Qian Hu Corporation

Jan 13, 2011
Qian Hu's profit dips 65% in Q4
By Jonathan Kwok

ORNAMENTAL fish group Qian Hu yesterday reported a 64.8 per cent dip in fourth-quarter net profits to $634,000, as heavy snowfall in North America and Europe last month led to flight cancellations - and lost sales.

Revenue for the period ended Dec 31 fell 6.8 per cent to $22.2 million.

'The fourth quarter was the quarter that really disappointed me and my executives,' said Qian Hu executive chairman Kenny Yap. 'We couldn't have much exports or sales for the last two weeks, which is usually the busiest export season for the company... We couldn't ship out anything.'

Fourth-quarter earnings per share were 0.13 cent, down from 0.43 cent a year earlier. Net asset value per share was 16.08 cents as of Dec 31 last year, compared with 16.4 cents a year earlier.

The weak final quarter dragged down Qian Hu's full-year earnings, which fell 35.7 per cent to $4.2 million as sales dropped 3.6 per cent to $91.2 million.

Dry weather in Singapore and Malaysia in the first four months of the year had affected the production of its self-bred dragon fish. The company added that the anticipated curbs in government spending in Europe also contributed to weaker demand from its markets there, which contribute more than 20 per cent of its ornamental fish revenue.

Qian Hu has proposed a first and final dividend of 0.5 cent per share.

Mr Yap told The Straits Times that he expects higher profits this year, barring unforeseen circumstances. The company statement also noted that operating profit from quarter to quarter could see fluctuations.

Other than dealing in ornamental fish, Qian Hu has businesses in aquarium and pet accessories, and in supplying plastic bags for industrial use. Growth this year should come mainly from organic growth of these businesses, said Mr Yap.

The company took a step towards expansion yesterday when it announced a joint venture with tropical fish group Joe Aquatic Indonesia. Qian Hu will hold 55 per cent of PT Qian Hu Joe Aquatic Indonesia, which will have an initial paid-up capital of 7 billion rupiah (S$1 million).

The joint venture will breed, trade and sell ornamental fish in Indonesia. In 2003, Qian Hu had entered Indonesia via another tie-up, but pulled out within a year owing to 'differences in cultures and values' with the partner. Mr Yap said the firm has gained experience since then, and believes the new partner will be on the same page as it.

He added that the firm will now look at expansion in Vietnam.

Prior to the results announcement yesterday, the counter closed flat at 13 cents.

Sunday, Oct 28, 2012

A Singaporean student is believed to have been killed in a car crash in Warwickshire, England.

He is apparently 24-year-old Roy Yap Tai Yong, nephew of Qian Hu Corp. chairman Kenny Yap.

According to Shin Min Daily News, the accident happened at 1.56am (8.56am Singapore time) last Wednesday morning.

English media reported that a green Mini One had flipped over on an expressway.

It reportedly went off the road and landed in a field nearby, before catching fire. The entire car was on engulfed in flames. The passenger died on the spot.

Rescuers were unable to do anything as the fire was too big.

According to the Chinese daily, Mr Yap was a student at the University of Liverpool when the accident happened. Since the, friends have left condolences on his Facebook page.

Mr Kenny Yap is the executive chairman and managing director of ornamental fish group Qian Hu. It exports ornamental fish and also manufactures and distributes aquarium and pet accessories.

He did not comment on the accident when contacted by The Sunday Times and asked for privacy for his family.

paullim@sph.com.sg

My condolences to the Yap's family.

I had a friend whose son passed away in a oversea car accident too.

Sometimes, life is beyond our control.

For those people who thought that their performance/wealth is accumulated thru/sheer hard work... think about how luck can play a part...

http://infopub.sgx.com/FileOpen/QianHu_3...eID=260009

http://infopub.sgx.com/FileOpen/PressRel...eID=260010

Quote:

Qian Hu posts 3Q net profit of $88,000 on recovery of Dragon Fish business and strong sales of own-brand accessories

• Operating profit from Ornamental Fish jumped 142% y-o-y as prices of Dragon Fish stabilised while enjoying higher sales growth in China. The Group expects revenue and profitability of its Ornamental Fish segment to increase in the coming quarters
• Higher market share of innovative, own-brand products drove operating profit of Accessories up 35.4%
• Special dividend of 0.5 Singapore cents per ordinary share (in relation to the disposal of Kim Kang) will be paid on 21 November 2013

(Not vested)

Thanks for the update. Yet to deep dive into the details but the special dividends are on the cards since January.

In the full year results announcement in Jan 2013, management stated on page 31 the following:

" In addition, in connection with the disposal of Kim Kang, the Directors has recommended the payment of a special dividend of 0.5 Singapore cents per ordinary share (one-tier tax exempt) in October 2013, amounting to a cash payout of approximately $2.3 million."

In general, thinly traded stock, comfortable gearing (mgmt aiming for it to be debt free), room for growth especially into the accessories segment, discount to book value. Mgmt has been pretty transparent especially Kenny the Fish.

Minus special dividend, dividend yield around 2+%, nothing to shout abt but mgmt's intention is for Qian Hu to become a high dividend payout company. how much yield will that translate to depends on price.

Concerns over succession to replace the older family members (pillars behind the business) + land issues are some downside risks.

(vested)

http://www.businesstimes.com.sg/premium/...s-20140929

PUBLISHED SEPTEMBER 29, 2014
TOPLINE
Kenny Yap - The Fish and chips on his shoulders
Qian Hu boss is aiming to prove doubters wrong again. By KENNETH LIM

Mr Yap: Would consider trying to take the company private only if he felt Qian Hu's share price had become 'so much ridiculously low'. - PHOTO: ARTHUR LEE
THE chairman of Qian Hu, Kenny Yap, finds himself once more having to prove the doubters wrong as he guides the fish and aquarium accessories supplier to the verge of its latest transformation. "When we listed the company in 2000, I read some forums and some people criticising the Singapore Exchange for allowing a fishy, small family-run business to be listed on the stock exchange," said Mr Yap, whose nickname is The Fish. "I looked at it, I didn't agree with this kind of criticism ... I want to send the message, it's not about fishy or not fishy, family or non-family, small or big. It's about running a good company."
Research and development focused on improving export market share, growing the casual retail market and improving efficiency are the key thrusts as Qian Hu completes its shift away from an arowana-heavy portfolio, said Mr Yap. And all of that is with the goal of laying the foundation for future generations of the Qian Hu family. "I'm not a contract CEO," Mr Yap said. "I think all the CEOs, if he has a sense of duty, it's to try to build a company that lasts beyond a generation ... I still always think that what we're doing right now is still building a foundation."
For all the accolades that Qian Hu has been receiving for its governance standards, its stock has not exactly been a great investment. Qian Hu listed in 2000 with an initial public offering (IPO) price of 30 Singapore cents per share. At the latest close of 8.3 Singapore cents, Qian Hu stock today trades at a 12 per cent discount to its adjusted IPO price of 9.4 Singapore cents, according to data from Shareinvestor.com. The adjusted IPO price reflects corporate actions over the years.
For the three years to Aug 29, Qian Hu delivered an annual total return rate of about 5.4 per cent, with dividends reinvested in the stock. That is a positive gain on the investment, but pales in comparison with the rest of the market. The FTSE ST All-Share index had an annual total return of 11.9 per cent over the same period, while the blue chip-dominated Straits Times Index offered an 11.2 per cent annual total return.

tough business to be in.
Labour intensive and high risk, as fish stock could die overnight, in unpredictable weather that global warming is causing.
Even if take away the risk of weather condition, the malaysian and indonesian competitors are lower cost producer.
High margin fish like Arowana, their prices also seems to be lower now.

i always thought that rearing fish, especially Long-yu or Luo-han-yu is a "luxury" hobby...
So this falls under the retail/luxury cat.

different... fish dies. And they cost alot, esp Arowana.
There is only that many people who rear these fishes, compared to those who buys LV/Chanel/Gucci.

(30-09-2014, 12:29 PM)kagemusha Wrote: different... fish dies. And they cost alot, esp Arowana.
There is only that many people who rear these fishes, compared to those who buys LV/Chanel/Gucci.

As long as the fish did not die while it is an inventory on Qian Hu's hands, does it matter that the fish dies under the consumer care? probably lead to repeated sales for Qian Hu, and add on accessories to enhance the caring for the new fish. I cannot imagine ppl gg to Qian Hu complaining that their fish die, likely it is due to the customers not taking care of it the right way.

Arrowana is a decent sized fish when fully grown. rarely ppl want to leave their tank investments empty unless they give it up totally.