Qian Hu Corporation, on Jan 12, announced a 218.4% increase in its earnings to $1.7 million for its FY2021 ended Dec 31, 2021, reversing from its losses of $1.5 million in the year before.
The reversal was mainly attributable to the 819.2% y-o-y surge in pre-tax profit from its fish segment, which also includes its relatively new aquaculture business. The company's original business was to rear ornamental fish.
FY2021 earnings per share (EPS) stood at 1.51 cents on a fully diluted basis, up from the loss per share of 1.28 cents in the FY2020.
The group’s revenue for the full year rose 6.3% y-o-y to $80 million, following the gradual reopening of air traffic, resumption of air freight operations and reopening of borders which benefited the group’s exports of fish and accessories. The group’s fish and accessories segment continues to be its main revenue source, accounting for some 90.4% of its total revenue for the year.
As at Dec 31, 2021, the group’s cash and cash equivalents grew by 13.5% to $21.7 million. The group’s debt-to-equity ratio decreased from 0.56 times in FY2020 to 0.48 times in FY2021 mainly due to the repayment of bank borrowings.
In addition, the directors have proposed a first and final dividend of 0.3 cents per ordinary share, which is subject to approval at the next Annual General Meeting (AGM) to be held on March 30. If approved, the dividend will be disbursed on April 26. Qian Hu paid 0.2 cents for FY2020.
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AI & IoT Investment with AquaEasy
In December 2021, Qian Hu entered into a $1 million unsecured convertible loan agreement with AquaEasy, a unit of the global technology company Bosch Group, which develops artificial intelligence (AI) and Internet of Things (IoT)-based solutions to help shrimp farmers increase productivity, predictivity and implement sustainable aquaculture practices.
Qian Hu also intends to integrate AI solutions into the rest of its aquaculture systems and market the technology to its markets in Malaysia, Thailand, and China. It will also develop a digital platform, using AquaEasy’s cloud-based IoT capabilities, to digitalise the aquaculture supply chain where there will be real-time efficiency and transparency, thereby enhancing traceability and sustainability of local produce. This strategic partnership with Bosch will transform a traditional aquaculture industry into one that is future proof and sustainable.
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Yap Kok Cheng, Qian Hu’s CEO notes how Qian Hu hopes to aggressively expand business, especially its aquaculture, ornamental fish and accessories businesses as they expect the global landscape to further improve.
“We remain focused on our core strengths and long-term prospects of our business,” Yap says. “We believe that we have the right combination of quality products, a strategic roadmap and a strong business network that will continue to drive our performance. Barring unforeseen circumstances, the group expects to grow its revenue while achieving profitability in FY2022.”
Shares in QianHu closed at 22 cents on Jan 12.
