Zoneco flags 80 percent of scallops lost, shares plunge
Dalian, China-based Zoneco is claiming up to 80 percent of its scallop stocks have died and is flagging major losses for 2019 for its investors.
Zoneco’s estimate is based on sampling from censors that monitor the firm’s scallops, according to a public filing by the company, which said the reason for the die-off has not yet been determined.
Zoneco, which is listed on the Shenzhen Stock Exchange as Zhangzidao Group Co., has struggled in recent years as a result of several die-offs of its scallop seedlings due to what the firm has termed as “weather events.” The first major catastrophe befell Zoneco in 2014, and a subsequent die-off occurred in 2017.
The company’s stock price hit a 10-year low of CNY 2.70 (USD 0.38, EUR 0.35) on Tuesday, 12 November, and China Central TV reported the company’s stock is likely to be suspended to prevent a further fall in the price.
Earlier this year, Zoneco sought to hire a new accounting firm to replace its longtime auditor, Dahua Accounting Co. A speedy appointment is essential for the firm to stay listed as a public company in China.
Zoneco, which also has a distant-water fleet, has been selling off some of its processing and distribution entities as it seeks to ratchet down very high debt. The company received USD 5 million (EUR 4.5 million) in government subsidies in 2018, including funds for participating in various research and development programs, according to company filings.