Chinese aquaculture drugs, feed firm takes on huge debts to expand market share

Published on
August 18, 2017

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.

Contributing Editor reporting from Beijing, China

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