Core Viewpoint - Hong Jiu Fruit (06689.HK), known as the "first fruit stock," is set to be delisted from the Hong Kong Stock Exchange due to its inability to disclose financial reports on time, marking the end of its trading suspension that lasted over a year and a half [2]. Group 1: Company Background and Financial Status - Hong Jiu Fruit was listed on the Hong Kong Stock Exchange in September 2022, reaching a peak market value of HKD 67 billion (approximately RMB 60.3 billion) [2]. - The company was the largest fruit distributor in China by sales revenue in 2022 and also the largest distributor of durians and imported dragon fruits [2]. - As of the last trading day before suspension, the stock price had fallen to HKD 1.74, with a total market value of HKD 2.795 billion, representing a decline of over 95% from its peak [3]. Group 2: Audit and Financial Irregularities - The company faced issues with its financial reporting, leading to a trading suspension in March 2024 due to the inability to disclose its annual report [2]. - KPMG, the auditing firm, raised concerns about a prepayment balance of approximately RMB 4.47 billion as of the end of 2023, with RMB 3.42 billion paid to several new suppliers without historical transaction records [2]. - KPMG recommended the establishment of an independent investigation committee to assess the commercial rationale of the prepayments [3]. Group 3: Management and Legal Issues - Several executives, including Chairman Deng Hongjiu, were detained in April 2024 due to investigations into loan fraud and issuing false VAT invoices [6]. - The company's headquarters has been restricted by law enforcement since January 2024, affecting normal operations [6]. - In May 2024, the company applied for restructuring and pre-restructuring in court, following the resignation of all independent non-executive directors, leaving the company without an audit committee [12].
“水果第一股”将退市：创始人重庆“水果大王”邓洪九等多名高管此前被抓，公司市值曾超600亿元已蒸发95%