Qian Hu back in black in H1 with net profit of S$856,500

MAINBOARD-LISTED Qian Hu Corporation returned to profitability in the financial first half ended June 30, with net profit of S$856,500, compared to a loss of S$525,237 in the year-ago period, the integrated fish service provider announced in a results filing on Friday after market close.

This came on the back of a 19.5 per cent rise in revenue to S$39.7 million, with a sustained recovery in its ornamental fish and aquaculture business, said Qian Hu. Sales of aquarium and pet accessories have reached pre-pandemic levels, it added.

Earnings per share for the six-month period were 0.75 Singapore cent, compared to a loss per share of 0.46 cent in the year-ago period. No dividend was recommended.

The segment with the most revenue growth was fish exports, rising 29.5 per cent to S$15.4 million with the lifting of border restrictions and the gradual resumption of air traffic.

Qian Hu is looking to strengthen and expand its domestic distribution network in each of its export hubs in Singapore, Malaysia, Thailand and China, to mitigate the risks of future supply chain disruptions.

The accessories segment rose 22.4 per cent to S$20.5 million. But plastics fell 16.7 per cent to S$3.8 million, due to the loss of a major customer since May 2020, said Qian Hu.

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Qian Hu chief executive officer Yap Kok Cheng said: "Moving forward into the second half of FY2021, Qian Hu will continue its expansion plan as we expect to experience more normalcy."

Qian Hu expects revenue to grow and profitability to be maintained in its financial second half, he added.

Qian Hu shares closed up S$0.02 or 9.76 per cent at S$0.225 on Friday before the results release.