Mainboard-listed integrated ornamental fish service provider Qian Hu Corporation today reported lower net profit attributable to shareholders for the third quarter ended 30 September, which fell 27.9% to $1.2 million, compared to the second quarter of the preceding year. Revenue fell 3.9% to $22.95 million.

Qian Hu blames the fall in revenue to the “triple whammy effects” of Icelandic volcanic ash over European airspace from April to May this year; the FIFA World Cup which dampened demand for ornamental fish and accessories exports, and drought conditions in Malaysia which affected the production of Dragon Fish fry announced in the previous quarter.

However, quarter-on-quarter, all of its business segments, typically Ornamental Fish, Accessories and Plastics, reported marginal improvements in revenue contribution.

The Ornamental Fish segment posted a 0.1% revenue improvement to $11.3 million largely due to a stronger Singapore dollar which resulted in some of its export customers seeking cheaper alternatives. In addition, the anticipated curbs in government spending in Europe also contributed to the weaker demand from its European markets, which accounts for more than 20% of Qian Hu’s ornamental fish revenue.

The sluggish European economy had similarly affected production orders from its OEM customers for the Accessories segment which rose marginally by 0.8% to $8.6 million despite positive efforts in exploring more untapped markets with strong growth potential.

The Plastics segment continued to generate strong sales, rising 5.1% to $3.0 million.

Kenny Yap, Qian Hu’s Executive Chairman and Managing Director, says: “We are glad that the triple whammy impact that we faced in the first half is truly behind us, and are looking forward to a much stronger second half. Our robust and diversified business model enables us to build a resilient balance sheet, and generate and maintain a strong operating cash flow while we continue to reduce bank borrowings in the fourth quarter. We envisage that Qian Hu will remain profitable in the fourth quarter and that the second half of FY2010 will be better than the first half.”