Mainboard-listed integrated fish service provider Qian Hu Corporation BCV has reported net profit attributable to shareholders for 1HFY2023 ended June of $29,749, down 96.4% y-o-y.
This was on the back of a 9.9% decline in group revenue to $34.3 million, as it continues to be impacted by the Russia-Ukraine conflict and geopolitical landscape which dampened demand for its fish segment.
Meanwhile, its accessories business was affected by the weakening and conservative purchasing sentiments experienced globally. The group’s customers grew to be more vigilant in their procurement requirements due to trade disruptions, geopolitical tensions and economic uncertainties during the current period.
However, this was mitigated by the resumption of airfreight capacity since June 2022 and reopening of borders during the year, which helped to boost the group’s aquaculture exports from Hainan, China.
As at June 30, 2023, the group’s cash and cash equivalents stood at $15.9 million.
For 1HFY2023, the group’s earnings per share was 0.03 cent while net asset value per share was maintained at 43.03 cents, down slightly from the year-ago period.
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It is not within the group’s practice to recommend an interim dividend and will declare annually together with its full-year results. It has said that it will be conserving cash for the first half period.
Yap Kok Cheng, Qian Hu’s CEO, says: “The outlook for the rest of the year continues to be extremely challenging. Notwithstanding, we remain focused on strengthening our balance sheet by decreasing bank loans, prioritising cash flow and reducing inventory. Building resilience in our core businesses continues to be a top priority while we take our relatively new Aquaculture business beyond gestation. We have much to do to expand the trading of our seafood products as well as distribution of pets products in Southeast Asia.”
The group is cautiously optimistic that it will be able to overcome the adverse impact that the global environment has on its businesses. It will persist in seizing opportunities for growth, developing new capabilities while raising its competitiveness, and remaining focused on its core strengths and long-term prospects.
Shares in Qian Hu closed at 19 cents on Jul 18.
