Hongjiu Fruit Chairman and Executives Under Criminal Coercive Measures

On April 16, Chongqing Hongjiu Fruit Co. Ltd. announced that its chairman, Deng Hongjiu, along with board members Peng He, Jiang Zongying, Yang Junwen and Tan Bo, as well as the chairman of the supervisory board, Yu Lixia, had been placed under various criminal coercive measures by Chinese authorities. These actions were connected to an investigation by the Chongqing Public Security Bureau into allegations of loan fraud and the issuance of fraudulent VAT invoices.

The announcement stated that the matter resulted in one of the company’s primary office locations on Donghu South Road in Chongqing’s Yubei District being restricted by authorities since Jan. 6, effectively halting normal business operations.

Established in 1987, Hongjiu Fruit began with its founder, Deng Hongjiu, selling red oranges and running a fruit wholesale business in Chongqing. In 2002, the company was formally incorporated as Chongqing Hongjiu Fruit Co. Ltd. Over the years, it grew to become the largest fruit supplier in Southwest China and the first publicly listed company in the region’s fruit industry on the OTC market.

Hongjiu Fruit primarily focuses on fruit wholesale, sourcing fruits from key growing regions, processing and grading them in local facilities, and then distributing them to various sales channels across China. Its core fruit products include six categories, namely, durians, dragon fruit, longans, table grapes, cherries and mangosteens. On Sept. 5, 2022, Hongjiu Fruit was listed on the Hong Kong Stock Exchange, becoming China’s first publicly traded fruit distributor.

On its debut trading day, Hongjiu Fruit (06689.HK) opened at its offering price of 40 Hong Kong dollars (US$5.16) per share, rising by as much as 3% to HK$41.2 (US$5.31) per share during the session. The stock reached a peak price of HK$41.8 (US$5.39) per share, with a market capitalization exceeding HK$67 billion (US$8.64 billion). However, trading in Hongjiu Fruit shares was suspended on March 20, 2024, owing to the company’s failure to release its 2023 annual financial report and 2024 interim financial report. The last closing price before the suspension was HK$1.74 (US$0.22) per share, with a market capitalization of HK$2.795 billion (US$360 million).

At the time of writing, Hongjiu Fruit had yet to disclose its 2023 annual financial report or 2024 interim financial report.

Image: Hongjiu Fruit

This article was translated from Chinese. Read the original article.