Guolian Aquatic is projecting a loss of between CNY 165 million (USD 26.4 million, EUR 21.4 million) to CNY 235 million (USD 37.6 million, EUR 30.5) for 2020, blaming weaker demand from China’s catering as a result of the COVID-19 pandemic.
Zhanjiang, Guangdong Province-based Guolian is China’s biggest seafood firm by valuation. In 2019, the company recorded CNY 4.45 billion (USD 712 million, EUR 578 million) in revenue, up 1.5 percent over 2018.
Guolian has assured investors its long-term strategy remains intact. It has set the goal of diversifying its distribution channels away from processing and exporting shrimp to processing value-added products for major catering brands and retailers across China.
In its latest circular to investors, Guolian touted the potential of "increased cooperation" and supply deals with major multinational giant Unilever, which has a large ready-to-eat meals and condiments business globally. The company has also formed partnerships with Chinese catering groups including hot pot chain Haidilao, fast food chains Xia Bu Xia Bu and Si Nian, and convenience store chain Guo Juan Shi Hui, which operates more than 5,000 stores nationwide. Guolian also predicted growth from a cooperation agreement in Guangdong Province with the distribution arm of petroleum firm Sinopec, through which it distributes products in gas station convenience stores.
Guolian has also signed supply deals with major Western U.S.-owned chains including Hooter’s, Hard Rock, Denny’s, and Applebees. Several Western chains are moving into China, where franchising has growing appeal.
And Guolian said it has expanded its e-commerce activity, including adding livestream sales and cooperation agreements with celebrity social media personalities.
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