LONDON (Alliance News) - Asian Citrus Holdings Ltd on Tuesday said it will shut down its Xinfeng plantation after the spread of huanglongbing disease which has been infecting the plantation's orange trees since April.
More than 60% of the Xinfeng plantation's orange trees are estimated to have been infected with the disease, also known as citrus greening disease, since April, and this figure is expected to increase to between 70% and 80% in the next two to three years.
As a result, the orange plantation operator has decided to shut down the plantation with operations to cease completely after the winter orange harvest this year.
The Xinfeng plantation represented approximately 34% of the group's total revenue for the financial year ended June 30. For the second half of 2015, the plantation's estimated production output is expected to fall to 11,000 tonnes from 103,847 tonnes in the same period the prior year.
Impairment losses relating to the cessation of operations will hit Asian Citrus by around CNY850 million for financial 2016, the company warned, adding that its insurance policy does not cover damage from the presence of any diseases.
Shares in Asian Citrus were trading up 4.5% at 6.40 pence on Tuesday afternoon.
By Karolina Kaminska; karolinakaminska@alliancenews.com @KarolinaAllNews
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