news

on the evening of september 30, st spring (600381) announced that its subsidiary tibet spring wine co., ltd. (hereinafter referred to as "tibet spring wine") has recently received approval from the tibet autonomous region market supervision and administration bureau (hereinafter referred to as "tibet spring wine"). "municipal supervision bureau") has kept the "administrative punishment decision" of the municipal supervisor.

the announcement disclosed that in june 2024, the tibet municipal supervision bureau discovered during the investigation that the "tinghua internal training special information packet" and "tinghua wine efficacy folding" printed by the party tibet spring wine in november 2023 were misleading commercial publicity violates the relevant provisions of the anti-unfair competition law of the people's republic of china, constitutes misleading commercial publicity, and shall be subject to administrative penalties in accordance with the law.

in accordance with relevant regulations and with reference to the "guiding opinions of the state administration for market regulation on regulating the discretionary power of administrative penalties for market supervision and management" and the provisions of the "rules for application of the discretionary power of administrative penalties for market supervision and management in the tibet autonomous region and the benchmarks for discretion", the tibet municipal supervision bureau ordered tibet spring wine will stop the above-mentioned illegal activities. at the same time, the tibet municipal supervision bureau decided to impose the following administrative penalties on tibet spring wine: a fine of 1.3 million yuan.

it should be pointed out that due to the same problem, relevant subsidiaries of st spring have been punished by the municipal supervision bureaus in beijing, chengdu and other places.

looking back at this year's cctv "march 15" gala, st spring's high-end business liquor tinghuajiu has been hotly debated by public opinion due to suspected false propaganda and a selling price of more than 50,000 yuan. cctv reported that the promotion of tinghuajiu violated the advertising law of the people's republic of china, which clearly stipulates that alcohol advertisements must not express or imply that drinking alcohol can eliminate tension and anxiety, increase physical strength, etc.

since then, st spring's subsidiary chengdu tinghua shengshi trading co., ltd. (hereinafter referred to as "tinghua shengshi") received the "administrative penalty notice" from the municipal supervision bureau of wuhou district, chengdu city on april 25. in the process of selling "tinghua" wine at its business premises, tinghua shengshi used scientifically inconclusive views on the efficacy of "tinghua" wine and unverified user reviews to promote the product of "tinghua" wine, which was cited as a guide. publicity behavior that is misunderstood by people, and the circumstances are serious.

as a result, the wuhou district municipal supervision bureau ordered tinghua shengshi to immediately stop illegal propaganda activities and planned to impose a fine of 1.8 million yuan on tinghua shengshi. st spring stated that the listed company, its subsidiaries, and all tinghuajiu dealers will seriously learn lessons and prevent this kind of propaganda behavior from happening again, and the stores opened by tinghua shengshi will resume business one after another.

immediately afterwards, beijing tinghua trading co., ltd. (hereinafter referred to as "beijing tinghua"), a wholly-owned subsidiary of st spring, received the "administrative penalty decision" from the chaoyang district municipal supervision bureau of beijing on june 25. in view of the fact that beijing tinghua this constitutes misleading commercial promotion of its products. according to relevant regulations, the chaoyang district municipal supervision bureau ordered the parties involved to immediately stop the illegal behavior and decided to fine them 800,000 yuan.

previously, st spring stated that after the "3·15" report, the company treated relevant matters with a sincere attitude and immediately carried out self-examination and rectification work on all business links including sales. it also required all involved subsidiaries and dealers to actively cooperate with the inspections of market supervision and management departments. based on feedback from inspections by relevant regulatory authorities, st spring has learned lessons deeply and comprehensively sorted out and improved the company's internal corporate governance system, focusing on further standardizing its own and dealers' sales behavior.

affected by cctv's "march 15 party" report, st spring's operating performance in the first half of 2024 fell into an overall loss. from january to june this year, st spring achieved operating income of 138 million yuan, a year-on-year increase of 28.82%; net profit was -59.8699 million yuan, and non-net profit was -60.1314 million yuan. however, st spring’s beverage segment achieved operating income of 50 million yuan in the first half of the year, a year-on-year increase of 45.95%.

at present, st spring's main business includes two major aspects: one is the general health business segment focusing on the research and development, production and sales of cordyceps sinensis products; the other is the alcohol fmcg business segment focusing on the sales of alcohol products. in recent years, st has vigorously developed the beverage fmcg sector in spring. this business mainly focuses on the sales of "tinghua" and "reading flower" series of high-end liquors.

it is worth mentioning that the contents of the "administrative penalty decisions" in various places have nothing to do with product quality and food safety issues. subsequently, st began to resume operations in the spring in order to eliminate adverse effects and resolve related business risks.

according to st spring, "tinghua" wine has gradually resumed operations and has completed the rectification of all experience stores and the resumption of tasting activities. at the same time, it has also gradually resumed advertising in order to resume operations as soon as possible and reduce losses. at present, 34 dealers and 16 experience stores of "tinghua" wine in 25 cities including beijing, tianjin, shanghai, chengdu, chongqing, shijiazhuang, zhengzhou, taiyuan, and suzhou have gradually entered a state of stable operation.

distributor channels are crucial to liquor companies. previously, st spring stated that during the inspection by the market supervision and management department, it obtained the understanding of the dealers. except for the three dealers who had confirmed the termination of the contract before the "3·15" report, the dealer team was stable and no returns or terminations occurred. matters. as a result, st spring has strengthened its confidence in resuming the business of the liquor sector. it will continue to strengthen cooperation with dealers in the future, rectify the irregular prices of goods, encourage dynamic sales, etc., and protect the interests of dealers.

however, a person in the liquor industry told a reporter from securities times e company that st spring is focusing on boosting channel confidence, driving channel sales, and optimizing the brand image, but the final effect remains to be seen, and the future survival and development path of "tinghua" is not flat.