On November 24, the Shenzhen Nanshan People’s Court published a rather unusual auction. They will auction off some 200 to 500 Siamese crocodiles, the minimum bid beginning at 4 million yuan. The auction has already been significantly reduced from its original opening bid of 5 million yuan. This year’s event is the third effort to auction off the reptiles belonging to the infamous Guangdong Hongyi Crocodile Industry Company whose founder, the so-called “Crocodile God,” Mo Junrong,
The enterprise even listed crocodiles among its assets. Its inability to meet its financial obligations prompted it to auction them off. Guangdong Hongyi Crocodile Industry Company went through tens of millions in losses according to South China Morning Post. This, in turn, forced the company to sell its assets, including a large number of Siamese crocodiles.
Siamese crocodiles are a major commercially cultivated species in China and are considered one of the country’s four best commodities. These reptiles are used in the manufacture of more than 100 products, including cosmetics and liquor. China has an enormously lucrative crocodile farming industry. This should draw attention to the staggering worth of the animals being sold at auction.
Even with the promise of such a lucrative potential market, no bidders have signed up to participate in the auction so far. Such a striking absence of participation might indicate that prospective buyers are unclear about the risks involved with such an unprecedented, idiosyncratic acquisition. Most importantly, the auction winner must assume risk when collecting their lot, clearly communicated by the court. What this means is that it creates another layer of warning for anyone looking to take part.
The case against the Guangdong Hongyi Crocodile Industry Company illustrates the immense challenges companies face in the exotic animal trade. It’s a great and powerful reminder of these persistent and insistent challenges. The defaulted debts and later asset bankruptcy illustrate the fragility of financial success in this industry where wealth can be easily built up and stripped away.
As the auction date nears, uncertainty hangs in the air. Will any qualified bidders take advantage of this unique opportunity? The long-term health of the company may hinge on how this auction goes. It will further likely have a positive effect on the much larger crocodile trade operating in China.
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