Zhanjiang, China-based Guolian Aquatic is crediting new value-added products like Spanish paella and crayfish hotdogs with lifting its revenues in the first quarter of 2021 by 15 percent.
Guolian booked revenues of CNY 1.08 billion (USD 162 million, EUR 140.4 million) in the first three months of the year, up 15.1 percent on the same period last year. Its quarterly profit, at CNY 4.49 million (USD 673,500, EUR 583,700), experienced a 51 percent decrease year-on-year. Guolian saw its income shrink by 2.9 percent in 2020, to just under CNY 5 billion (USD 673 million, EUR 583.7 million), while net losses, at CNY 269 million (USD 40.3 million, EUR 34.9 million), represented a 42.06 percent year-on-year deterioration in the company’s profitability.
In its note to investors, Guolian stated its strategy of entering the “deep-processed” products segment is paying off. It singled out demand for its ready-to-eat meals and processed items it has developed for fast-food conglomerate Yum Brands, which dominates the convenience food market in China with brands like KFC and Pizza Hut. A crayfish pasta and a shrimp-heavy Spanish paella type dish were both created by Guolian for Yum, which in March bestowed its Best Supplier award on Guolian.
After investing heavily in processing and marketing capacity, Guolian said it is aiming to achieve steady profitability. Guolian said it brought 41 new products to market in 2020, all developed at its in-house research and development center.
The company has become increasingly reliant on imported shrimp – it buys from India and Ecuador – but has seen demand for its products rising in China.
Photo courtesy of Guolian Aquatic
