Core Viewpoint - Weilang Co., Ltd. (603779.SH) is facing a lawsuit involving a land cooperation agreement, which may impact its already struggling financial performance due to a decline in the domestic wine market demand [1][8]. Summary by Sections Legal Proceedings - Weilang's wholly-owned subsidiary, Wuwei Weilang Organic Grape Planting Co., Ltd., has been named as a third party in a lawsuit filed by Wuwei Cultural Tourism Development Group Co., Ltd. against Shandong Weilang Group, seeking to terminate a land cooperation agreement and return 20,073 acres of land, along with a penalty of 4.793 million yuan [1][2][5]. Background of the Dispute - The dispute originates from a land cooperation agreement signed in 2005 between Shandong Weilang Group and the Endangered Animal Research Center, which was later amended in 2010 to confirm the total area of the grape planting base at 20,073 acres [3][4]. The land rights were transferred to Wuwei Cultural Tourism in December 2019, leading to the current legal action [3][4]. Financial Performance - Weilang's financial performance has been under pressure, with a 15.27% year-on-year decline in revenue for the first half of 2025, totaling 187 million yuan. The company reported a net loss of 2.4018 million yuan, a significant drop from a profit of 9.449 million yuan in the same period last year [1][8]. The subsidiary involved in the lawsuit reported total assets of 80.6648 million yuan but a negative net asset of 215.2242 million yuan, indicating severe financial distress [8]. Market Conditions - The domestic wine market is described as "still weak," influenced by changing consumer habits and the influx of imported wines, which pose significant challenges to local wine producers [8]. The lawsuit may further complicate Weilang's operational challenges, affecting raw material supply, asset status, and brand image [9].