Chinese conglomerate Nisun International Enterprise Development Group Co. has announced an expansion into the seafood industry.
The Wenzhou, China-based provider of integration solutions for the technology, industry, and finance sectors, announced on 7 April, 2023, its affiliate, Fanlunke Supply Chain Management (Shanghai) Co. has entered into an agricultural trade management services agreement with Shenzhen Gongsheng Grain, Oil, and Food Import and Export Group to “explore growth opportunities in the aquatic products market.”
Under the agreement, valued at CNY 300 million (USD 43.7 million, EUR 40 million), Shanghai Fanlunke will purchase aquatic products from designated suppliers based on orders from Gongsheng, with full payment for the products, while Gongsheng provides a 20 percent deposit with Shanghai Fanlunke, according to the companies. The products will be delivered to Shanghai Fanlunke's designated warehouse, and upon order completion and payment, the company will arrange for the products to be delivered to specified locations or customers.
"We are delighted to partner with Gongsheng and harness the vast potential for growth in the aquatic products market,” Nisun CEO Xiaoyun Huang said in a press release. “We believe that our partnership will help us expand our business territory to include aquatic foods and facilitate the strategic advancement of our supply chain operations. In the future, we will take further initiatives to increase our presence in the aquaculture sector, enhance the reach of our supply chain services, and create value for our shareholders."
The agreement, executed as part of Nisun's supply-chain trading operations, “represents an important initiative of the company's supply chain business strategy to increase its presence and explore growth opportunities in the aquatic products market,” the company said. It announced a similar expansion into the pork sector through a trading arrangement with Henan Furun Food Co. on 6 April.
In March 2023, Nisun announced partnership in the gold and jewelry market through an agreement with Gold of China Limited and an agricultural products agreement with Shandong Binliang Industrial Development Co.
The company reported USD 160 million (EUR 146.7 million) in revenue and USD 54 million (EUR 49.5 million) in gross profit in 2021. It has not yet reported full-year results for 2022.
Shares of Nisun’s stock, which is traded on the Nasdaq Stock Exchange under the symbol “NISN,” were selling for USD 0.53 (EUR 0.48) at the market’s close on Friday, 7 April. It faces potential delisting if its stock price does not close above USD 1.00 (EUR 0.92) for 10 consecutive business days by 22 May, 2022.
Photo courtesy of Nisun
