A lawsuit filed by investors against Wuliangye Yibin Co.,Ltd. (000858) for alleged securities misrepresentation has seen a significant development. An attorney representing the plaintiffs stated that the Chengdu-Chongqing Financial Court has formally accepted the case filed by an investor surnamed Luo against the company, and a trial date is now pending.
The case stems from an announcement on April 30, 2026, in which Wuliangye disclosed corrections for prior-period accounting errors. The company stated it had reviewed its 2025 business models and, based on the principle of prudence, adjusted the accounting for revenue recognition related to certain business segments for that year. The corrections affected certain items in the consolidated balance sheets and consolidated income statements for the first, second, and third quarters of 2025, as previously disclosed, but did not impact the cash flow statements. Notably, the company revised its revenue for the first three quarters of 2025 down by approximately 50%, from 60.945 billion yuan to 30.638 billion yuan. Its net profit attributable to shareholders for the same period was revised down by roughly 70%, from 21.511 billion yuan to 6.475 billion yuan.
According to the Supreme People's Court's judicial interpretation on securities misrepresentation, listed companies and other entities can be held liable for investor losses caused by false statements. Investors may file lawsuits to claim compensation for losses, including investment differential losses, commission fees, and stamp duty losses.
The plaintiff's attorney indicated that the new judicial interpretation has removed the previous prerequisite procedures. Based on preliminary evidence such as the accounting error correction announcement, affected investors can now file claims directly. The attorney's firm is currently representing investors in batches. The preliminary eligibility for the claim is set as investors who purchased Wuliangye shares between April 28, 2025, and April 30, 2026, and still held those shares at the market close on April 30, 2026. The final eligibility will be subject to the court's determination.
Investors seeking to file a claim are required to provide documentation including securities account information inquiry forms, stock transaction records (from April 1, 2025, onward), and contact details.
It is noteworthy that Wuliangye has faced similar legal action in the past. In May 2011, the company received a "Decision on Administrative Penalty" from the China Securities Regulatory Commission for violations related to information disclosure. Subsequently, numerous investors filed lawsuits against the company for securities misrepresentation. In October 2014, following court mediation, Wuliangye made a one-time payment of 13.44 million yuan to 141 plaintiffs. The attorney involved in the current case also represented 26 investors in that prior settlement, who collectively received 3.12 million yuan in compensation.
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