A private, Chinese-owned – but Bermuda-registered – fishing company is drastically expanding its fishing fleet through its Hong Kong arm.
China Ocean Fishing Holdings (COFH) is getting 30 vessels built by the Hong Kong-based Kai De Group, with the first vessels set to be delivered in early 2019 to a subsidiary, Golden Thai Marine Products Group Ltd, according to a filing to investors. At an average cost of HKD 5.53 million (USD 704,512, EUR 608,069) each, the vessels are intended to increase the company’s reach in Malaysia, Mozambique, and Cambodia, where the Hong Kong-listed company is focused.
The company’s structure means the firm appears not to come under mainland China’s bid to limit the size of its fleet, and may be replicated by other firms.
In February 2017, COFH signed a memorandum of understanding with the Cambodian government vowing to develop “industrial scale” aquaculture facilities along that country’s 400 kilometre-long coastline.
Earlier this year, COFH paid CNY 72.3 million (USD 10.5 million, EUR 9.1 million) to acquire Lianyugang Anni, a Chinese fishing firm with licenses to fish off of Malaysia. The investment was aimed at expanding “profitability” from fishing operations, according to a company statement to investors.
COFH saw revenues climb to HKD 342.2 million (USD 43.5 million, EUR 37.6 million) for the first half of 2018, up from HKD 221.8 million (USD 28.2 million, EUR 24.3 million) seen during the same period last year. However, HKD 337 million (USD 42.9 million, EUR 37 million) of that figure comes from the company’s supply chain management activities (focused on aquatic products) in mainland China, where the firm also has a minor money lending business.
The firm’s modest profits of HKD 6.7 million (USD 853,536, EUR 736,374) were down from HKD 6.86 million (USD 873,920, EUR 753,904) last year – a drop blamed on higher “administrative costs” due to the company’s foray into Mozambique.
