Core Viewpoint - The article discusses the impact of U.S. tariffs on global trade, particularly focusing on how Guangdong, China's leading economic and foreign trade province, is responding to these challenges by exploring new market opportunities and adjusting strategies in various industries, especially in seafood exports. Group 1: Impact of U.S. Tariffs - U.S. tariffs have escalated global trade tensions, causing anxiety among American businesses and consumers, particularly in the seafood industry [1][2] - The American seafood processing industry is experiencing significant challenges due to rising costs from tariffs, leading to halted orders and increased prices for consumers [2][3] - The uncertainty in international trade is making it difficult for companies to plan long-term, affecting the supply chain and pricing of seafood products [3] Group 2: Company Responses - Companies like Dachen Frozen Foods are adjusting their strategies by deepening cooperation with domestic e-commerce platforms to tap into local consumer demand [2][7] - Dachen Frozen Foods has shifted focus to domestic markets, with a significant partnership with a well-known e-commerce platform, which now accounts for 20% to 30% of its revenue [7][8] - Hengxing Group has also proactively transformed its business model to focus on domestic markets, developing a full supply chain from breeding to processing, and optimizing product offerings [4][6] Group 3: Market Diversification - Companies are actively seeking to reduce reliance on single markets by exploring new international markets, including Southeast Asia and the Middle East [10][11] - Guolian Aquatic Products is leveraging its established production lines to penetrate the domestic market, offering high-quality products at competitive prices [9] - The Guangdong seafood industry is recognized for its diverse product offerings and competitive processing costs, which positions it well for both domestic and international markets [10]

Core Viewpoint - The company, Guolian Aquatic Products, is facing significant challenges due to external pressures from market conditions and internal operational issues, prompting a strategic shift from export-oriented to domestic market focus in response to recent controversies and regulatory changes [1][3][4]. Group 1: Compliance and Public Response - Following the exposure of excessive phosphate levels in shrimp products from other companies in Zhanjiang, Guolian Aquatic Products quickly initiated a self-inspection and issued a clarification statement asserting the compliance of its products [2]. - The company emphasized that its platinum shrimp products contain "0 additives" and "no water-retaining agents," aligning with national food safety standards [2]. - To manage public sentiment, Guolian Aquatic Products undertook a comprehensive review of its production processes, quality inspection documents, and market products [2]. Group 2: Financial Performance and Market Challenges - The company anticipates a net loss of 500 million to 750 million yuan for the year 2024, a significant increase in losses compared to previous years, attributed to weak domestic and international markets, low prices for core products, and inventory buildup [3]. - Revenue fluctuated from 4.474 billion yuan to 4.909 billion yuan between 2021 and 2023, while net profit declined from a loss of 13.84 million yuan to a loss of 532 million yuan, with a debt ratio around 47% [3]. - The increase in tariffs on tilapia exports to the U.S. has led to a sharp decline in export volumes, resulting in over 800 million yuan in losses for processing companies in the Pearl River Delta [3]. Group 3: Strategic Transformation - In response to tariff barriers, Guolian Aquatic Products launched an "export to domestic sales" initiative in April 2025, aiming to sell previously exported tilapia at reduced prices in the domestic market [4]. - The transformation involves restructuring standards, innovating distribution channels, and implementing price reductions to clear inventory, despite potential short-term losses [4]. - The company is also integrating rural revitalization goals by connecting local farmers to markets and promoting eco-friendly aquaculture practices [4].