Core Viewpoint - Hong Jiu Fruit, once hailed as "China's first fruit stock," is facing delisting from the Hong Kong Stock Exchange just three years after its IPO, following a series of financial and managerial crises [3][6]. Group 1: Company Overview - Hong Jiu Fruit was established in October 2002 and has positioned itself as a leading multi-brand fresh fruit group in China, claiming to be the largest distributor of durians and a significant player in the distribution of dragon fruit, mangosteen, and longan [9]. - The company went public on the Hong Kong Stock Exchange in September 2022, raising HKD 4.97 billion with an initial share price of HKD 40 [9][10]. Group 2: Financial Performance - The company experienced rapid revenue growth, achieving revenues of CNY 102.8 billion and CNY 150.81 billion in 2021 and 2022, respectively, with net profits of CNY 2.87 billion and CNY 14.52 billion [15]. - However, by the first half of 2023, revenue growth slowed to CNY 85.37 billion, a 19.37% increase, while net profit decreased by 6.26% to CNY 8.04 billion [15]. - The company has faced significant cash flow issues, with operating cash flow net outflows reaching CNY 18.23 billion in 2022 and CNY 3.14 billion in the first half of 2023 [15][16]. Group 3: Crisis Timeline - The crisis began in March 2024 when the company failed to release its annual report, leading to a trading suspension [10][11]. - In April 2024, several executives, including the chairman, were implicated in criminal investigations related to loan fraud and tax invoice issues, further exacerbating the company's troubles [4][13]. - As of March 20, 2024, the company's market capitalization plummeted to HKD 27.95 billion, down from a peak of HKD 670 billion, marking a loss of over HKD 640 billion [3][5]. Group 4: Governance and Compliance Issues - The Hong Kong Stock Exchange cited five main reasons for the potential delisting, including the company's failure to complete investigations, lack of evidence regarding management integrity, and failure to appoint independent directors [6][8]. - The company has not provided necessary documentation or completed internal control reviews, leading to significant governance concerns [7][8]. Group 5: Impact on Stakeholders - The financial turmoil has resulted in substantial losses for institutional investors, including Alibaba, which holds a 7.67% stake, and other notable investors [17][19]. - The founder's wealth has drastically decreased from CNY 168 billion at its peak to a significantly lower amount due to the company's decline [5][17].