The stock of Wuliangye Yibin Co.,Ltd. (SHE: 000858) closed at 73.21 yuan per share on July 3, 2026, leaving its market capitalization at just 284.2 billion yuan. Just days earlier, on June 29, the share price had plunged to an intraday low of 71.75 yuan, marking its lowest point in seven years since June 2019. Compared to its price of 115 yuan at the beginning of 2026, the company's market value has evaporated by 37%, approximately 161.1 billion yuan.
For this Sichuan-based liquor company with the largest market cap in the province, the first half of 2026 has been a period of significant turmoil.
A String of Leadership Scandals
On February 28, 2026, an official announcement from the Sichuan Provincial Commission for Discipline Inspection and Supervision revealed that Zeng Congqin, then serving as Party Secretary and Chairman of Wuliangye Group and Party Secretary and Chairman of Wuliangye Co., Ltd., was suspected of serious violations of discipline and law and was under investigation. On the same day, the company confirmed it had received formal notices regarding the case and that Zeng Congqin had been placed under detention.
Born in 1968, Zeng Congqin is a local of Yibin, Sichuan. He transitioned from a government role to become Chairman of Wuliangye Co., Ltd. in September 2019 and took full leadership of Wuliangye Group in February 2022. He had been at the helm for over four years. Shortly before the investigation, he had addressed the company's post-Lunar New Year meeting, urging efforts to secure a strong start for the first quarter. From his detention on February 28 to his formal removal on June 8, the company endured a leadership vacuum of more than three months.
More shockingly, his predecessor, Li Shuguang, was also investigated for serious disciplinary violations. Having two consecutive chairmen fall from grace within a few months is a rare occurrence among A-share listed companies.
It wasn't until June 26 that Wuliangye held its 2025 annual general meeting, first removing Zeng Congqin from the board, then electing Deng Min as a director. Subsequently, at a board meeting, Deng Min was elected as the seventh Chairman. The new Chairman, Deng Min, born in November 1970 in Sichuan's Hejiang county, holds a postgraduate degree and previously served as chairman at several local state-owned enterprises including Yibin Siliya Group and Tianyuan Co., Ltd.
Market analysts suggest that the consecutive downfalls of two chairmen over issues related to improper benefits within the distribution system expose deep-seated governance problems within the company.
An Earnings Report That Burst the Bubble
Amid the leadership crisis, the company also dropped a financial bombshell.
Late on April 28, 2026, Wuliangye suddenly announced a delay in releasing its annual report. Two days later, on April 30, at the last moment of the A-share annual reporting deadline, the company finally published its 2025 annual report, accompanied by an "Announcement on Correction of Prior Accounting Errors."
This announcement essentially invalidated the core financial figures previously disclosed for the first three quarters of 2025. First-quarter revenue was revised down from 36.94 billion yuan to 17.086 billion yuan; first-half revenue was cut from 52.771 billion yuan to 23.51 billion yuan; and third-quarter revenue was reduced from 60.945 billion yuan to 30.638 billion yuan. Full-year revenue stood at 40.529 billion yuan, a year-on-year decrease of 54.55%, while net profit attributable to shareholders plummeted 71.89% to 8.954 billion yuan. This marked the first time in a decade that Wuliangye reported a simultaneous decline in both revenue and profit.
The explanation provided was that the adjustments were made "based on a review of the 2025 business model and the principle of prudence, concerning the recognition of revenue for certain businesses." In simpler terms, revenue was previously recognized when goods were shipped to distributors, but the new standard requires recognition only when goods reach the end consumer and actual sales occur.
This adjustment pierced the veil on the common industry practice of "channel stuffing" to inflate performance. Wuliangye's past revenue growth had been supported by inventory buildup in distribution channels. Now, with the standard shifting to reflect genuine consumer demand, the inventory sitting in warehouses has translated into pressure on the profit statement, cash flow, and the stock price.
Identifying the Sellers
Faced with such concentrated negative shocks, the capital market has reacted mercilessly. The question remains: who is selling?
An examination of shareholder data for the first half of the year reveals that, aside from the top two shareholders—Yibin Development Holding Group Co., Ltd. (holding 34.43%) and Sichuan Yibin Wuliangye Group Co., Ltd. (holding 20.65%)—maintaining their stakes unchanged, numerous institutional investors have been exiting en masse.
Northbound capital has been a major seller. Taking Hong Kong Securities Clearing Company Ltd., the fourth-largest shareholder, as an example, its holdings decreased from 81.5764 million shares at the end of the first quarter to 70.7922 million shares by May 11, a reduction of 13.22%. The average entry cost for northbound capital is estimated to be in the range of 118 to 125 yuan, indicating deep losses.
China Securities Finance Corp. (CSF), the third-largest shareholder, also significantly reduced its position. Its holdings fell from 87.1644 million shares at the end of Q1 to 76.0447 million shares by May 11, a cut of 11.1197 million shares or 12.76%.
Prominent liquor-focused funds collectively reduced their exposure. Penghua China Securities Liquor ETF held 26.16 million shares at the end of Q1, which decreased to 25.5649 million shares by May 11. The well-known fund manager Zhang Kun's E Fund Blue Chip Selected Mixed Fund cut its holdings in Wuliangye by 2.52 million shares in the first quarter.
Furthermore, major capital outflows from Wuliangye have been persistent and substantial. Data shows the stock once experienced net outflows of major funds for 13 consecutive days, totaling 2.264 billion yuan. On July 3 alone, net outflows of major funds reached 143 million yuan.
A Massive Buyback Fails to Stabilize
In response to the continuous stock price decline, the company has not been idle.
It launched a share buyback plan worth 8 to 10 billion yuan. By June 30, 2026, it had repurchased 2.5358 million shares for a total of 200 million yuan. However, the execution of only 2 billion yuan from the planned 10-billion-yuan buyback is a drop in the bucket for a company that once had a market cap in the trillions.
New Chairman Deng Min made his first public appearance at the annual shareholders' meeting on June 26, which featured a red carpet, executives greeting shareholders at the door, and a band playing music. Deng Min stated that the liquor industry remains in a phase of deep adjustment, but the structural strategic opportunities facing Wuliangye still outweigh the challenges. He outlined "Five Adherences": adhering to brand-building for corporate growth, adhering to quality as the foundation, adhering to deep cultivation of the core business, adhering to talent development for corporate strength, and adhering to mutual benefit and win-win cooperation.
However, restoring confidence in the capital market is clearly not a task that can be accomplished with a welcoming ceremony and a speech alone.
From its peak of 334.81 yuan (adjusted) in 2021 to the current price around 73 yuan, Wuliangye's share price has fallen by nearly 80%. The successive investigations of two chairmen, the financial restatement revealing channel inventory issues, and the exodus of institutional funds—what Wuliangye is experiencing is not merely a stock price crisis, but a systemic crisis of trust encompassing both performance and governance.
For the new leader Deng Min, steering this leading producer of strong-aroma baijiu out of the mire will require far more than just the mantra of "long-termism."
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