In recent developments within the Hong Kong stock market, the well-known "Fruit King" Hongjiu Fruits is facing severe sanctions from the Hong Kong Stock Exchange, marking a rare case of a leading company facing forced delisting. The reasons for this drastic measure include the company’s failure to complete its financial investigations, inadequate corrections, allegations of criminal behavior by executives, ineffective internal controls, lack of performance disclosures, and unauthorized personnel appointments.
Founded in 2002, Hongjiu Fruits has grown to become the "largest self-owned brand fresh fruit group in China." With an "end-to-end" supply chain model, the company gained significant attention ahead of its initial public offering (IPO) and successfully secured multiple rounds of funding from notable venture capital and private equity firms, including Shenchuang Investment, Tianyi Capital, CMC Capital, Sunshine Insurance, and SF Holding, totaling at least six rounds of investment. Notably, during its Series C round, the company raised a total of 1.326 billion yuan, and in 2020, Alibaba invested 591 million yuan for an 8% stake, elevating Hongjiu Fruits to the pinnacle of the fruit industry.
In 2022, amid much celebration, the company achieved its IPO in Hong Kong, gaining the title of "first fruit stock.” Its stock price surged, propelling its market capitalization to 67 billion Hong Kong dollars. Founders Deng Hongjiu and his wife saw their personal and family wealth approach 10 billion yuan. However, a dramatic turn of events ensued as Deng, in a bid to continually expand his financial empire, reportedly fabricated transactions and forged documents to secure bank loans, which ultimately led to the company's downfall.
By 2024, Hongjiu Fruits was forced to suspend trading due to its failure to release financial reports for 2023. From its peak market cap of 67 billion Hong Kong dollars, the company's value plummeted to 2.795 billion Hong Kong dollars, erasing over 64.2 billion Hong Kong dollars in value. In April 2025, Deng Hongjiu was taken under criminal prosecution.
The fate of the "Fruit King" became uncertain as they struggled against myriad issues. The Hong Kong Stock Exchange decided to expel what it termed the "largest deception in the fruit industry," marking the impending end of the company's presence on the stock market. Thus, in 2025, Hongjiu Fruits has become one of the most dramatic company cases in Hong Kong, epitomizing the "dream buildup and dream shatter" phenomena.
Before their IPO, Hongjiu Fruits was perceived as a bellwether in the new consumer fruit sector, attracting significant interest from "savvy" venture capitalists and private equity investors. Several media representatives who attended its press conferences were charmed by Deng's charisma, believing that his venture aimed to resolve key pain points in the global fruit industry.
Despite Deng's inspirational story, which resonates with themes of hard work and determination, the reality of his company's operations unravelled, revealing a facade maintained by falsehoods. Following scrutiny from KPMG, issues including overlapping addresses of various offices and numerous shell companies lacking tangible business operations were discovered.
As a result, regulatory authorities detected a multitude of issues, leading Hongjiu Fruits' market valuation to crash following the exposure of the extensive fabrications. By early 2024, its market value had plummeted, resulting in a catastrophic loss for investors. In April 2025, the company announced that core executives, including Deng, were under investigation for fraud involving bank loans, culminating in a full-scale inspection of its primary offices.
While attempts were made to escape this fate, ongoing issues prompted the Hong Kong Stock Exchange to decisively enforce the company's delisting due to inadequacies in financial investigations and serious executive misconduct, marking the nearing end of an era for the "Fruit King."