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 - Chongqing Hongjiu Fruit Co., Ltd. ("Hongjiu Fruit", 06689.HK), known as the "first fruit stock," is set to be delisted from the Hong Kong Stock Exchange after failing to resume trading for over a year and a half [1][4]. Group 1: Company Overview - Hongjiu Fruit was established in 2002, focusing on high-end imported fruits and high-quality domestic fruits through a comprehensive digital supply chain [2][6]. - The company was listed on the Hong Kong Stock Exchange in September 2022, reaching a peak market capitalization of HKD 67 billion [3][7]. Group 2: Financial Performance - In March 2024, Hongjiu Fruit was suspended from trading due to its inability to disclose financial reports on time, with a market value of approximately HKD 2.795 billion at the time of suspension, reflecting a decline of over 95% from its peak [3][7]. - As of the end of 2023, the company reported a prepayment balance of approximately CNY 4.47 billion, with significant payments made to new suppliers lacking historical transaction records [3][7]. Group 3: Legal and Regulatory Issues - In April 2025, the company announced that its chairman and others were under criminal investigation for loan fraud and issuing false VAT invoices, leading to operational restrictions at its headquarters [4][8]. - The company has multiple legal issues, including 39 enforcement actions totaling over CNY 80 million and 10 instances of being untrustworthy, with a total amount involved of nearly CNY 1 million [8].

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].