(Yicai Global) Feb. 13 -- Tongrentang, the biggest global producer of traditional Chinese medicine, has revealed that it reuses honey, which has caused some of its honey products to go bad earlier than expected. The firm may lose CNY57.8 million (USD8.6 million) in net profits due to the findings of an investigation. 

Tongrentang has put 2,284 bottles of relabeled, expired honey in stores since last October, the Beijing-based firm said in a statement. Authorities have given the seller and its involved affiliates a fine of CNY14 million (USD2.1 million), confiscated illegal gains of CNY111,700 (USD16,500), and seized 3,300 bottles of honey. 

Tong Ren Tang Group, the parent of the TMC unit, has proposed to acquire all Tongrentang's equity holdings of Tongrentang Bee Industry, the honey subsidiary, to mitigate damages.

Last December, a local TV station in Jiangsu province went to a warehouse of Yancheng Jinfeng Food Technology, a supplier of Tongrentang, and found out that employees were collecting expired honey in a bucket to rebottle it.

The capital city's market regulator revoked the food license of Tongrentang Bee Industry without a chance to reapply for the next five years. That is also the time that the involved employees are prohibited from engaging in food-related jobs.

Mei Qun, the president of Tong Ren Tang Group, wrote a letter to the municipal government of Beijing. The firm gave General Manager Gao Zhenkun and Chief Engineer Tian Zhenhua warnings and penalties. It removed nearly 10 senior executives of the honey unit from their roles.

Editor: Emmi Laine