Core Viewpoint - Hong Jiu Fruit (06689.HK) is set to be delisted from the Hong Kong Stock Exchange on December 30, 2025, following a series of financial and legal troubles, including the arrest of its chairman and delays in financial reporting [1][2]. Group 1: Company Background - Hong Jiu Fruit was established in 2002 and focuses on high-end imported and quality domestic fruit, operating a multi-brand fresh fruit group [2]. - The company utilizes a "end-to-end" digital supply chain to deliver fresh fruit products directly from global orchards to retail terminals in China [2]. Group 2: Financial Performance - The company went public on September 5, 2022, as the first fruit-focused company listed in Hong Kong, with an initial share price of HKD 40, raising approximately HKD 497 million and reaching a market capitalization of about HKD 60 billion [2]. - In 2022, Hong Jiu Fruit reported revenues 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 [2]. Group 3: Suspension and Delisting - The company's shares were suspended from trading on March 20, 2024, due to its failure to disclose financial reports on time [2]. - The Hong Kong Stock Exchange announced the cancellation of Hong Jiu Fruit's listing status on October 3, 2025, after the company failed to resume trading by September 19, 2025 [1]. Group 4: Legal Issues - Several executives, including Chairman Deng Hong Jiu, were arrested on April 16, 2025, for alleged loan fraud and issuing false VAT invoices, which led to operational disruptions [3][6]. - The company has faced significant financial pressure due to these events, leading it to apply for debt restructuring in May 2025 and seek strategic investors for support [6]. Group 5: Stock Performance - As of March 20, 2024, the stock price was HKD 1.74, representing a 95.65% decline from the initial offering price of HKD 40 [6].

Core Viewpoint - Hong Jiu Fruit (06689.HK), known as the "first fruit stock," is set to be delisted from the Hong Kong Stock Exchange due to its inability to disclose financial reports on time, marking the end of its trading suspension that lasted over a year and a half [2]. Group 1: Company Background and Financial Status - Hong Jiu Fruit was listed on the Hong Kong Stock Exchange in September 2022, reaching a peak market value of HKD 67 billion (approximately RMB 60.3 billion) [2]. - The company was the largest fruit distributor in China by sales revenue in 2022 and also the largest distributor of durians and imported dragon fruits [2]. - As of the last trading day before suspension, the stock price had fallen to HKD 1.74, with a total market value of HKD 2.795 billion, representing a decline of over 95% from its peak [3]. Group 2: Audit and Financial Irregularities - The company faced issues with its financial reporting, leading to a trading suspension in March 2024 due to the inability to disclose its annual report [2]. - KPMG, the auditing firm, raised concerns about a prepayment balance of approximately RMB 4.47 billion as of the end of 2023, with RMB 3.42 billion paid to several new suppliers without historical transaction records [2]. - KPMG recommended the establishment of an independent investigation committee to assess the commercial rationale of the prepayments [3]. Group 3: Management and Legal Issues - Several executives, including Chairman Deng Hongjiu, were detained in April 2024 due to investigations into loan fraud and issuing false VAT invoices [6]. - The company's headquarters has been restricted by law enforcement since January 2024, affecting normal operations [6]. - In May 2024, the company applied for restructuring and pre-restructuring in court, following the resignation of all independent non-executive directors, leaving the company without an audit committee [12].

Core Viewpoint - Hong Jiu Fruit (06689.HK), known as the "first fruit stock," is set to be delisted from the Hong Kong Stock Exchange due to its inability to disclose financial reports on time, marking the end of its trading suspension that lasted over a year and a half [2][3]. Group 1: Company Background and Financial Status - Hong Jiu Fruit was listed on the Hong Kong Stock Exchange in September 2022, reaching a peak market value of HKD 67 billion (approximately RMB 60.3 billion) [2]. - The company was the largest fruit distributor in China in 2022 based on sales revenue, and it was also the largest distributor of durians and imported dragon fruits in the country [2]. - As of the suspension before delisting, the company's stock price had fallen to HKD 1.74, with a total market value of only HKD 2.795 billion, representing a decline of over 95% from its peak [3]. Group 2: Audit and Financial Irregularities - The company faced issues with its financial reporting, leading to a suspension in March 2024 due to the inability to disclose its annual report on time [2]. - KPMG, the auditing firm, raised concerns about the company's prepayment balance of approximately RMB 4.47 billion as of the end of 2023, noting that a significant portion of these payments (about RMB 3.42 billion) was made to new suppliers without historical transaction records [2]. - KPMG recommended the establishment of an independent investigation committee to assess the commercial rationale of the prepayments and consider hiring a third party for assistance [3]. Group 3: Management and Legal Issues - Several executives, including Chairman Deng Hongjiu, were detained in April 2024 due to investigations by the Chongqing Public Security Bureau for alleged loan fraud and issuing false VAT invoices [5]. - The company's headquarters has been restricted by law enforcement since January 2024, impacting its operational capabilities [5]. - Following the legal troubles, the company applied for restructuring in May 2024, and all independent non-executive directors resigned, leaving the company without an independent board or audit committee [6].

Core Viewpoint - Hong Jiu Fruit Products, known as the "first fruit stock," is facing delisting risks after failing to meet the resumption guidelines set by the Hong Kong Stock Exchange, with a delisting decision expected by October 3, 2025 [1][2]. Group 1: Company Background - Hong Jiu Fruit Products was established in 2002 and is a leading multi-brand fresh fruit group in China, focusing on high-end imported and high-quality domestic fruits through an advanced digital supply chain [3]. - The company went public on the Hong Kong Stock Exchange on September 5, 2022, and initially reported impressive financial results, with revenue of 15.081 billion yuan in 2022, a year-on-year increase of 46.7%, and a net profit of 1.452 billion yuan, up 405.55% [3]. Group 2: Financial Issues - Despite initial success, the company has faced significant financial irregularities, with cumulative negative operating cash flow of 4.06 billion yuan from 2019 to 2022, and an additional 314 million yuan deficit in the first half of 2023 [3]. - As of mid-2023, the company's trade receivables reached 10.151 billion yuan, accounting for 92.4% of current assets, with a cash balance of only 557 million yuan and bank loans increasing to 2.776 billion yuan, resulting in a debt-to-asset ratio that has doubled since its IPO [4]. Group 3: Audit and Delisting Risks - The immediate cause for the stock suspension in March 2024 was an audit firm's concerns regarding the company's financial practices, including a 3.42 billion yuan prepayment to new suppliers, many of which were identified as "shell companies" with insufficient capital [4]. - The stock price plummeted over 95% from a peak of 41.80 HKD in January 2023 to 1.74 HKD at the time of suspension, leading to a market capitalization drop from 63 billion HKD to 2.79 billion HKD [4]. - Since the suspension, the company has only released one annual report and one semi-annual report, and has not disclosed its full-year 2023 results, with the founder facing legal issues related to loan fraud [6].

Core Viewpoint - Chongqing Hongjiu Fruit Co., Ltd. has faced severe operational challenges following the announcement of criminal charges against its chairman and several executives for loan fraud and/or issuing false VAT invoices, leading to significant disruptions in its business operations [1][3][12]. Company Overview - Founded in 2002 by Deng Hongjiu and his wife Jiang Zongying, Hongjiu Fruit was positioned as a multi-brand fresh fruit group, focusing on the full supply chain of high-quality fruits from China, Thailand, and Vietnam [7][8]. - The company was once celebrated as "China's first fruit stock" and successfully listed on the Hong Kong Stock Exchange in September 2022, achieving a market capitalization of HKD 124.21 billion at its debut [9]. Recent Developments - As of January 6, 2025, Hongjiu Fruit's main office in Chongqing has been restricted by law enforcement, resulting in the company being unable to operate normally [3]. - Following the announcement of financial irregularities, including a suspicious increase in prepayments, the auditing firm KPMG resigned, leading to the company's suspension from trading on the Hong Kong Stock Exchange [9][10]. Financial Situation - Despite the ongoing issues, multiple financial institutions provided substantial loans to Hongjiu Fruit between April 22 and July 29, 2024, totaling over CNY 650 million through stock pledge financing [11]. - The company and its executives have been listed as untrustworthy and restricted from high consumption, indicating severe financial distress [12]. Industry Context - The fruit retail industry is facing significant challenges, as evidenced by the struggles of other companies like Baiguoyuan, which reported a 9.8% decline in revenue and a shift from profit to loss in 2024 [18]. - The overall market for fruit retail has been impacted by rising e-commerce competition and changing consumer behaviors, leading to a decline in physical store sales [17].