Chongqing Hongqiu Fruit Co., Ltd. (Hongqiu Fruit Products) announced that the release of its 2023 annual results, originally announced before March 31, 2024, will be delayed. The company had a prepayment balance of RMB44.7 billion as of December 31, 2023, of which about RMB34.2 billion was paid to multiple suppliers in the fourth quarter. Since these suppliers are mostly new traders and do not have historical transaction records, the auditor requested further information and explanations and recommended the establishment of an independent investigation committee. Hung Kiu Fruit said that the advance payment is to ensure a stable supply of quality fruit and is made according to market conditions and operating plans. With the growth of the fruit industry after the pandemic, the company expanded its supplier network...Show More

Chongqing Hongqiu Fruit Co., Ltd. (Hongqiu Fruit Products) announced that the release of its 2023 annual results, originally announced before March 31, 2024, will be delayed. The company had a prepayment balance of RMB44.7 billion as of December 31, 2023, of which about RMB34.2 billion was paid to multiple suppliers in the fourth quarter. Since these suppliers are mostly new traders and do not have historical transaction records, the auditor requested further information and explanations and recommended the establishment of an independent investigation committee. Hung Kiu Fruit said that the advance payment is to ensure a stable supply of quality fruit and is made according to market conditions and operating plans. With the growth of the fruit industry after the pandemic, the company expanded its supplier network to stay competitive. An Independent Inquiry Commission has been established and an independent consultant will be appointed to investigate. The company's business operations were not affected, but H shares were suspended from 20 March 2024 pending the announcement of the annual results. The Company will work with auditors to resolve issues and update shareholders in a timely manner.