BRIEF: Coland Ocean secures CSRC approval for Hong Kong IPO

Fish oil products maker Coland Ocean Group Ltd. received a listing approval notice from the China Securities Regulatory Commission (CSRC) on Thursday, a required step for all Chinese companies seeking to list overseas. The company plans to issue up to 115 million shares and list on the Hong Kong Stock Exchange.

Founded in 2008, Coland Ocean refines and produces feed- and food-grade fish oil from its main production facilities in South China’s Fujian province. According to a report by China lnsights Consultancy, the company held 24.8% of the Chinese feed-grade fish oil refining and concentration market, ranking it first at the end of 2023. The company ranked eighth in the food-grade fish oil sector.

In the first half of 2024, Coland Ocean reported revenue of HK$245 million ($31.46 million), up 14.8% year-on-year. However, its net profit fell 65.2% year-on-year to HK$10.35 million, as its profit margin dropped from 24.3% in 2022 to 7.4% in the first half of 2024. The company attributed the decline to falling product prices and high raw material costs.

Peruvian crude fish oil, a key raw material for the company’s products, has surged in price since 2022 due to fishing quota measures imposed by the Peruvian government.

By Lee Shih Ta

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