Marketing strategy of Guolian aquatic products

Guolian aquatic products: pay cut by 30% to ensure profits

Guolian Aquatic Products is an aquatic product company located in Zhanjiang, Guangdong. More than 90% of its sales come from shrimp products, in addition, there are some seedling and feed businesses, as well as a small number of tilapia businesses in the initial stage. The controlling shareholder of the company is Guo Tong Aquatic Products, and the actual controller is Jong Li. At the same time, Jong Li also controls state-owned real estate and other related companies.

The advantage of Guolian Aquatic Products lies in the expansion ability of shrimp products in overseas markets, and the export volume accounts for more than 40% of the total domestic shrimp exports to the United States. Wal-Mart, Yum! And other companies are the end customers of the company's shrimp products.

However, this may also be a threat to Guolian Aquatic Products. In 2005, the United States issued an anti-dumping duty order on shrimp products from China. In 2007, FDA imposed a "June ban" on aquatic products exported from China to the United States. Since the company's exports to the United States account for more than 75% of the total sales, although the company has not been seriously affected by the above incidents in the past few years, once the company's exports to the United States shrink for some reasons in the future, it will have a major impact on the company's performance.

Worryingly, in 2009, Guolian Aquatic Products achieved sales of 1 1 100 million yuan, a year-on-year increase of 15%, while accounts receivable increased by more than 50%. At the same time, the cash flow from operating activities dropped by 86%. Although the company raised funds by increasing loans, its book cash still decreased by 28%.

Overreliance on exports to the United States

Guolian Aquatic Products is a leading enterprise in shrimp farming and processing in China, and its biggest advantage is its overseas expansion ability, especially in the American market. After obtaining a series of international system certifications such as BAP, the company has become Wal-Mart and Yum! And the Darden Hotel in America.

According to the statistics of the National Marine Fisheries Bureau and other institutions, the shrimp products exported by the company to the United States account for more than 40% of the total domestic exports to the United States, and the second largest domestic export to the United States is Zhanjiang Rowen, but the export volume is not as good as that of Guolian Aquatic Products 1/5.

In 2005, the U.S. Department of Commerce issued an anti-dumping duty order, and 39 of the 53 enterprises responding to Chinese shrimp products received separate tax rates, with an average tax rate as high as 53.68%. Among them, 49% enterprises abandoned the American market for a long time to cope with it, while the separate tax rate of Guolian Aquatic Products was set at 0.07%, making it the only "zero tariff" enterprise in China.

In 2007, due to the detection of prohibited substances in China's aquatic products exported to the United States, the US FDA announced a "June ban" on China's aquatic products, that is, five types of aquatic products imported from China were automatically detained, which greatly increased the export cost. As the only China enterprise seeking exemption, Guolian Aquatic Products successfully broke through the "June ban" and became the first enterprise to automatically detain and lift the ban.

Although export is the advantage of Guolian Aquatic Products, we also want to remind investors that despite relying on the strength of product quality management and other aspects, the company has avoided the negative impact of Sino-US trade friction to the greatest extent in the past few years, but the company's exports to the United States account for more than 75% of the company's annual sales. If the regeneration of trade friction intensifies in the future, the company's products will also be affected, leading to drastic fluctuations in the company's performance.