Chinese whitefish giant Dalian Tianbao Foods is expecting a huge loss for 2019, an amount between CNY 789,098,600 (€102.6 million/$113.1 million) to CNY 1.32 billion (€171 million/$188 million), according to a company release.
The loss is attributed to increased litigation costs and penalties, coupled with a "negative market environment due to complex domestic and international situations" and increased trade friction.
In November 2019, the China Securities Regulatory Commission fined Chinese processor Dalian Tianbao Green Foods CNY 400,000 (€51,561/$56,814) following an investigation that was opened earlier in the year.
During the investigation, the commission found that in 2016 the company did not disclose two major loans worth CNY 250 million (€32.2 million/$35.5 million) and CNY 200 million (€25.8 million/$28.4 million).
The company also cited its tight liquidity due to increasing debt and a decrease in income.
If the company's audited net profit is indeed in the red, it will for the second consecutive year, putting Dalian Tianbao at greater risk of being delisted form the Shenzhen Stock Exchange.
The company owns a large-scale processing facility in Dalian in northeast China for frozen flounder, mackerel, pollock, salmon, scallops and cooked crab meat that is exported to nearly 60 countries.
