Vivi Co., Ltd.: Correction of Previous Accounting Errors

On April 3, Weiwei Co., Ltd. released an announcement stating that on April 3, 2026, the Company received an “Administrative Regulatory Measures Decision” (No.〔2026〕32) issued by the Jiangsu Office of the China Securities Regulatory Commission (hereinafter referred to as “Jiangsu CSRC Office”) (hereinafter referred to as the “Decision”). The specific contents are hereby announced as follows:

The specific contents of the “Decision” are as follows:

“After investigation, it was found that during 2022 to 2024, Weiwei Food and Beverage Co., Ltd. (hereinafter referred to as the Company) applied an improper approach—using the gross amount method and the net amount method—for revenue recognition with respect to certain grain and oil trading business revenues. This does not comply with Article 34 of the Accounting Standards for Business Enterprises No. 14—Revenue, resulting in inaccurate disclosure of the Company’s operating revenue and operating costs in the Company’s Q1, semi-annual, and Q3 reports for 2022, 2023, and 2024. The related conduct violated the provisions of the first paragraph of Article 3 of the Measures for the Administration of Information Disclosure of Listed Companies (CSRC Order No. 182) (hereinafter referred to as the “Information Disclosure Measures”). The Chairman of the Board, Ren Dong, the General Manager, Zhao Huikong, and the Chief Financial Officer, Zhao Changlei, failed to perform their duties diligently and responsibly, violating the provisions of Article 4 of the Information Disclosure Measures, and are primarily responsible for the Company’s above-mentioned violations.

Pursuant to Article 52 of the Information Disclosure Measures, this bureau decides to take administrative regulatory measures requiring the Company to make corrections, and to take administrative regulatory measures consisting of issuing letters of warning to Ren Dong, Zhao Huikong, and Zhao Changlei, and to record the matter in the integrity dossier for the securities and futures market. You should attach great importance to the above issues, adopt effective measures to conduct and implement rectification in a practical manner, strengthen your learning of securities laws and regulations, improve your financial accounting capabilities and awareness of standardized operations, and prevent such violations from occurring again. You should, within 10 business days from the date of receipt of this Decision, submit a written rectification report to this bureau.”

On the same day, Weiwei Co., Ltd. released an announcement regarding the correction of prior accounting errors. The announcement shows that, due to an inability to accurately distinguish whether the Company was acting as the principal or as an agent in certain transactions in the Company’s financial statements for the first three quarters of 2022, 2023, and 2024, there were judgment deviations regarding whether the net amount method or the gross amount method should be applied to account for certain businesses. To implement the relevant provisions of the Accounting Standards for Business Enterprises more rigorously, the Company made a more stringent judgment regarding the substance of the transactions for the related businesses. Based on the principle of prudence, for businesses in which the Company acted as the principal in the transactions, the Company applies the gross amount method for accounting; for businesses in which the Company acted as an agent in the transactions, the Company applies the net amount method for accounting. On April 3, 2026, the Company convened the 12th meeting of the ninth session of the Board of Directors to deliberate and approve the “Proposal on the Correction of Prior Accounting Errors,” and made retrospective adjustments to the Company’s financial statements for the first three quarters of 2022, 2023, and 2024.

This correction of prior accounting errors involves adjusting the operating revenue and operating costs in the Company’s 2022 to 2024 first-quarter reports, semi-annual reports, and third-quarter reports. Accordingly, operating revenue and operating costs for the first quarter of 2022 were decreased by 117,461,080.27 yuan; operating revenue and operating costs for the first half of 2022 were increased by 31,360,493.78 yuan; operating revenue and operating costs for the third quarter of 2022 were decreased by 105,644,114.14 yuan; operating revenue and operating costs for the first quarter of 2023 were decreased by 128,915,889.33 yuan; operating revenue and operating costs for the first half of 2023 were decreased by 247,004,028.63 yuan; operating revenue and operating costs for the third quarter of 2023 were decreased by 448,238,498.78 yuan; operating revenue and operating costs for the first quarter of 2024 were decreased by 126,056,810.02 yuan; operating revenue and operating costs for the first half of 2024 were decreased by 71,911,622.40 yuan; and operating revenue and operating costs for the third quarter of 2024 were increased by 33,705,545.95 yuan.

(Corporate announcement)

(Editor: Wang Can, Lin Chen)

Key words:

                                                            beverages
                                                            Weiwei Co., Ltd.