(Yicai Global) Jan. 6 -- A Beijing court has rejected an application by Thai beverage giant TC Pharmaceutical Industries to force the liquidation of the Red Bull joint venture in China in the latest episode of a long-running dispute.

Reignwood Group, a Thai-Chinese property developer and distributor of Red Bull drinks, which is also the parent of China's Red Bull, received the verdict from the Beijing People's High Court, the firm said in a statement today. The court said the accuser's shareholder status was a precondition for applying for compulsory liquidation of the target company, but TC Pharma's status as such is still in dispute.

TC Pharma first filed legal proceedings with the Beijing No. 1 Intermediate People's Court in October 2018 to force the liquidation of China's Red Bull, requiring the latter to cease all business practices. The court rejected the application for the same reason last May, so the Bangkok-based company appealed to the high court.

Sales of Red Bull-branded functional drinks in China reached a record CNY22.3 billion (USD3.2 billion) last year, an annual rise of 5 percent, according to Reignwood's own figures.

China's Red Bull is a joint venture between Reignwood, founded in Thailand by Chinese businessman Yan Bin, and TC Pharma. It is responsible for producing and selling Red Bull beverages in China. The JV was registered in 1998 and its term of operation expired in 2018. TC Pharma refused to renew the registration due to worsening ties between its two shareholders, triggering the legal dispute over forced liquidation.

Relations started to deteriorate when Chaleo Yoovidhya, a Thai-Chinese businessman and founder of TC Pharma, died in 2012. The drinks maker then attempted to retrieve trademark authorization from China. Since 2014, the parties have sued each other more than 20 times on issues varying from the JV's term of operation and trademarks to equities, bankruptcy and liquidation.

TC Pharma also launched a new JV brand called Red Bull Energy and the imported original version of Red Bull functional beverages in China last year, trying to divide and deprive Reignwood of market share.

Editors: Dou Shicong, Peter Thomas