Core Viewpoint - Chongqing Hongjiu Fruit Co., Ltd. has faced severe operational challenges following the announcement of criminal charges against its chairman and several executives for loan fraud and/or issuing false VAT invoices, leading to significant disruptions in its business operations [1][3][12]. Company Overview - Founded in 2002 by Deng Hongjiu and his wife Jiang Zongying, Hongjiu Fruit was positioned as a multi-brand fresh fruit group, focusing on the full supply chain of high-quality fruits from China, Thailand, and Vietnam [7][8]. - The company was once celebrated as "China's first fruit stock" and successfully listed on the Hong Kong Stock Exchange in September 2022, achieving a market capitalization of HKD 124.21 billion at its debut [9]. Recent Developments - As of January 6, 2025, Hongjiu Fruit's main office in Chongqing has been restricted by law enforcement, resulting in the company being unable to operate normally [3]. - Following the announcement of financial irregularities, including a suspicious increase in prepayments, the auditing firm KPMG resigned, leading to the company's suspension from trading on the Hong Kong Stock Exchange [9][10]. Financial Situation - Despite the ongoing issues, multiple financial institutions provided substantial loans to Hongjiu Fruit between April 22 and July 29, 2024, totaling over CNY 650 million through stock pledge financing [11]. - The company and its executives have been listed as untrustworthy and restricted from high consumption, indicating severe financial distress [12]. Industry Context - The fruit retail industry is facing significant challenges, as evidenced by the struggles of other companies like Baiguoyuan, which reported a 9.8% decline in revenue and a shift from profit to loss in 2024 [18]. - The overall market for fruit retail has been impacted by rising e-commerce competition and changing consumer behaviors, leading to a decline in physical store sales [17].
“中国水果第一股” 洪九果品董事长等高管涉案 实地探访原办公地已易主