Beijing, China-based CNFC Overseas Fishing is projecting improved financial figures for 2021, on the back of rising prices for tuna and more-generous government subsidies. But the firm remains loss-making.
CNFC has projected of a loss of CNY 80 million to CNY 90 million (USD 12.6 million to USD 14.2 million, EUR 11.1 million to EUR 12.5 million), which would represent an improvement of between 41.5 and 48 percent over 2020.
“The ultra-low temperature tuna market has gradually recovered, and the price of ultra-low temperature tuna has increased year-on-year,” the company said. “Also, the government subsidies received in this period have increased compared with the same period of the previous year.”
In the first three quarters of 2021, CNFC posted earnings of CNY 336 million (USD 53 million, EUR 46.7 million), a year-on-year increase of 26.4 percent. However, the firm still recorded a loss of CNY 27.8 million (USD 4.4 million, EUR 3.9 million) in the period.
CNFC told investors in December 2021 it had landed CNY 117 million (USD 18.7 million, EUR 16.3 million) in government subsidies through its parent company, China Agricultural Development Co. The hand-out allowed the firm to make a profit of CNY 47.3 million (USD 7.6 million, EUR 6.6 million) in the first half of 2021.
Despite being loss-making, the firm announced it wants to raise CNY 400 million (USD 64 million, EUR 56 million) through a placement of shares to 35 investors to fund construction of five new tuna vessels and processing facilities in Zhoushan, China’s busiest fishing port.
Meanwhile, another Chinese distant-water firm, Pingtan Marine, is struggling to boost investor confidence in its stock. The firm has gotten an extension from the Nasdaq Stock Exchange, where it is listed, that gives it until June to elevate its share bid price back up over the USD 1.00 (EUR 0.89) mark. Nasdaq requires its stocks to trade at this level for at least 10 consecutive days in order to remain listed. In December, Pingtan announced it was dropping plans to build trawlers for krill-fishing in the Antarctic.
Photo courtesy of Chris Chase/SeafoodSource
