Core Viewpoint - Hong Jiu Fruit (06689.HK), known as the "first stock of fruit," is facing delisting due to failure to disclose financial reports on time, resulting in a market value loss of HKD 64 billion [1][3]. Company Overview - Hong Jiu Fruit was founded in 2002 by Deng Hong Jiu, who started selling fruit in Chongqing and later expanded the business significantly [1][2]. - The company went public on the Hong Kong Stock Exchange in 2022, achieving sales revenue of over RMB 15 billion, a 46.7% year-on-year increase, and was recognized as the largest fruit distributor in China [2]. Financial Issues - The company was suspended from trading on March 20, 2024, due to the inability to disclose its 2023 financial report, with KPMG questioning the legitimacy of significant prepayments to new suppliers [3][4]. - As of the last trading day, the stock price had dropped over 95% from its IPO price, leading to a market capitalization of HKD 28 billion, down from a peak of HKD 670 billion [4]. Legal and Operational Challenges - The company is under investigation for economic crimes, including loan fraud and issuing false VAT invoices, with several executives facing criminal charges [3][5]. - Despite attempts to restructure and seek strategic investors, internal governance issues and financial irregularities have hindered recovery efforts [5]. Industry Context - The fruit distribution market is undergoing significant changes, with a shift towards high-cost efficiency products, impacting companies like Hong Jiu Fruit that relied on a high-cost supply chain model [5]. - Competitors like Baiguoyuan are adapting by closing inefficient stores and focusing on high-margin products, indicating a broader industry transformation [5].
市值缩水640亿港元，“水果第一股”年底退市