A global shortage of shrimp has been good news for the listed arm of Zhanjiang Guolian Aquatic Products Co, China’s largest prawn exporter, which has indicated that it expect profits of between CNY 1 million (USD 163,546/EUR 122,751) and CNY 5 million (USD 817,730/EUR 613,675) for the first half of the year, citing a tightening of shrimp supply. The firm in the first half of 2012 recorded a net loss of CNY 69.4 million (USD 11.4 million, EUR 8.5 million), causing investors to worry the firm would be delisted according to the rules of the Shenzhen Stock Exchange, which punish firms reporting consecutive losses over a three year period.
The picture looks good too for cultivator and processor Shandong Oriental Ocean Sci-tech Ltd, set to announce net profits of CNY 38 million (USD 6.2 million, EUR 6.7 million) for the first half of 2013, a year on year increase of 7 percent. The company has made up for weak pricing of its staple product, sea cucumber, by increasing its processing activity and making a much-vaunted entry to the Atlantic salmon farming business. Salmon however is unlikely to be a major contributor to the company’s earnings in 2013, according to a note from Haitong Securities, which suggests the firm will nonetheless up its salmon sales from 20 metric tons (MT) in 2012 to 130 MT in 2013.
The country’s top shellfish player, Dalian Zhangzidao Fishery Group, meanwhile has announced a dismal 66.2 percent slump in profits year-on-year, down to CNY 52.74 million (USD 8.6 million, EUR 6.5 million), in the first half of the year due to lower yields from its scallop cultivation business. Revenues however were up 7.9 percent on the same period last year, at CNY 1.13 billion (USD 184.8 million, EUR 138.8 million), at Zhangzidao, which has vowed to diversify away from aquaculture into seafood importing and logistics.
Profitability at some of China’s seafood leaders may also have little to do with seafood sales. Guolian reported CNY 6.2 million (USD 1 million/EUR 761,202) income from “non recurring gains and losses” in its “non-core businesses” while freshwater aquaculture specialists Dahu Aquaculture Company Limited looks set for windfall profits in the first half of this year thanks to earnings from the sale of real estate in Shanghai. The firm has indicated it will report CNY 240 (USD 39 million, EUR 29.5 million) to CNY 260 million (USD 42.5 million, EUR 31.9 million) in net profits for the period, up by as much as 1,600 percent year-on-year, thanks to its disposal of the real estate assets. Chinese manufacturing firms commonly dabble in real estate, seen as a source of large, quick profits given the country’s frothy property sector.
The picture looks good too for cultivator and processor Shandong Oriental Ocean Sci-tech Ltd, set to announce net profits of CNY 38 million (USD 6.2 million, EUR 6.7 million) for the first half of 2013, a year on year increase of 7 percent. The company has made up for weak pricing of its staple product, sea cucumber, by increasing its processing activity and making a much-vaunted entry to the Atlantic salmon farming business. Salmon however is unlikely to be a major contributor to the company’s earnings in 2013, according to a note from Haitong Securities, which suggests the firm will nonetheless up its salmon sales from 20 metric tons (MT) in 2012 to 130 MT in 2013.
The country’s top shellfish player, Dalian Zhangzidao Fishery Group, meanwhile has announced a dismal 66.2 percent slump in profits year-on-year, down to CNY 52.74 million (USD 8.6 million, EUR 6.5 million), in the first half of the year due to lower yields from its scallop cultivation business. Revenues however were up 7.9 percent on the same period last year, at CNY 1.13 billion (USD 184.8 million, EUR 138.8 million), at Zhangzidao, which has vowed to diversify away from aquaculture into seafood importing and logistics.
Profitability at some of China’s seafood leaders may also have little to do with seafood sales. Guolian reported CNY 6.2 million (USD 1 million/EUR 761,202) income from “non recurring gains and losses” in its “non-core businesses” while freshwater aquaculture specialists Dahu Aquaculture Company Limited looks set for windfall profits in the first half of this year thanks to earnings from the sale of real estate in Shanghai. The firm has indicated it will report CNY 240 (USD 39 million, EUR 29.5 million) to CNY 260 million (USD 42.5 million, EUR 31.9 million) in net profits for the period, up by as much as 1,600 percent year-on-year, thanks to its disposal of the real estate assets. Chinese manufacturing firms commonly dabble in real estate, seen as a source of large, quick profits given the country’s frothy property sector.
