Qian Hu earnings dive on higher raw material costs

SINGAPORE - Higher raw material costs and foreign exchange losses weighed down earnings at ornamental fish seller Qian Hu Corporation in the second quarter.

Net profit plunged 73.5 per cent from the preceding quarter to $22,000 in the three months to June 30, the firm said in a Singapore Exchange filing on Monday.

Revenue dipped marginally to $21.1 million, 0.6 per cent lower compared with the previous year.

Qian Hu said in a statement that higher costs of raw materials such as resin had led it to raise the prices of its plastics products. As a result, sales of those items fell 30.6 per cent in the quarter.

It also suffered a foreign exchange loss from its ornamental fish business due to the weakening of the yuan and Indonesian rupiah in April through June, it added.

However, it said that was partly offset by revenue from its key business segments, ornamental fish and accessories.

It sold more dragon fish in the quarter to its northeast Asian markets, particularly China, it said.

Its earnings per share came in at zero for the quarter due to the low profit, while its net asset value was 11.15 cents per share as at June 30.

Qian Hu shares closed flat at 8.4 cents on Monday.