Core Viewpoint - Hong Jiu Fruit's (06689.HK) listing status was officially canceled on December 30, marking the end of its journey as the "first fruit stock" in the capital market, highlighting the disappointment and helplessness of investors due to unresolved financial issues and significant losses [2] Group 1: Company Overview - Hong Jiu Fruit was established in 2002, focusing on high-end imported and high-quality domestic fruit operations, and received significant capital attention, with notable investors including Tianyi Capital and CMC Capital [3] - The company went public on September 5, 2022, becoming the first fruit-focused company listed in Hong Kong, with an IPO price of HKD 40 per share, raising approximately HKD 4.97 billion and reaching a market value of around HKD 600 billion [3] Group 2: Financial Performance - In its first year post-IPO, Hong Jiu Fruit reported a revenue of CNY 15.081 billion, a year-on-year increase of 46.7%, and a net profit of CNY 1.452 billion, nearly quadrupling compared to the previous year [4] Group 3: Delisting Process - The delisting process began with a 19-month suspension due to the company's inability to disclose its 2023 annual report on time, leading to a forced suspension and eventual delisting after exceeding the 18-month limit set by the Hong Kong Stock Exchange [5][6] - During the suspension, the management faced significant issues, including the arrest of key executives for alleged loan fraud and tax invoice irregularities, which further complicated the company's situation [6] Group 4: Financial Crisis - The delisting was a result of compounded issues including financial fraud allegations, cash flow depletion, and debt default risks, with a significant CNY 3.42 billion prepayment raising red flags during an audit by KPMG [7] - From 2019 to 2022, the company experienced a cumulative net cash outflow exceeding CNY 4 billion, with a further net outflow of CNY 1.823 billion post-IPO in 2022 [7] - By the first half of 2023, the company's bank loans surged to CNY 2.776 billion, a year-on-year increase of 49.22%, while trade receivables reached CNY 8.673 billion [7] Group 5: Investor Impact - The company's stock price plummeted over 95% from its IPO price of HKD 40 to HKD 1.74 before suspension, resulting in a market value drop from HKD 670 billion to HKD 27.95 billion, erasing over HKD 642 billion in value [8] - Post-delisting, the stock lost its trading value, leaving small investors with significant losses and uncertain paths for compensation due to the company's financial chaos and executive involvement in legal issues [8]
洪九果品港交所退市，“水果第一股”神话崩塌