Core Viewpoint - Hong Jiu Fruit, known as the "first fruit stock," is facing significant turmoil as its executives have been subjected to criminal measures related to loan fraud and tax invoice issues, leading to operational disruptions and potential financial irregularities [1][2][6]. Group 1: Executive Actions and Company Operations - The chairman and several directors of Hong Jiu Fruit have been taken under different criminal measures due to investigations by the Chongqing Public Security Bureau regarding loan fraud and/or the issuance of false VAT invoices [1][2]. - The company's main office in Chongqing has been restricted by law enforcement, hindering normal operations since January 6, 2025 [2]. - Hong Jiu Fruit has not published its financial reports for 2023, the first half of 2024, and 2024, indicating a lack of transparency and potential financial distress [1][8]. Group 2: Financial Performance and Irregularities - Hong Jiu Fruit's revenue grew from 2.078 billion in 2019 to 10.28 billion in 2021, with profits increasing from 163 million to 292 million during the same period [3]. - The company reported a revenue of 15.081 billion in 2022, a 46.7% increase year-on-year, and a profit of 1.455 billion, up 397.38% [3]. - For the first half of 2023, the company reported revenue of 8.538 billion, a 19.37% increase, but profits declined by 6.51% to 803 million [4]. Group 3: Concerns Over Financial Practices - The auditors raised concerns about the company's financial practices, noting that a significant portion of the suppliers were newly added in 2023 and lacked historical transaction records, suggesting potential fabrication of suppliers and documents [6][7]. - As of December 31, 2023, the company had a prepaid balance of approximately 4.47 billion, with 3.42 billion paid to suppliers in the fourth quarter alone [6]. - The company explained that prepayments are standard in the fresh fruit industry to ensure stable supply, but the significant increase in prepayments raises questions about the legitimacy of these transactions [7].