HQ Sustainable Maritime Industries (HQS) is a leader in the aquaculture industry in China. Aquaculture includes the farming of fish and aquatic plants in fresh water or ocean enclosures. The aquaculture industry supplies one-half of the world’s fish and shellfish needs. Aquaculture is the fastest growing segment in the food production system and has been for the past two decades. The primary objective of the industry is to produce healthy, nutritious fish for consumption.

HQS is an integrated aquaculture and aquatic product processing company with operations based in the island province of Hainan, in China’s South Sea. The company’s aquaculture is conducted in fresh and salt-water areas that are pristine and free from pollutants such as mercury and plastic trash. In addition to raising and harvesting fish, HQ processes and sells fish and fish products including tilapia, shrimp, squid and red snapper.

The company is China’s largest exporter of tilapia and commands 10% of the tilapia market in the US. Tilapia is a popular name for numerous freshwater fish originally native to Africa. Tilapia is easy to farm, mild in taste and rich in protein.

The company produces and sells Lillian’s Healthy Gourmet Meals and other fish products in the U.S. The company has cold storage facilities and aquatic product processing facilities in Hainan. In addition to headquarters in Seattle, the company has operational offices in Wenchang, Hainan.

HQS’s sales have grown steadily from $27.5 million to $72.3 million in 2009. Earnings per share (EPS) were $0.54 in 2007, $0.78 in 2008 and $0.60 in 2009. EPS are expected to advance to $0.85 in 2010 and then $1.00 in 2011.