The two companies that garnered the most attention today are Cambricon and Wuliangye. Cambricon needs no introduction; its outstanding earnings last night led to a 20% surge in its stock price today, hitting the daily limit and significantly boosting the STAR Market index. The other company, Wuliangye, was unexpected, as even a seemingly reputable company engaged in financial misconduct, which is utterly unethical.
I had a feeling last night that it was going to cause trouble, and sure enough…
2025 Annual Report: Revenue of RMB 40.529 billion, down 54.55% year-on-year; Net profit attributable to the parent company of RMB 8.954 billion, down 71.89% year-on-year.
With revenue halved and net profit plummeting by 70%, who would believe that a long-established state-owned liquor company would dare to pull such a stunt? Considering that the company already had revenue of 60.945 billion yuan and net profit attributable to the parent company of 21.511 billion yuan in the third quarter, deducting these figures would mean a revenue loss of 20.4 billion yuan and a net profit loss of 12.5 billion yuan in the fourth quarter, which is obviously impossible.
The reason for such outrageous figures is that Wuliangye Company has conducted a deep financial cleansing, cutting off the parts that were originally counted as revenue (such as channel subsidies, rebates, and undelivered orders) all at once. These were the accumulated inflation and embellishment of financial data over the past few years, and now they are laying it all out on the table, no more pretense.
Here's some background information: Chairman Zeng Congqin was detained on February 28th of this year and is still under investigation. This is one of the reasons why the annual report is delayed. I checked Zeng Congqin's resume; he became chairman of Wuliangye in 2019. So, it's highly likely that this round of financial scrutiny is aimed at cleaning up the inflated figures from 2019 to 2026. This is an unspoken rule in Chinese officialdom: when an official goes to jail, all the previous issues are settled at once, and the successor is never held responsible.
If you go to Wuliangye's stock forum and individual stock discussion forum now, the retail investors there are already in an uproar. Many people are clamoring to go and criticize Wuliangye. We'll see how the regulators handle this. An inquiry letter is certain, and there may be administrative penalties later. As long as there are administrative penalties, we can initiate rights protection and compensation claims. I will notify the victims to register when that happens.
The first-quarter report, released alongside the annual report, showed revenue of 22.8 billion yuan and profit of 8 billion yuan. While the year-on-year growth was decent compared to the low base of last year, it was only average compared to the 34.8 billion yuan revenue and 14 billion yuan profit in 2024. Overall, Wuliangye's performance wasn't as good as it seemed. The performance of the second-largest liquor company in recent years was somewhat embellished; now, with the filters removed and the makeup taken off, all shareholders have to face the reality.
The only positive news tonight was the announcement of a share repurchase plan of 8-10 billion yuan, a typical Chinese-style repurchase. Knowing they've messed up, they're squeezing out a pittance from their pockets to appease the market, which is really disgusting.
A few other things I think are worth mentioning.
1. Nokia's stock price has surged 80% in the last three months, hitting a record high. Many people believe Nokia fell behind in the smartphone era, sold off its business, and exited the historical stage. However, what was sold in 2013 was only its mobile phone business. Nokia still possesses strong capabilities in communications, such as optical networks, where it holds nearly 20% of the global market share, second only to Huawei. The mention of "optical" immediately suggests it benefited from the AI boom. Nvidia's $1 billion investment in developing smart base stations symbolized Nokia entering its core partner circle, and subsequently, its stock price soared.
2. The US military has presented Trump with a new military proposal concerning a new round of strikes against Iran. This could involve bombing some Iranian infrastructure, special operations to seize enriched uranium, and partial control of the Strait of Hormuz. Trump's team is currently reviewing and evaluating the proposal. If action is taken, it could be around May Day, as the situation with Iran remains highly uncertain.
In addition, a few days ago, Tether (the issuer of USDT) froze two whale addresses on the Tron blockchain: one with $213 million USDT ( TNiq9…QZH81 ) and the other with $131 million USDT ( TTiDL…pjSr9 ), totaling $344 million. This was because US intelligence detected that these two addresses were linked to the Islamic Revolutionary Guard Corps, possibly used for collecting tolls, and the accounts were subsequently locked and frozen.
Stablecoins are issued by centralized companies, and the US can freeze them. If Iranians were smart, they should exchange them for BTC or ETH.
3. The People's Daily officially announced that Yi Huiman has been expelled from the Party and removed from public office. Some readers will definitely ask about this in the comments, but we cannot comment on it. Please refer to the official announcement for the most accurate information.
4. I saw people discussing the filming of Air Crash Investigation Season 27 this morning, but when I searched for it again in the evening, the topic was gone. It was considered sensitive, so I deleted what I had written and will wait and see.
That's all. Have a great holiday, everyone!
Original Article: View Chinese Version
