Chinese State-Owned Wuliangye's Financial Report Raises Red Flags, Official Media Demands Investigation
China's state-owned liquor maker Wuliangye significantly lowered its 2025 revenue and profit forecasts, which coincidentally boosted its Q1 2026 performance. Official media has questioned the discrepancy, urging regulatory intervention and investor lawsuits due to suspected false statements and regulatory violations.
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- 📰 Published: May 1, 2026 at 20:37
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Central News Agency
(Central News Agency, Taipei, May 1) China's state-owned liquor enterprise Wuliangye announced its financial report last night, drastically revising down its 2025 revenue and profit, thereby greatly beautifying its Q1 2026 performance. This sparked outrage among shareholders, who condemned it as "lawless." Official media outlet China News Service (CNS) today issued "Five Questions to Wuliangye," questioning why 30.3 billion RMB (approximately 140 billion New Taiwan Dollars) in revenue from last year disappeared out of thin air, calling for regulatory intervention and shareholder lawsuits.
Wuliangye Group is a state-owned enterprise under Yibin City, Sichuan Province, known as the "second largest white liquor producer," second only in scale to Kweichow Moutai. It also faces serious corruption issues. On February 28, Zeng Congqin, Party Secretary and Chairman of Wuliangye, was investigated for serious disciplinary and legal violations, and no successor has been appointed since. Zeng Congqin's predecessor, Li Shuguang, was implicated in corruption in January 2025 and fell from power.
According to official media China News Net, "Is a listed company really this trivial?", "Do you think you are smart, treating retail investors as monkeys?", "Financial reports can be changed at will, lawless." On the evening of April 30, Wuliangye's disclosed financial report drew questions from shareholders.
Wuliangye's annual report shows that its operating income in 2025 was 40.529 billion yuan, a decrease of 54.55% compared to 2024; net profit attributable to shareholders of listed companies was 8.954 billion yuan, a sharp decrease of 71.89%.
In addition, operating income and net profit attributable to shareholders of listed companies for the first three quarters of 2025 were significantly revised down to 30.638 billion yuan and 6.475 billion yuan, respectively, with reductions of approximately 50% and 70%.
Wuliangye stated that the company sorted out its 2025 business model and, based on the principle of prudence, adjusted relevant accounting treatments for the recognition of some business revenues in 2025. This "prior period accounting error" correction involved some items in the consolidated balance sheet and consolidated income statement for the first three quarters of 2025 that had already been disclosed.
Wuliangye's drastic downward revision of 2025 revenue and profit greatly "benefited" its Q1 2026 financial report. The report shows that Wuliangye's operating income in Q1 reached 22.838 billion yuan, a year-on-year increase of 33.67%; net profit attributable to shareholders of listed companies was 8.063 billion yuan, a surge of 82.57%.
CNS-affiliated financial media "China News Service" today published a commentary article titled "Five Questions to Wuliangye," questioning why Wuliangye's performance changed so dramatically? Why did 30.3 billion yuan in revenue for the first three quarters disappear out of thin air? Is the accounting error correction compliant?
The article mentioned that after Wuliangye's series of operations were disclosed, some shareholders directly exclaimed, "Can financial statements be adjusted arbitrarily? Unheard of!" Other shareholders believed that "if this is allowed, then all financial reports will lose credibility from now on"; some netizens even mocked Wuliangye as "Wuliangye" (unscrupulous liquor).
CNS also quoted Xu Feng, a lawyer from Shanghai Jiucheng Law Firm, who stated that the information disclosed in the announcement is suspected of false statements, and Wuliangye should provide a clearer explanation to the market and investors to rule out doubts about false statements. If a reasonable explanation cannot be provided, "regulatory authorities may need to intervene to investigate and protect investors' right to know."
The article further quoted Zhang Qi, an equity partner at Duan & Duan Law Firm, who pointed out that Wuliangye's current operation essentially violates multiple regulatory provisions: first, the data in the previously disclosed quarterly reports were severely inaccurate, violating China's "Securities Law"; second, it deliberately confused changes in accounting policies with corrections of accounting errors, abused accounting standards, and circumvented regulatory strict disclosure and deliberation requirements for changes in accounting policies; third, significant data discrepancies appeared in financial reports for three consecutive periods, exposing the complete failure of the company's financial internal control system, violating relevant regulations on internal control governance for listed companies; fourth, significant financial report adjustments were concealed for a long time and not disclosed in a timely manner.
Zhang Qi also pointed out that subsequent investors can file civil compensation lawsuits against Wuliangye for false statements, and the company will be liable for investors' investment losses. If subjective intentional fraud is confirmed, core responsible persons will face market entry bans, and in extreme cases, be transferred to judicial authorities.
As of the close of the Chinese stock market on April 30, Wuliangye's stock price was 97.08 yuan, down 1.28%, with a total market value of 376.8 billion yuan. (Edited by: Yang Shengru / Tang Shengyang) 1150501
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(Central News Agency, Taipei, May 1) China's state-owned liquor enterprise Wuliangye announced its financial report last night, drastically revising down its 2025 revenue and profit, thereby greatly beautifying its Q1 2026 performance. This sparked outrage among shareholders, who condemned it as "lawless." Official media outlet China News Service (CNS) today issued "Five Questions to Wuliangye," questioning why 30.3 billion RMB (approximately 140 billion New Taiwan Dollars) in revenue from last year disappeared out of thin air, calling for regulatory intervention and shareholder lawsuits.
Wuliangye Group is a state-owned enterprise under Yibin City, Sichuan Province, known as the "second largest white liquor producer," second only in scale to Kweichow Moutai. It also faces serious corruption issues. On February 28, Zeng Congqin, Party Secretary and Chairman of Wuliangye, was investigated for serious disciplinary and legal violations, and no successor has been appointed since. Zeng Congqin's predecessor, Li Shuguang, was implicated in corruption in January 2025 and fell from power.
According to official media China News Net, "Is a listed company really this trivial?", "Do you think you are smart, treating retail investors as monkeys?", "Financial reports can be changed at will, lawless." On the evening of April 30, Wuliangye's disclosed financial report drew questions from shareholders.
Wuliangye's annual report shows that its operating income in 2025 was 40.529 billion yuan, a decrease of 54.55% compared to 2024; net profit attributable to shareholders of listed companies was 8.954 billion yuan, a sharp decrease of 71.89%.
In addition, operating income and net profit attributable to shareholders of listed companies for the first three quarters of 2025 were significantly revised down to 30.638 billion yuan and 6.475 billion yuan, respectively, with reductions of approximately 50% and 70%.
Wuliangye stated that the company sorted out its 2025 business model and, based on the principle of prudence, adjusted relevant accounting treatments for the recognition of some business revenues in 2025. This "prior period accounting error" correction involved some items in the consolidated balance sheet and consolidated income statement for the first three quarters of 2025 that had already been disclosed.
Wuliangye's drastic downward revision of 2025 revenue and profit greatly "benefited" its Q1 2026 financial report. The report shows that Wuliangye's operating income in Q1 reached 22.838 billion yuan, a year-on-year increase of 33.67%; net profit attributable to shareholders of listed companies was 8.063 billion yuan, a surge of 82.57%.
CNS-affiliated financial media "China News Service" today published a commentary article titled "Five Questions to Wuliangye," questioning why Wuliangye's performance changed so dramatically? Why did 30.3 billion yuan in revenue for the first three quarters disappear out of thin air? Is the accounting error correction compliant?
The article mentioned that after Wuliangye's series of operations were disclosed, some shareholders directly exclaimed, "Can financial statements be adjusted arbitrarily? Unheard of!" Other shareholders believed that "if this is allowed, then all financial reports will lose credibility from now on"; some netizens even mocked Wuliangye as "Wuliangye" (unscrupulous liquor).
CNS also quoted Xu Feng, a lawyer from Shanghai Jiucheng Law Firm, who stated that the information disclosed in the announcement is suspected of false statements, and Wuliangye should provide a clearer explanation to the market and investors to rule out doubts about false statements. If a reasonable explanation cannot be provided, "regulatory authorities may need to intervene to investigate and protect investors' right to know."
The article further quoted Zhang Qi, an equity partner at Duan & Duan Law Firm, who pointed out that Wuliangye's current operation essentially violates multiple regulatory provisions: first, the data in the previously disclosed quarterly reports were severely inaccurate, violating China's "Securities Law"; second, it deliberately confused changes in accounting policies with corrections of accounting errors, abused accounting standards, and circumvented regulatory strict disclosure and deliberation requirements for changes in accounting policies; third, significant data discrepancies appeared in financial reports for three consecutive periods, exposing the complete failure of the company's financial internal control system, violating relevant regulations on internal control governance for listed companies; fourth, significant financial report adjustments were concealed for a long time and not disclosed in a timely manner.
Zhang Qi also pointed out that subsequent investors can file civil compensation lawsuits against Wuliangye for false statements, and the company will be liable for investors' investment losses. If subjective intentional fraud is confirmed, core responsible persons will face market entry bans, and in extreme cases, be transferred to judicial authorities.
As of the close of the Chinese stock market on April 30, Wuliangye's stock price was 97.08 yuan, down 1.28%, with a total market value of 376.8 billion yuan. (Edited by: Yang Shengru / Tang Shengyang) 1150501
Choose to stand with facts, every sponsorship of yours is the power to protect press freedom.
Download the Central News Agency "First-hand News" APP to get the latest news in real time.
The text, images, and videos on this website may not be reproduced, publicly broadcast, publicly transmitted, or used without authorization.