Ocean One Holdings, a major Hong Kong seafood importer and distributor, has blamed disappointing financial results on a growing trend of the city losing catering and retail spending to lower-cost cities across the border in mainland China.
Ocean One Holdings recorded revenue of approximately HKD 458.7 million (USD 58.8 million, EUR 53.3 million) for the year ended 31 March 2024, down 1.8 percent year over year. The group, which imports seafood from suppliers around the world, recorded a net profit attributable to the owners of the company of approximately HKD 40.8 million (USD 5.23, EUR 4.79) for the period, down 18.7 percent year over year.
In its annual report, Ocean One said its drop in revenue was primarily attributable to lower sales of various products such as Japan sashimi scallop, hamachi fillet, Canada snow crab sections, flying fish roe, and seasoned salmon fish roe.
With a population of 7.5 million, Hong Kong has long been a primary entry point for seafood exporters seeking to tap the Greater Chinese market. Popular with mainland Chinese visitors, the city for a long time boasted the world’s highest per-capita levels of seafood consumption. However, in recent years, China has pursued a policy of integrating Hong Kong with neighboring mainland cities like Shenzhen and Zhuhai by making transit easier. That has resulted in local residents heading to lower-cost mainland destinations for dining and shopping.
Subsequently, domestic seafood consumption has taken a hit, but Hong Kong remains an attractive destination for seafood exporters due to its status as a free port without import tariffs or consumption taxes for seafood imports.
The neighboring gambling mecca of Macao also imports seafood largely through Hong Kong due to that city’s superior cold chain infrastructure and logistics capacity.
