Zhangzi Island products in Beijing department store on October 19.
A week ago, Zhangzi Island (002069, SZ) disclosed the mass death of the company's shrimps and scallops, which immediately attracted the attention of the capital market and regulatory authorities.
Since November 11, the Shenzhen Stock Exchange has issued two letters of concern to Zhangzi Island, one after another asking it to answer the cause of death, specific death and impact on performance of shrimp scallop. From the latest Reply of Zhangzi Island on the evening of November 19, the cause and effect of the incident are still complicated.
On the one hand, Zhangzi Island said that the company can only count the weight of the surviving scallops salvaged in the sampling process, but can not count the number of dead scallops salvaged and the total weight and quantity of scallops. Therefore, it failed to give the data of 'sampling location and survival quantity of specific points in autumn 2019'. On the other hand, for the cause of scallop death, the announcement said that experts were not sure.
In the face of the large-scale death of the company's main product shrimp scallop, Zhangzi Island said that there was no major uncertainty about the company's sustainable profitability.
Said it was impossible to count the number of dead scallops
For the previous announcement on the sampling results of Zhangzi Island, the Shenzhen Stock Exchange asked it to supplement in the attention letter: whether the total weight and survival weight of shrimp and scallop fished out at each sampling location, and whether the judgment basis for the death of shrimp and scallop is sufficient and reasonable.
In this regard, Zhangzi Island failed to respond clearly. The company said that the effective measurement method in the sampling process is to count the weight of the surviving scallops salvaged in the sampling process, and then divide it by the sampling area to calculate the average yield per mu. However, the products salvaged by the trawler include living scallops, dead scallops, other starfish and other organisms and impurities. In the process of impurity removal and weighing, the living scallops are sorted out and weighed, and the other dead scallops and other impurities are not weighed. Therefore, the company can only count the weight of the surviving scallops salvaged in the sampling process, but cannot count the number of dead scallops salvaged and the total weight and quantity of scallops.
In other words, the sampling results of Zhangzi Island are not the accurate proportion of scallop survival.
According to the company's judgment basis for the death of shrimps and scallops, Zhangzi Island continues to recognize that the dead shrimps and scallops recovered from sampling survey are recent deaths. Zhangzi Island said that relevant experts conducted an on-site investigation on the large-scale death disaster of bottom seeded shrimp and scallop in Changhai County in early November 2019. The experts said that the software parts of individual dead individuals were complete, or only some software parts were left, most of them were empty shells, but the pearl layer was clean, indicating that they died recently.
The reporter noted that according to the previously published production data of shrimps and scallops on Zhangzi Island, there are great differences between different locations.
In this regard, Zhangzi Island said that the location of deep seabed scallop will change significantly with the flow of ocean currents and other factors, and its survival rate is also affected by the sediment environment, water depth, bait enrichment and other factors. According to the sampling results, the most serious deaths of scallops in Zhangzi Island are concentrated in the north and northeast waters, and almost all of them die in some areas.
Will give up more than 65% of the confirmed waters?
The reporter of the daily economic news noted that it has been more than half a month since the large-scale death of shrimps and scallops was first found on Zhangzi Island, but the reasons behind it are still foggy.
According to the latest announcement of Zhangzi Island, relevant experts recently conducted an on-the-spot investigation on the large-scale death disaster of bottom seeded shrimp and scallop in Changhai County, but the cause is still uncertain. " It may involve many factors such as breeding environment and pathogen infection, and the specific reasons need to be further studied. " Zhangzi Island said.
After a large proportion of the deaths of shrimps and scallops, the company said that it would abandon the sea areas with relatively complex sea conditions or suspend some applicable sea areas of about 1.5 million mu by June 2020. According to the information disclosed by the company on October 18, the current area of the sea area of Zhangzi Island is about 2.3 million mu. Does this mean that Zhangzi Island, which depends on the sea for a living, will give up more than 65% of the sea area for which it is indeed entitled? If so, it will undoubtedly greatly reduce the business scale of Zhangzi Island's marine products.
In order to further close the marine exposure risk, Zhangzi Island said that it decided to adjust the bottom sowing shrimp scallop business from the scale development stage to the pilot exploration stage, and further reduce the breeding area to no more than 100000 mu per year. Due to this disaster, the 1.4 billion scallop seedlings originally planned to be invested in 2019 will also be temporarily raised, and the bottom sowing scale will be determined in the future.
In view of the large proportion of the death of scallops, Zhangzi Island had previously estimated that the total amount of write off of inventory costs and provision for inventory falling price was RMB 278 million, accounting for about 90% of the book value of the above bottom sowing shrimps and scallops by the end of October 2019, which had a significant impact on the company's operating performance in 2019.
In this reply to the inquiry letter of the Shenzhen Stock Exchange, Zhangzi Island said that the company believes that there is no major uncertainty about the company's sustainable profitability in the future. The main reason is that except for the bottom sowing shrimp and scallop, other industries and varieties have a good foundation for profitability.