Editor's note: After publication of this story, SeafoodSource received a letter from Kanzun denying any business relationship with China Ocean Development.
A subsidiary of China Ocean Development has set up a joint venture that will give the distant-water fishing company access to Indonesian waters.
Described as an “indirect subsidiary” of China Ocean, Qisen Fishery will take an 80 percent stake in the new joint venture.
A statement to investors from China Ocean Development said Kanzun has been granted access from the Indonesian government for 56 fishing vessels in Indonesian waters for 30 years.
“Under the terms of the joint venture, Kanzun shall give such fishing quota to the joint venture company for use at no cost for a term of 10 years,” the statement said. “Qisen Fishery will send 10 fishing vessels to utilize such fishing quota and conduct fishery business in the relevant Indonesian marine area.”
Qisen Fishery will, according to the statement, pay Kanzun an annual foreign management fee of USD 100,000 (EUR 99,800). Qisen Fishery will be responsible for operating the joint venture, according to the statement from China Ocean.
China Ocean has faced financial difficulties over the past year. Trading in the company’s shares on the Hong Kong Stock Exchange was suspended in early October when the firm failed to publish its audited annual results for 2022. The company’s auditing firm, Reanda Lau and Au Yeung (HK) CPA Limited, tendered its resignation on 3 October. The same day, China Ocean appointing another firm, Elite Partners CPA, as auditor.
The company supplies multiple seafood species to wholesale clients in mainland China. In January 2022, it issued HKD 98 million (USD 12.5 million, EUR 11.1 million at the time) worth of new shares, with the goal of replenishing its depleted coffers. China Ocean said it was badly impacted by the pandemic because its distant-water vessels were unable to get their licenses approved and renewed due to Chinese officials unable to perform international inspections due to the country’s lockdowns.
Photo courtesy of Agung Bayu/Shutterstock
