Qian Hu posts 87.7% fall in H1 profit on higher costs
Earnings per share at S$0.0003, down from S$0.0022
[SINGAPORE] Mainboard-listed integrated fish service provider Qian Hu on Friday (Jul 18) reported a net profit of S$30,729 for its first half ended June, 87.7 per cent down from S$250,532 in the year-ago period.
This translated to an earnings per share of S$0.0003, down from S$0.0022.
The decline in profit was attributed to global economic uncertainty, rising operational costs and continued geopolitical challenges.
Yap Kok Cheng, executive chairman and chief executive officer of Qian Hu, noted that economic instability, driven by geopolitical conflicts, rising energy prices and escalating US tariffs, has disrupted supply chains and added uncertainty to international markets.
“While strategies like regional sourcing and near-shoring aim to boost resilience, they also introduce new inefficiencies, regulatory complexities and transitional costs, resulting in increased operational costs for many businesses,” he said.
Revenue for the half-year period stood largely unchanged at S$35.1 million, compared to S$35.2 million in the same period last year, amid improvements from its fish segment which were offset by declines from its accessories and plastics segments.
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Overall general and administrative expenses rose by around S$200,000 or 1.5 per cent in the six-month period, due to adverse foreign currency exchange rates, investments in IT infrastructure, and startup costs associated with the group’s newly incorporated business units in Malaysia and Indonesia.
Selling and distribution expenses climbed marginally by 1.5 per cent due to heightened marketing and promotional efforts, aimed at exploring revenue growth opportunities across key markets, the group said.
Net finance costs rose by around S$15,000 or 12.6 per cent for the period, compared with H1 FY2024.
Overall profitability was hit by lower operation profit from the fish and plastics segments, despite improvements in profit from the accessories segment, the company said.
Despite the fish segment’s higher revenue for the first half of 2025, lower handling fees from transhipment activities in relation to the group’s aquaculture business sliced off the segment’s profitability by about S$200,000 or 11.8 per cent, as compared to H1 FY2024.
The plastic segment’s profits fell by about S$100,000 or 23.2 per cent, in line with the segment’s decline in revenue. This came amid higher raw material costs and operational expenses as well as differences in sales mix recorded for the six months compared to the year-ago period, the group said.
Meanwhile, the accessories segment posted higher operating profit despite lower revenue. The group attributed this to efforts to review and streamline inventory management processes, along with improved margins from the sale of its in-house proprietary products.
No interim dividend was declared for the half-year period as the company intends to conserve cash.
Barring unforseen circumstances, the group expects to maintain profitability in the second half of FY2025.
The counter ended Friday flat at S$0.151, before the announcement.
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