On the evening of May 10, ST Spring announced that the company's subsidiary Tinghua Shengshi recently received the "Administrative Penalty Decision" issued by the Market Supervision and Administration Bureau of Wuhou District, Chengdu, ordering Tinghua Shengshi to immediately stop the illegal acts and impose heavy penalties on the punishment range.
Restart after the fine
According to the "Administrative Penalty Decision", it was verified by the Wuhou District Municipal Supervision Bureau that in the process of selling "Tinghua" liquor, the Tinghua Shengshi business premises used the scientifically inconclusive views and unverified user evaluations of the efficacy of "Tinghua" liquor for the product promotion of "Tinghua" liquor, making misleading publicity behaviors, and the circumstances were serious. The above-mentioned behavior of Tinghua Shengshi violated the first paragraph of Article 8 of the Anti-Unfair Competition Law, which stipulates that "business operators shall not make false or misleading commercial promotions about the performance, function, quality, sales status, user evaluation, and honors of their goods, so as to deceive or mislead consumers".
According to the Anti-Unfair Competition Law, the Wuhou District Municipal Supervision Bureau ordered Tinghua Shengshi to immediately stop illegal propaganda and planned to impose a fine of 1.8 million yuan on Tinghua Shengshi.
In this regard, ST Spring said that the company and its subsidiaries sincerely accept this. The company, its subsidiaries and all distributors will earnestly learn lessons, further improve the law-abiding awareness of all employees, standardize the words and deeds of sales personnel, and prevent the recurrence of this kind of propaganda behavior.
At the same time, ST Spring previously disclosed that the store opened by Tinghua Shengshi will resume business in the near future.
On May 9, some media visited Tinghuajiu's flagship store in the most core location of Chengdu, which is located on the first floor of the Aerospace Science and Technology Building, No. 7 Xinguanghua Street, Jinjiang District, Chengdu. There is still a construction fence around the perimeter of the store, but the door of the flagship store has been reopened, and the logo of Tinghuajiu has been re-put on the wall, and there are three staff members in the store. Inside, the store is luxuriously decorated, reminiscent of a luxury store, and in addition to the product display area, there are also a number of sofa tasting areas.
According to the staff in the store, the store resumed business on May 6, and there are not many customers entering the store at present, and the store has two kinds of Tinghua wine on sale, both of which are sauce-flavored, with a standard package of 5,860 yuan/bottle, and a boutique package of 58,600 yuan/bottle, and a one-time purchase of 4 bottles and above has a related activity price. When listening to the introduction of flower wine, the store staff rarely talked about its health benefits, but more publicized its purity, not being high, and having a good taste.
The store staff also revealed that Tmall, Jingdong and other platforms will also re-launch Tinghua wine products.
However, searching for Tinghuajiu on Tmall, Jingdong and other apps, there is no relevant content at present.
The stock price fell to its lowest level in a decade
On April 22, Qinghai Spring announced that it would postpone the disclosure of the 2023 annual report and the first quarter of 2024. The reason given by Qinghai Spring is that due to the large amount of editing and reviewing work for the 2023 Annual Report, the relevant work will be completed later than originally planned. The previous performance forecast proposed that the operating income in 2023 is expected to be 232 million yuan to 248 million yuan, a year-on-year increase of 45.12% to 55.08%, and there will be a loss in 2023, with a net profit of -222 million yuan to -287 million yuan, and a non-net profit attributable to the parent of -205 million yuan to -270 million yuan.
Because the company's net profit before and after deducting non-recurring gains and losses for the last three consecutive fiscal years has been negative, and Daxin Certified Public Accountants (Special General Partnership) has issued an unqualified opinion type of "Audit Report" on the company's 2023 annual financial report with material uncertainties related to continuing operations, and the company's shares have been subject to other risk warnings. Since May 6, the company's stock abbreviation has been changed from "Qinghai Spring" to "ST Spring".
On May 6, ST Spring repurchased 1 million shares for the first time, with a transaction price of 4.31 yuan per share and a total transaction amount of 4.31 million yuan (excluding commissions and other transaction costs). But at present, the buyback program has had little effect, and ST Spring has recently fallen for five consecutive days.
From May 6th to 10th, ST Spring's stock price fell for five consecutive trading days, closing at 3.52 yuan per share as of May 10, with a total market value of 2.066 billion yuan. Its share price is the lowest in nearly a decade.
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