Chinese seafood companies outperforming in 2017
Firms focusing on seafood make up three of China’s top five companies which are projected to hit profit increases of 100 percent or more, according to China Securities Daily, the popular newspaper of record covering China’s financial sector and stock market.
At the top of the newspaper’s list is Guolian, which is projected to score an 809 percent increase in profits for the first six months of the year. The outsized projections are based off strong shrimp prices and the company’s increased penetration of the domestic market.
In addition, Guolian scored big in a recent shopping festival promotion run by the Jingdong.com e-commerce website. Its sales were up 130 percent on 2016 figures for the same festival, according to Guolian boss Li Zhong, who met with Wang Xiao Song, head of Jingdong Fresh.
Guolian’s figures, it should be noted, reflect a bounce-back to profit, to a total of CNY 30.1 million (USD 4.4 million, EUR 3.9 million) in the first quarter of 2017, compared to a CNY 62.6 million (USD 9.2 million, EUR 8.1 million) loss in the first quarter of 2016.
Zoneco (Zhangzidao), meanwhile, is projected to score net profit of CNY 25 to 30 million (USD 3.7 million to 4.4 million, EUR 3.2 million to 3.9 million), up by 274 to 423 percent.
Zoneco’s upswing has been attributed to a strong increase in quantity and price in shellfish and shrimp production, the company’s main focus. The 600,000 mu (a Chinese land-size measurement equivalent to 0.07 hectare) average production of 37kg per mu will represent a 10 percent per mu increase in output.
In addition, squeezed production and supply in Japan has driven Zoneco’s average pricing by 10 percent to CNY 43 (USD 6.34, EUR 5.56) per ton, according to the China Securities Daily.
New non-seafood business is also helping boosting figures at tilapia exporter Baiyang. Its first-half of 2017 profits are up 30 percent to CNY 18 million (USD 2.7 million, EUR 2.3 million), a figure attributed to the strong performance of its aquaculture, feed and processing units.
The company has also seen profits increase at its newer subsidiary firms set up by Baiyang in engineering, wastewater treatment and waste handling. This is part of the firm’s efforts to diversify its earnings and into utilities in demand due to China’s ongoing urbanization.