SINGAPORE (July 17): Ornamental fish service provider Qian Hu Corporation saw its earnings jump 61.6% to $236,000 for the 2Q19 ended June, from $146,000 a year ago.
Earnings per share (EPS) rose to 0.21 cents in 2Q19, compared to 0.13 cents in 2Q18.
The higher net profit was mainly attributable other income, which more than doubled to $1.5 million in 2Q19, from $0.6 million a year ago. This was due to to higher handling income derived from the handling of transhipments in relation to Qian Hu’s aquaculture business.
However, 2Q19 revenue fell 12.5% to $19.2 million, from $21.9 million a year ago, on lower contributions from all three business segments – fish, accessories, and plastics.
Fish revenue fell 15.5% to $7.6 million in 2Q19, on the back of continued intense price competition from the sales of Dragon Fish.
This offset improved revenue generated from its aquaculture business in China’s Hainan Province.
Accessories revenue dropped 16.2% to $16.4 million in 2Q19, mainly due to the disposal of the group’s Shanghai subsidiary in 4Q18 even as the sector continues to be affected by weakening purchasing sentiments.
As at end June, cash and cash equivalents stood at $13.7 million.
Looking ahead, Qian Hu says it envisages that the revenue and profitability of its fish business will gradually revive in the coming quarters.
“Despite the challenging business landscape worldwide, we remain optimistic that the performance of our fish business will improve in the coming quarters, as we continue our growth trajectory for our aquaculture business in Hainan,” says Kenny Yap, Qian Hu’s executive chairman and managing director.
Qian Hu was placed on the SGX Watch-list in June 2017 for failing to meet the minimum trading price (MTP) under the SGX’s listing rules.
In a separate update filed on SGX on Wednesday, Qian Hu says it has reviewed the options available to the company to meet the MTP exit criteria, but believes it is “not the appropriate time to make a decision”.
The group says it is monitoring the situation and will continue to explore all options to seek an exit from the MTP Watch-list by May 2020 – 36 months from when it was placed on the Watch-list.
Shares in Qian Hu closed flat at 13.5 cents on Wednesday, hovering just half a cent above its 52-week low.
