Core Viewpoint - Tianye Innovation Co., Ltd. faces significant internal control deficiencies and potential delisting risk after only two years of listing on the Beijing Stock Exchange, with its general manager under investigation for suspected insider trading [1][10] Company Overview - Tianye Innovation specializes in tropical fruit and vegetable raw material products, including raw juice, frozen fruits and vegetables, and fresh fruits, with raw juice as its core product [1] - The company has experienced rapid growth in the past but has seen a significant decline in profitability since its listing in 2023 [1][8] Financial Performance - In 2023, Tianye reported revenue of 460 million yuan, a year-on-year decrease of 2.33%, and a net profit of 33.38 million yuan, down 37.69% [8] - For 2024, revenue increased to 494 million yuan, a growth of 7.34%, but net profit plummeted to 9.65 million yuan, a decline of 71.07% [9] Internal Control Issues - The company received a negative audit opinion from Zhongxinghua Accounting Firm regarding its 2024 financial report, indicating serious internal control deficiencies [2][4] - A self-assessment revealed significant internal control issues, leading to adjustments in financial statements, including a reduction in main business income by 1.35 million yuan and an increase in main business costs by 1.64 million yuan [3][5] Competitive Landscape - The new tea beverage industry is becoming increasingly competitive, with many brands building their own supply chains, putting pressure on Tianye's performance [8] - Major competitors in the juice processing industry include Guotou Zhonglu and Andeli, which pose strong competition to Tianye [8] Management and Governance - The company has initiated internal control rectification measures and hired external consultants to improve its internal control systems [7] - The general manager, Shan Dan, is under investigation for suspected insider trading, which has raised concerns about corporate governance [10]
内控存重大缺陷，总经理被立案调查，田野股份进入多事之秋