Core Viewpoint - Hong Jiu Fruit (06689.HK), once hailed as the "first stock of fruits," is set to be delisted from the Hong Kong Stock Exchange on December 30, marking the end of its journey as a major player in the fruit distribution industry after facing severe financial disclosure issues [1][2]. Group 1: Company Overview - Hong Jiu Fruit was recognized as the largest fruit distributor in China by sales revenue in 2022, particularly dominating the durian and imported dragon fruit markets [4]. - The company was founded by Deng Hong Jiu in 1987 and achieved significant wealth, ranking 85 billion yuan on the Hurun Rich List in 2022 [4]. Group 2: Financial Issues - The company has been suspended from trading since March 2024 due to failure to disclose financial reports, resulting in a market value decline from a peak of 67 billion HKD (approximately 60.3 billion RMB) to 2.795 billion HKD, a drop of over 95% [1][2]. - KPMG, the auditing firm, discovered irregularities, including a prepayment balance of approximately 4.47 billion yuan, with 3.42 billion yuan paid to new suppliers in the fourth quarter, raising concerns about the financial authenticity [2]. Group 3: Governance and Legal Challenges - In April 2024, the chairman Deng Hong Jiu and several board members were taken into custody for alleged loan fraud and issuing false VAT invoices, leading to a collapse in the company's governance structure [2][4]. - Despite attempts to restructure in May 2024, the resignation of three independent non-executive directors rendered the audit committee non-functional, further deteriorating the company's governance [4].
“水果第一股”退市，超600亿市值蒸发，创始人身陷囹圄