(Yicai Global) March 1 -- Zoneco Group Co. failed to foresee possible aberrant situations such as the mass die-off of its scallops between November and December, which was consistent with historic patterns, so it will strengthen its early warning systems and improve its marine ranches' ability to handle emergencies, the company told Shenzhen Stock Exchange in reply to an inquiry.
Zoneco [SHE:002069] projected a CNY800 million (USD 128 million) loss for last year from damage to its seabed shrimp and scallop stocks in some areas, it said Jan. 30. The company's mysterious scallop die-off, which resulted in the ouster of Feng Yuming, its chief executive, has drawn market attention ever since. Shenzhen Stock Exchange sent three inquiries to it over the incident. Zoneco replied to only one.
The firm, formerly Zhangzidao Fishery Group, and China's largest seafood company by capitalization and which recently rebranded itself for its internationalization strategy, will seek to hire or work with third-party agencies to bolster the monitoring of its aquacultural areas and scallops' biological indicators as well as relevant environmental indicators, strengthen early warning systems, improve its marine ranches' ability to deal with emergencies, and look into risk management mechanisms such as fishery insurance to reduce and transfer sector risks, the company pledged.