By the end of August, four sea cucumber business tycoons in China, Dalian Keybridge Marine Seeds Co., Ltd., Zhangzidao Group Co., Ltd., Shandong Oriental Ocean Sci-Tech Co., Ltd and Shandong Homey Aquatic Development Co., Ltd, issued their half year financial reports, and three of them suffered 10.95%-63.76% revenue decline, a further shrinking of profit space. Oriental Ocean was the only sea cucumber processor who achieved business income, about 155 million yuan, but just a slight growth of 3.29%.
Keybridge Marine Seeds was the one who suffered the biggest revenue drop. In the first half of 2016, it gained 31, 529, 000 yuan business income, dramatically down by 63.76%. Homey business revenue in the same period reached 256 million yuan, dropping by 10.95% while Zhangzidao achieved 78, 147, 000 yuan, decreasing by 11.18% year on year.
Actually, owing to limited high-end sea cucumber consumption, South China sea cucumber capacity expansion and other factors, the whole sea cucumber industry has reached its price inflection point since 2011, which has been dropping sharply in the 5 years and was still weak at present.
Sea cucumber price reached record high, 185.72 yuan/kg, in 2011. However, many enterprises’ financial reports had showed that sea cucumber price dropped from 166.78 yuan/kg to 87.50 yuan/kg at present, whose annual dropping rate was more than 12.6%. Up to mid 2016, sea cucumber price had dropped by more than 52.9% compared with that in 2011.
One industry insider said that the whole industry had reached its limit of tolerance. There were almost no profit space left in the whole industrial chain, from fry hatchery to deep processing. The industry is in very adjustment period of squeezing industry bubble and reducing capacity.
