One of China’s leading listed seafood companies, CNFC Overseas Fishery Co., has announced a projected loss of CNY 17 million (USD 2.57 million, EUR 2.29 million) for the first half of 2016, compared to a net income of CNY 19.7 million (USD 2.97 million, EUR 2.65 million) recorded for the same period last year.
The company is blaming the loss on a reduction of fuel subsidies paid by China’s central government (a reduction tied to the drop in oil prices) and what it is calling “a loss of appetite” by private investors in the agriculture and fisheries space. It’s also pointed to lower catches of squid in Argentine waters, where the company has significant operations.
CNFC has also been hit with a courtroom loss for a key subsidiary in Xiamen, which was ordered to pay back more than USD 4 million (EUR 3.57 million) in bank loans and interest to a local bank.
