Tongrentang responds to honey violations by its subsidiary company: inadequate on-site supervision

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 Tongrentang responds to honey violations by its subsidiary company: inadequate on-site supervision


Beijing Tongrentang Co., Ltd.

Announcement on Media Reports of Suspected Violations of Subsidiary Products

The board of directors and all directors of the company guarantee that there are no false records, misleading statements or major omissions in the contents of this bulletin, and bear individual and joint liabilities for the authenticity, accuracy and completeness of its contents.

I. Brief introduction of relevant companies:

Beijing Tongrentang Apiculture Co., Ltd. (hereinafter referred to as Tongrentang Apiculture) is a subsidiary company invested by Beijing Tongrentang Co., Ltd. (hereinafter referred to as the Company, the companys share-holding ratio is 51.29%. Tongrentangs main business is processing bee products (honey, royal jelly (including royal jelly freeze-dried products), bee products, bee pollen (sub-package), medicinal supplements (beeswax, honey), production of food and so on.

Yancheng Golden Bee Food Technology Co., Ltd. (hereinafter referred to as Yancheng Golden Bee) is the commissioned processing and production unit of Tongrentang bee food honey.

2. Media coverage:

On the evening of December 15, 2018, Jiangsu TV City Channel Zero Distance broadcasted reports about the suspected illegal production of food honey by golden bees in Yancheng. It was reported that the golden bee in Yancheng had violated the regulations in handling returned honey and changing the label date of the product.

III. Companys Explanations and Processing of Media Reporting

Upon learning the above report, the company attached great importance to it and immediately asked Tongrentang Bee Industry to investigate the incident. At present, the preliminary investigation is as follows:

1. Regarding the illegal handling of returned honey mentioned in the report, Tongrentang Bee Industry signed a contract with Golden Bee of Yancheng City in August 2018, which clearly stipulates that the cleaned honey can only be used for feeding bees in beekeeping base, and can not be used for any other purpose. After preliminary investigation, due to the lack of on-site supervision of Tongrentang bee industry, there is a problem of unclear identification of the cleaned honey. At present, no case of these honeys entering the raw material depot for production has been found. This company and Tongrentang bee industry will further investigate and verify.

2. According to the preliminary investigation of Tongrentang Bee Industry, there were some errors in the management and use of labels in the label conversion at different production addresses due to the relocation of factories in early 2018. The products in question were completely sealed up in November 2018 and not marketed. They will be handled according to law under the supervision of the regulatory authorities.

3. In view of the above situation, Tongrentang bee industry has the responsibility of inadequate supervision and negligence in the commissioned production process. Tongrentang Bee has notified Yancheng Golden Bee to suspend its entrusted processing and production activities during the investigation period, to seal all the materials involved, and will cooperate fully with superior companies and government supervision departments to carry out investigations. If any violations are found, the company and Tongrentang Bee Industry will be held accountable and dealt with seriously.

4. The impact of the incident on our company

Tongrentang Apiculture signed a commissioned processing contract with Golden Bee in Yancheng in August 2016, but did not realize production in that year.

The commissioned processing output was 220 tons in 2017 and 1815 tons in 2018 to the end of October.

Tongrentang Apiculture has 27 sets of equipments such as temperament, liquid and liquid phase. The laboratory area is nearly 2000 square meters, and there are nearly 20 inspectors. Golden Bee in Yancheng commissioned the purchase of raw materials needed for processing food honey and commissioned processing products to leave the factory, are strictly in accordance with the National Food Safety Standard Honey (GB14963 - 2011) inspection qualified by Tongrentang bee industry quality inspectors.

Tongrentang bee industrys business income in 2017 is 280 million yuan, and its net profit is 268 million yuan. Its business income accounts for 209% of the companys audited business income of 133.376 billion yuan in 2017, and its net profit accounts for 0.15% of the companys audited net profit of 1.742 billion yuan in 2017. Tongrentang bee industrys business income in January-September 2018 is 197 million yuan, and its net profit in January-September 2018 is - 873 million yuan, and its business income accounts for 201.73 million yuan of the company. From January to September of 2008, the operating income (unaudited) was 10.477 billion yuan, and the net profit (unaudited) of the company was 1.449 billion yuan from January to September of 2018. This incident has little impact on the companys revenue and profits and other financial aspects. The company has initiated an in-depth on-site investigation of the incident and will inform the public of the results of the investigation as soon as possible. The Company hereby requests Tongrentang Bee Industry to cooperate fully with the supervision department and comprehensively strengthen the standardized management process. The company solemnly reminds investors that the information issued by the company is based on the announcement, and invites investors to invest rationally and pay attention to risks. I hereby announce. Source: Wang Zheng_N7526

Tongrentang bee industrys business income in 2017 is 280 million yuan, and its net profit is 268 million yuan. Its business income accounts for 209% of the companys audited business income of 133.376 billion yuan in 2017, and its net profit accounts for 0.15% of the companys audited net profit of 1.742 billion yuan in 2017. Tongrentang bee industrys business income in January-September 2018 is 197 million yuan, and its net profit in January-September 2018 is - 873 million yuan, and its business income accounts for 201.73 million yuan of the company. From January to September of 2008, the operating income (unaudited) was 10.477 billion yuan, and the net profit (unaudited) of the company was 1.449 billion yuan from January to September of 2018. This incident has little impact on the companys revenue and profits and other financial aspects.

The company has initiated an in-depth on-site investigation of the incident and will inform the public of the results of the investigation as soon as possible. The Company hereby requests Tongrentang Bee Industry to cooperate fully with the supervision department and comprehensively strengthen the standardized management process.

The company solemnly reminds investors that the information issued by the company is based on the announcement, and invites investors to invest rationally and pay attention to risks.

I hereby announce.