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Another financial tea explosion occurred in Guangzhou Fangcun Tea Market!

Recently, Pantea Holdings (Guangzhou) Co., Ltd. (hereinafter referred to as "Pantea"), which mainly deals in Pu'er tea, issued a notice on the "Reorganization Announcement", stating that after consultation with the board of directors and core distributors, the company will undergo debt or equity restructuring. Behind this announcement, Pantea, which was established only two years ago and is known as the "new dark horse" in the tea industry, is in a crisis of bankruptcy. According to relevant sources, the amount involved in Pantea's bankruptcy this time is as high as 10 billion. On social platforms, many users posted videos and broke the news, saying that a large number of distributors came to Pantea's R&D center recently, and many people were emotional and shouted "return the money."

Industry insiders pointed out that the "tea speculation" behavior in the tea market is still quite serious. The Guangdong Provincial Market Supervision Administration also issued a notice in June this year on regulating tea market pricing behavior, pointing out that it is strictly prohibited to confuse tea with financial products for illegal speculation and sales.

The bank accounts of the company and some dealers were frozen

Pantea announced that it would carry out debt or equity restructuring

The Pancha explosion has caused a strong response in the tea industry, especially in the Guangzhou Fangcun tea market. It is understood that as early as July 22, Pancha suddenly issued an "Announcement" stating that the bank accounts of the company and some dealers were frozen recently, and the bank replied that it is expected to be unblocked in early August 2024. To ensure transaction security, the company recommends that all platforms and dealers postpone the delivery time of all orders by 10 days.

On July 24, Pancha once again issued the "Announcement on Standardizing Trading Behaviors", stating that trading behaviors that promise to guarantee principal or rebates are strictly prohibited and that the principle of spot trading must be adhered to.

On August 3, Pancha issued a "Reorganization Announcement" to its distributors, attributing its current problems to "rumor attacks", saying that Pancha "has long been subjected to unknown attacks since its establishment (including: cyber violence attacks, malicious rumors, slander, intimidation, threats, distributors and employees, etc.). With the stable development, honest management, and research and development of landing products in recent years, it has won the support and recognition of many users and gained a certain market share, but the pace of being attacked has not stopped. Since the beginning of this year, various rumor attacks have led to market instability, resulting in a large amount of funds being restricted, and various problems currently encountered."

The announcement pointed out that after discussion between the board of directors and core dealers, the company will undergo debt or equity restructuring. The specific restructuring plan will be voted on at a shareholders/dealers meeting after the assets are liquidated, and a notice will be issued after the review and approval.

An insider told Nandu Wancaishe reporter, "The collapse of Pancha is a fact. People in the entire Guangzhou tea market are paying attention to it, but there is no result yet."

Two years of driving 500manyHome Store

The price of products is often tens of thousands

"Since 2015, Pan-Cha has been in long-term preparation for 6-7 years. It was officially launched at the end of 2021, and Pan-Cha Holdings officially settled in Liwan District, Guangzhou in 2022. Since its establishment, the company has successively developed and launched more than 30 tea products and dozens of buckled glassware, silk, porcelain, tea sets, accessories, wine, water, paper towels, cultural and creative products and other peripheral products. It has gradually gained customer recognition in the industry and has opened about 500 dealer stores across the country," Pan-Cha introduced in the above announcement.

Tianyancha App shows that Pancha Holdings (Guangzhou) Co., Ltd. was established in September 2022. The legal representative is Zheng Chaogen, with a registered capital of 10 million yuan. Zheng Chaogen and Zheng Haihua hold 62% and 38% of the shares respectively. Foreign investment information shows that the company wholly owns two companies established in 2021, namely Pancha Network Technology (Guangdong) Co., Ltd. and Guangdong Pancha Tea Industry Co., Ltd.

Zheng Chaogen, Chairman of Pancha, picture from the Internet

It is worth noting that public information shows that Zheng Chaogen was born in the 1980s and has a total of 9 companies under his name, 5 of which are still in existence. In addition to the above 3, there are also Guangdong Panfu Industrial Holdings Co., Ltd. established in April last year and Yunnan Pancha Tea Co., Ltd. established in April this year.

Zheng Chaogen is associated with a total of 9 companies.

Zheng Chaogen said in public before: "Fancha's original intention is to make Chinese luxury tea, not tea for speculation. In the future, Pancha will become a luxury group with Chinese characteristics." Behind this statement, Pancha's products are expensive, and many products are priced at tens of thousands of yuan. Previously, a "Yilu Changhong" tea cake was speculated to be 120,000 yuan per piece. There are also pictures circulating on the Internet showing that a product called "2021 Yiqi" is priced at 610,000 yuan per bag, which is about 244 yuan per gram.

In addition, as early as the beginning of the company's establishment in 2022, Pancha proposed the "Hundred Cities and Thousands of Stores" plan, claiming that it would adopt the channel model of "opening more stores in big cities and large stores in small cities" and layout across the country. In less than two years, more than 500 offline stores have been opened.

Pan-Tea has also spared no effort in the marketing of its brand. It is understood that Pan-Tea has appeared on the Nasdaq screen in Times Square, New York, and the pedestrian street of Printemps department store in Paris, and its first cross-border image store has landed in South Korea.

The practice of "speculating on tea" in the tea market continues despite repeated bans

Guangdong Provincial Market Supervision Department has taken action

Behind a series of marketing campaigns, the prices of Pantea’s Pu’er tea products have risen sharply.

"I entered the market when the price was 2,000 yuan a cake, and withdrew at 15,800. I sold it out in one day!" said a tea dealer. In the beginning, many people just spent a few thousand yuan to buy one or two cakes of tea to test the waters, and sold them immediately after getting a return. After selling, they continued to wait and see, and when they saw that the price of tea was still rising, they bought some back and sold them again after a while. After tasting the sweetness, they were completely trapped.

In fact, the practice of mistaking tea for financial products and illegally speculating and selling them is common in the tea industry. At the end of last year, a "financial tea" price plunge occurred in the Guangzhou Fangcun tea market: a tea manufacturer named "Changshi Tea" hyped up the shortage of tea and the high liquidity of its products to harvest funds from tea merchants. Subsequently, the price of tea plummeted from 50,000 yuan to a few thousand yuan overnight, causing heavy losses to investors.

"The entire tea market is still very hyped at the moment," a merchant who recycles high-end tea told reporters. Many seemingly high-priced teas are actually hyped up because of their collection value promoted by manufacturers. The value of the products is far less than their actual selling price, and they will also carefully distinguish them during the recycling process.

In response to illegal speculation in "financial tea" and other phenomena, in June this year, the Guangdong Provincial Market Supervision Administration issued a notice on regulating price behavior in the tea market, stating that in order to strictly prohibit illegal speculation and sales of tea under the name of "financial tea" and "financial management tea", safeguard the legitimate rights and interests of consumers, and maintain the stability of the price order of the tea market, nine requirements were put forward to relevant tea market operators and industry associations.

It states, "It is prohibited to fabricate or spread price increase information or use other means to push up tea prices too quickly or too high." "It is prohibited to use false or misleading price means to deceive consumers or other operators into transactions." "It is prohibited to promote that tea has financial attributes and confuse tea with financial products for illegal speculation and sales."

Written by: Nandu Wancaishe reporter Wang Jingjuan