[Direct Report Network BeijingDecember 21st] (Beijing News)The entrusted processing manufacturer was exposed to pour a large amount of overdue and imminent honey into the "raw material storehouse" and quickly triggered Tongrentang brand crisis. On the morning of December 17, Tongrentang's shares fell 4.3% after opening, and then fell more than 5%. Tongrentang shares fell 2.33% to 29.31 yuan at the close of the market.

Recently, a report from Jiangsu TV station introduced Tongrentang into the whirlpool of public opinion. One of Tongrentang's subsidiaries, Tongrentang Bee Industry, caused the storm. The main business is the processing of bee products, including honey, royal jelly (including royal jelly freeze-dried products), bee products, bee pollen (sub-packaging) and so on.

According to Tongrentang's 2017 report, honey is one of Tongrentang's diversified products. In addition to selling medicine, Tongrentang also produces or sells food, health food, cosmetics, breeding sika deer and black bone chicken through its subsidiary companies.

On December 17, a reporter from the Beijing News visited two stores in Tongrentang, Beijing. In addition to selling medicines and honey, the two stores also display a lot of cosmetics, health wines, herbal tea and so on. Some of the products are manufactured by other manufacturers.

According to Tongrentang's official website, in the past 20 years, Tongrentang has developed 679 new products, including 176 medicines, 92 health foods, 288 foods and 123 cosmetics. The latter three items account for 74.07% of the newly developed products, which means that Tongrentang's diversification is expanding rapidly.

Subordinate enterprises raise chickens and deer and make cosmetics, food, etc.

At present, Tongrentang is trying to diversify its development with subsidiaries. At present, Tongrentang's subsidiaries include Tongrentang Science and Technology, Tongrentang Commerce, Tongrentang Natural Medicine, Tongrentang Jilin Ginseng, Tongrentang Lingchuan Dangshen, Tongrentang Inner Mongolia Traditional Chinese Medicine, Tongrentang Bee Industry, Tongrentang Anguo Processing, Tongrentang Anguo Logistics, Tongrentang Shaanxi Musk Industry, Tongrentang Shanxi Vinegar Industry and other subsidiaries.

One of Tongrentang's subsidiaries is Tongrentang Science and Technology, with 46.85% of Tongrentang's shares. The company is mainly engaged in the production and sale of traditional Chinese medicine products, products covering Chinese patent medicine, food, cosmetics and other fields. Last year, the subsidiary realized business income of 5.525 billion yuan, an increase of 7.71% year on year, and net profit of 969 million yuan, an increase of 13.97% year on year.

In addition, Tongrentang also holds the shares of Beijing Tongrentang Cosmetics Co., Ltd.

In addition to food and cosmetics, Tongrentang also manages investment. The registered capital of Beijing Tongrentang Commercial Investment Group Co., Ltd. is 208 million yuan, of which Tongrentang accounts for 51.98%. The main business of this company includes investment management, etc. Last year, the company realized revenue of 6.922 billion yuan, an increase of 16.67% over the previous year, and net profit of 298 million yuan, an increase of 11.28% over the previous year.

If we only look at the scope of Tongrentang (listed company), the company not only deals in all kinds of drugs, but also in cosmetics, office rental and commercial rental.

The business scope of the branch includes sales of stereotyped packaged food (including milk-cold food), health food, retail Chinese herbal slices, books, liquor making, health wine, nutrient solution (excluding medicinal nutrient solution), technical consultation, technical services, technology development, technology transfer, technical training; feeding, planting, advertising design of Chinese and Western medicines, breeding of sika deer and black deer. Bone chicken and so on.

Tongrentang Bee Industry Commissioned Production, Insufficient Supervision

It was Tongrentang bee industry, one of Tongrentang's subsidiaries, that caused the storm. The main business is the processing of bee products, including honey, royal jelly (including royal jelly freeze-dried products), bee products, bee pollen (sub-packaging) and so on. On the morning of December 16, Tongrentang issued a statement saying that all the related products had been sealed up, while Tongrentang bee industry was registered in Daxing District of Beijing, and the Daxing District Food and Drug Administration has launched an investigation.

On August 16, Tongrentang announced that Tongrentang bee industry had signed a contract with Yancheng Golden Bee to deal with the problem of irregular handling of returned honey. The contract clearly stipulated that "honey cleaned up can only be used to feed bees in beekeeping bases, and not be used for any other purposes". According to preliminary investigation, due to the lack of on-site supervision of Tongrentang bee industry, there is a problem of unclear labeling of cleaned honey. At present, no case of these honeys entering the raw material warehouse for production has been found. Therefore, our company and Tongrentang bee industry will further investigate and verify.