Deep-sea aquaculture projects in Cambodia are being planned by a major Chinese distant-water fishing operator as it seeks higher yields from self-sourced product to supplement its extensive distribution business.
China Ocean Fishing Holdings Limited, which is registered in Bermuda, reported a fall in revenue for the nine months to 31 December to approximately HKD 624.8 million (USD 81.2 million, EUR 75.1 MILLION) as compared to approximately HKD 778.9 million (USD 101.2 million, EUR 94.6 million) for the corresponding period in 2018.
“Gross profit-margin [in 2019] of aquatic products from fishing operation were generally higher than from supply chain operation,” Chairman and CEO Liu Rongsheng noted in a letter to investors.
The fall in net profit in 2019 was due to hiring costs for new employees for operations in Cambodia and Mozambique, according to Liu. Net-profit attributable to shareholders totaled HKD 18.2 million (USD 2.4 million, EUR 2.2 million), as compared to a profit of approximately HKD 24.7 million (USD 3.2 million, EUR 3 million) in the corresponding period in 2018. The drop was also blamed on “the uncertain market due to the trade conflicts between the United States and China,” Liu said.
In August, China Ocean Fishing announced its subsidiary, Shenzhen Jinyutang Fishery Group Co., had signed a deal with China Merchants Heavy Industry (Shenzhen) Co. to build three “intelligent fishery aquaculture production platforms” to be located off the Cambodian coast.
Rongsheng, who is also CEO of Royal Century, which operates a money-lending business, has also spearheaded the roll-out of 300 direct-sale “Haifu Mozambique Frozen” shops selling seafood including lobsters sourced by the China Ocean Fishing Holdings Limited subsidiary in Mozambique. The company has not yet said how many of the new shops have opened. A telephone message on 13 February at one of the new shops in Shenzhen said it was closed for the week.
Last year, Rongsheng signed a deal with state-owned infrastructure giant China Road and Bridge Corporation to develop the Zhongmao Marine Integrated Industrial Park, which will include seafood processing and canning plants. The alliance could be significant given the CRBC’s presence in developing countries worldwide, including Cambodia, where it is leading the construction of numerous real estate and infrastructure projects.
