Core Viewpoint - Hongjiu Fruit, known as the "first stock of fruit," is set to be delisted from the Hong Kong Stock Exchange after a year and a half of suspension due to failure to meet listing requirements and ongoing legal issues involving its executives [2][3]. Company Summary - Hongjiu Fruit was suspended from trading on March 20, 2024, and subsequently delisted on December 30, 2024, after failing to comply with the resumption guidance set by the Hong Kong Stock Exchange [2][3]. - The company faced significant scrutiny from KPMG regarding a sudden increase in prepayments, which rose by 3.42 billion yuan in the fourth quarter of 2023, raising concerns about the legitimacy of its suppliers [3][4]. - The only complete annual report during its listing was for 2022, showing revenue of 15.08 billion yuan, a 47% increase year-on-year, and a net profit of 1.45 billion yuan, a 33% increase [5][6]. - At its peak, Hongjiu Fruit's market capitalization exceeded 67 billion HKD [6]. Business Model and Financial Pressure - Hongjiu Fruit operated on an end-to-end business model, sourcing directly from producers and selling to various retail channels, with over 50% of its revenue coming from terminal wholesalers [7]. - The company faced dual pressures from high prepayments to suppliers and long accounts receivable, with trade receivables doubling from 3.707 billion yuan in 2021 to 7.667 billion yuan in 2022 [8]. - The cash flow was strained due to a combination of high prepayments and long receivables, leading to a significant increase in bank loans from 874 million yuan to 2.282 billion yuan [8]. Industry Changes - Other major players in the fruit market, such as Baiguoyuan and Xianfeng Fruit, are also experiencing difficulties, with Baiguoyuan reporting a 9.8% decline in revenue and a net loss of 386 million yuan in 2024 [10]. - The fruit market is undergoing significant changes, with high-end fruits becoming more accessible, leading to increased competition and a 15% average annual price decline for premium fruits from 2020 to 2025 [11][12]. - Consumer behavior is shifting towards more rational purchasing decisions, with a 28% decrease in the frequency of high-priced fruit purchases, while the consumption of quality domestic fruits has increased by 45% [11][12].
洪九果品“两头承压”终退市 水果“三巨头”各有难处