Core Viewpoint - Hong Jiu Fruit (06689.HK), known as the "first fruit stock," is facing delisting from the Hong Kong Stock Exchange due to its inability to disclose financial reports on time, leading to a suspension of trading for over a year and a half [1][2]. Group 1: Company Background and Market Position - Hong Jiu Fruit was listed on the Hong Kong Stock Exchange in September 2022, reaching a peak market value of HKD 67 billion [2]. - The company was the largest fruit distributor in China by sales revenue in 2022, and it was also the largest distributor of durians and imported dragon fruits in the country [2]. Group 2: Financial and Operational Issues - The company was suspended from trading in March 2024 due to its failure to disclose financial reports, with KPMG noting a prepayment balance of approximately CNY 4.47 billion as of the end of 2023 [2]. - In the fourth quarter of 2023, Hong Jiu Fruit made payments of about CNY 3.42 billion to several suppliers, most of whom were new trading partners without historical transaction records [2]. - Some suppliers had registered capital lower than the prepayment amounts received in 2023, and certain suppliers had no employees registered for social insurance [2]. Group 3: Investigations and Legal Issues - KPMG recommended that the company's audit committee establish an independent investigation committee to assess the commercial rationale of the prepayments and consider hiring a third party for assistance [3]. - In April 2024, KPMG resigned as the company's auditor, and the company has not disclosed its 2023 annual report or subsequent periodic reports [4]. - The chairman and several board members of Hong Jiu Fruit are under criminal investigation for alleged loan fraud and issuing false VAT invoices, with various restrictive measures imposed by the police affecting the company's operations [4]. - In May 2024, the company applied for restructuring and pre-restructuring in court, while all independent non-executive directors resigned, leaving the company without independent oversight [4].
“水果第一股”将退市