With a loss of 278 million, Zhangzidao decided not to raise scallops on a large scale.

On the evening of November 14, Zhangzi Island issued a notice that all the sampling and testing activities related to the stock of scallops planted at the end of autumn 2019 have been completed. According to the sampling test results, it is estimated that the total inventory cost written off and the provision for inventory falling price are 278 million yuan, accounting for 90% of the book value of the above-mentioned bottom seeded shrimps and scallops by the end of October 2019, which has a significant impact on the company’s operating performance in 2019.

90% of scallops were withdrawn

According to the announcement, the sampling involves 260000 mu of bottom seeded shrimps and scallops in 2017 and 323500 mu of bottom seeded shrimps and scallops in 2018, totaling 583500 mu. According to the average 6000 mu / point and even distribution, the company sampled 97 test points in total, including 41 by the end of 2017 and 56 by the end of 2018.

According to the sampling data of each community, at the end of 2017, the average per mu yield of five locations (excluding the 10000 mu area under harvesting operation in November) of scallop is 5.66kg, including the highest area of 12.64kg per mu and the lowest area of 0 per mu. By the end of 2018, the average per mu yield of the ten locations for sowing scallops was 4.17 kg, including 44.33 kg per mu in the highest area and 0.01 kg per mu in the lowest area.

According to the sampling test results, among the 583500 mu of bottom seeded shrimps and scallops, the per mu yield is too low and the cash value of harvesting is not enough to make up for the cost of harvesting. The sea area of 390700 Mu 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, the per mu yield is normal and under harvesting The area of fishing area is 54000 mu.

Zhangzidao said that due to the abnormal death of bottom seeded shrimps and scallops in the company’s sea area, there is still uncertainty in the per mu production level of some sea areas. The specific write off inventory cost and the amount of provision for inventory falling price should be calculated and determined according to the year-end bottom seeded shrimps and scallops in January 2020.

6-year cumulative loss of nearly 2 billion

In recent years, Zhangzi Island has lost a lot in the development of bottom seeded scallops.

On September 30, 2014, the company wrote off the scallop and accrued a depreciation reserve of more than 1 billion yuan. In January 2018, the company wrote off the inventory of bottom seeded shrimps and scallops with a book cost of 578 million yuan, accrued a depreciation reserve of 51100400 yuan for the inventory of bottom seeded shrimps and scallops with a cost of 126 million yuan, and the impact of inventory write off and accrued depreciation reserve totaled 629 million yuan. With the accrual of 278 million yuan, Zhangzi Island lost nearly 2 billion yuan on the assets of shrimps and scallops in three times.

After many setbacks, Zhangzi Island finally decided to stop the development of scallops.

The company 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. Since 2020, the bottom seeded scallop has been adjusted from the scale development stage to the pilot exploration stage, so as to optimize the new technology, new improved species and new mode of scallop suitable for the local ecosystem conditions. The annual pilot test of scallop is about 100000 mu, basically closing the bottom seeded scallop to increase the risk of breeding.

Before that, scallops were once the main breeding species in Zhangzi Island. By the end of 2013, the proportion of scallops sown with scallops accounted for more than 83.38% of the consumptive biological assets.

Zhangzidao said that in recent years, the support of bottom seeded shrimps and scallops for the company’s overall income and profitability has gradually declined. By the end of 2018, the proportion of the revenue of scallop and scallop is 6.3% and the gross profit of fresh products is 13.7%. In the first three quarters of 2019, the revenue of bottom seeded scallops accounted for 6% of the total revenue, and the gross profit accounted for 10.4% of the gross profit of fresh products.

Zhangzidao said that in order to resolve the adverse impact of the fluctuation of profitability of a single variety, the company continued to improve the profitability of processing products, trading products and seedling products, and continued to optimize 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.

On the evening of November 14, Zhangzi Island issued a notice that all the sampling and testing activities related to the stock of scallops planted at the end of autumn 2019 have been completed. According to the sampling test results, it is estimated that the total inventory cost written off and the provision for inventory falling price are 278 million yuan, accounting for 90% of the book value of the above-mentioned bottom seeded shrimps and scallops by the end of October 2019, which has a significant impact on the company’s operating performance in 2019.

90% of scallops were withdrawn

According to the announcement, the sampling involves 260000 mu of bottom seeded shrimps and scallops in 2017 and 323500 mu of bottom seeded shrimps and scallops in 2018, totaling 583500 mu. According to the average 6000 mu / point and even distribution, the company sampled 97 test points in total, including 41 by the end of 2017 and 56 by the end of 2018.

According to the sampling data of each community, at the end of 2017, the average per mu yield of five locations (excluding the 10000 mu area under harvesting operation in November) of scallop is 5.66kg, including the highest area of 12.64kg per mu and the lowest area of 0 per mu. By the end of 2018, the average per mu yield of the ten locations for sowing scallops was 4.17 kg, including 44.33 kg per mu in the highest area and 0.01 kg per mu in the lowest area.

According to the sampling test results, among the 583500 mu of bottom seeded shrimps and scallops, the per mu yield is too low and the cash value of harvesting is not enough to make up for the cost of harvesting. The sea area of 390700 Mu 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, the per mu yield is normal and under harvesting The area of fishing area is 54000 mu.

Zhangzidao said that due to the abnormal death of bottom seeded shrimps and scallops in the company’s sea area, there is still uncertainty in the per mu production level of some sea areas. The specific write off inventory cost and the amount of provision for inventory falling price should be calculated and determined according to the year-end bottom seeded shrimps and scallops in January 2020.

6-year cumulative loss of nearly 2 billion

In recent years, Zhangzi Island has lost a lot in the development of bottom seeded scallops.

On September 30, 2014, the company wrote off the scallop and accrued a depreciation reserve of more than 1 billion yuan. In January 2018, the company wrote off the inventory of bottom seeded shrimps and scallops with a book cost of 578 million yuan, accrued a depreciation reserve of 51100400 yuan for the inventory of bottom seeded shrimps and scallops with a cost of 126 million yuan, and the impact of inventory write off and accrued depreciation reserve totaled 629 million yuan. With the accrual of 278 million yuan, Zhangzi Island lost nearly 2 billion yuan on the assets of shrimps and scallops in three times.

After many setbacks, Zhangzi Island finally decided to stop the development of scallops.

The company 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. Since 2020, the bottom seeded scallop has been adjusted from the scale development stage to the pilot exploration stage, so as to optimize the new technology, new improved species and new mode of scallop suitable for the local ecosystem conditions. The annual pilot test of scallop is about 100000 mu, basically closing the bottom seeded scallop to increase the risk of breeding.

Before that, scallops were once the main breeding species in Zhangzi Island. By the end of 2013, the proportion of scallops sown with scallops accounted for more than 83.38% of the consumptive biological assets.

Zhangzidao said that in recent years, the support of bottom seeded shrimps and scallops for the company’s overall income and profitability has gradually declined. By the end of 2018, the proportion of the revenue of scallop and scallop is 6.3% and the gross profit of fresh products is 13.7%. In the first three quarters of 2019, the revenue of bottom seeded scallops accounted for 6% of the total revenue, and the gross profit accounted for 10.4% of the gross profit of fresh products.

Zhangzidao said that in order to resolve the adverse impact of the fluctuation of profitability of a single variety, the company continued to improve the profitability of processing products, trading products and seedling products, and continued to optimize 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.

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