Core Viewpoint - Hongjiu Fruit (06689.HK), known as the "first fruit stock," is facing delisting from the Hong Kong Stock Exchange due to its inability to disclose financial reports on time, leading to a suspension of trading for over a year and a half [1][4]. Group 1: Company Background - Hongjiu Fruit specializes in the full industry chain operation of high-quality fruits and was listed on the Hong Kong Stock Exchange in September 2022, reaching a peak market value of HKD 67 billion [2][5]. - In 2022, Hongjiu Fruit was recognized as the largest fruit distributor in China by sales revenue, as well as the largest distributor of durians and imported dragon fruits [2][5]. Group 2: Financial and Operational Issues - The company was suspended from trading in March 2024 due to its failure to disclose financial reports on time. As of the end of 2023, the group had a prepaid balance of approximately CNY 4.47 billion [6]. - In the fourth quarter of 2023, Hongjiu Fruit made payments of about CNY 3.42 billion to several suppliers, most of whom were new trading partners without historical transaction records. Some suppliers had registered capital lower than the prepaid amounts, and certain suppliers had zero social insurance coverage [6]. Group 3: Legal and Governance Challenges - In April 2024, the auditing firm KPMG resigned from its role, and the company has not disclosed its 2023 annual report or subsequent periodic reports [3][6]. - In April 2024, Hongjiu Fruit announced that its chairman and several board members were under criminal investigation for loan fraud and issuing false VAT invoices, leading to various restrictive measures against the company [3][7]. - In May 2024, the company applied for restructuring and pre-restructuring in court, and all three independent non-executive directors resigned, leaving the company without independent directors or audit committee members [7].
“水果第一股”洪九果品将退市