FAST NEWS: Hongjiu Fruit’s revenue jumps as China’s economy picks up
The latest: Fruit distributor Chongqing Hongjiu Fruit Co. Ltd. (6689.HK) announced Monday its revenue rose 50.3% year-on-year to 4.33 billion yuan ($627 million) in the first quarter, as it captured opportunities with the recovery of China’s economy and global logistic networks.
Looking up: The company said the revenue contribution from its six core products jumped 77.3% to 2.02 billion yuan during the period, with sales of its largest core product, durians, surging 163% to 878 million yuan.
Take Note: The quarterly results did not disclose the company’s net profit, but only said the figure grew at a similar rate to its revenue.
Digging Deeper: Established in October 2002, Hongjiu is a seller of fruits, and has moved its focus to higher-value products in recent years to capture the growing spending power of Chinese consumers. It raised just HK$500 million ($6.4 million) in its IPO last September due to poor market conditions, far below the market’s rumored fundraising target of HK$2.35 billion. Still, the offering made Hongjiu the first Chinese fruit distributor to launch on the Hong Kong exchange. Its business has been growing at a fast pace over the past three years despite the pandemic, with revenue and adjusted profit jumping 46.7% and 33.5% last year, respectively.
Market Reaction: Hongjiu shares fell on Tuesday, closing down 8.9% at HK$14.46 by the midday break, 63.9% below their IPO price of HK$40.
Translation by Jony Ho
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