BRIEF: Hongjiu Fruit major shareholder pledges 21 million shares

Fruit distributor Chongqing Hongjiu Fruit Co. Ltd. (6689.HK), announced on Thursday that major shareholder and general manager Jiang Zongying pledged 21 million of her shares to other parties on Dec. 11 after the company failed to repay money due to four institutions. The pledged shares account for approximately 1.31% of Hongjiu’s total share capital. The four institutions are Guizhou Zhongken, Hunan Xiangxin Zhongken, Chongqing Zhongken and Beijing Kentuo.

Hongjiu Fruit’s shares were suspended in March this year after the company said it needed more time to submit information to its auditor, including accounting records and documents, and detailed working capital forecast in relation its ability to continue as a going concern. As a result, the company was unable to publish its full-year results in violation of Hong Kong Stock Exchange rules, resulting in the temporary trading suspension.

Hongjiu Fruit was listed in September 2022, selling shares for HK$40 each. Its stock once rose as high as nearly HK$100, but tumbled later and last traded at just HK$1.74 before the suspension.

By Lau Chi Hang

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