China shrimp giant Guolian forecasts jump in first-half profits

China’s Zhanjiang Guolian Aquatic Products' giant land-based shrimp farm project on Nanshan Island, Zhanjiang

China's largest shrimp company, Zhanjiang Guolian Aquatic Products, has forecast net profits of up to CNY 73 million ($10.8m) for the first half of 2017.

According to a note filed on Tuesday (July 25), the profit forecast amounts to a 730% increase compared with the same period last year. 

Guolian attributed the improved performance to development of sales channels both domestically and abroad, especially in China’s foodservice sector. The company also highlighted better cooperation across the company’s different teams and new product development. 

In February, Guolian's Jeff Sedacca, president of the company's US division, Sunnyvale Seafood, said the firm is rapidly expanding its recirculating aquaculture system (RAS) farms in China, to meet a demand for high-end, live shrimp.

The company is planning on producing 20,000 metric tons of shrimp from the RAS system it established in 2016 and is currently expanding, said Sedacca.

The company is also looking to at openings in the US including in both “fish and shrimp, including possibly indoor, RAS [recirculating aquaculture system] shrimp”, said Sedacca more recently, with projects potentially in the offing this year.

Last month Guolian secured approval to issue corporate bonds in China worth up to CNY 600m, according to a company filing.