Tenwow International's brand has been quiet in the market for a long time. "What to drink for health and beauty? Tenwow honey grapefruit tea." Seven years ago, Tenwow International stood out among numerous beverages with its honey grapefruit tea, even causing several leading beverage companies to imitate it that year. Today, the honey grapefruit tea still exists, but Tenwow International's brand has been quiet in the market for a long time. A reporter from Changjiang Business Daily noted that recently, Tenwow International announced that it has submitted a resumption proposal to the Stock Exchange, but not all resumption conditions have been met, and the proposal still awaits approval from the Stock Exchange. The suspension of Tenwow International dates back to May 2018, when Chairman Lin Jianhua was taken away for investigation due to economic issues. Subsequently, Tenwow International announced that during self-inspection, it discovered three "unusual transactions" in its accounts, all pointing to Lin Jianhua's financial support to Nanpu Food, involving amounts exceeding 2.1 billion yuan. At the same time, Tenwow International stated that the board was completely unaware of these transactions during that period. As soon as the news broke, it caused an uproar in the capital market. Affected by this incident, Tenwow International fell into a long-term suspension. As of now, Tenwow International has been suspended for 16 consecutive months. However, after reviewing Tenwow International's financial reports over the past seven years, the Changjiang Business Daily reporter found that after the honey grapefruit tea, the company never launched another successful new product. The honey grapefruit tea could no longer meet consumer demands, as new products like alcoholic sparkling water, plant-based drinks, and energy drinks emerged, coupled with the impact of physical milk tea shops. Tenwow International's performance had already shown signs of decline. **-01-**Stock Suspended for 16 Months On January 2, Tenwow International announced that it had submitted a resumption proposal to the Stock Exchange, but not all resumption conditions had been met, so the proposal still awaited approval. At the same time, Tenwow International also disclosed that it was in in-depth discussions with two potential investors regarding restructuring. According to statistics from the Changjiang Business Daily reporter, Tenwow International's stock has been suspended for 16 months. The reason for the suspension dates back to 2018. In May 2018, due to Chairman Lin Jianhua being taken away for investigation over economic issues, Tenwow International issued a suspension announcement. Lin Jianhua's 25-year-old son, Lin Qi, took over as chairman in a time of crisis, and the stock briefly resumed trading. In August of the same year, Tenwow International issued a supplementary announcement stating that after self-inspection, it discovered three "unusual transactions" involving amounts up to 2.1 billion yuan. The funds were allocated by Lin Jianhua to various partners and affiliated companies under the guise of purchasing goods, of which 1.685 billion yuan was paid as advance payment for goods to Nanpu Food, a subsidiary of Tenwow International in which it holds 49% equity. However, as of the self-inspection, the company had not received the related goods, constituting irregular transactions. During this period, the board was completely unaware. Subsequently, the company's stock was suspended. It is understood that Nanpu Food was also founded by Lin Jianhua, mainly engaged in imported wine agency business. In recent years, due to business separation from Tenwow International, narrowed sales channels, and sluggish development of the imported wine agency business, it was even terminated by its main agent, California Lott, in early 2018. Since Lin Jianhua was taken away for investigation, executives of Tenwow International have resigned one after another. From 2018 to now, a total of 8 executives have left, including Executive Director and CFO Lin Keng, Independent Non-Executive Director Shen Yalong, Independent Non-Executive Directors Liu Qianzong, Zhang Ruijia, and Wang Longgen, Executive Director and CEO Yan Zhixiong, CFO Wu Wennan, and Executive Director and Operations Director Xu Jianxin. At the same time, affected by the 2.1 billion yuan unusual transactions, some of Tenwow International's assets were frozen multiple times, and debt surged. As of the first half of 2019, Tenwow International's net current liabilities reached 3.048 billion yuan, with borrowings as high as 2.592 billion yuan. **-02- **Star Product Removed from Shelves In fact, the Changjiang Business Daily reporter found that before Lin Jianhua's incident, Tenwow International's performance decline had already appeared. According to data, Tenwow International was founded in 1999, starting with Tenwow preserved fruits and roasted nuts. It gradually developed into a food enterprise mainly engaged in the manufacturing, distribution, and trading of beverages, food, snacks, and other products. Its own brands are mainly under "Tenwow," and it also distributes third-party brands such as Nestlé, Martell, and Hennessy. In 2013, Tenwow International launched Tenwow Tea House honey grapefruit tea, with Fan Bingbing as the spokesperson, creating a "honey grapefruit tea" trend in the industry and establishing Tenwow International's position in the beverage industry. The honey grapefruit tea became its most successful product since its inception and prompted many beverage giants like Master Kong and Uni-President to imitate it. It can be said that honey grapefruit tea single-handedly helped Tenwow International open up the beverage market. Since then, the company's higher-margin own-brand revenue began to increase, and performance continued to grow. From 2013 to 2015, Tenwow International's net profit attributable to shareholders was 286 million yuan, 345 million yuan, and 350 million yuan, respectively, with year-on-year growth of 29.41%, 20.63%, and 1.74%. However, during this period, because Tenwow International failed to launch another new product like honey grapefruit tea, the brand effect brought by the big product gradually faded. Coupled with the shift in mainstream consumer demand from tea drinks to packaged water and healthy beverages, the emergence of new products like alcoholic sparkling water, plant-based drinks, and energy drinks, as well as the impact of physical milk tea shops like Heytea and Yidiandian, Tenwow International's net profit sharply declined in 2016. The Changjiang Business Daily reporter visited several large supermarket chains in Wuhan and found unopened Tenwow Tea House honey grapefruit tea and unopened Tenwow Tea House iced black tea at the bottom shelves of the beverage sections in Walmart and Wushang Liangfan, but no Tenwow International beverages were found in other supermarkets. Data shows that in 2016 and 2017, Tenwow International's net profit was 205 million yuan and 160 million yuan, respectively, down 28.6% and 21.9% year-on-year. In 2018, under the pressure of 2.1 billion yuan in unexplained funds, Tenwow International's performance naturally did not look good. In 2018 and the first half of 2019, Tenwow International lost 4.174 billion yuan and 60.213 million yuan respectively, with total losses exceeding 4.2 billion yuan over 16 months. An industry insider analyzed that from a market perspective, it is very difficult for Tenwow International to make a comeback. The competition in the domestic beverage market is increasingly fierce, consumer demands are higher, new beverage products emerge endlessly, and there is also the impact of continuously improving physical stores like Heytea and Nayuki. Tenwow International's honey grapefruit tea approach is clearly outdated. Source: Changjiang Business Daily Tips will be paid 400-2000 yuan once adopted.