HQ Sustainable Maritime Industries (HQSM), an all natural integrated aquaculture and aquatic product processing company, reported that for the fourth quarter of 2009, net sales increased 8.2% to US$23.3 million.

The increase in net sales was primarily the result of a strong performance in the health and bio-product segment.

The company expanded its sales of high quality, health and bio-products made from Tilapia by-products, in response to a landmark shift in China food safety legislation passed in March of 2009, which caused the closure of several of China's health and food product manufacturing facilities.

"This unprecedented opportunity for our company in China has resulted in a short term increase in receivables and higher marketing expenses in our health and bio-product segment," said Norbert Sporns, HQSM's president and chief executive officer.

"In 2010, we believe our efforts to reposition our company behind higher margin product categories combined with increased operating efficiencies from our vertically integrated operations will enable us to realise an exceptional period of strong sales, margin expansion, and long-term profitable growth," said Sporns.

For the full year of 2009, net sales increased 6.7% to US$72.3 million compared to US$67.7 million in 2008. The 2009 increase in net sales compared to 2008 is primarily the result of an increase in volume and average sales price originating from new products in the health and bio-product segment.

Aquaculture product segment net sales increased 0.3% to US$45.5 million, compared to US$45.4 million in the full year of 2008.