A focus on “famous and valuable” fish species, instead of processing, is paying off for Chinese seafood breeder and processor Oriental Ocean.
Analyst Shan Hu of Lian Xun Securities, a Chinese stock brokerage, said the company’s boosting of production and popularity of sea cucumber and pomfret in China to “industrial levels” is key to the company’s recent financial success, as seen in Oriental Ocean’s results for the first nine months of 2017.
Oriental Ocean saw its net profit increase by CNY 980,000 (USD 148,000, EUR 126,000) to CNY 115 million (USD 17.3 million, EUR 14.8 million) for the first nine months of the year, according to Shan. That’s a rise of 70 to 100 percent on the same period last year. The firm booked a profit margin of 50.5 percent on sea cucumbers, but has struggled to increase its output in the short term.
Growing the company’s business in marine-based medical ingredients is another promising direction for the firm, according to Shan.
