SINGAPORE (April 17): Qian Hu, the integrated ornamental fish service provider, reported 1Q earnings trebled to $36,000 from a year ago on the back of a 10% jump in group revenue.
For the 1Q ended March, revenue rose to $21.6 million from a year ago, largely due to higher contributions from all of its core business segments.
The ornamental fish segment grew 10.2% to $9.3 million due to the improved performance of its Dragon Fish sales as well as increased exports to more customers and countries around the world.
The accessories segment grew 11.4% to $9.5 million boosted by higher sales contribution from its existing overseas distribution bases in Malaysia, China, Thailand, as well as the newly acquired Guangzhou subsidiary.
Plastics grew 5% to $2.8 million, thanks to its enlarged customer base and product mix.
In terms of operating profit, contribution from accessories more than trebled to $285 million. The plastics segment, however, suffered a 9.9% dip to $201,000, due to the gradual increase in overall operational costs.
As at March 31, the group’s cash and cash equivalents grew to $9.2 million.
Kenny Yap, Qian Hu’s Executive Chairman and Managing Director, said: “Over the years, Qian Hu has demonstrated its resilience by transforming itself in order to stay ahead of the competition and to strengthen its fundamentals. We will continue to focus on innovation to expand our product pipeline - particularly in the areas of filtration, fish nutrition and genetic breeding of unique Dragon Fish.”
“We are also working hard at building our new aquaculture business – which is, the sustainable farming of edible fish for the consumer market. We envisage that the aquaculture business has the potential of being many times bigger than our existing businesses, if we execute it correctly. All these initiatives will continue to position us favourably as we move ahead to achieve our vision of being the world’s largest ornamental fish company.”
In January 2017, the group announced that it had set up a 51%-owned subsidiary, Qian Hu Aquaculture (Hainan) Co. to farm antibiotic-free edible fish, such as groupers, in Hainan Province, China.
The edible fish farm, which occupies a land area of 0.4 hectares with a lease tenure of 16.5 years, is expected to farm varieties of edible fish, primarily for the China market.
Shares of Qian Hu closed 2 cents lower at 16 cents.
