Troubled Chinese fisheries firm Zoneco is back in the spotlight, this time casting around for a new auditing firm.
The Dalian-based scallops specialist is seeking 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 on the Shenzhen stock market.
Zoneco’s stock, which is listed as Zhangzidao Group Co., has been on a rollercoaster ride in recent years stemming from several die-offs in its scallop seedlings due to what the firm has termed as weather events.
Some of the company’s shareholders have become disgruntled at what they describe as illegal behavior by the company. The latest is a stockholder named Qiu Min, who claims he lost CNY 900,000 (USD 126,300, EUR 115,000) in share value on the back of what he claims was untrue information from the company in 2017. Several law firms are already taking cases for Zoneco shareholders.
It’s not clear, however, if the company will be in a position to pay out given its poor results in the first half of 2019. Zoneco reported a loss of CNY 23.5 million (USD 3.31 million, EUR 3 million) for the first half of 2019, even though the firm returned a profit of CNY 14.6 million (USD 2.05 million, EUR 1.87) in the same period last year.
Image courtesy of Zoneco
