Ornamental fish service breeder Qian Hu Corporation reported a jump of 17.7% in third quarter earnings to $93,000 from a year ago as operating profitability for the fish and plastic segments surged.
Qian Hu says group revenue for the three months to Sept dropped 5.8% on-year to $17.8 million due to the “persistently sluggish global economy”.
Ornamental fish sales slipped 17.6% to $6.9 million due to the depressed markets in the Eurozone and Russia while sales of accessories declined 13.7% to $8.2 million largely due to the reluctance by retailers to stock up on new products.
However, operating profitability of the group’s ornamental fish segment surged 21.8% to $318,000, thanks to a higher-margin sales mix in fish exports.
Operating profit for the group’s plastics segment also jumped 59.8% to $155,000, following the stabilisation of selling prices as well as prices of plastic resins which drove margins upwards.
Looking ahead, Kenny Yap, Qian Hu’s Executive Chairman and Managing Director, expects the headwinds of economic volatility and market uncertainty to persist, exacerbated by the variability of regional and international currencies.
“But we are meeting these challenges head-on with our unwavering commitment to transform Qian Hu into an innovative ornamental fish company, focusing on cutting-edge product developments in filtration, fish nutrition and genetic-breeding of unique Dragon Fish. We will also focus on building a strong pipeline of innovative, higher-margin products, while keeping a tight rein on our overheads and other operating expenses,” says Yap.
Qian Hu closed 1.8% lower at 16.5 cents today.
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Qian Hu says group revenue for the three months to Sept dropped 5.8% on-year to $17.8 million due to the “persistently sluggish global economy”.
Ornamental fish sales slipped 17.6% to $6.9 million due to the depressed markets in the Eurozone and Russia while sales of accessories declined 13.7% to $8.2 million largely due to the reluctance by retailers to stock up on new products.
However, operating profitability of the group’s ornamental fish segment surged 21.8% to $318,000, thanks to a higher-margin sales mix in fish exports.
Operating profit for the group’s plastics segment also jumped 59.8% to $155,000, following the stabilisation of selling prices as well as prices of plastic resins which drove margins upwards.
Looking ahead, Kenny Yap, Qian Hu’s Executive Chairman and Managing Director, expects the headwinds of economic volatility and market uncertainty to persist, exacerbated by the variability of regional and international currencies.
“But we are meeting these challenges head-on with our unwavering commitment to transform Qian Hu into an innovative ornamental fish company, focusing on cutting-edge product developments in filtration, fish nutrition and genetic-breeding of unique Dragon Fish. We will also focus on building a strong pipeline of innovative, higher-margin products, while keeping a tight rein on our overheads and other operating expenses,” says Yap.
Qian Hu closed 1.8% lower at 16.5 cents today.
Click Here To Register For Free Trial Services OR Give A Missed Call : +6531581402 Follow Us On Twitter : www.twitter.com/epicresearchsg Like Us On Facebook : www.facebook.com/EpicResearchSingapore Need Any Assistance Feel Free To Mail Us at : info@epicresearch.sg
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