Shanghai: Shanghai-based ship fuel trader Lonyer Fuel, has announced that the board has approved to liquidate subsidiary Lonyer GreenCooper Trading Company, with the development of the subsidiary not meeting the company’s expectations.
Lonyer GreenCooper Trading Company was jointly established by Lonyer Fuel and GreenCooper (Shanghai) Investment Management Company in Shanghai Free Trade Zone in September 2013. Lonyer and GreenCooper holds 60% and 40% equity shares in the joint venture respectively.
Lonyer Fuel said the subsidiary had not been able to develop a stable group of clients and suppliers since establishment, and it also had found illegal embezzlement activities by the general manager of the subsidiary.
Lonyer Fuel reported a net loss of RMB50.67m ($8.15m) for the first half of 2015, sharply down from the RMB4.9m ($789k) net profit in the same period of 2014.
The company attributed the loss to reduced sales volumes and lower fuel prices amid the depression in the international oil market.