Qian Hu Corporation, the ornamental fish service breeder, reported a dip of 46.7% in net profit attributable to shareholders to $532,000 for the second quarter ended 30 June 2012.
Group revenue dipped slightly by 4.3% to $22.4 million due to many Dragon Fish farms being set up in Malaysia, causing an oversupply which resulted in a decline in selling prices.
However, the reduction in selling price was mitigated by revenue contributed by the group’s new subsidiary in Indonesia, and the increase in ornamental fish export to more customers and countries. The group’s revenue from Ornamental Fish sales decreased 16.7% to $10 million in the latest quarter.
Qian Hu also announced that it has entered into an agreement to sell its entire 65% shareholding in Kim Kang Aquaculture Sdn Bhd to Kim Kang’s Managing Director Goh Siak Ngan and his wife Koh Guat Lee. In return, Qian Hu will receive of $9.4 million which will be satisfied by the cash payment of $3.9 million and the transfer of 1,000 tails of Dragon Fish brooder stocks worth $5.5 million.
Kenny Yap, Qian Hu’s Executive Chairman and Managing Director, said: “The disposal of Kim Kang will unlock the value of its assets and allow the Group to rationalise its financial and capital resources as Kim Kang is currently incurring losses and negative cash flow. The cash proceeds from this disposal will be redeployed to reduce our bank borrowings, and to pay a special dividend to our shareholders in September 2013.”
Upon the execution of the agreement, Qian Hu will receive $390,000 and 1,000 tails of brooder stocks. On the first, second, third and fourth anniversaries of the date of the deal, Qian Hu will receive $877,500 each.
Qian Hu is proposing the payment of a special dividend of 0.5 cents per share in September 2013 after the first payment of $877,500 is received.
No comments:
Post a Comment