ZJLD Group been Included in the Hang Seng Composite Index and Nine Other Indexes

HONG KONG SAR – Media OutReach – 5 September 2023 – ZJLD Group Inc. (“ZJLD” or the “Company”, together with the Company’s subsidiaries, collectively the “Group”; SEHK stock code: 06979. HK), the fourth largest private-owned baijiu enterprise in China, is pleased to announce that ZJLD has been included in the Hang Seng Composite Index, Hang Seng Consumption Index, Hang Seng Connect Hong Kong Index, Hang Seng Connect Hong Kong MidCap & SmallCap Index, Hang Seng Large-Mid Cap (Investable) Index, Hang Seng SCHK Mainland China Companies Index, Hang Seng SCHK Consumption Index, Hang Seng SCHK Consumption (Investable) Index, Hang Seng SCHK Consumer Staples Index and Hang Seng SCHK Consumer Staples (Investable) Index with effective from today.

On August 18th, Hang Seng Indexes Company Limited (“Hang Seng Indexes”) announced the results of its quarterly index review, based on the Benchmark Index (Hong Kong Market) as of 30 June 2023. A total of 27 companies were removed, whereas 22 qualified companies, including ZJLD, were included as constituents of the Hang Seng Composite Index. Starting today, ZJLD has been officially authorized for mainland Chinese investors to trade through the “Hong Kong Stock Connect”. Both the Shenzhen Stock Exchange and Shanghai Stock Exchange have included the ZJLD as eligible investment targets for the “Shenzhen-Hong Kong Stock Connect” and “Shanghai-Hong Kong Connect” programs. The Company was officially listed on the Hong Kong Stock Exchange on April 27, with a total fundraising amount of approximately HK$5.31 billion, making it “the first baijiu stock listed in Hong Kong and outside China and the second sauce-aroma baijiu stock being publicly listed.” Within six months of its listing, the Company has been included as a constituent stock in the Hang Seng Indexes, indicating that the Group’s sound financial fundamentals, its investment value, and liquidity have received significant attention and recognition from domestic and overseas capital markets.

The Group has recently announced its interim results for FY2023 (for the six months ended June 30, 2023, or the “Period”). Leveraging on its strategic brand premiumization initiatives to optimize the product portfolio and resources invested to accelerate and promote sell-through and sell-out. The Group’s baijiu sales increased by approximately RMB457.98 million, up 15.0% compared to the same period in 2022, with the adjusted net profit (non-IFRS measure) reaching approximately RMB803 million, showing a year-on-year increase of about 22.0%. The flagship brand, Zhen Jiu, introduced three new “package-free” baijiu products (光瓶酒) within the deluxe and premium price ranges, which gained significant market response and impressively contributed to the revenue growth during the Period.

Along with the increasing popularity of sauce-aroma baijiu in China and the rising consumer preferences towards premiumization, the Group has timely capitalized on favorable market trends to expand its production capacity. Currently, the Group has seven production sites in China. With the continuous expansion of production capacity, the Group is able to secure an adequate reserve of vintage baijiu and base liquor to achieve product premiumization to the greatest extent while at the same time enriching its product portfolio, strengthening competitiveness, and meeting the growing market demand for deluxe and above baijiu products, thus consolidate its profitability.

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The issuer is solely responsible for the content of this announcement.

ZJLD Group Inc.

Zhenjiu was established in 1975 in Zunyi, Guizhou, China’s prime production area of sauce-aroma baijiu. In 1988, it was honored with the Silver Award of the National Quality Award at the 5th National Wine Appreciation Conference. It is one of the “Three Great Sauce Flavor Brands in Guizhou”, along with Moutai and Xijiu. In the same year, it was admitted by the Protocol Department of the Ministry of Foreign Affairs, the Communication Department of the Ministry of Economy and Trade, and the Great Hall of the People Management Bureau to become one of the four baijiu brands served at China’s national banquets.

ZJLD Group Inc. is a leading baijiu group in China devoted to offering baijiu products, including sauce-aroma, mixed-aroma, and strong-aroma, with sauce-aroma being its core. In terms of revenue in 2022, the Company was deemed the fourth-largest private baijiu company in China, according to Frost & Sullivan statistics. The Company operates four major baijiu brands in China, including Zhenjiu, Lidu, and two leading regional names, Xiangjiao and Kaikaixiao. ZJLD prides itself on inheriting the time-honored baijiu-brewing techniques and reinvigorating them to develop iconic recipes and classical flavours. It strives to develop a wide variety of aromatic and mellow baijiu products to meet the diverse preferences of consumers, seize broader market opportunities, and promote traditional Chinese baijiu culture.