bank acceptance bills maturing.

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

□ Applicable  Not applicable

No such cases in the Reporting Period.

2. Breakdown of Operating Revenue

Unit: RMB

Note: The Company does not directly export its liquor products. Instead, its products are sold to Wuliangye Group I&E for export sales.

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

 Applicable □ Not applicable

Unit: RMB

Note: The Company does not directly export its liquor products. Instead, its products are sold to Wuliangye Group I&E for export sales.

Data of principal operations for the prior period adjusted according to the changed methods of measurement that occurred in the Reporting Period:

 Applicable □ Not applicable

Unit: RMB

Reasons for the changed methods of measurement: During the Reporting Period, the Company optimized its marketing management structure based on actual circumstances.

4. Breakdown of Selling Expense

Unit: RMB

Note: This was primarily driven by the Company's increased market investment during the Reporting Period in response to market changes.

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 RMB59 million, RMB424 million and RMB439 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 discounted as receivables financing, and other changes during the current period represented the net amount recognized and utilized during the current period.

Indicate whether any significant change occurred to the measurement attributes of the major assets in the Reporting 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 external environment; secondly, the recovery of effective demand may fall short of expectations; and finally, the Baijiu industry continues to undergo deep change. In response, the Company will maintain its strategic focus, closely adhering to the operating principle of "long-termism with a sense of urgency and meticulous management grounded in systematic thinking", and vigorously advance scenario innovation, customer group transformation and service upgrading, with a view to continuously improving its ability to match supply with demand and its market share.

XI Formulation and Implementation of Market Value Management Rules and Valuation Enhancement Plan

Indicate whether the Company has formulated market value management rules.

 Yes □ No

Indicate 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, the Company has formulated the Market Value Management Rules, which has been approved at the Fourth Meeting of the Sixth Board of Directors in 2025. These rules mainly cover the specific departments or personne responsible for market value management, the responsibilities of directors and senior management, the methods of market value management, 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 disclosed by the Company on March 6, 2025.

XII Implementation of the Action Plan for “Dual Enhancement of Development Quality and Investor Returns”

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

 Yes □ No

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

1. Strengthening development and building momentum for sustainable development

Firstly, innovation empowered by technology continued to deepen. The Company further applied modern biotechnology to replicate old fermentation pit mud, continuously building a high-quality distilling ecosystem based on artificial pit mud. It strengthened research on the flavor of aged liquor and drinking methods, and, for the first time, revealed the formation mechanism of Wuliangye's unique "five-grain aroma" in the international journal Journal of Agricultural and Food Chemistry. The construction of a whole-chain innovation research system spanning from production to consumption has been accelerated

Secondly, branding and market expansion were advanced in a coordinated manner. The Company partnered with CCTV for the "Harmony Gifts" interactive event during the Spring Festival Gala and maintained in-depth participation in high-profile platforms such as the annual meeting of the Boao Forum for Asia, global cooperation with the Guide Michelin and the 4th China International Supply Chain Expo, showcasing Chinese Baijiu culture and the Company's development achievements in multiple dimensions. It built a content matrix featuring "professional science communication to set the tone, internet-savvy content to attract new users, and AI-powered creativity to break through", continuously refreshing the brand's youthful expressions. It successfully held cultural IP events such as the Harmony Cultural Festival and the Rose Wedding Ceremony, launched a global short-video competition in partnership with Visual China Group, and exclusively titled the "Wuliangye · Tomorrow Sculpture Awards" for the seventh consecutive year, with its brand presence increasingly stronger. Wuliangye · Crush on co-branded with leading IPs and was launched in Hong Kong, China and Singapore. The Company carried out in depth the "Famous Baijiu Entering Famous Enterprises" series of activities, promoting integrated food-and-Baijiu marketing through venues such as the Wuliang Flame trendy beverage store, the Wuliangye Grand Restaurant and the West Lake trendy experience store. It continued to build a smart membership operation system for the C-end, with membership scale and activity improving steadily.

Thirdly, raw material supply assurance and production management continued to be strengthened. The Company continued to advance the construction of custom base farms for grain dedicated to Baijiu distilling, increased the area under custom cultivation, and procured raw grain in an orderly manner according to plan, further enhancing its capacity to secure high-quality raw materials. It strictly implemented distilling process specifications and strengthened process control, with the quality and efficiency of distilling and production continuing to improve.

2. Strengthening compliance and continuously improving corporate governance

Firstly, information disclosure management continued to be strengthened. The Company continued to strengthen its learning of regulatory requirements such as the Stock Listing Rules, improved the whole-process management of information collection, review and disclosure, and strengthened the management of inside information. In the first half of 2026, the Company compiled and disclosed 64 periodic reports and current announcements, conveying relevant information on its production and operation to the market in a timely manner, with its transparency continuously improving.

Secondly, the supervision and checks-and-balances mechanism continued to be improved. In the first half of 2026, the Audit Committee of the Board of Directors held five meetings, reviewing matters such as the preparation of periodic reports, financial reports, internal control and related-party transactions, and issuing written opinions. The independent directors convened one special meeting of independent directors to express independent opinions on matters such as related-party transactions, continued to pay attention to the Company's information disclosure work, and performed their duties independently, objectively and prudently, effectively playing their role in prior review and special supervision and ensuring the standardized and efficient operation of the Board of Directors.

Thirdly, ESG governance continued to deepen. In the first half of 2026, the Company completed the preparation and disclosure of its annual ESG report, systematically presenting its practices and achievements in the environmental, social and governance aspects. In addition, it formulated and released the Biodiversity Conservation Policy, further improving its ESG framework.

3. Strengthening returns and continuously increasing shareholder returns

The Company continued to uphold the core value of “creating sound returns for investors”, and while focusing on its own development, it actively shares the fruits of its development with shareholders. Firstly, the Company implemented the 2025 final dividend payout, distributing cash dividends totaling approximately RMB10 billion to all shareholders. Secondly, it launched a share repurchase plan, repurchasing the Company's shares through centralized bidding transactions using its own funds, with the total repurchase amount to be no less than RMB8 billion and no more than RMB10 billion. All repurchased shares would be retired and the registered capital would be reduced accordingly. As of July 31, 2026, the Company had cumulatively repurchased 13,316,606 shares, accounting for 0.34% of the Company's existing total share capital, with a total repurchase amount of RMB1,001,810,356.65 (excluding transaction fees).

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

On May 7, 2026, Wuliangye Group launched the third round of shareholding increase in the Company's shares, and had cumulatively purchased 2,411,300 additional shares as of August 7, 2026 with an amount of RMB199,434,240.41, accounting for 0.06% of the Company’s total share capital. As of now, the shareholding increase plan has not been fully implemented, and Wuliangye Group will continue to increase its holdings in accordance with the plan.

5. Strengthening communication and continuously optimizing investor relations management

During the Reporting Period, the Company held the 2025 Annual and Q1 2026 Earnings Briefing as well as the First Extraordinary Meeting of Shareholders in 2026 and the 2025 Annual Meeting of Shareholders, actively listening to investors’ opinions and suggestions, continuously improving the effectiveness and pertinence of communication, and effectively ensuring the equal participation of minority shareholders. The Company communicated with a total of more than 900 investors through meetings of shareholders, one-on-one meetings, securities firms’ investment conferences, conference calls, the investor hotline, irm.cninfo.com.cn and other forms. The Company will continue to implement relevant measures of the Action Plan for “Dual Enhancemen 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 achieve sustained highquality development of the Company.

Part IV Governance, Environmental and Social Information

I Change of Directors 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 for Employees

 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 and senior management under employee stock ownership plans during the Reporting Period:

In April 2018, the Company carried out an employee stock ownership plan through a private placement, and certain in-service directors 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 accounting treatments 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 tha are required by law to disclose environmental information.

 Yes □ No

V Corporate Social Responsibility (CSR)

In the first half of 2026, in accordance with the arrangements and deployments of relevant departments at the provincial and municipal levels, the Company provided foundational assistance to Litang County, Ganzi Prefecture and Yuexi County, Liangshan Prefecture, and provided financial assistance to Shiqu County, Ganzi Prefecture. It also undertook assistance tasks for 66 towns and villages within Yibin City. Focusing on key areas such as industrial development, consumption and education, the Company made systematic plans and targeted efforts, effectively contributing to local economic and social development.

1. Improving the assistance mechanism and consolidating the foundation for assistance work

Firstly, the annual plan was scientifically formulated. Focusing on the actual needs of assisted areas such as Litang, Yuexi and Pingshan counties, the Company formulated the 2026 annual assistance work plan, refining 13 assistance measures covering industrial development, consumer assistance, talent and education, infrastructure, and employment assistance.

Secondly, the enterprise-local consultation mechanism was improved. The Company's leaders successively led teams to the assisted areas to carry out over 20 activities such as field research and donation of charitable materials, continuously consolidating the working pattern of enterprise-local coordination and joint advancement.

Thirdly, the frontline assistance forces were strengthened. The Company completed the rotation of four village-based assistance cadres in an orderly manner and additionally dispatched six professional managers, providing a solid guarantee for the implementation of various assistance measures.

2. Focusing on industrial assistance and enhancing the self-development capacity

Firstly, project construction and operation was accelerated. The construction of the Baijiu bottling line in Yuexi County was accelerated, and the main structure of the "Wuliangye Torch Square" in Qingping Yi Township, Pingshan County was completed. In the first half of the year, projects under construction cumulatively provided over 1,500 jobs. Adhering to the principle of "equal emphasis on construction and management", the Litang mushroom base entered the harvesting stage, and the 200-mu high-mountain tea garden and 200-mu edible bamboo shoot base in Pingshan County were managed, protected and harvested in an orderly manner, providing 110 fixed jobs, with the effect of connecting with and driving farmers continuing to emerge. Secondly, the industrial value chain was extended. Relying on its innovation and design center, the Company created the "Hao Shi Jiang Cheng" regional public brand for citrus in Jiang'an County, helping increase the added value and market competitiveness of local agricultural products. The "Wuliangyuan" Daliangshan series of Baijiu tailored for Yuexi County cumulatively achieved sales of over RMB4 million. Thirdly, the shortcomings of township-level development were addressed. The Company supported the construction of a grain base dedicated to Baijiu distilling in Simianshan Town, Jiang'an County, with nearly 300 tons of custom-grown wheat all purchased and stored, expected to increase farmers' income by RMB1.19 million. It supported the construction of a batch of industrial and livelihood projects, including vegetable greenhouses and supporting facilities for micro and small industrial parks, road improvement, and fitness trails, with the production and living conditions in the assisted areas continuing to improve.

3. Deepening consumption assistance and broadening channels for increasing income

The Company built a diversified consumption assistance system featuring "internal consumption + marketoriented channels", including 49 high-quality specialty agricultural products from the assisted areas in the employee welfare procurement catalog and listing them on the "Wuliangye Home" platform. In the first half of the year, it purchased over RMB10 million worth of specialty agricultural products from assisted areas outside the city and nearly RMB1.2 million from assisted areas within the city. It simultaneously connected with channels such as supermarkets, communities, canteens and deep-processing enterprises to help sell nearly

RMB1 million worth of specialty agricultural products, effectively promoting the continuous income increase of people in the assisted areas.

4. Strengthening talent development to unlock growth potential

The Company adhered to the combination of "intellectual assistance" and "aspiration-building", and held two special job fairs for foundational employment assistance in Litang County and Yuexi County, providing 50 jobs. It carried out nine training sessions on various topics such as farmers and herdsmen skills and Baijiu marketing, covering over 500 participants. Also, it planned to provide RMB1.25 million for the implementation of projects such as the "Wuliangye · Litang Young Eagle Program for University Students", the "Five Loves" talent education fund in Yuexi County, and care for children in special difficulties, among others.

Part V Significant Events

I Undertakings of the Company’s Actual Controller, Shareholders, Related Parties and Acquirers, as well as the Company Itself and other Entities Fulfilled in the Reporting Period or Ongoing at the Period-end

 Applicable □ Not applicable

Upon review and approval by the Fourth Meeting of the Seventh Board of Directors in 2026 held on Apri 28, 2026 and the First Extraordinary Meeting of Shareholders in 2026 held on May 18, 2026, the Company intended to use its own funds to repurchase its A-stock shares through centralized bidding transactions for the purpose of reducing the registered capital. The total repurchase amount shall be no less than RMB8 billion (inclusive) and no more than RMB10 billion (inclusive), the repurchase price shall not exceed RMB151.01 per share (inclusive), and the implementation period shall be within 12 months from the date on which the meeting of shareholders reviewed and approved the repurchase plan.

Based on its confidence in the Company’s continuously stable development and recognition of the Company’s long-term investment value, Wuliangye Group has undertaken to increase its shareholdings in the Company within six months from May 7, 2026, with the total amount of the shareholding increase to be no less than RMB3 billion (inclusive) and no more than RMB5 billion (inclusive). Wuliangye Group and its acting-inconcert party Yibin Development Group have undertaken not to reduce their shareholdings in the Company during the said period of shareholding increase. And the undertakings are being performed normally.

II Occupation of the Company’s Funds by the Controlling Shareholder or Any of Its Related Parties 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 Firm

Indicate whether the interim financial statements are audited.

□ Yes  No

The interim financial statements are unaudited.

V Statements Made by the Board of Directors Regarding the Independent Auditor’s “Modified Opinion” on the Financial Statements of the Reporting Period

□ Applicable  Not applicable

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

□ Applicable  Not applicable

VII Bankruptcy 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

IX Penalties and Rectifications

 Applicable □ Not applicable

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

 Applicable □ Not applicable

The Company as well as its controlling shareholder and actual controller were in good credit standing during the 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 are eliminated as the same company withdrawing a deposit and making another deposit of a different kind, or companies included 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 facility or other financial services:

Note: In 2026, the Company and Wuliangye Group Finance signed a Supplementary Agreement to the Financial Service Agreement, agreeing that the daily deposit balance with Wuliangye Group Finance shall not exceed RMB55 billion in 2026, and that the daily total balance of outstanding loans and unused credit facilities with Wuliangye Group Finance shall not exceed RMB10 billion in 2026.

The “amount incurred” in the Reporting Period includes the bank acceptance bills of RMB63.9960 million issued by Wuliangye Group Finance (undue bank acceptance bills as of June 30, 2026: RMB63.9960 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 Researches, Inquiries, Interviews, etc. Received during the Reporting Period

 Applicable □ Not applicable

XIV Other Significant Events

□ Applicable  Not applicable

No such cases in the Reporting Period.

XV Significant Events of Subsidiaries

 Applicable □ Not applicable

Upon review and approval by the Third Meeting of the Seventh Board of Directors in 2026, the Company's controlled subsidiary, Sichuan Wuliangye New Retail Management Co., Ltd., invested to establish a whollyowned subsidiary, "Sichuan Yibin Wuliangye Smart Marketing Co., Ltd." (hereinafter referred to as "Smart Marketing Company"). Smart Marketing Company has a registered capital of RMB100 million, and the Company holds an aggregate 90% equity interest in Smart Marketing Company.

Part VI Share Changes and Shareholder Information

I Share Changes

1. Share Changes

Unit: share

Reasons for share changes:

□ Applicable  Not applicable

Approval of share changes:

□ Applicable  Not applicable

Transfer of share ownership:

□ Applicable  Not applicable

Progress on any share repurchase:

 Applicable □ Not applicable

Upon review and approval by the Fourth Meeting of the Seventh Board of Directors in 2026 held on April 28, 2026 and the First Extraordinary Meeting of Shareholders in 2026 held on May 18, 2026, the Company intended to use its own funds to repurchase its A-stock shares through centralized bidding transactions for the purpose of reducing the registered capital. The total repurchase amount shall be no less than RMB8 billion (inclusive) and no more than RMB10 billion (inclusive), the repurchase price shall not exceed RMB151.01 per share (inclusive), and the implementation period shall be within 12 months from the date on which the meeting of shareholders reviewed and approved the repurchase plan. As of July 31, 2026, the Company had cumulatively repurchased 13,316,606 shares, representing 0.34% of the Company's existing total share capital, with the highest transaction price at RMB85.25 per share and the lowest transaction price at RMB73.33 per share. The total amount paid was RMB1,001,810,356.65 (excluding transaction fees).

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 attributable to the Company’s ordinary shareholders and other financial indicators of the latest year and the latest accounting period, respectively:

□ Applicable  Not applicable

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

□ Applicable  Not applicable

2. Changes in Restricted Shares

□ Applicable  Not applicable

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 in refinancing shares lending:

□ Applicable  Not applicable

Changes in top 10 shareholders and top 10 unrestricted public shareholders due to refinancing shares lending/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 of the Company conducted any promissory repurchase during the Reporting Period.

□ Yes  No

No such cases in the Reporting Period.

IV Changes in Shareholdings of Directors and Senior Management

□ Applicable  Not applicable

No changes occurred to the shareholdings of the directors and senior management in the Reporting Period. See Annual Report 2025 for more details.

V Change of the Controlling Shareholder or the Actual Controller

If the Company previously disclosed that the actual controller plans a change of control which has not yet been finalized, please elaborate on the latest progress of such change of control arrangement.

□ Applicable  Not applicable

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 Statements

I Independent Auditor’s Report

Indicate whether the interim financial statements are audited.

□ Yes  No

The interim financial statements are unaudited.

II Financial Statements

Monetary 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, 2026

Unit:

RMB

Legal representative: Deng Min 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

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 2026

Unit: RMB

Unit: RMB

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

H1 2026 Unit: RMB

H1 2025 Unit: RMB

Interim Report 2026 of Wuliangye Yibin Co., Ltd.

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 shares established by Sichuan Yibin Wuliangye Distillery through fund raising on August 19, 1997 with the approval of Document CFH (1997) No. 295 issued by the People’s Government of Sichuan Province. The Company is principally 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, Cuiping District, Yibin City, Sichuan Province, China.

The Company issued 80 million ordinary shares (in RMB) on-line by fixed price offering at Shenzhen Stock Exchange on April 27, 1998. According to the resolution of the extraordinary general meeting of Shareholders in September 1999, the Company, based on the total share capital of 320 million shares on June 30, 1999, transferred capital reserve to increase share capital, increasing five shares for every ten shares and the total share capital after the conversion was changed to 480 million shares. The Company placed 31.2 million ordinary shares (in RMB) to the original shareholders as approved by Document ZH.J.G.S.Z. [2001] No. 6 issued by the China Securities Regulatory Commission. The total share capital after the placement was 511.2 million shares. In August 2001, the Company implemented the interim distribution plan 2001 and issued four bonus shares and increased three shares for every ten shares by transferring capital reserve to share capital, with 357.84 million bonus shares and shares transferred from capital reserve in total. The total share capital after the issuance and translation was 869.04 million shares. In April 2002, the Company implemented the distribution plan 2001 and issued one bonus shares, increased two shares by transferring capital reserve to share capital, and distributed RMB0.25 (tax inclusive) in cash for every ten shares, with 260.712 million bonus shares in total. The total share capital after the issuance and translation was 1,129.752 million shares. In April 2003, the Company implemented the distribution plan 2002 and increased two shares for every ten shares by transferring capital reserve to share capital for all shareholders, increasing the share capital by 225.9504 million shares. The total share capital after the translation was 1,355.7024 million shares. In April 2004, the Company implemented the distribution plan 2003 and issued eight bonus shares and increased two shares by transferring capital reserve to share capital for every ten shares, with 1,355.7024 million bonus shares in total. 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 after the reform was as below: 1,817.7869 million shares for state-owned legal person, taking up 67.04% of the total share capital, 493.4 thousand shares for officers, taking up 0.02% of the total share capital, and 893.1245 million shares for other shareholders, taking up 32.94% of the total share capital. The total share capital remained at 2,711.4048 million shares.

In April 2007, the Company implemented the distribution plan 2006 and issued four bonus shares and distributed RMB0.60 (tax inclusive) in cash for every ten shares, with 1,084.5619 million bonus shares in total. The total share capital after the issuance and distribution was 3,795.96672 million shares. On April 2, 2008, shares for state-owned legal person decreased by 416.5303 million shares due to the exercise of warrants and became 2,128.3714 million shares, taking up 56.07% of the total share capital. Other shareholders held 1,667.5954 million shares, 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 Yibin Co., 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 of Wuliangye Yibin Co., Ltd. of the State-owned Assets Supervision and Administration Commission of the State Council (G.Z.CH.Q. [2012] No. 889), Yibin State-Owned Assets Operation Co., Ltd. (renamed as Yibin

Development 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 Development Holding Group Co., Ltd. still held 36% shares of the Company (i.e. 1,366,548,020 shares) and was the first majority shareholder 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’s Government of Yibin City transferred 49% shares held by it in Sichuan Yibin Wuliangye Group Co., Ltd. to Yibin Development Holding Group Co., Ltd. for free in 2016. This transfer of shares did not involve the change of shares held by both parties in the Company, without changing the controlling shareholder and actual controller of the Company.

According to the resolutions of the 11th meeting of the 5th Board of Directors, annual general meeting of Shareholders 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 3,881.608 million shares, including 2128.3714 million shares for state-owned legal person, taking up 54.83% of the total share capital, 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’s Government of Yibin City, the transfer was approved in principle. On August 24, 2020, Yibin Development Holding Group 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 of the Company (i.e. 1,336,548,020 shares) and was the first majority shareholder of the Company; Sichuan Yibin Wuliangye Group Co., Ltd., holding 20.40% shares of the Company (i.e. 791,823,343 shares), was the second majority shareholder of the Company. This transfer of shares did not change the controlling shareholder and actual controller of the Company.

Sichuan Yibin Wuliangye Group Co., Ltd. has, during the period from December 14, 2023 to the close of trading 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 Shenzhen Stock Exchange by way of centralized bidding with an amount of RMB500.0016 million. Upon completion 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 the Company; and Sichuan Yibin Wuliangye Group Co., Ltd. holds a 20.49% interest in the Company (i.e. 795,230,011 shares), being the second largest shareholder of the Company. Therefore, the controlling shareholder and the actual controller of the Company have remained unchanged.

During the period from April 9, 2025 to the close of trading on September 30, 2025, Sichuan Yibin Wuliangye Group Co., Ltd. (Wuliangye Group) purchased a total of 6,273,266 additional shares through the trading system of the Shenzhen Stock Exchange by way of centralized bidding with an amount of RMB800.0363 million, accounting for 0.16% of the Company’s total share capital of 3,881,608,005 shares. Upon completion 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 the Company; and Sichuan Yibin Wuliangye Group Co., Ltd. holds a 20.65% interest in the Company (i.e. 801,503,277 shares), being the second largest shareholder of the Company. Therefore, the controlling shareholder and the actual controller of the Company have remained unchanged.

During the period from May 7, 2026 to the close of trading on May 21, 2026, Sichuan Yibin Wuliangye Group Co., Ltd. cumulatively increased its shareholding in the Company by 1,116,000 shares through the trading system of the Shenzhen Stock Exchange via centralized bidding transactions, representing 0.03% of the Company's existing total share capital of 3,881,608,005 shares. The amount of the shareholding increase was RMB99.4359 million. As of June 30, 2026, Yibin Development Holding Group Co., Ltd. still held 34.43% of the Company's shares (namely 1,336,548,020 shares), making it the Company's largest shareholder. Sichuan Yibin Wuliangye Group Co., Ltd. held 20.68% of the Company's shares (namely 802,619,277 shares), making it the Company's second largest shareholder. Therefore, the controlling shareholder and the actual controller 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 and operation 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 is The 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 the Board of Directors of the Company on August 27, 2026.

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 actual transactions, in accordance with the relevant provisions of the Accounting Standards for Business Enterprises, and based 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 in Guidelines No. 3 of the Shenzhen Stock Exchange for the Self-Regulation of Listed Companies—Industryspecific Information Disclosure.

Specific accounting policies and accounting estimates:

The contents disclosed below cover the specific accounting policies and accounting estimates formulated by the 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 latest Accounting Standards for Business Enterprises, application guidelines, interpretations and other related regulations issued 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 relevant information.

In addition, these financial statements have been prepared by reference to the presentation and disclosure requirements of the Preparation Rules for Information Disclosure by Companies Of ering Securities to the Public No. 15 - General Provisions on Financial Reports (2023 revision) issued by the China Securities Regulatory Commission.

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 control

For a business combination under the common control achieved through step-by-step implementation of multiple transactions by the Company, the assets and liabilities acquired in a business combination are measured at the carrying amount of the acquiree in the consolidated financial statements of the ultimate controlling party at the date of combination. The difference between the carrying amount of the net assets obtained by the Company and the carrying amount of consideration paid for the combination (or total par value of the shares issued) is adjusted against the capital reserve; if the capital reserve is not sufficient for writing down, the retained earnings shall be adjusted.

(2) Accounting methods for business combinations involving entities not under common control

On the acquisition date, the difference between the combination costs and the fair value share of the identifiable net assets of the acquiree obtained in the merger is recognized as goodwill. If the combination costs are less than the fair value share of the identifiable net assets of the acquiree obtained in the combination, firstly, the fair value of identifiable assets, liabilities and contingent liabilities of the acquiree and the measurement of combination costs are reviewed. If the combination costs are still less than the fair value share of identifiable ne assets 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 should be treated in the following order:

1) Adjusting the initial investment cost of long-term equity investment. If the equity held prior to the date of purchase 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 current period; if the equity in the acquiree held prior to the purchase date involves other comprehensive income or changes in other owners’ equity under the equity method of accounting, it is converted into income for the current period on the purchase date, except for other comprehensive income arising from the re-measurement of the invested company’s net liabilities of the defined benefit pension plan or changes in net assets of the defined benefit plan and changes 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 initial investment cost of long-term equity investments adjusted in the first step with the share of the fair value of the identifiable net assets of the subsidiary on the purchase date, if the former is more than the latter, the difference between the former and the latter is recognized as goodwill; if the former is less than the latter, the difference is included 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 results in 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 other transactions.

2) Accounting methods when transactions in the process of step-by-step disposal of equity that results in the loss 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 package deal, 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 corresponding to the disposal of the investment for each disposal prior to the loss of control should be recognized as other comprehensive earnings in the consolidated financial statements and transferred to profit or loss for the current period when the Company lost the control.

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

3) Accounting methods when transactions in the process of step-by-step disposal of equity that results in the loss 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, in the consolidated financial statements, the difference between the payment for equity disposed of and the Company’s corresponding portion of net assets in the subsidiary is included in the capital reserve. If the capita reserve is insufficient 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 the consolidated 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 equity minus the Company’s portion of net assets in the former subsidiary calculated from the date of combination on an ongoing basis at the original shareholding ratio is included in the return on investment for the current period when the Company lost the control. Other comprehensive income related to the equity investments in the former subsidiary should be included in the return on investment or retained earnings for the current period when the Company lost the control.

7. Judgement criteria for control and methods for preparing consolidated financial statements

The scope of consolidation of the Company’s consolidated financial statements shall be determined on the basis of control.

Control means that the Company has the power over the invested company, gets variable return by participating in related activities of the invested company and has the ability to influence the amount of the return by its power over the invested company. Related activities refer to activities that have a significant impact on the returns of the invested company. The related activities of the invested company should be judged based on the specific circumstances, and usually include the sale and purchase of goods or services, the management of financial assets, 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 its comprehensive consideration of relevant facts and circumstances. Should any changes in such facts and circumstances alter the elements defining control, a reassessment is promptly conducted. Relevant facts and circumstances mainly include: (1) the purpose of the investee’s establishment; (2) the investee’s activities and how decisions regarding them are made; (3) whether the rights held by the investor currently enable it to dominate the investee’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) the relationship between the investor and other parties

The consolidated financial statements are based on the financial statements of the parent company and its subsidiaries and are prepared by the Company in accordance with Accounting Standard No. 33 for Business Enterprises - Consolidated Financial Statements based on other relevant information.

The parent company shall prepare the consolidated financial statements based on its financial statements and those of its subsidiaries and according to other relevant information. The share of the subsidiaries in current profit/loss attributable to non-controlling interests shall be presented in the consolidated income statement as “net profit attributable to non-controlling interests” under the net profit. The share in current comprehensive income of the subsidiaries which is attributable to non-controlling interests shall be presented in the consolidated income statement as “total comprehensive income attributable to non-controlling interests” under the total other

comprehensive income.

For subsidiaries and businesses of the parent company added by business combination involving enterprises under the common control during the Reporting Period, the revenue, expenses, and profits of such subsidiaries and businesses from the beginning to the end of the period of business combination shall be recorded into the consolidated income statement. Cash flows of such subsidiaries and businesses from the beginning to the end of the year of business combination shall be recorded into the consolidated cash flow statement, and relevant items of the statements shall be adjusted through comparison of the statements, as if the reporting entity after the combination had 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 common control or other means, the revenue, expenses, and profits of such subsidiaries and businesses from the date of acquisition to the end of Reporting Period shall be recorded into the consolidated income statement. Cash flows of such 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 of disposal shall be recorded into the consolidated income statement; and the cash flow of such subsidiary and business from the beginning of the Reporting Period to the date of disposal shall be recorded into the consolidated cash flow statement.

In the consolidated financial statements, when the parent company acquires the equity held by the minority shareholders in the subsidiary, the difference between the long-term equity investment obtained by acquiring noncontrolling interests and the share of the net assets to be enjoyed and continuously calculated from the date o acquisition or combination according to the new increase in shareholding proportion shall be adjusted against the capital reserve (capital premium or share premium). If the capital reserve is not sufficient for writing down, the retained earnings shall be adjusted.

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

(1) Identification and classification ofjoint arrangements

Joint arrangement refers to an arrangement under the joint control of two or more participants. A joint arrangement has the following characteristics: 1) Each participant is bound by the arrangement; 2) two or more parties of the joint arrangement exercise joint control over the arrangement. No one party can control the arrangement alone, and any party with joint control over the arrangement can prevent the other party or combination of parties from controlling the arrangement alone.

Joint control refers to the common control of an arrangement in accordance with the relevant agreement, and related activities of the arrangement must be agreed upon by the parties sharing control rights before they can make decisions.

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

(2) Accounting treatment ofjoint arrangements

A party to a joint operation shall recognize the following items related to its share of interest in the joint operation and conduct accounting treatment for them in accordance with the relevant provisions of the Accounting Standard for Business Enterprises: 1) Recognition of assets held separately and of assets held jointly in proportion to its share; 2) recognition of liabilities incurred separately and of liabilities incurred jointly in proportion to its share; 3) recognition of revenue from the sale of its share of the output of the joint operation; 4) recognition of revenue from the sale of output of the joint operation in proportion to its share; 5) recognition of expenses incurred separately 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 of the 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 highly liquid investments that are readily convertible into known amounts of cash and that are subject to an insignificant risk 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 the transaction date at initial recognition. At the balance sheet date, the foreign monetary items are converted at the spot exchange rate at the balance sheet date, and the exchange difference arising from exchange rate difference, except for the exchange difference arising from principal and interest of foreign currency special borrowings relating to purchasing assets satisfying capitalization conditions, is included in current profit or loss; the foreign non-monetary items measured at historical cost are still converted at the spot exchange rate at the transaction date, and its RMB amount will not be changed; the foreign non-monetary items measured at fair value are converted at the spot exchange rate at the fair value determination date, and the difference is included in current profit or loss or other comprehensive 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 transaction date; the incomes and expenses in the income statement are converted at the spot exchange rate at the transaction date. The foreign currency financial statement conversion difference arising from the aforementioned translation is recognized 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 financial instrument contract.

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

A financial asset (or a part of the financial assets, or part of a group of similar financial assets) will be derecognized, that is, a previously recognized financial asset is transferred from the balance sheet, when meeting the 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 full amount 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 of the financial assets are neither transferred nor retained.

If the obligation of financial liabilities has been assumed, revoked, or terminated, financial liabilities shall be derecognized. If the current financial liabilities are replaced with other financial liabilities under substantially different terms by the same creditor, or almost all current liabilities terms are substantially revised, such replacement or revision shall be taken as the derecognition of original liabilities and recognition of new liabilities, and the differences 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 cash flow 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. The subsequent measurement of financial assets depended on their categories.

1) Financial assets measured at amortized cost

Financial assets that meet both of the following conditions shall be classified as financial assets measured at the amortized cost: The Company’s business model of managing financial assets aims at obtaining contractual cash flows; and, as stipulated by term contract of the financial assets, the cash flows generated on a specific date are merely for the payment of principal or the interest from the unpaid principal. Such financial assets ar subsequently measured at the amortized cost using the effective interest method. Gains or losses arising from derecognition or amortization 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 fair value through other comprehensive income: The Company’s business model of managing the financial assets aims at obtaining contractual cash flows as well as selling financial assets; and, as stipulated by contract clauses of the financial assets, the cash flows generated on a specific date are merely for the payment of principal or interest from the unpaid principal. Such financial assets shall be subsequently measured at fair value. The discount or premium is amortized using the effective interest method and recognized as interest income or expense. Changes in the fair value 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 and exchange differences on monetary financial assets denominated in foreign currencies, which are recognized in current profit or loss. Interest income related to such financial assets is included in profi or loss for the current period.

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 chosen and designated by the Company from some non-trading equity investments, the relevant dividend income is included in the current profit or loss, and changes in the fair value are recognized as other comprehensive income, until the financial 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 those measured at fair value through other comprehensive income are classified as financial assets at fair value through profit or loss. At initial recognition, in order to eliminate or significantly reduce accounting mismatch, financia assets 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 profi

or loss.

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

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

(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 the current profit or loss.

Any financial liability meeting any of the following conditions can be designated upon initial measurement as the financial liabilities at fair value through profit or loss: 1) This designation can eliminate or significantly reduce accounting mismatch; 2) According to the risk management or investment strategy of the Company as stated in formal written document, the portfolio of financial liabilities or the portfolio of financial assets and financial liabilities is managed and evaluated on the basis of fair value, and reported to the key management on the basis of this inside the Company; 3) This financial liability contains embedded derivative to be separately split.

For financial liabilities measured at fair value through the current profit or loss, transaction costs are directly included in current profit or loss. For other types of financial liabilities, related transaction costs are included in their initial recognized 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-fortrading financial liabilities (including derivatives that are financial liabilities) and financial liabilities designated as at fair value 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 be presented as net amount after offset in the balance sheet: The Company has the legal rights to offset the recognized amount and may exercise such legal rights currently; the Company plans to settle with net amount or realize the financial 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 the expected credit loss. Credit loss refers to the difference between all contractual cash flows discounted at the original effective interest rate and receivable according to the contract and all cash flows expected to be collected of the Company, 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 financial assets (debt instruments) measured at fair value through other comprehensive income by individual items or portfolios.

1) General model of expected credit loss

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

On the balance sheet date, the Company measured the expected credit loss of financial instruments at different stages, respectively. If the credit risk of a financial instrument has not increased significantly since the initial recognition, 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 the credit impairment has not yet occurred since the initial recognition, the financial instrument is in Stage 2, and the Company measures the provisions for loss according to the lifetime expected credit losses; if the financial instrument has suffered credit impairment since the initial recognition, it is in Stage 3, and the Company measures the provisions 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 credit risk has not increased significantly since the initial recognition, and the Company measures the provisions for loss according 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 interest income 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 amortized cost 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 by Accounting 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 the standard), and always measures its losses based on the amount of expected credit losses over the entire life of the accounts receivable.

For accounts receivable containing a significant financing component and lease receivables regulated by Accounting Standards for Business Enterprises No. 21 —Leases, the Company makes an accounting policy choice to adopt the simplified model of expected credit loss, i.e., measuring the loss provision equivalent to the expected credit 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 occurred in an account receivable, impairment test shall be carried out separately on it, such as accounts receivable in dispute with counterparties or involved in litigation or arbitration; if there is obvious indication that the debtor is likely to fail to comply with the repayment obligation, the impairment loss shall be recognized and the bad deb provisions shall 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 asset cannot be evaluated at reasonable cost, the accounts receivable shall be classified into several groups by characteristics of credit risk. The expected credit loss shall be calculated based on the combinations and the account ages. Basis for determining the combinations is as below:

For accounts receivable divided into groups, the Company, with reference to historical experience in credit loss and based on current situation and forecast of future economic situation, shall prepare a comparison table between the aging of accounts receivable and the lifetime expected credit loss rate to calculate the expected credit losses. For other groups, the Company, with reference to historical experience in credit loss and based on current situation and forecast of future economic situation, shall calculate the expected credit losses according to the exposure 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 loss according to the nature of investment, types of counterparties and risk exposure, exposure at default and the 12- month or lifetime expected credit loss rate.

The Company shall include the provision or reversal for loss made or included in current profit or loss. For investment in debts instruments at fair value through other comprehensive income, the Company shall adjust other comprehensive income when the impairment loss or gain is included in current profit or loss; for financial assets measured 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 process in the production process, materials or supplies to be consumed in the production process, or the rendering of services.

(2) Valuation method of shipped inventory

Grains, raw coal and auxiliary materials for producing Baijiu are measured at actual cost, and shipped inventories are priced by weighted average method; paper, printing ink, and auxiliary materials for producing printed matters are measured at planned cost when purchased and shipped, with the difference between actual cost and planned cost included in “materials cost difference”. The difference to be amortized by the materials shipped shall be calculated by materials cost difference by category at the end of the month, so as to adjust cost of the materials shipped into actual cost; goods in process, self-manufactured semi-finished products, and finished products 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. If cost of the inventories is higher than the net realizable value, a provision for inventory falling price reserves shall be made and included in current profit or loss.

Net realizable value refers to the amount after deducting the cost estimated until completion, estimated selling expenses, 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 and after taking into consideration the purpose for which the inventory is held, and the impact of post-balance sheet events. Materials held for use in the production of inventories are measured at cost if the net realizable value of the finished products in which they will be incorporated is higher than their cost; decline in the price of materials indicates that the cost of the finished products exceeds their net realizable value, the materials are measured at net realizable value. The net realizable value of inventory held to satisfy sales or service contracts is based on the contract 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 than the 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 of the product;

3) The raw material inventory no longer satisfies the needs of new products due to upgrade of products, and the 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 change of 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. For inventories in large amount and low unit price, provision for inventory falling price reserves may be made by category of the inventories. For item of inventories relating to a product line that is produced and marketed in the same geographical area, have the same or similar end uses or purposes, and cannot be practically measured separately 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 factors causing written-down of the inventory value disappear, the amount written down shall be recovered and will be reversed from the provided inventory falling price reserves. The amount reversed will be included in current profit or 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 conditions simultaneously as assets held for sale: 1) Assets or disposal groups can be sold immediately under current conditions based on the practice of selling such assets or disposal groups in similar transactions; 2) The sale is very likely to occur, that is, the Company has already made a resolution on a sale plan and obtained a certain acquisition commitment, and the sale is expected to be completed within one year. (A certain acquisition commitment refers to a legally binding acquisition agreement signed by an enterprise and other parties, which includes important terms such as transaction price, time and sufficiently severe default penalties, so as to make it extremely unlikely that the agreement will be significantly adjusted or revoked.) It has been approved by relevant authorities or regulatory authorities in accordance with relevant regulations.

The Company adjusts the expected net residual value of assets held for sale to reflect the net amount of fair value minus selling costs (but not exceeding the original carrying amount of the asset held for sale). The difference between the original book value and the adjusted expected net residual value is recognized as an impairment loss and included in the current profit or loss, with a corresponding impairment provision for the asset held for sale. The amount of asset impairment loss recognized for disposal groups held for sale shall be offset against the carrying amount of goodwill in the disposal group first, and then against the carrying value of each non-current asset proportionately according to the proportion of the carrying value of each non-current asset in the disposal group as defined in the applicable measurement of the Accounting Standards for Business Enterprises No. 42—Non-current Assets 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 sale increases, the previously recognized impairment loss shall be reversed. The amount of the reversal is transferred from the impairment loss recognized for assets classified as held for sale, and the reversal amount is recognized in current 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 disposal groups 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 classified as held for sale, as stated in Accounting Standards for Business Enterprises No. 42—Non-curren Assets Held for Sale, Disposal Groups, and Discontinued Operations, and the reversal amount is recognized in the current profit or loss. The carrying amount of goodwill that has been impaired, and the impairment losses of noncurrent assets recognized 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 reversal of asset impairment losses recognized for assets held for sale in a disposal group should be proportionally increased based on the carrying value of each non-current asset in the disposal group, excluding goodwill, in accordance with their respective carrying amounts under the measurement regulations of Accounting Standards for Business Enterprises No. 42—Non-current Assets Held for Sale, Disposal Groups, and Discontinued Operations. If an enterprise loses control over a subsidiary due to the sale of its investment in a subsidiary or other reasons, regardless of whether the enterprise retains part of the equity investment after the sale, when the investment in the subsidiary to be sold satisfies the classification conditions of the held-for-sale the parent company category, the investment in the 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 financial statements.

(2) Recognition criteria and presentation of discontinued operations

Discontinued operation refers to a component of an enterprise that meets one of the following conditions, can be distinguished separately, and has either been disposed of or classified as held for sale: 1) The componen represents a major separate business or a major geographical area of operation; 2) The component is part of a plan to dispose of a major separate business or a major geographical area of operation; 3) The component is a subsidiary acquired 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 of this component should be clearly distinguishable from other parts of the enterprise when preparing financial statements and conducting business operations.

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

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

as held for 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 payment in cash, transfers non-cash assets, assumes its liabilities, or issues equity securities on the date of combination, it regards the share of the carrying amount of the owners’ equity of the combined party included in the consolidated financial statements of the ultimate controlling party as the initial cost of the investment. The share premium of the capital reserve shall be adjusted with the difference between the initial investment cost of the long-term equity investment and the carrying amount of the consideration paid or the par value of shares issued. If the share premium of 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 initia investment cost of the investment shall be the share of the acquired entity’s owners’ equity attributable to the acquiring entity on the acquisition date, calculated based on the ownership percentage. The difference between the initial investment cost and the sum of the carrying amount of the original long-term equity investments and the carrying value of any additional consideration paid for further shares acquired on the acquisition date is adjusted to share premium (capital surplus or share premium). If the share premium is insufficient for writing down, the retained earnings shall be used for writing down.

2) For business combinations not under the same control, the fair value of the combination consideration paid by 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 taken as its initial investment cost; if it is acquired by issuing equity securities, the fair value of the issued equity securities shall be taken as its initial investment cost; if it is acquired by the investment of the investors, the value agreed in the investment contract or agreement shall be taken as its initial investment cost (except when the agreed value is considered 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 method is used in the Company’s individual financial statements; for long-term equity investments with joint control or significant influence, the equity method is applied

Under the cost method, long-term equity investments are valued at the initial investment cost. Except for the price actually paid at the acquisition of investment or the declared but undistributed cash dividends or profits included in the consideration, the Company recognized the return on investment of the current period in accordance with the cash dividends or profits declared and distributed by the invested company, with consideration given to the impairment 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 equity investment is greater than the fair value of identifiable net assets of the invested company gained from the investment, the excess shall be included in the initial investment cost of the long-term equity investment. If the initial investment cost is smaller than the fair value of identifiable net assets of the invested company gained from the investment, the difference shall be included in the current profit or loss, and the cost of long-term equity investments shall be adjusted.

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

Control means that the investor has power over the invested company, enjoys variable returns by participating in the relevant activities of the invested company, and has the ability to use the power over the invested company to affect the amount of returns. Significant influence means that the investor has the rights to participate in the decision-making of the financial and operating policies of the invested company, but cannot control or jointly control 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 control

In the case of a partial disposal of long-term equity investments in a subsidiary without losing control, the variance between the disposal proceeds and the corresponding carrying amount of the disposed investment is recognized as current investment income.

2) Partial disposal of equity investments or other reasons for losing control of a subsidiary

In cases where control over a subsidiary is lost due to the disposal of equity investments or other reasons, the carrying amount of long-term equity investments corresponding to the disposed equity shall be transferred. The difference between the proceeds from the sale and the carrying value of the disposed long-term equity investment shall be recognized as investment income (loss). At the same time, the remaining equity shall be recognized at its carrying value as long-term equity investments or other related financial assets. If the remaining equity after the disposal can exercise joint control or significant influence over the subsidiary, accounting treatment shall be conducted 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 balance sheet date if there is objective evidence indicating impairment. The corresponding impairment provision should be recognized 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 operation and 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 other expenditures incurred before and for making the fixed assets reach its intended condition for use directly attributable to such assets.

Book value of self-constructed fixed assets shall be the necessary expenditures incurred before and for making the 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 the recognition conditions for fixed assets, and shall be included in current profit or loss if not meeting the recognition conditions for fixed assets.

Fixed assets are recorded at actual cost at the time of acquisition and depreciated using the straight-line method from 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 impairment provision 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 the project budget, cost, or actual cost, it is transferred to fixed assets based on the estimated value and depreciated according to the Company’s fixed asset depreciation policy. Adjustment shall be made to the originally and provisionally estimated value based on the actual cost after the completion settlement is handled, but depreciation already provided shall not be adjusted.

(2) If there are signs that construction in progress has been impaired on the balance sheet date, a corresponding impairment 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 or production 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 be recorded 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) Asset expenditure has already occurred; 2) Borrowing costs have already occurred; 3) Acquisition and construction activities 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 suspended for over three months for abnormal reasons, capitalization of the borrowing costs shall be suspended; borrowing costs incurred during the suspension shall be recognized as the current costs until the acquisition, construction or production of assets is resumed.

3) When the assets with the acquisition, construction or production meeting the capitalization conditions reach the 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 for capitalization, 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 the current period less the interest income on the unused borrowings as a deposit in the bank or as a temporary investment; where a general borrowing is used for the acquisition and construction or production of assets eligible for capitalization, the Company calculates and determines the to-be-capitalized amount of interests on the general borrowing by multiplying the weighted average asset expenditure of the part of the accumulative asset disbursements 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 averagely amortized during the expected service life since the month when the intangible assets is acquired; book value of the self-developed intangible assets shall be the sum of the expenditures during the research and development stage of internal research and development projects of the Company which are eligible for capitalization and the expenditures incurred before reaching the intended condition for use, and be averagely amortized over the expected service 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 limited service life shall be amortized over period during which they may bring economic interests; if the period during which the intangible assets may bring economic benefit to the enterprise is unforeseeable, such intangible assets shall 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 method of the intangible assets. Intangible assets with uncertain service life shall be subject to impairment test every year whether there is any indication of impairment.

(2) Scope of research and development expenditures and related accounting treatment

The scope of research and development expenditures includes staff salaries for research and development personnel, direct input costs, depreciation and amortisation expenses, and other expenses. The expenditures of the Company’s internal research and development projects are divided into research phase expenditures and development phase expenditures.

Research phase expenditures of internal research and development projects shall be included in curren profit or loss when incurred. Development phase expenditures of internal research and development projects can be recognized as intangible assets only when meeting all of the following conditions: 1) It is technically feasible to complete this intangible assets so that it can be used or sold; 2) The Company has the intention to complete the intangible assets and use or sell them; 3) The way in which intangible assets generate economic benefits, including the ability to prove that the products produced using the intangible assets exist in the market or the intangible assets themselves 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 intangible asset and the ability to use or sell the intangible asset; and 5) the expenditure attributable to the development phase of 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, intangible assets, and other long-term assets measured at cost model, if there are signs of impairment, an impairment test shall be conducted on the balance sheet date. If the recoverable amount of the asset is less than its carrying value according to the test, provision for impairment will be made at the difference and included in impairment loss. Recoverable amount is the higher of the net amount of fair value of an asset deducting the disposal expenses and the present value of estimated future cash flow of the asset. The provision for impairment of assets is calculated and made on an individual basis. If it is difficult for the Company to estimate the recoverable amount of the individual asset, the recoverable amount of an asset group, to which the said asset belongs, shall be determined. Asset group is the smallest 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 be carried 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 a reasonable method from the date of acquisition when the Company carries out impairment test on goodwill; or amortized 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 be evenly amortized according to the proportion of the fair value of each assets group or combination of assets groups in the total fair value of the relevant assets groups or combinations of assets groups. Where the fair value cannot be reliably measured, it should be amortized according to the proportion of the carrying value of each asset group or combination 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 containing goodwill, if any indication shows that the assets groups or combinations of assets groups may be impaired, the Company shall first conduct an impairment test on the assets groups or combinations of assets groups not containing goodwill, calculate the recoverable amount and compare it with relevant carrying value to recognize the corresponding impairment loss. Then the Company shall conduct an impairment test on the assets groups or combinations of assets groups containing goodwill, and compare the carrying value of these assets groups or combinations of assets groups (including the carrying value of the goodwill apportioned thereto) with the recoverable amount. Where the recoverable amount of the relevant assets groups or combinations of assets groups is 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 benefit period or the stipulated amortization period by the straight-line method. If a long-term deferred expense item cannot benefit a later accounting period, the amortized value of the item that has not been amortized shall be transferred to the current profit or loss; long-term prepaid expense such as expenditure for improvement of fixed assets under operating 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 relationship between its performance obligations and customers’ payments. The Company presents the obligation of transferring goods to or providing services for customers for consideration received or receivable as a contrac liability. Revenue is recognized from contract liabilities when the Company performs its obligation to transfer goods or provide services 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 12 months 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 is recognized 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 after retirement from or termination of the labour relation with the enterprise in exchange for the service provided by the employee. Post-employment benefits are divided into two types: Defined contribution plans and defined benefit plans.

1) Defined contribution plan: Contribution which shall be made by the Company separately on the balance sheet date in exchange for the service provided by the employee during the accounting period shall be recognized as 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, the benefit obligations arising from the defined benefit plan shall be attributable to the period in which the employee provides service and included in current profit or loss or cost of relevant asset; changes due to remeasurement of the net liabilities or net assets of the defined benefit plan shall be included in other comprehensive income and shall not 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 the labour 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 be recognized 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 the plan 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 payment of 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, postemployment benefits, and dismissal benefits, including long-term paid absences, long-term disability benefits, long-term profit sharing plan, etc.

The other long-term employee benefits provided by the enterprise shall be recognized and measured as net liability or net asset of other long-term employee benefits according to relevant provisions of the defined benefit plan, 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 them as 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 be initially measured at the best estimate of the required expenditure for the performance of current obligation. If the time value of money is significant, the best estimate shall be determined after discounting relevant future cash outflow. The Company shall check the carrying value of the provisions on the balance sheet date, and adjust the carrying value to reflect current best estimate.

24. Revenue

Disclose the accounting policies adopted for the recognition and measurement of revenue by business type:

(1) Recognition of revenues

Revenue is the total inflow of economic benefits arising from the Company’s ordinary activities that would result 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 to dominate 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 the goods or services promised under each individual performance obligation on the contract commencemen date, and measure 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 transfer of goods or services to customers, excluding the amount collected on behalf of third parties. In determining the transaction price of a contract, if variable consideration exists, the Company will determine the best estimate of the variable consideration based on the expected or most likely amount and include in the transaction price in an amount not exceeding the amount that the accumulated recognized revenue will most likely not be significantly reversed when the relevant uncertainty is eliminated. If there is a significant financing component in the contract, the Company will determine the transaction price according to the amount payable by the customer in cash when obtaining the control right of the goods. The difference between the transaction price and the contract consideration will be amortized by the effective interest rate method during the contract period. If the interval between the transfer of control right and the payment price by the customer does not exceed one year, the Company will not consider the 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 same time 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, and the Company has the right to collect money for the accumulated performance that has been completed so far during the whole contract period.

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

For performance obligations performed at a certain point in time instead of within a certain period, the Company 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 the following indications:

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

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

3) The Company has physically transferred the goods to the customer, i.e. the customer has taken physical possession 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 buyer according 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 receives payment or acquires the right to receive payment.

Online sales: Revenue is recognized when the Company receives the payment transferred from the ecommerce platform from the consumer.

25. Government subsidy

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

(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 be obtained 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 used for acquisition or construction or for formation of long-term assets in other ways, including the financia allocation for 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 longterm assets in other ways.

If the government documents do not specify the target of the subsidies, the basis that the Company classifies the government subsidies as asset-related subsidies or income-related subsidies were as follows: Whether the subsidies 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, when actually received, shall be recognized as deferred income and transferred equally to current profit or loss based on the 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 or loss 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 be transferred 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

government subsidies.

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, when actually received, shall be included in current profit or loss if used to compensate the relevant expenses or losses of the Company in the subsequent period; included in current profit or loss directly when acquired if used to compensate relevant expenses or losses incurred by the Company.

Income-related government subsidies used to compensate the relevant expenses or losses of the Company in the subsequent period shall be recognized as deferred income when acquired; included in current profit or loss in the period in which relevant expenses are recognized; those used to compensate relevant expenses or losses incurred by 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 deferred income and included in profit or loss during the period in which the related expenses are recognized; if it is used to compensate 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 shall be 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 according to the substance of the economic business. The government subsidies irrelevant 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 accordance with the applicable tax rate during the estimated period of recapturing the assets or paying the liabilities for the different amount between the carrying amount of assets or liabilities and its tax base (for items not recognized as assets and liabilities, if its tax basis can be determined according to the tax law, the tax basis is recognized as the different amount).

(2) The recognition of deferred income tax assets is subject to the amount of taxable income obtained to offset the deductible temporary differences. On the balance sheet date, deferred income tax assets without recognition during the former accounting period shall be recognized if there are definite indications representing that it is probable 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 is determined that the Company is not likely to obtain adequate taxable income to offset benefits from deferred income tax assets, the book values of deferred income tax assets are written down. Such write-downs are reversed when it becomes 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 or loss 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 being adopted 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 the lease liabilities; 2) the lease payment paid on or before the commencement date of the lease term. If there is a lease incentive, the amount related to the lease incentive taken should be deducted; 3) the initial direct cos incurred by the lessee; 4) the estimated cost that the Company will use to pull down and remove the leasehold property, and restore 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 the commencement date of the lease term. When calculating the present value of lease payments, the Company uses the interest rate implicit in lease as the rate of discount. If the interest rate implicit in lease cannot be determined, the Company’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 assets at 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 in the profit or loss for the current period, unless otherwise stipulated to be included in underlying asset costs. Variable lease payments that are not covered in the measurement of the lease liabilities are included in current profit or loss when 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 recognise right-of-use assets and lease liabilities. The relevant lease expenditures are included in relevant asset cost or the profit 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 finance lease refers to a lease where almost all the risks and rewards, related to the ownership of the leased asset, are substantially transferred, regardless of whether the ownership is eventually transferred or not. An operating lease refers 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 the finance lease and derecognises the leased asset of the finance lease. In the initial measurement of finance lease receivables, the sum of the unsecured residual value and the present value of the lease payments receivable not yet received on the commencement date of the lease term discounted at the interest rate implicit in lease is the book value of the finance lease receivables. The Company calculates and recognises the interest income in each period within the lease term at a fixed interest rate implicit in the lease. The received variable lease payments that are no included in the measurement of the net investment in the lease are included in profit or loss for the current period when 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 period within the lease term on a straight-line basis or according to other systematic and reasonable methods. The initial direct costs related to the operating lease are capitalised, amortised within the lease term on the same basis as the recognition of rental earning, and included in profit or loss for the current period. The received variable lease payments related to the operating lease that are not included in the lease payments receivable are included in profit or 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 any New Accounting Standard Implemented since 2026

□ 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 Glass Manufacturing Co., Ltd. obtained the certificate of socia welfare enterprise “F.Q.ZH.Z. No. 51004121049” issued by the Department of Civil Affairs of Sichuan Province. The Company, conforming to relevant provisions of Announcement No. 33 (2016) of the State Taxation Administration and the Notice on VAT Preferential Policy for Promoting the Employment of the Disabled of the Ministry of Finance and the State Administration of Taxation (C.SH. 〔 2016 〕 No. 52), enjoys the drawback policy of value-added tax. Recoverable value-added tax of each month = Number of disabled people employed by the taxpayer in current month x quadruple of the minimum wage of current month. The amount of value-added tax refunded in the first half of 2026 was RMB3,932,120.00.

(2) Corporate income tax

Sichuan Yibin Wuliangye Jingmei Printing Co., Ltd., Sichuan Yibin Plastic Packaging Materials Company Limited, Sichuan Yibin Jiang’an Plastic New Materials Co., Ltd., Sichuan Yibin Plastic Packaging Products Co., Ltd., and Sichuan Yibin Wuliangye Environmental Protection Industry Co., Ltd. conforming to the Announcement of the Ministry of Finance and the State Taxation Administration on Continuing the Corporate Income Tax Policies for the Large-Scale Development of Western China (Announcement [2020] No. 23 of the Ministry 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 corporate income tax at 15%.

Sichuan Yibin Global Glass Manufacturing Co., Ltd. is in compliance with the provisions of the Announcement of the State Taxation Administration on Issues Concerning the Implementation of the Preferentia Income Tax Policy for Innovation Companies (Announcement No. 24 (2017) of the State Taxation Administration). Having filed for the record of enterprise income tax preferential items with the Yibin Municipa Tax Bureau, its enterprise income tax is levied at a reduced rate of 15%.

Yibin Xinxing Packaging Co., Ltd., Sichuan Wuliangye Tourist Agency Co., Ltd., Sichuan Jiebeike Environmental Technology Co., Ltd., Sichuan Jinwuxin Technology Co., Ltd., and Yibin Wuliang Tequ and Touqu Brand Marketing Co., Ltd., comply with the provisions of the Announcement of the State Taxation Administration and the Ministry of Finance on Further Supporting Small and Micro Enterprises and Individual Industrial and Commercial Businesses through Relevant Tax and Fee Policies (Announcement No. 12 of 2023 o the Ministry of Finance and the State Taxation Administration). They are eligible for a 25% reduction in the calculation of taxable income for small and micro-profit enterprises, and they are subject to 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 arrangement where 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 loss allowances

Unit: RMB

Loss allowances for notes receivable established using the general model of expected credit loss:

□ Applicable  Not applicable

(3) Loss allowances established, recovered or reversed in the period

The Company had no loss allowances established, recovered or reversed in the period.

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

The Company had no notes receivable in pledge 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 on the balance sheet date

The Company had no notes receivable endorsed or discounted by the Company at the end of the period and not 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 loss allowances Unit: RMB

Interim Report 2026 of Wuliangye Yibin Co., Ltd.

Loss allowances established on an individual basis:

Unit: RMB

Loss allowances established on a grouping basis:

Unit: RMB

Loss allowances for accounts receivable established using the general model of expected credit loss: □ Applicable  Not applicable

(3) Loss allowances established, recovered or reversed in the period

Loss allowances in the period:

Unit: RMB

The Company had no significant recovered or reversed loss allowances in the period.

(4) Accounts receivable actually written off in the period

The Company had no accounts receivable actually written off in the 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 loss allowances

Unit: RMB

Loss allowances established on a grouping basis:

Unit: RMB

(3) Loss allowances established, recovered or reversed in the period

The Company had no loss allowances 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 expired yet 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 loss allowances

 Applicable □ Not applicable

Unit: RMB

Loss allowances established on an individual basis:

Unit: RMB

Loss allowances established on a grouping basis: Unit: RMB

Loss allowances 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) Loss allowances established, recovered or reversed in the period

Loss allowances in the period:

Unit: RMB

5) Other receivables actually written off in the period

The Company had no other receivables actually written off in the 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 one year 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 Exchange for the Self-Regulation of Listed Companies—Industryspecific Information Disclosure.

(2) Classification of merchandise on hand

Unit: RMB

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

Unit: RMB

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

There was no capitalized amount of borrowing costs in the closing balance of inventory.

(5) Notes of the amount of contract fulfillment costs amortized for the period

None

8. Other current assets

Unit: RMB

9. Long-term equity investments

Unit: RMB

10. Other non-current financial assets

Unit: RMB

11. Fixed assets

Unit: RMB

(1) Information on fixed assets