2025-05-13-深交所-泸州老窖_2024年年度报告（英文版）_277页_3mb

2024 Annual Report Summary - Luzhou Laojiao Co., Ltd.

Core Content and Key Information

Luzhou Laojiao Co., Ltd. (stock code: 000568) is a leading company in the baijiu (Chinese liquor) industry, based in Luzhou City, Sichuan Province, China. The 2024 Annual Report was issued in April 2025, and it includes detailed information on the company's financial performance, corporate governance, environmental and social responsibility, and strategic initiatives.

Main Financial Results

• Operating Revenues: CNY 31,196,248,208.33 in 2024, up 3.19% year-on-year.
• Net Profits Attributable to Shareholders: CNY 13,472,986,476.01 in 2024, up 1.71% year-on-year.
• Net Cash Flows from Operating Activities: CNY 19,181,768,363.65 in 2024, a significant increase of 80.14% compared to 2023.
• Basic Earnings Per Share (EPS): CNY 9.18 in 2024, up 1.77% year-on-year.
• Diluted EPS: CNY 9.18 in 2024, up 1.77% year-on-year.
• Weighted Average ROE: 30.44% in 2024, down by 4.63% compared to 2023.
• Total Assets: CNY 68,334,595,564.58 at the end of 2024, up 7.96% year-on-year.
• Net Assets Attributable to Shareholders: CNY 47,388,500,553.46 at the end of 2024, up 14.49% year-on-year.

Profit Distribution Plan

• A cash dividend of CNY 45.92 per 10 shares is proposed for 2024, with a total payout of CNY 8,758,111,442.85 (tax inclusive), accounting for approximately 65.00% of the net profits attributable to shareholders.
• The interim dividend for 2024 was CNY 13.58 per 10 shares, totaling CNY 1,998,910,141.07 (tax inclusive) on January 24, 2025.

Key Accounting Data and Financial Indicators

• Operating Revenue by Quarter:
  • Q1: CNY 9,188,402,377.79
  • Q2: CNY 7,716,482,791.59
  • Q3: CNY 7,398,670,017.92
  • Q4: CNY 6,892,693,021.03
• Net Profits Attributable to Shareholders by Quarter:
  • Q1: CNY 4,573,950,129.90
  • Q2: CNY 3,453,588,035.41
  • Q3: CNY 3,565,502,984.74
  • Q4: CNY 1,879,945,325.96
• Net Profits Before Non-Recurring Gains and Losses by Quarter:
  • Q1: CNY 4,552,423,532.38
  • Q2: CNY 3,441,687,198.86
  • Q3: CNY 3,570,292,253.98
  • Q4: CNY 1,835,111,684.27
• Net Cash Flows from Operating Activities by Quarter:
  • Q1: CNY 4,359,428,564.46
  • Q2: CNY 3,865,631,648.11
  • Q3: CNY 4,239,654,583.54
  • Q4: CNY 6,717,053,567.54

Non-Recurring Profits and Losses

• Total Non-Recurring Profits/Losses for 2024: CNY 73,471,806.52
• Non-Recurring Items:
  • Profit or loss from disposal of non-current assets: CNY 1,058,750.22
  • Government grants (excluding those with continuing impact): CNY 41,225,885.28
  • Gain or loss on fair-value changes in financial assets: CNY 54,342,655.46
  • Reversed portions of impairment allowances: CNY 422,217.14
  • Other non-operating income and expenditure: -CNY 1,550,111.21

Main Business Analysis

• Industry Overview: The baijiu industry entered a new adjustment cycle in 2024, with increased market competition and a trend towards younger consumers, lower alcohol content, and health-focused products.
• Business Scope: The company operates within the baijiu subdivision of the liquor & wine, beverage, and refined tea production industry, focusing on specialized baijiu product design, production, and sales.
• Main Products: The company's primary products include the "National Cellar 1573" and "Luzhou Laojiao" baijiu series.
• Main Product Classification:
  • Mid- and High-End Baijiu: Tax-inclusive sales price ≥ CNY 150 per bottle, including brands like National Cellar 1573, Luzhou Laojiao Tequ, and Century-old Luzhou Laojiao Jiaoling Baijiu.
  • Other Baijiu: Tax-inclusive sales price < CNY 150 per bottle, including Luzhou Laojiao Touqu and Luzhou Laojiao · Hey Guys.
• Sales Models:
  • Traditional Channel Operation Model: Authorized distribution by offline distributors, with direct supply to distributors and sales to consumers and terminal outlets.
  • Emerging Channel Operation Model: Online sales through e-commerce platforms, self-media, and webmasters, including flagship stores, specialty stores, and live streaming rooms.
• Distributors:
  • Domestic: 1,701 distributors at the end of the reporting period.
  • Overseas: 85 distributors at the end of the reporting period.
  • The number of distributors decreased slightly in the domestic market (-0.53%) and significantly in the overseas market (-18.27%).

Core Competitiveness

A. Geographical Advantage

• Luzhou City is known for its favorable climate and soil for baijiu brewing.
• The company uses glutinous red sorghum and soft wheat grown locally, along with loessal clay for cellars, and abundant quality water for production.

B. Cellars and Brewing Technique

• The company's cellars and brewing techniques are world-renowned, with the National Treasure 1573 Cellars designated as a National Cultural Relic in 1996.
• In 2013, 1,619 cellars and 16 ancient brewing workshops were designated as National Cultural Relics.
• The company has been recognized for its traditional brewing techniques, which are part of the National Intangible Cultural Heritage.

C. Brand Advantage

• The company has a strong brand presence, with "National Cellar 1573" being a world-famous high-end brand.
• "Luzhou Laojiao Tequ" is a classic strong aromatic baijiu brand, selected as one of the four most famous baijiu brands in 1952.
• The company has implemented a brand system of "dual brands, three product series, and major single products," enhancing brand influence and recognition.

D. Quality and R&D Advantage

• The company has established an "Organic Sorghum Planting Base" and a six-factor management system for quality control.
• It has research platforms such as the National Engineering Research Center of Solid-State Brewing and National Liquor Test Center.
• The company has undertaken numerous national and provincial-level projects and has been granted hundreds of invention and utility model patents, significantly improving base baijiu quality and production efficiency.

E. Talent Advantage

• The company employs a range of skilled personnel, including national intangible cultural heritage inheritors, Chinese brewing and baijiu masters, liquor connoisseurs, and senior engineers.
• It has a comprehensive and professional personnel system, supporting the company's sustainable development and innovation.

Key Financial Metrics

• Operating Revenues: Increased by 3.19% year-on-year.
• Net Profits: Increased by 1.71% year-on-year.
• Gross Profit Margin: 88.00% for the traditional channel model and 80.11% for the emerging channel model.
• Manufacturing Overhead: Increased by 63.27% year-on-year, mainly due to the operation of the Intelligent Packaging Center.

Inventory and Production

• Production Volume:
  • Mid-end baijiu: 39,441.69 tons
  • Other baijiu: 65,426.97 tons
• Sales Volume:
  • Mid-end baijiu: 42,990.65 tons
  • Other baijiu: 60,770.41 tons
• Inventory:
  • Mid-end baijiu: 33,002.59 tons
  • Other baijiu: 10,355.88 tons
• Capacity:
  • Design capacity for baijiu: 170,000 tons
  • Actual capacity: 170,000 tons
  • Capacity in progress: 80,000 tons

Corporate Governance and Risk Disclosure

• The report is prepared in both Chinese and English, with the Chinese version taking precedence in case of discrepancies.
• The company has disclosed potential risks and uncertainties in its operations.
• The report includes a profit distribution plan, which is subject to shareholder approval.

Additional Information

• The company's financial statements are signed and stamped by responsible persons.
• The auditor's report is provided with the seal of the accounting firm and signed by CPAs.
• The report includes all company documents and announcements disclosed during the reporting period.

Conclusion

Luzhou Laojiao Co., Ltd. has demonstrated strong financial performance and a robust brand presence in the baijiu industry. The company's geographical advantage, unique cellars and brewing techniques, and significant R&D efforts contribute to its core competitiveness. The company is actively expanding its online sales channels and has a well-established network of distributors, both domestically and internationally. The report emphasizes the importance of risk awareness and transparency in its operations and highlights the company's commitment to innovation and quality.