Core Viewpoint - The article discusses the downfall of Hongjiu Fruit (06689.HK), highlighting issues related to financial mismanagement, high-level criminal investigations, and the impact on employees and investors [1][7][49]. Group 1: Company Background and Growth - Hongjiu Fruit was once considered the "first stock of fruits" in China, achieving remarkable revenue growth, with 2022 revenue reaching 15 billion yuan, six times that of 2019 [3][15]. - The company was backed by prominent investors and had a strong market presence, particularly in tropical fruits, being the largest distributor of durians in China [15][16]. - Despite its rapid growth, the company faced scrutiny over its financial practices, particularly concerning a significant increase in prepayments to suppliers and receivables [5][11]. Group 2: Financial Irregularities and Investigations - In March 2024, Hongjiu Fruit announced a temporary suspension of trading due to audit concerns raised by KPMG regarding its financial statements, particularly the surge in prepayments [5][11]. - By April 2025, several top executives, including founder Deng Hongjiu, were detained as part of a police investigation into loan fraud and potential tax invoice irregularities [7][8][31]. - The company faced allegations of inflating its financial performance through questionable transactions with newly established clients and suppliers, raising doubts about the authenticity of its revenue [40][42]. Group 3: Employee Impact and Shareholding Plans - The company initiated an employee stock ownership plan in late 2023, which required employees to invest significant amounts, with over 600 employees contributing nearly 60 million yuan [10][19]. - Many employees later reported that their investments were misappropriated, with funds being transferred out of designated accounts shortly after collection [30][51]. - Following the suspension of trading, the company implemented measures such as layoffs and salary cuts, further straining employee morale and financial stability [26][35]. Group 4: Attempts at Recovery and Future Outlook - In response to financial difficulties, Hongjiu Fruit sought to raise funds through various means, including pledging shares and receivables for loans, totaling over 14 billion yuan [38][39]. - The company announced plans for debt restructuring and sought to negotiate with creditors to alleviate its financial burden [49]. - Despite the challenges, some believe that Hongjiu Fruit still holds investment potential due to its established supply chain capabilities in the fruit industry [50].
近6000万被转走，股东群解散！员工叹息“全泡汤了”！榴莲大王爆雷，高管被控制