Query on the natural death of scallops in Zhangzidao

category:Finance
 Query on the natural death of scallops in Zhangzidao


In view of the large impairment of bottom seeded shrimps and scallops in Zhangzi Island in recent years, Shenzhen stock exchange requires the company to explain whether the company has destructive Harvesting Based on the actual harvesting situation of the company over the years, and fully evaluate whether the companys sea area is suitable for shrimps and scallops breeding, whether there is a plan to continue seedling investment in the future, and whether the companys sustainable profitability is significant in the future Big uncertainty.

Scallop running has a significant impact on this years performance

In the evening of November 11, Zhangzi Island announced that the company started the sampling activity of stock of bottom seeded shrimps and scallops at the end of autumn 2019 on November 7. As of the announcement date, the sampling results showed that the average per mu production level of bottom seeded shrimps and scallops at the end of stock in 2017 and 2018 in the sampling area was significantly lower than the average per mu production level in the previous 10 months. Based on this, the company preliminarily determined that the inventory impairment of bottom seeded shrimps and scallops was significant u3002

On the evening of November 14, Zhangzi Island disclosed the sampling results of scallops planted at the end of autumn 2019. According to the announcement, the relevant sampling work has been completed at present. According to the sampling data of each community, at the end of 2017, the average per mu yield of the five locations (excluding the 10000 mu area under harvesting operation in November) was 5.66kg, including the highest area of 12.64kg per mu and the lowest area of 0 per mu. At the end of 2018, the average per mu yield of the ten locations was 4.17kg Among them, the highest area produces 44.33 kg / mu, and the lowest area produces 0.01 kg / mu.

According to the survey results, Zhangzi Island is currently raising 583500 mu of bottom seeded shrimps and scallops, of which the per mu yield is too low and the cash value of harvesting is not enough to make up for the acquisition cost of 390700 mu of sea area, which needs to be written off at a cost of 196 million yuan; the per mu yield is relatively low, and the area of inventory falling price reserves needs to be accrued is 139000 mu, and the amount of falling price reserves is expected to be accrued is 82058900 yuan; at present, it is necessary to draw The area of the sea area under normal production per mu and harvesting operation is 54000 mu.

According to Zhangzidao, it is estimated that the total amount of inventory cost written off and provision for inventory falling price is 278 million yuan, accounting for 90% of the book value of 307 million yuan of the above-mentioned bottom seeded shrimps and scallops by the end of October 2019, which has a significant impact on the companys operating performance in 2019. At present, the abnormal death of bottom seeded shrimps and scallops in the companys sea area may continue, and the per mu production level in some sea areas is still uncertain. The specific write off of inventory cost and the amount of provision for inventory falling price shall be calculated and determined according to the inventory results of bottom seeded shrimps and scallops in January 2020.

It is worth noting that Zhangzi Island mentioned in the previous announcement that there was no abnormal situation in the production, production and sales data of harvesting operations as of the end of October and the product status of shrimps and scallops. Based on the scallops collected on the spot, the dead time of bottom seeded scallops is close to that of the collected scallops. There is no significant difference between the shell size of dead scallops and that of living scallops. The ligament between the shells of most dead scallops is elastic, and there are still some soft parts in some shells that have not been decomposed.

Up to now, Zhangzi Island has not made a clear explanation for the scallop disaster. Zhangzidao said that the company has extracted relevant environmental monitoring data such as buoys and submarine buoys, and aquatic experts have taken samples of water samples and dead shellfish at the site, and relevant analysis work is stepping up. The company has cooperated with relevant government departments to organize marine experts and scientific research institutions to investigate and analyze the causes of scallop natural death at the marine ranch as soon as possible, and timely announce the results of relevant investigation and analysis.

Scallop disaster farce has been staged many times before

Before the large-scale disaster of scallops, similar plots had been staged on Zhangzi Island for three times.

In October 2014, Zhangzi Island announced that in 2011 and 2012, the bottom seeded sea area of scallops, shrimps and scallops, were almost extinct due to the impact of natural disasters caused by the cold water mass movement, and Zhangzi Island group lost 812 million yuan. This event is called scallop running.

In January 2018, scallops in Zhangzi Island starved to death again. According to the announcement at that time, due to the decrease of precipitation in 2017, the number of feed organisms of scallops decreased, and the large-scale expansion of the breeding scale further exacerbated the food shortage. Coupled with the abnormal water temperature in Shanghai, a large number of scallops starved to death. In 2017, the performance changed from the profit of nearly 100 million yuan predicted to a loss of 723 million yuan.

In April 2019, Zhangzi Island issued a quarterly report, and the company lost 43.14 million yuan in the first quarter, which is equivalent to its net profit for the whole year of 2018. According to the company, affected by the marine ranch disaster in 2018, the total amount of harvested resources of shrimps and scallops sown in 2016 and the end of 2017 decreased.

It is worth noting that Zhangzi Island was put on file for investigation by CSRC in February 2018 due to suspected illegal information disclosure. On July 10, Zhangzidao announced that due to suspected financial fraud and other reasons, the CSRC had taken life-long market ban measures against Wu Hougang, chairman of Zhangzidao, and warned Zhangzidao and fined it 600000 yuan.

According to the investigation results of the CSRC, Zhangzidao, Wu Hougang and others are suspected of financial fraud, false records and failure to disclose other information in time. Among them, the 2016 annual report and 2017 annual report disclosed by Zhangzi Island, the announcement on the year-end inventory of bottom seeded shrimps and scallops in 2017 and the announcement on the write off of assets and the provision of inventory falling price reserves are suspected of false records; the announcement on the sampling results of bottom seeded shrimps and scallops in autumn 2017 disclosed by Zhangzi Island is suspected of false records; the annual performance and forecast of 2017 There was a large gap in the period, which was not disclosed in time.

Just last month, Zhangzi Island was also suspected of illegal hunting of wild sea cucumbers during the summer off season. According to media reports, the time limit for sea cucumber in the Yellow Sea is from June 1 to August 31 every year. However, since August 15, 2019, Zhangzi Island began to collect sea cucumbers. The actual amount of sea cucumbers collected is more than 50000 Jin, which is suspected of violating the regulations on the prohibition of fishing for special sea cucumbers during the fishing ban period. At the same time, there may be serious overdraft of future sea cucumbers business profits. The response of Zhangzi Island at that time was that the companys fishing operations were in line with the relevant regulations, not to dry up and fish, overdraft income.

Nearly 1.5 million mu of relatively complex sea area will be abandoned

Zhangzidao said in the announcement that the companys current main business consists of breeding business, processing business and trade business. In recent years, the support of bottom seeded scallops for the companys overall income and profitability has gradually declined. By the end of 2018, the proportion of revenue of scallop is 6.3%, and the proportion of gross profit to fresh product gross profit is 13.7%; in the first three quarters of 2019, the proportion of revenue of scallop is 6.0%, and the proportion of gross profit to fresh product gross profit is 10.4%.

For the future operation plan, Zhangzidao said it would further close its offshore exposure. From 2019 to the end of June 2020, it is planned to complete the abandonment of relatively complex sea areas or suspend part of the applicable sea areas of about 1.5 million mu. According to the relevant regulations on the use of sea areas, the annual sea use cost can be saved about 70 million yuan.

Zhangzidao said that since 2020, the bottom seeded scallops have been adjusted from the stage of scale development to the stage of pilot exploration, so as to optimize the new technology, new varieties and new models of scallops suitable for the local ecosystem conditions. The annual pilot scale of scallops is about 100000 mu, basically closing the bottom seeded scallops to increase the breeding risk. At the same time, we should explore the mode of resource conservation for sea cucumber and other proliferative varieties, so as to improve the resource sustainability and brand operation ability of sea cucumber.

In addition, Zhangzidao also mentioned that in order to resolve the adverse impact of the fluctuation of profitability of a single variety, the company has continuously improved the profitability of processing products, trading products and seedling products, and continuously optimized the overall profitability structure of the company. In the breeding sector, in addition to the bottom seeded shrimps and scallops, there are also various indigenous breeding varieties such as conch, sea cucumber, abalone and sea urchin. In the future, the company will strengthen the standard construction of indigenous species conservation, gradually establish triploid oyster breeding demonstration area and fattening demonstration area, deeply operate Amur sturgeon industry, accelerate the implementation of slimming plan, expand marine food business, and reduce financial costs. Zhangzi Island was founded in September 1992 and listed on Shenzhen Stock Exchange in 2006. Its main business is aquaculture, aquatic processing industry, aquatic trade, cold chain logistics, etc. its main products include scallops, sea cucumber, abalone, conch and sea urchin. According to the report of Zhangzidao in the third quarter of 2019, the companys operating revenue in the first three quarters was 2.011 billion yuan, a year-on-year decline of 4.44%; its net profit was 34.0269 million yuan, with a year-on-year increase of 245.53%. At the end of November 14, Zhangzidao closed at 2.49 yuan, down 1.97%. Source: surging news editor: Liu Songpeng nbj9949

In addition, Zhangzidao also mentioned that in order to resolve the adverse impact of the fluctuation of profitability of a single variety, the company has continuously improved the profitability of processing products, trading products and seedling products, and continuously optimized the overall profitability structure of the company. In the breeding sector, in addition to the bottom seeded shrimps and scallops, there are also various indigenous breeding varieties such as conch, sea cucumber, abalone and sea urchin. In the future, the company will strengthen the standard construction of indigenous species conservation, gradually establish triploid oyster breeding demonstration area and fattening demonstration area, deeply operate Amur sturgeon industry, accelerate the implementation of slimming plan, expand marine food business, and reduce financial costs.

Zhangzi Island was founded in September 1992 and listed on Shenzhen Stock Exchange in 2006. Its main business is aquaculture, aquatic processing industry, aquatic trade, cold chain logistics, etc. its main products include scallops, sea cucumber, abalone, conch and sea urchin. According to the report of Zhangzidao in the third quarter of 2019, the companys operating revenue in the first three quarters was 2.011 billion yuan, a year-on-year decline of 4.44%; its net profit was 34.0269 million yuan, with a year-on-year increase of 245.53%.

At the end of November 14, Zhangzidao closed at 2.49 yuan, down 1.97%.