SINGAPORE (Apr 17): Qian Hu Corporation, the integrated fish service provider, reported 1Q earnings ended March rose 5.7% to $37,000, or 0.03 cents per share, from a year ago.

This despite group revenue declined 12.8% to $18.9 million as sales of Dragon Fish continued to be depressed and its accessories operations in China was restructured.

Revenue from its fish segment, which includes ornamental fish and edible fingerlings, retreated 11.5% to $8.4 million, due an intense price war in the Dragon Fish segment.

This was partially offset by higher sales from its new aquaculture business in Hainan, coupled by the group’s efforts to increase its ornamental fish exports around the world.

Sales from its accessories segment decreased 20.1% to $7.6 million, as the group streamlined its accessories operations in China by trimming operating costs and enhancing its inventory and logistics management and disposed its subsidiary in Shanghai.

In addition, demand for its accessories exports was weakened by its customers being more cautious and vigilant in their procurement requirements, citing the volatility of trading currencies, and continued trade tensions between the US and China.

Plastics sales continued its growth momentum, surging 9.3% to $2.9 million, boosted by a larger customer base and a wider variety of plastics products sold during the quarter.

As at end March, the group’s cash and cash equivalents stood at $11.9 million. Net asset value per share rose marginally to 44.89 cents.

Kenny Yap, Qian Hu’s Executive Chairman and Managing Director, says, “We envisage that the selling prices of Dragon Fish may stabilise toward the first half of FY2019, and coupled with our focused efforts on growing the aquaculture business in Hainan, which continues to bring in contributions to the Group, we expect the revenue and profitability of the Group’s fish business would gradually revive in the coming quarters.”

Year to date, shares in Qian Hu have fallen 3 cents to close at 16 cents on Wednesday.