A Chinese shrimp provider of seedlings, feed, and antibiotics has reported strong growth in sales in 2017, however, the firm has loaded up on debt to grow its production and distribution capacity.
Listed on China’s “third board” for small- and medium-sized firms, Li Yang Aquatic reported revenues of CNY 154 million (USD 23.2 million, EUR 20 million) for the first half of the year – up 54.9 percent. But the company's profit, at CNY 14.2 million (USD 2.1 million, EUR 1.9 million), was up only 3.2 percent year-on-year.
More worrying is the debt load, which shot up by 46.1 percent year-on-year to CNY 63.9 million (USD 9.6 million, EUR 8.3 million). This could suggest that the company will struggle to carry its debt load.
The company reported that revenues climbed due to a “busy period” of seasonal sales in the first half of the year.
