By CNBC AI News, July 9, 2025 – Tianye Innovation Co., Ltd., a key supplier to China’s beverage giants including Naixue’s Tea and Mixue Ice Cream & Tea, is facing regulatory scrutiny after the Beijing Stock Exchange (BSE) imposed disciplinary actions against the company and its senior executives for financial disclosure lapses. The sanctions have been recorded in China’s securities compliance registry, marking another blow to the self-proclaimed “pioneer of tropical juice ingredients” in the capital markets.
Regulatory filings reveal that the beverage ingredients manufacturer published inconsistent financial figures across its 2024 earnings releases. An initial performance snapshot on February 27, 2025, reported total profits of 34.08 million yuan ($4.7 million) and net profits attributable to shareholders of 28.59 million yuan ($3.9 million). However, subsequent revisions on April 29 slashed these figures by 58% and 66% respectively – to 14.21 million yuan and 9.65 million yuan – without timely disclosure of the material adjustments. The company also failed to issue required pre-earnings guidance.
As a critical player in China’s $23 billion new-style tea beverage industry, Tianye provides customized ingredient solutions to over a dozen top brands. Its vertically integrated operations span five strategic production hubs across major tropical fruit regions, specializing in NFC juices, frozen produce, and formulation expertise for items ranging from mango puree to passionfruit concentrates.
Notably, this represents the second compliance red flag in recent months. The firm had previously warned investors in June about potential delisting risks due to internal control failures. Separately, Managing Director Shan Dan is under investigation by securities regulators for alleged stock trading violations.
Since its 2023 BSE listing, Tianye has capitalized on the explosive growth of China’s tea beverage sector. However, analysts caution that repeated governance issues could strain relationships with high-profile clients like Heytea and Nongfu Spring, which prioritize supply chain transparency in an era of heightened consumer scrutiny.
The company’s shares fell 4.2% following the announcement, extending its year-to-date decline to 19%. Market observers now await Tianye’s next earnings report to assess whether operational improvements can outweigh its unfolding compliance challenges.
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