Mainboard-listed integrated fish service provider Qian Hu Corporation Limited posted a stronger quarter for the period ended 30 June 2018, with net profit attributable to shareholders jumping 484.0% to $146,000, due to continued gth in its Fish segment, led by strong sales of Dragon Fish and the new aquaculture business in China, and higher-margin accessories products.
Group revenue for the three months, however, increased only marginally by 1.0% to $21.9 million, largely due to a 4.8% decline in Accessories sales, affected by customers deferring purchases till after 1 June 2018, the effective date for the abolishment of Goods and Services Tax (GST) in Malaysia.
In the first half of the year, Qian Hu posted a 196.7% rise in net profit attributable to shareholders to $181,000 on the back of a marginal 0.6% increase in Group revenue to $43.6 million.
In the second quarter, the Group's Fish segment was the main contributor to the increase in revenue, with sales rising 9.2% to nearly $9.0 million, led by the gth in sales of Dragon Fish and the new aquaculture business in Hainan. Operating profit surged to $378,000, thanks to better margins yielded from the Group's self-bred Dragon Fish and ornamental fish exports.
Its Accessories segment, which declined 4.8% to $10.1 million, was impacted by the deferment of purchases by some customers in Malaysia, to take advantage of the abolishment of GST from 1 June 2018. Sales rebounded subsequently later that month. In spite of lower revenue registered, its Accessories segment managed to achieve a 35% rise in operating profit to $583,000, due to the performance of its proprietary brands of innovative products, which yielded better margins.
Qian Hu's Plastics division reported stable performance, with sales of plastics bags dipping marginally by 0.6% to $2.9 million. With the gradual increase in overall operational costs, the Group's Plastics segment reported a 27.0% dip in operating profit to $162,000, despite achieving similar revenue contributions year-on-year.
Kenny Yap, Qian Hu's Executive Chairman and Managing Director, said: “We are pleased that our decision to diversify into the aquaculture business has proven to be the right one. Since its operational launch in 2017, we have expanded our capacity through a second aquaculture farm in Hainan, set up to breed and farm shrimps, as well as embarked on the import and export of edible fish and other seafood products in China and the region.”
“Moving ahead, the Group continues to focus on innovation to expand our product portfolio - particularly in the areas of cutting-edge filtration technology, fish nutrition and genetic breeding of unique varieties of Dragon Fish. We are on track to becoming the industry's most value-adding and productive provider of edible fish, ornamental fish and accessories.”