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Qian Hu's Q1 net profit down 89.3% to S$12,000
QIAN Hu Corporation's net profit for the first quarter ended March fell 89.3 per cent, from S$112,000 a year ago to S$12,000. This was on the back of revenue sliding 5.6 per cent to S$19.6 million from S$20.8 million a year ago.
The integrated ornamental fish service provider cited the persistently sluggish global economy as the reason for the drop. In the latest first quarter, revenue generated by the group's core ornamental fish segment slid 6.9 per cent to S$8.4 million in part due to flagging demand for its Dragon Fish in China. However, the group's export hubs in Singapore, Malaysia, Thailand and Indonesia managed to sell more fish to more countries and markets around the world compared to Q4 2015, said Qian Hu in a statement on Monday.
The group's core accessories segment posted a 5.7 per cent dip in sales to S$8.5 million as a result of continued weakness in consumer purchasing sentiment in Malaysia arising from the country's domestic economic uncertainties and the devaluation of the ringgit since the second half of FY2015. Revenue contribution from the group's business units in Malaysia declined when translated to the Singapore dollar.
Revenue from Qian Hu's plastics segment remained relatively stable in the first quarter, decreasing marginally by 0.8 per cent to S$2.7 million.
"Even as the clouds of economic uncertainty and geopolitical upheaval loom around the world, the challenging business conditions continue to persist, plagued by the volatility in regional and international currencies. Notwithstanding, the group remains focused on our business fundamentals and technology to build a strong pipeline of compelling products for our customers, focusing on cutting-edge developments in filtration, fish nutrition and genetic breeding of unique Dragon Fish," said executive chairman and managing director Kenny Yap.
"We look forward to achieving our goal of becoming the world's largest ornamental fish company while our export hubs in Singapore, Thailand, Indonesia and China continue to move into higher gear."