To The Moon

Wuliangye Yibin Co., Ltd. (SZ: 000858, share price 70.82 yuan, market cap 274.9 billion yuan) disclosed its latest buyback progress in an after-market announcement on September 2nd. As of August 31st, 2026, the company has repurchased a cumulative total of 14.7074 million shares, representing 0.3789% of its current total share capital, with the total amount paid reaching 1.101 billion yuan (excluding transaction fees).

According to the announcement, this marks the first-ever buyback since the company's listing, with all repurchased shares designated for cancellation and subsequent reduction of registered capital. The highest transaction price for the buyback was 85.25 yuan per share, while the lowest was 71.01 yuan per share.

The repurchase program stems from a plan unveiled on April 30th, under which Wuliangye intends to use its own funds to buy back shares worth no less than 8 billion yuan and no more than 10 billion yuan, at a maximum price of 153.59 yuan per share. All repurchased shares will be canceled to reduce the company's registered capital.

Company filings indicate that the buyback is funded entirely from internal resources. As of the end of the first quarter of 2026, Wuliangye held a monetary fund balance of 124.3 billion yuan and carried no interest-bearing debt. This substantial cash reserve provides solid backing for the massive repurchase initiative.

Unlike conventional buybacks, a cancellation-style repurchase directly reduces total share count and boosts earnings per share, delivering more immediate benefits to shareholders. A research note from China Fortune Securities highlights that canceling 8 to 10 billion yuan worth of shares further underscores Wuliangye's intrinsic value and scarcity.

Based on the lower limit of the repurchase plan at 8 billion yuan, the current cumulative repurchase amount of 1.101 billion yuan accounts for approximately 14% of that floor. By the plan's upper limit of 10 billion yuan, the amount represents roughly 11% of the ceiling.

Wuliangye stands as the leading producer of strong-flavored baijiu in China, with its core product, the eighth-generation Wuliangye, firmly positioned in the 1,000-yuan price segment. The company also fields a premium lineup including the Classic Wuliangye series, Wuliangye 1618, and 39-degree Wuliangye, alongside mass-market labels such as Wuliangchun, Wuliangchun醇, and Jianzhuang, creating a product matrix that spans all price points.

In addition to the buyback, Wuliangye is simultaneously advancing major shareholder increases and enhanced dividend distribution. On May 6th, the company announced that its controlling shareholder, Wuliangye Group, plans to increase its stake within six months, with the increase amount ranging from no less than 3 billion yuan to no more than 5 billion yuan, without setting a price range, and the acquired shares will be locked for six months following completion.

On the evening of August 6th, Wuliangye announced that Wuliangye Group had completed a share increase of 199 million yuan. Previously, Wuliangye Group had already accumulated approximately 800 million yuan in stake increases between April and September 2025.

Regarding dividends, Wuliangye's total cash dividend for fiscal year 2025 exceeded 20 billion yuan, with the cash dividend ratio raised to 70% and the dividend yield approaching 5%, both setting new historical records. The company has committed to maintaining an annual cash dividend ratio of no less than 70% for the 2024 to 2026 period, with dividend amounts not falling below 20 billion yuan per year.

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