Chinese aquaculture drugs, feed firm takes on huge debts to expand market share
An ambitious Chinese producer of feed and antibiotics has been borrowing heavily to expand its sales in a more demanding Chinese shrimp sector.
Announcing its results for the first half of the year, Li Yang Aquatic Co. said it had scored a 54 percent year-on-year increase in operating revenues to CNY 154 million (USD 23 million, EUR 19 million) while profits totalled CNY 14 million (USD 2 million, EUR 1.7 million), an increase of 3 percent year-on-year.
However, borrowing rose 46 percent to total CNY 63.2 million (USD 9.4 million, EUR 8 million). The cash was borrowed to increase Li Yang’s sales channels, with sales of anti-bacterial products and medicines for the shrimp sector a promotional priority, according to the firm’s statement of results.
Li Yang is listed on China’s stock exchange for small and medium sized firms.