The share price of Shanghai, China-based tuna specialist Shanghai Kaichuang Marine International Co. tanked after the company released disappointed Q3 results.
Kaichuang announced CNY 530 million (USD 79.5 million, EUR 68.9 million) in third-quarter revenue, up 5.6 percent year-on-year, while its profit fell 45 percent to CNY 45 million (USD 6.8 million, EUR 5.9 million). A key player in China’s tuna industry, Kaichuang’s share price rose as high as CNY 12.4 (USD 1.86, EUR 1.61) on 20 October before dropping to CNY 9.7 (USD 1.52, EUR 1.31) after the firm announced its results.
In its results, Kaichuang revealed it has received CNY 38.6 million (USD 5.8 million, EUR 5 million) in subsidies thus far in 2021. Additionally, the firm announced on 26 October that a subsidiary had received CNY 900,000 (USD 135,000, EUR 117,000) grant from government towards “an international cooperation project.”
In H1, revenue at Kaichuang dropped 3 percent to CNY 977 million (USD 146.5 million, EUR 127 million), but the company’s net profit rose 185 percent to CNY 99.9 million (USD 14.9 million, EUR 12.9 million). Its catch for the period totaled 74,790 metric tons (MT), of which tuna accounted for 69,367 MT.
Chinese exports of tuna loins rose 10 percent year-on-year in 2020, reaching 136,000 MT, and the value of its canned tuna exports rose 15 percent to USD 579 million (EUR 489 million). Top destinations for exports were Thailand (11,300 MT), Mexico (7,500 MT) and Spain (4,500 MT).
A moment of truth will come for Kaichuang with the planned IPO of its privately-owned competitor, Ocean Family, which is seeking to raise CNY 1.6 billion (USD 240 million, EUR 208 million) to expand its operations. The firm, which operates its own fleet and factories, counts Bumble Bee and several Japanese labels among its clients.
Ocean Family reported earnings of CNY 3.3 billion (USD 495 million, EUR 429 million) in 2020, turning a profit of CNY 175 million (USD 26.2 million, EUR 22.7 million) for the year.
Photo courtesy of Kaichuang
