A leading Chinese distant-water fishing company is building a chain of seafood retail outlets to sell its seafood domestically.
Through its subsidiary Shenzhen Yuduoduo, China Ocean Group Development Co. has invested in a venture that will open 30 stores in southern China. The stores will sell seafood as well as fruit from "African and other locations," according to a China Ocean Group investor filing.
Hong Kong Stock Exchange-listed China Ocean Group has a 35 percent stake in the new venture, alongside Shenzhen-based Penglide Seafood Co. and businesswoman Liang Huaiju, but has an option to take majority control of the venture when the 30 stores are open and fully operational.
While it has yet to publish its 2020 results, China Ocean has flagged a drop in profitability for the first three quarters of last year due to delays at Chinese ports causing spoilage of its catch from company vessels operating globally.
China Ocean has heretofore largely concentrated on supplying industry and catering clients, but is following a trend of Chinese distant-water fishing companies looking to increase margins by selling their catch directly to Chinese consumers. Another distant-water fishing firm, Pingtan Marine, is building a commercial and processing center in the southeasterly city of Fuzhou, with the stated goal of moving products from catching to processing to selling directly to consumers.
In December 2020, China Ocean Group announced it had signed a memorandum of understanding with Mercosur to build a “fishing base” in Ecuador, but Mercosur denied such an agreement had been signed.
