Qian Hu's profit dives 84.4% on the back of oversupply of ornamental fish

FISH breeder Qian Hu Corporation's second-quarter net profit fell 84.4 per cent to $83,000 largely due to the intense price competition caused by the oversupply of dragon fish.

Revenue for the three months ended June 30 slid 5.2 per cent to $21.2 million from the same period last year.

The company has been hit with intense price competition for the ornamental fish from the second half of last year, said executive chairman and managing director Kenny Yap.

But business seems to be picking up as second-quarter profit for live fish increased by 86.8 per cent to $226,000 compared to the first-quarter this year.

"We are pleased to see an improvement in our ornamental fish results quarter-on-quarter and expect this to grow further in the second half of the year," said Mr Yap.

The breeding and distribution of live fish is one of three revenue drivers. The other two include the sale and distribution of aquarium and pet accessories such as tanks, pumps and fish food, as well as that of plastic bags and electronics.

At a results briefing Monday evening, Mr Yap said he hopes to grow the accessories arm of the business to "four or five times the size of the live fish business".

Earnings per share fell to 0.02 cent, down from 0.11 cent for the second quarter last year. Its net asset value per share also dropped to 11.77 cents as at Jun 30 from 11.92 cents as at Dec 31 last year.

Qian Hu shares closed down 0.2 cents to 9 cents.