The dividend was only a temporary ruse to convince bagholders to part with their money. Now that the company has the bagholders' money, the company isn't going to give it back in the form of dividends. You've been owned!
Simply the worse answer I've ever heard. I honestly don't even think paying a dividend makes any sense for a high growth company, especially there's the issue of withholding taxes for a foreign company like TPI. Investing earnings back into the business to produce 40%+ of growth is much much better than a tiny 3.5% dividend, and a smart way to allocate resources. If you're in the stock only for the dividend, you are better off owning some declining regional telco stock that pays 10% with no price appreciation at all. If you care to read the 10-Q, TPI explained the reason for dividend suspension well:
The China health care industry, through the ongoing healthcare reform, is currently evolving and realizing an ever changing and dynamic competitive landscape. As a result of the reform, opportunities exist for Tianyin to capture a greater market share by investing the internal capital resources in our strategic growth plan. We believe by utilizing the capital in our strategic growth plan instead of making dividend payments at the present time to our common shareholders, we should be able to generate greater long-term returns for our shareholders. Given these opportunities and the necessary approvals that we are required to obtain from our preferred holders to continue to pay a dividend to our common shareholders, we have decided to suspend our common share dividend program.
As a policy management believes that in the event we experience a shortage of opportunities to efficiently invest and grow our business with our excess cash on hand, then a dividend payable is an appropriate use of excess capital.