Core Viewpoint - Hong Jiu 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 - Hong Jiu 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, the company was 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, with KPMG noting a prepayment balance of approximately CNY 4.47 billion as of the end of 2023 [2][5]. - In the fourth quarter of 2023, Hong Jiu Fruit made payments of about CNY 3.42 billion to several suppliers, most of whom were new trading partners without historical transaction records [2][5]. - KPMG recommended the establishment of an independent investigation committee to assess the commercial rationale of the prepayments and consider hiring a third party for assistance [2][5]. Group 3: Legal and Governance Challenges - In April 2024, KPMG resigned as the company's auditor, and as of now, the company has not disclosed its 2023 annual report or subsequent periodic reports [3][6]. - The company announced in April that the Chongqing Public Security Bureau had initiated an investigation into allegations of loan fraud and the issuance of false VAT invoices, resulting in various board members being subjected to criminal measures [3][6]. - Since January 2024, the company's headquarters has been restricted by public security authorities, hindering normal operations [3][6]. - In May 2024, Hong Jiu Fruit applied for restructuring and pre-restructuring in court, while three independent non-executive directors resigned, leaving the company without independent directors or audit committee members [3][6].
“水果第一股”将退市