Did Ting Hua Liquor, Once Named by "315," Become Qinghai Chunday's "Shell-Preservation" Trump Card?

How Will AI Audit Report Uncertainty Affect Delisting Outcomes?

Every year, CCTV’s “315” Consumer Rights Day Gala exposes problematic companies, often causing significant damage to their reputation. However, the case of Tinghua Liquor, which was named in the 2024 Gala, is somewhat surprising.

Around the time of the 315 event, Tinghua Liquor, previously accused of exaggerated claims, drew renewed industry attention. What’s notable is that, one year after being exposed, its sales and revenue have recovered to pre-exposure levels, which has shocked the industry.

Although Tinghua Liquor’s performance data disclosed last year appeared impressive, Nandu Bay Finance and Social Research’s Alcoholic Beverage New Consumption Index team noted that its parent company, Qinghai Spring (stock code *ST Spring), is still struggling to maintain its listing. According to its early 2024 earnings warning and risk alert, while *ST Spring’s unreviewed revenue exceeded the red line of 300 million yuan for “market capitalization preservation,” the company’s annual report has not yet been audited, so its delisting status remains uncertain.

Falsely Claimed After 315 Exposure, “Dead Fish Turned Over” in Just Over a Year

Back to the evening of March 15, 2024, when CCTV’s “315” Gala reported that Tinghua Liquor claimed to boost immunity and improve sleep, allegedly violating the Advertising Law of the People’s Republic of China.

According to previous reports by Nandu Bay Finance and Social, after the exposure, this “luxury white liquor” caused a public uproar and drew regulatory attention. At that time, Tinghua Liquor’s offline experience stores were investigated by market regulators, and its parent company, Qinghai Spring, was inspected by the China Securities Regulatory Commission. Meanwhile, Qinghai Spring announced a suspension of Tinghua Liquor sales and initiated internal rectification. After more than a month of investigation, on April 26, 2024, regulators confirmed that Tinghua Liquor engaged in false advertising, and Qinghai Spring was fined 1.8 million yuan.

Sources from Nandu Bay Finance and Social learned that the CCTV “315” exposure disrupted Tinghua Liquor’s market rhythm. In 2022 and 2023, Qinghai Spring’s beverage segment (mainly Tinghua Liquor) generated nearly 100 million yuan in revenue. According to its 2024 annual report, this segment’s revenue was 46.41 million yuan, a sharp 44.05% decline year-over-year, marking a performance shortfall that indirectly led to the company’s stock being delisted or flagged with a delisting warning.

Notably, less than a month after the investigation’s findings, Tinghua Liquor began self-rescue efforts. Nandu Bay Finance and Social observed that Tinghua Liquor removed all claims related to efficacy and shifted its sales model through price increases, limited distributor sales, and capacity control measures. However, industry skepticism remains regarding high product pricing, distributor recruitment issues, and brand damage. Whether Tinghua Liquor can revive itself remains to be seen.

Unexpectedly, in 2025, amid policy restrictions and market adjustments in the liquor industry, Tinghua Liquor appears to have found a “turning point.”

According to Qinghai Spring’s Q3 2025 report, its beverage segment revenue doubled. Data from the report and responses to the Shanghai Stock Exchange show that in the first three quarters of 2025, Qinghai Spring’s beverage revenue reached 87.67 million yuan, nearly matching 2023 figures. This indicates that Tinghua Liquor has achieved a “dead fish turn” in just over a year.

Revenue Data from Liquor Segment Under Question, Could Be Key to Whether It Maintains Listing

Sources from Nandu Bay Finance and Social note that among the four liquor stocks delisted or flagged in 2025 (Qinghai Spring, Hainan Yedao, Lanzhou Yellow River, and Rockstone Co.), Qinghai Spring is considered one of the more optimistic regarding “market cap preservation,” as its annual revenue is expected to surpass the 300 million yuan threshold.

Previously, Qinghai Spring issued a profit warning for 2025, estimating revenue between 342.7 million and 371.4 million yuan. After excluding unrelated and non-substantive income, the revenue is projected at 338.3 million to 367 million yuan, meeting the “minimum revenue above 300 million yuan” requirement for maintaining listing.

However, the uncertainty remains whether Qinghai Spring can truly “preserve its listing.” Besides meeting revenue targets, auditors have yet to provide clear support. Zheng Dan Zhiyuan (Shenzhen) Certified Public Accountants stated that, based on the audit procedures performed and evidence obtained, they cannot confirm that Qinghai Spring’s revenue, after excluding unrelated and non-substantive income, exceeds 300 million yuan.

Tinghua Liquor may be a critical factor in Qinghai Spring’s “market cap preservation” strategy.

Zheng Dan Zhiyuan emphasized that the investment payment Qinghai Spring made to Yibin Tinghua Liquor, which matured by November 2025, has been converted into a loan with interest. Yibin Tinghua Liquor Trading Co., Ltd. is a wholly owned subsidiary of Yibin Tinghua Liquor Development Co., Ltd., which produces Tinghua Liquor, sold by Qinghai Spring.

He pointed out, “If before the issuance of the 2025 audit report, this converted investment payment into a loan cannot be recovered substantively, it will significantly impact our professional judgment on the recoverability of this loan. According to auditing standards, under such circumstances, we may issue a qualified or disclaimer of opinion on Qinghai Spring’s financial statements.”

A securities analyst in Guangzhou told Nandu Bay Finance and Social that the recoverability of this loan is highly uncertain and directly affects Qinghai Spring’s asset value and profits. Since Qinghai Spring and Yibin Tinghua Liquor have related-party relationships, assessing the recoverability of related-party transactions is more complex and requires sufficient evidence to exclude risks like benefit transfer.

“If the loan cannot be recovered substantively, and auditors cannot obtain sufficient evidence to assess its recoverability, and this issue has a significant impact, they must issue a disclaimer of opinion per auditing standards. This does not mean the financial statements are misstated but indicates scope limitations, preventing a conclusive opinion.” The analyst believes that if an “disclaimer of opinion” is issued, Qinghai Spring’s stock could be delisted.

It is noteworthy that Qinghai Spring was delisted last year mainly because auditors determined its revenue was below 300 million yuan. On April 17, 2025, Zheng Dan Zhiyuan confirmed that Qinghai Spring’s 2024 revenue, after adjustments or deductions, was below 300 million yuan. The company had previously delayed reporting due to “slow audit progress,” which was criticized by the Shanghai Stock Exchange.

Whether Qinghai Spring can successfully preserve its listing and stay in A-shares remains a focus for ongoing attention.

Reporter: Beibei, Nandu Bay Finance and Social