Weilong Co., Ltd., known as the “First Stock of Organic Wine,” had a particularly difficult year in 2025, facing multiple setbacks: its performance turned from profit to loss, with an expected net loss of over 66 million yuan for the year; the company underwent a major asset “clean-up”; the controlling shareholder failed to fulfill its commitment to increase holdings and was criticized for it; the actual controller Yan Pengfei was implicated in a case, indicating that Weilong Co., Ltd. will face even greater challenges in 2026.
On the evening of January 20, Weilong Co., Ltd. issued an announcement of the expected loss in performance for the year 2025, forecasting a loss of 40.92 million to 66.11 million yuan in net profit attributable to shareholders, with a non-GAAP net loss expected to be between 26.55 million and 42.89 million yuan.
According to the announcement, the company is expected to achieve operating income of 341 million to 391 million yuan in 2025, with main business income ranging from 315 million to 360 million yuan. Compared to the profit of 10.26 million yuan in the same period of the previous year, the net profit attributable to shareholders in 2025 is expected to be a loss of 40.92 million to 66.11 million yuan.
The board of directors of Weilong Co., Ltd. approved at a meeting on January 20 the disposal of some assets, provision for impairment and bad debts, and expected loss treatment for litigation matters for the year 2025, which is expected to reduce the total net profit by 62.677 million yuan.
Of particular note is the plan to scrap 600 mu of the 1,000 mu of grape fields in the Longhu Grape Plantation base in Longkou, retaining only 400 mu for tourism, with an expected scrap loss of 11.177 million yuan.
In addition to the “tree-cutting,” the handling of inventory original wine also reflects the dilemma of Weilong Co., Ltd., which is expected to provide an impairment provision amounting to 38.75 million yuan for the original wine. Furthermore, Weilong Co., Ltd. is also facing disputes over land and rent.
While the company’s performance is declining, red flags are also raised over its governance structure. The controlling shareholder of Weilong Co., Ltd., “Xinghe Xirang,” and its ultimate controller Yan Pengfei, are embroiled in a credit crisis and legal quagmire. As of November 11, 2025, “Xinghe Xirang” held 18.84% of Weilong’s shares.
About a month before the performance forecast was announced, at the end of December 2025, the controlling shareholder of Weilong Co., Ltd., (Zhejiang) Smart Technology Co., Ltd. (hereinafter referred to as “Xinghe Xirang”), was criticized by the Shanghai Stock Exchange.
Xinghe Xirang had previously promised to increase its holdings by no less than 10 million yuan within six months from November 30, 2024, but after applying for a six-month extension, by the end of the commitment period on November 30, 2025, Xinghe Xirang had accumulated “0 shares” and an amount of “0 yuan” in increased holdings.
On December 25, 2024, Weilong Co., Ltd. disclosed that the ultimate controller Yan Pengfei was under residential surveillance by the Huantai County Public Security Bureau of Zibo City, Shandong Province, for embezzlement. This post-90s ultimate controller, previously associated with “computing power + artificial intelligence,” has plunged the company into deeper uncertainty.
In the announcement about the provision for impairment released on the evening of January 20, Weilong Co., Ltd. mentioned that the company’s operational cash flow is more strained due to the impact of the events involving the actual controller.
In the secondary market, the stock price of Weilong Co., Ltd. has fallen close to halving compared to its peak in 2023. With massive losses in performance, asset impairment, and the involvement of the actual controller in a legal case, Weilong Co., Ltd. will face even greater challenges in 2026.