Zhongshui Fishery $1.7 billion affiliated acquisitions to improve the industrial chain and deduct $316 million losses in four years

China CNFC Overseas Fisheries: Reorganization is conducive to creating an integrated squid and tuna fishery industry chain

CHINA
Thursday, June 29, 2023, 07:00 (GMT + 9)

On June 26, CNFC Overseas Fisheries (China Agricultural Development Group, Zhongshui Fishery 000798 ) issued a record of investor relations activities, stating that the reorganization of the company and China Fishery Global, Nongfa Ocean, and Zhouyu Products will help the company increase fishery services, food Processing business, build an integrated pelagic fishery industry chain, and reduce business fluctuations caused by single business. 

On May 23, CNFC Overseas Fisheries disclosed the "Major Asset Purchase and Related Transaction Report (Draft)", planning to purchase a 51% stake in China Fishery Global from Zhongshui Company in cash of nearly 1.715 billion yuan, and to China Agricultural Development Group and Zhouyu Company Purchased 20.89% and 51.19% equity of Nongfa Ocean respectively, and purchased 100% equity of boat fishery products from Zhouyu Company. After the transaction is completed, CNFC Overseas Fisheries will hold 51% of China Fishery Global, 100% of Nongfa Sino-Ocean, and 100% of Zhouyu Products.

Photo: CNFC

During this investor relations event, some investors asked questions about the restructuring. CNFC Overseas Fisheries said that after the completion of the reorganization, the deep-sea fishing fleet of CNFC Overseas Fisheries will expand from 74 to 186 vessels, and relevant quotas will also enter the company with the ships. The company's ability to control the scarce resources of distant-water fisheries will be greatly improved. At the same time, the reorganization also added new business sectors such as fishery services and food processing to CNFC Overseas Fisheries, which will create an integrated pelagic fishery industry chain and effectively reduce business fluctuations caused by fluctuations in the operation of a single business and a single species.

Photo: CNFC

CNFC Overseas Fisheries believes that the company and the newly acquired company will form a good synergy effect. In terms of fishery services, through the integration of the industrial chain of the integrated pelagic fishery, the fishery service capabilities of China Fishery Global will better serve the fleets of the former CNFC Overseas Fisheries and Nongfa Oceangoing.

Photo: Zhoushan Marine

In terms of food processing, the scarce fishery resources of China Fishery Global, China Water Fishery, and Nongfa Ocean are expected to obtain higher added value through the deep processing of boat fishery products. In terms of ocean fishing, the tuna fishing fleets of CNFC Overseas Fisheries and China Fishery Global will be managed in an integrated manner, and the squid fishing fleets of Nongfa Ocean and Yanyu will also be deeply integrated, which will help save management costs, improve management efficiency, and form a more comprehensive management system. There is an obvious scale effect.

Source: stock.10jqka.com.cn (translated from original in chinese)

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