A tie-up with one of China’s top oil companies is working out well for a Chinese seafood importer and processor, according to the firm's financial report for the first half of 2018.
Dalian, China-based Kai Yang Hai Xian reported profits of CNY 84.8 million (USD 12.4 million, EUR 10.7 million), up 55.3 percent on revenues of CNY 116 million (USD 17 million, EUR 14.6 million) – an increase of 153 percent year-on-year.
The firm, listed on the Beijing Stock Exchange’s “third board” for small- and medium-sized firms, has distribution deals with the filling stations operated across Liaoning Province by state-owned oil and fuel distributor Sinopec. The company recently signed a similar deal covering Sichuan Province.
Kai Yang Hai Xian operates a “purchase-process-sell” business model, but has recently focused on opening more of its self-operated stores, for which it sells gift cards. Sales of its seafood gift boxes fell as a percentage of its overall earnings in the first six months, dropping from 42.4 to 35.5 percent of overall earnings. The boxes include premium imports like salmon, mantis shrimp, and Pacific cod.
Its link-up with Sinopec is significant given the oil firm is one of China’s biggest firms, with a dominant presence in the fuel forecourt convenience retailing sector.
