(Yicai Global) Feb. 1 -- Chuying Agro-Pastoral Group has doubled its loss forecast for 2018 after a lack of cash left the livestock and poultry breeder unable to feed its pigs.
The Henan province-based firm forecasts a deficit of between CNY2.9 billion (USD430 million) and CNY3.3 billion for last year, it said in a statement on Jan. 30. It pocketed just CNY45 million (USD6.7 million) in 2017, down almost 95 percent from the year prior.
It blamed the loss on a higher-than-expect death rate among its swine, a result of feed supply delays stemming from illiquidity. The firm still forecasts a profit for the fourth quarter, but lopped off CNY391 million (USD58.1 million) from its predicted gains after a pandemic outbreak of African swine fever hindered pork prices.
This is the second time in just a few months that Chuying's pigs have come into the public eye. The firm, which charges CNY2,599 (USD374) a kilogram for its Chinese Tibetan ham, pledged in November to pay interest to holders of CNY271 million worth of bonds with some of its luxury meat as it did not have enough cash to cover the payments.
Another factor leading to the loss was goodwill impairment, the firm said. It had to cough up CNY900 million more than forecast to bail out struggling affiliated unit Shantou Dongjiang Animal Husbandry. It also predicted its inventory was worth CNY384 million less due to ASF and its investment assets had depreciated by CNY346 million.
Editor: James Boynton