The history of Wuliangye Yibin Co.,Ltd.'s shareholder meetings has rarely been a lively affair. However, the extraordinary general meeting held on May 18, 2026, is destined to be recorded in the company's annals.
The story begins on April 30th. That day, Wuliangye released a series of announcements, including its regular 2025 financial report and Q1 2026 report, accompanied by an "earnings adjustment" that left the capital markets stunned.
The company revised its operating revenue for the first three quarters of the previous year from the initially reported 60.9 billion yuan down to 30.6 billion yuan, a reduction of 30.3 billion yuan, effectively halving the figure.
More shocking was the adjustment to net profit attributable to shareholders, which plummeted from 21.5 billion yuan to 6.5 billion yuan, evaporating 15 billion yuan. A correction of this magnitude is almost unprecedented in the history of the A-share market, particularly for a leading baijiu producer.
The market's reaction was swift and severe. When trading opened on April 30th, Wuliangye's share price stood at 97.74 yuan. By the close on May 19th, it had fallen to 85.78 yuan.
Compared to its historical peak of 334.81 yuan, the share price has now fallen by three-quarters. This once-trillion-yuan market cap baijiu giant is experiencing a nadir of confidence.
On May 18th, at the site of Wuliangye's first extraordinary general meeting of 2026 in Yibin, Sichuan, the first words from Vice Chairman and General Manager Hua Tao, speaking on behalf of management, were an apology.
"Following the release of the financial report, which caused disruption to market expectations, I hereby sincerely apologize to all shareholders on behalf of the company."
The weight of this statement was not lost on the shareholders present. The turmoil surrounding the chairman being placed under investigation had not yet subsided, and now the financial report had undergone such a drastic revision. Wuliangye's management is facing an unprecedented crisis of trust.
Hua Tao's apology was delivered with sincerity, but the expressions on shareholders' faces remained grave. For a baijiu leader once known for its stability, a succession of "surprises" is eroding the patience investors had built up over the long term.
To counter the pessimism, Wuliangye's management played three cards in quick succession.
The first was a share buyback. The plan revealed that over the next 12 months, Wuliangye would use 8 to 10 billion yuan to repurchase shares, which would be directly cancelled post-repurchase. This is one of the most direct and tangible ways for a listed company to return value to shareholders.
The second was a cash dividend. The company proposed a cash dividend of 25.78 yuan (pre-tax) per 10 shares for all shareholders, totaling approximately 10 billion yuan. For shareholders, this represents a visible and tangible return.
The third was major shareholder share purchases. Management stated at the meeting that they would actively follow up on major shareholders' plans to increase their holdings. Previously, in early June, Wuliangye Group had proposed a purchase plan of 3 to 5 billion yuan to be implemented within six months.
Furthermore, the company committed to initiating the drafting of a new round of shareholder return planning for 2027-2029 at an appropriate time.
The three measures are not insignificant in scale—the total funds involved exceed 20 billion yuan. Against the backdrop of overall pressure on the baijiu industry, Wuliangye has put real money on the table to demonstrate its stance.
However, capital markets are not always rational, nor always convinced.
On May 19th, the first trading day after the announcement of these supportive measures, Wuliangye's share price rose a mere 0.25%. This gain was almost negligible, resembling more of a polite acknowledgment. By May 20th, the price turned downward, falling 0.36%, returning to a wait-and-see trajectory.
Why did such substantial buybacks and dividends fail to ignite market enthusiasm?
The answer may lie in the fact that investors care about more than just money; they care about trust.
When a company's financial report requires a "halving" adjustment, when its chairman is under investigation, and when management is compelled to issue a public apology at a shareholder meeting, these combined events transcend simple financial issues.
Wuliangye's extraordinary general meeting has concluded, the proposals have passed, the apology has been delivered, and the buyback and dividend plans are on the agenda. Yet, the share price's weak rebound and subsequent decline indicate that investors' confidence has not been genuinely restored.
For Wuliangye, the real challenge is not about raising funds for share buybacks, but about rebuilding its most fundamental asset: trust. This requires time, action, and above all, sincere and thorough transparency.
Until then, a price below 90 yuan may mark not an end, but merely another beginning.
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