Hongjiu Fruit & Produce(06689.HK) May Face Delisting: Suspected Loan Fraud, Chairman Arrested

Hongjiu Fruit & Produce (Stock Code: 6689) recently announced that on 3 October 2025, it received correspondence from the Hong Kong Stock Exchange informing that the Listing Committee, having reviewed all materials submitted by the company and the Listing Division, determined the company had failed to meet the requirements for resumption of trading and resolved to initiate delisting procedures.

According to the announcement, the Exchange made this decision pursuant to Rule 6.01A(1) of the Listing Rules, primarily based on the following considerations: the company has yet to complete its internal investigation, publish the findings, and implement corresponding rectifications; it has failed to demonstrate that the integrity, capability, and character of its management and key operational personnel do not raise regulatory concerns; and the company has also failed to complete its internal control review and rectification of deficiencies.

The board of directors of Hongjiu Fruit expressed regret over this decision, stating that the Listing Committee had failed to adequately assess the evidence provided by the company. The company submitted an application to the Listing Appeal Committee on 13 October 2025 pursuant to Rule 2B.06(2) of the Listing Rules, requesting a final review.

This enterprise, which listed on the Hong Kong Stock Exchange in September 2022, raised net proceeds of HK$497 million at an issue price of HK$40 per share and was hailed as ‘China's first listed fruit company’. However, an announcement in April this year revealed that several directors and supervisors, including Chairman Deng Hongjiu, and their family members had been subject to criminal coercive measures on suspicion of loan fraud and issuing fraudulent VAT invoices.

The incident also led to the company's main office premises in Yubei District, Chongqing being restricted from access by public security authorities since 6 January 2025, severely disrupting normal operations.

In terms of capital market performance, Hongjiu Fruit was ultimately delisted after a year-and-a-half suspension, with its market capitalisation shrinking from over HK$18 billion at listing to approximately HK$2.7 billion prior to delisting. This case also serves as a warning to other fruit retail chains listed on the Hong Kong Stock Exchange, such as ParknShop (2411.HK).

Disclaimer: The content herein is for reference only and does not constitute any form of investment advice. Should any information contained herein prove inaccurate, incomplete, or potentially misleading, please refer to the company's official announcements. Market risks exist; investment requires caution.