Core Viewpoint - Hongjiu Fruit, known as the "first fruit stock," is facing delisting from the Hong Kong Stock Exchange due to a series of financial and governance issues, culminating in its inability to disclose financial reports and ongoing investigations into its executives [2][3][4]. Company Overview - Hongjiu Fruit was established in 2002 by Deng Hongjiu and his spouse Jiang Zongying, and it quickly rose to prominence in the high-end fruit market through a self-built cold chain logistics system and direct procurement model [3]. - The company became the largest fruit distributor in China by sales revenue in 2022, with a revenue of 15.081 billion yuan, marking a 46.7% year-on-year increase, and a net profit of 1.452 billion yuan, up 397.95% [3]. Listing and Suspension - Hongjiu Fruit was listed on the Hong Kong Stock Exchange on September 5, 2022, at an issue price of 40 HKD per share, achieving a market capitalization of nearly 19 billion HKD on its first day [3]. - The stock was suspended from trading on March 20, 2024, due to the company's failure to disclose its 2023 financial report, which raised concerns from its auditing firm, KPMG [4]. Financial Issues - As of the last disclosed financial report, Hongjiu Fruit reported a revenue of 8.538 billion yuan for the first half of 2023, a 19.37% increase, but a net profit decline of 6.51% to 800 million yuan [4]. - The company faced significant financial scrutiny, with a prepayment balance of approximately 4.47 billion yuan as of the end of 2023, including 3.42 billion yuan paid to new suppliers, raising red flags about the legitimacy of these transactions [4]. Governance and Legal Challenges - Multiple executives, including Chairman Deng Hongjiu, are under investigation for alleged loan fraud and issuing false VAT invoices, leading to a crisis in corporate governance [4][5]. - Following the resignation of three independent non-executive directors, the company currently lacks independent oversight, exacerbating its governance issues [6]. Future Outlook - Hongjiu Fruit is attempting to restore operations amid financial strain and has filed for restructuring in May 2024, while also considering bringing in new investors [5]. - Experts suggest that the company needs to address its cash flow issues, improve its supply chain, and enhance corporate governance to regain market trust and adapt to new consumer trends in the fruit industry [6].
财报难产、高管被查 洪九果品终遭退市