Joyvio Food, a subsidiary of Joyvio Group, has sold its entire stake in Australis Seafoods, a Chilean salmon supplier. This divestiture comes as the struggling salmon sector is acquired by Joyvio Premium Fresh, another division within Joyvio Group, for a nominal price of one yuan.
In a recent filing with the stock exchange, Joyvio Group’s parent company, Legend Holdings, indicated that the transfer of Australis would improve Joyvio Food’s “asset-liability structure” and optimize its “asset quality.” The decision reflects ongoing challenges faced by Joyvio Food, including elevated operating costs, financial burdens, and a decline in production and sales. These factors have led to significant losses, raising concerns about potential delisting from the Shenzhen Stock Exchange.
For the quarter ending on March 31, Joyvio Food reported a 34.1% drop in revenue, totaling 677.5 million yuan ($106.6 million). Additionally, the net loss attributable to shareholders surged by 106% to 180.9 million yuan, illustrating the financial strain. The company reported a loss per share of 1.04 yuan, signifying a worsening of its fiscal situation compared to the prior year.
Following this sale, Joyvio Food, in which Joyvio Group holds a 46.08% stake, anticipates improvements in its net asset level and sustainable development capabilities. The divestiture is expected to create opportunities for future operational enhancements.
Joyvio Premium Fresh, based in China, provides management and consulting services and is wholly owned by Joyvio Group. Australis, known for producing and marketing both freshwater and saltwater salmon, became a part of Joyvio Food in 2018.
In its latest filing, Australis reported a pre-tax loss of 16.5 million yuan for the first quarter of 2025. The total loss for 2024 stood at 121.7 million yuan, an improvement from a 161.3 million yuan loss the previous year.
Furthermore, Joyvio Group is exploring strategic options for Australis, including the possibility of attracting new strategic investors to enhance working capital. This move aims to facilitate plans for future production capacity expansion.