Baiguoyuan's rights issue raises HK$325 million, stock price rises over 20%!
Published 2025년 9월 26일
Tridge summary
On September 21, Fruit Paradise Group announced on the Hong Kong Stock Exchange that on September 19, 2025 (after trading hours), the company entered into a placing agreement with the placing agent, who agreed to act as the company's agent to facilitate the underwriters to subscribe for a total of 279.5 million placing shares at a placing price of HK$1.17 per H share. This placing is expected to raise approximately HK$327 million in gross proceeds and approximately HK$325 million in net proceeds.
The placing price of HK$1.17 per H share represents a discount of approximately 19.31% to the last closing price of HK$1.45 per H share reported by the Hong Kong Stock Exchange on September 19, 2025. After the completion of this issuance, the placing shares will account for approximately 16.1% of the total number of H shares after expansion and approximately 15.4% of the total number of shares after expansion.
The company intends to use the net proceeds from the placing for the following purposes: approximately 61.5% will be used to pay trade payables in the general course of business; approximately 30.8% will be used to repay the company's bank loans; and approximately 7.7% will be used for the general working capital and administrative expenses of the group.
On September 22, the share price of Fruit Paradise Group (02411.HK) rose throughout the day after the opening, maintaining a gain of over 20% for most of the day, and finally closed at HK$1.75, up 20.69%. The reason for this abnormal share price movement was directly attributed by the market to the placing announcement disclosed the previous night.
Fruit Paradise Group was listed on the Hong Kong Stock Exchange on January 16, 2023, with an IPO raising approximately HK$496 million. As of last Friday (September 19), its closing price per share was HK$1.45, a cumulative decline of 74.11% from the IPO issue price (HK$5.60 per share), with a current total market value of approximately HK$2.23 billion.
Over the past two years, Fruit Paradise's performance has been under pressure. According to the Fruit Paradise Group's official website, the company reported a net loss attributable to shareholders of 386 million yuan last year, marking its first annual loss since 2019. The company's interim financial report for 2025 disclosed that in the first half of this year, the company's revenue was 43.76 billion yuan, a year-on-year decline of 21.8%, and a net loss attributable to shareholders of 342 million yuan, marking its first half-year loss since its listing.
In terms of store numbers, the number of Fruit Paradise stores decreased sharply from 6,025 in June 2024 to 4,386 in June 2025, distributed across more than 170 cities in 22 provinces and municipalities in China, with a total reduction of 1,639 stores, a decrease of approximately 27.0%. In response to the reduction in stores, Fruit Paradise plans to continue optimizing its national retail store layout to improve the operational efficiency of its retail stores, actively guiding franchisees to reassess store locations and commercial areas, relocating or closing stores with high rental costs, high labor costs, or poor business performance, and focusing more on advantageous stores.
Fruit Paradise was founded in Shenzhen in 2001 and is a chain enterprise integrating fruit procurement, planting support, post-harvest preservation, logistics warehousing, and standard grading. After its listing on the Hong Kong Stock Exchange, it became "China's first fruit chain retail stock."
Image source: Fruit Paradise official website 2025 International Fruit and Vegetable Report. All rights reserved. For reprinting permission, please contact the International Fruit and Vegetable Report and credit the source.
The placing price of HK$1.17 per H share represents a discount of approximately 19.31% to the last closing price of HK$1.45 per H share reported by the Hong Kong Stock Exchange on September 19, 2025. After the completion of this issuance, the placing shares will account for approximately 16.1% of the total number of H shares after expansion and approximately 15.4% of the total number of shares after expansion.
The company intends to use the net proceeds from the placing for the following purposes: approximately 61.5% will be used to pay trade payables in the general course of business; approximately 30.8% will be used to repay the company's bank loans; and approximately 7.7% will be used for the general working capital and administrative expenses of the group.
On September 22, the share price of Fruit Paradise Group (02411.HK) rose throughout the day after the opening, maintaining a gain of over 20% for most of the day, and finally closed at HK$1.75, up 20.69%. The reason for this abnormal share price movement was directly attributed by the market to the placing announcement disclosed the previous night.
Fruit Paradise Group was listed on the Hong Kong Stock Exchange on January 16, 2023, with an IPO raising approximately HK$496 million. As of last Friday (September 19), its closing price per share was HK$1.45, a cumulative decline of 74.11% from the IPO issue price (HK$5.60 per share), with a current total market value of approximately HK$2.23 billion.
Over the past two years, Fruit Paradise's performance has been under pressure. According to the Fruit Paradise Group's official website, the company reported a net loss attributable to shareholders of 386 million yuan last year, marking its first annual loss since 2019. The company's interim financial report for 2025 disclosed that in the first half of this year, the company's revenue was 43.76 billion yuan, a year-on-year decline of 21.8%, and a net loss attributable to shareholders of 342 million yuan, marking its first half-year loss since its listing.
In terms of store numbers, the number of Fruit Paradise stores decreased sharply from 6,025 in June 2024 to 4,386 in June 2025, distributed across more than 170 cities in 22 provinces and municipalities in China, with a total reduction of 1,639 stores, a decrease of approximately 27.0%. In response to the reduction in stores, Fruit Paradise plans to continue optimizing its national retail store layout to improve the operational efficiency of its retail stores, actively guiding franchisees to reassess store locations and commercial areas, relocating or closing stores with high rental costs, high labor costs, or poor business performance, and focusing more on advantageous stores.
Fruit Paradise was founded in Shenzhen in 2001 and is a chain enterprise integrating fruit procurement, planting support, post-harvest preservation, logistics warehousing, and standard grading. After its listing on the Hong Kong Stock Exchange, it became "China's first fruit chain retail stock."
Image source: Fruit Paradise official website 2025 International Fruit and Vegetable Report. All rights reserved. For reprinting permission, please contact the International Fruit and Vegetable Report and credit the source.
Original content
On September 21, Fruit Paradise Group announced on the Hong Kong Stock Exchange that on September 19, 2025 (after trading hours), the company entered into a placing agreement with the placing agent, who agreed to act as the company's agent to facilitate the underwriters to subscribe for a total of 279.5 million placing shares at a placing price of HK$1.17 per H share. This placing is expected to raise approximately HK$327 million in gross proceeds and approximately HK$325 million in net proceeds. The placing price of HK$1.17 per H share represents a discount of approximately 19.31% to the last H share closing price reported by the Hong Kong Stock Exchange on September 19, 2025. After the completion of this issuance, the placing shares will account for approximately 16.1% of the expanded total number of H shares and approximately 15.4% of the expanded total number of shares. The company intends to use the net proceeds from the placing for the following purposes: approximately 61.5% ...
Source: Guojiguoshu
Would you like more in-depth insights?
Gain access to detailed market analysis tailored to your business needs.
Related market data
What to read next
Read more relevant content
By clicking “Accept Cookies,” I agree to provide cookies for statistical and personalized preference purposes. To learn more about our cookies, please read our Privacy Policy.