SINGAPORE (Jan 12): Qian Hu Corp, the integrated ornamental fish service provider, reported 4Q17 earnings more than tripled to $126,000 from $36,000 a year ago as its Fish division reversed out of the red.
Group revenue for the quarter held steady at $22.0 million.
Sales from the Fish division grew by 9.2% to $8.7 million predominantly due to the improved export performance at its hubs in Singapore, Malaysia, Thailand and Indonesia, as sales of Dragon fish grew in tandem with other ornamental fish. The division reported an operating profit $243,000 compared to a loss a year ago.
Revenue from Accessories dipped 6.7% to $10.5 million due to the loss of sales from the delay in the shipment of products to certain overseas customers as a result of a change in import regulations. Operating profit from Accessories more than doubled to $411,000.
Qian Hu says the orders will only be delivered subsequently in FY18 after sorting out the import documentations.
For the full year, the group posted higher earnings of $329,000 on a 9.1% rise in revenue to $87.8 million.
As at Dec 31, the group’s cash and cash equivalents stood at $11.1 million.
Kenny Yap, Qian Hu’s Executive Chairman and Managing Director, says in a short space of time, its aquaculture business has contributed positively to the group’s revenue and earnings since 3Q17.
In addition, the group has started the breeding and farming of shrimp in Nov 2017 after it had incorporated another company in Hainan – Tian Tian Fisheries (Hainan) Co.
This new subsidiary, which is 60% owned by the group, will be exporting edible fish and seafood from Hainan to Southeast Asia while importing other edible fish and seafood from the rest of the world into China.
In the longer term, the group intends to be a fully-integrated aquaculture farm that is able to capture the entire value chain of edible fish/seafood — from breeding to farming, and to the table.
Qian Hu has proposed a first and final dividend of 0.2 cent subject to approval at the next Annual General Meeting to be held on March 28.
Shares in Qian Hu closed at 23 cents on Friday.