Chinese seafood firm Zoneco Group (also known as Zhangzidao) has seen its share price collapse in the past 12 months after reporting yet another catastrophic loss of its scallop harvest.
Zoneco has numerous business units, and acts as an importer and distributor of seafood. Its stock, which is listed on the Shenzhen Stock Market, was trading on 18 April at CNY 4.02 (USD 0.64, EUR 0.52), compared to CNY 11.31 (USD 1.80, EUR 1.46) on the same date in 2017. Its stock traded above CNY 100 (USD 15.92, EUR 12.86) in 2008, when hopes were high for the company’s expansive efforts to boost China’s aquaculture sector.
This comes as the company has flagged a loss of between CNY 700 million and 1.1 billion (USD 111 million and 175 million, EUR 90 million and 141.5 million) for the first quarter of 2018. The firm has based that prediction on a collapse in the firm’s scallop stocks following an illness it has connected to rising water temperatures in its key mariculture region in the northeast of China.
Zoneco is still being investigated by authorities Dalian over an incident in 2014 that about CNY 800 million (USD 121.6 million; EUR 111.9 million) worth of its scallop stock written off.
