Fujian Haixin Food Co. Ltd., which produces frozen seafood snacks and convenience food, is projecting record profitability for 2020, thanks to increased demand prompted by the COVID-19 lockdown.
With its frozen fish balls and seafood dinners becoming established favorites among China’s urbanites, Haixin is projecting profits of between CNY 75 million (USD 11.3 million, EUR 9.8 million) and CNY 95 million (USD 14.3 million, EUR 12.3 million), which would be a tenfold increase over 2019.
Haixin benefitted from increased demand during the lockdown of Chinese cities early in 2020. The firm projected profits for the first half of 2020 of between CNY 40 million (USD 5.6 million, EUR 5.2 million) and CNY 50 million (USD 7 million, EUR 6.5 million), a year-on-year rise of 470 to 612 percent, and well ahead of earlier projections.
The company has sought to move upmarket in seafood products, going head-to-head with its leading opponent An Jing (which uses the Anjoy brand name), which is also based in Fujian. The Haixin upmarket “1903” range features a 490-gram crayfish product that retails for CNY 79.90 (USD 11.90, EUR 10.38). Its “Fish Queen” brand is a Japanese-style microwaveable, 120-gram product that sells for CNY 22.50 (USD 3.37, EUR 2.92).
For comparison, Anjoy-branded fishballs – made from squid, cod, and crayfish – sell for CNY 43.80 (USD 6.57, EUR 5.69) on online retailer JD.com. Last summer, Anjoy launched a range of consumer facing kiosk-style retail outlets to increase sales of its frozen seafood balls and other products in China’s smaller cities.
Haixin is poised for future growth off the back of rising consumption of frozen foods, according to a research report on the frozen food sector by Northeast Securities, a Chinese brokerage. It notes that the sector’s top player account for only 10 percent market share, but projects its market share will increase to 20 percent in coming years. The company’s recovery is notable, as its profit in 2019 dropped 80 percent on its 2018 total.
