Financial Results

INTERIM FINANCIAL INFORMATION AS AT AND FOR THE HALF YEAR ENDED 30 JUNE 2025

Financials Archive

Note: Files are in Adobe (PDF) format.
Please download the free Adobe Acrobat Reader to view these documents.

CONSOLIDATED STATEMENT OF PROFIT OR LOSS FOR THE HALF YEAR ENDED 30 JUNE 2025

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE HALF YEAR ENDED 30 JUNE 2025

STATEMENTS OF FINANCIAL POSITION

REVIEW OF GROUP PERFORMANCE

Consolidated Statement of Profit or Loss

Revenue by business segment

6 months ended 30 June 2025 vs 6 months ended 30 June 2024

In the first half of 2025, our fish and accessories segments remained the core drivers of our business, together accounting for 89.2% of total revenue. Overall revenue for the period was $35.1 million, which was comparable to the same period in 2024. While the fish segment recorded healthy growth, this was offset by a decline in revenue contributions from the accessories and plastics segments.

On a geographical basis, revenue from Singapore dipped marginally by approximately 1.2%, while overseas revenue grew by 0.4% in the first half of 2025 as compared to its corresponding period in 2024.

Fish

Notwithstanding the on-going trade tensions and a challenging geopolitical landscape, revenue from our fish exports improved by $0.8 million or 5.3% during the current financial period. Our aquaculture business, supported by a broader range of products and offerings, continued to experience an increase in customer orders. This contributed to the stronger revenue performance of our fish segment in the current financial period as compared to the corresponding period in 2024.

Looking ahead, we remain focused on expanding our ornamental fish exports by diversifying our customer base and extending our global reach through our export hubs in Singapore, Malaysia, Thailand, and Indonesia.

Accessories

Revenue from our accessories business dipped by approximately $0.7 million or 3.9% in the first half of 2025 as compared to the corresponding period in 2024. This was mainly due to weaker and more cautious purchasing sentiment in certain overseas markets, notably the softer order volume from the China domestic market. Customers adopted a more vigilant approach to procurement amid continuous trade disruptions, geopolitical tensions, and economic uncertainties during the current financial period.

Plastics

Our plastics activities recorded a slight decrease of $0.2 million or 4.4% in the current financial period as compared to the corresponding period in 2024. Despite this, we maintained a stable customer base by focusing on generating revenue through the sale of products with sustainable margins, such as essential items that support hygiene protocols in the healthcare and waste management sectors, as well as products serving the hospitality segment

Other income mainly consists of handling income derived from the handling of transshipments in relation to our aquaculture business. The decrease in handling income was in tandem with the decrease in transshipments activities during the current financial period.

The marginal increase of 1.5% in selling and distribution expenses during the current financial period, as compared to the corresponding period in 2024, was driven by heightened marketing and promotional efforts aimed at exploring revenue growth opportunities across key markets.

Overall general and administrative expenses increased by approximately $0.2 million or 1.5% in the first half of 2025, as compared to the corresponding period in 2024, mainly attributed to adverse foreign currency exchange rates, investments in IT infrastructure, and start-up costs associated with newly incorporated business units in Malaysia and Indonesia. These increases were partially offset by lower staff-related expenses and reduced utility costs incurred during the current financial period.

The impairment loss on trade receivables were determined by ascertaining the expected credit losses arising from all possible default events over the expected life of the receivables during the financial period, in accordance with SFRS(I) 9 Financial Instruments.

Despite additional bank borrowings undertaken for the acquisition of a freehold office-cum-warehouse building in Selangor, Malaysia, finance costs decreased by 8.2% due to lower interest rates charged by financial institutions. However, this decrease was offset by a reduction in finance income resulting from the declining interest rate environment during the current financial period. Consequently, net finance costs increased by $15K or 12.6% in the first half of 2025, as compared to the corresponding period in 2024.

The tax expense was mainly in relation to the operating profits registered by the profitable entities within the Group.

Despite the utilisation of available tax credits, the effective tax rate for the first half of 2025 was higher than the amount derived from applying the statutory tax rate of 17% to profit before tax. This was mainly due to losses incurred by certain entities that could not be offset against profits of other companies within the Group, as well as the impact of differing statutory tax rates in the jurisdictions where the Group operates.

Profit before tax by business segment

6 months ended 30 June 2025 vs 6 months ended 30 June 2024

Overall profitability was affected by the reduction in operating profit from our fish/aquaculture and plastics activities, notwithstanding the improvement in profit registered by the accessories segment during the first half of 2025.

Fish

Despite higher revenue recorded in the first half of 2025, lower handling fees derived from transshipment activities in relation to our aquaculture business has sliced off the profitability of this segment by approximately $0.2 million or 11.8%, as compared to the corresponding period in 2024.

Accessories

Notwithstanding a decline in revenue contribution from the accessories business, operating profit for the current financial period was higher as compared to its corresponding period in 2024. This improvement was driven by our ongoing efforts to review and streamline inventory management processes, along with improved margins from the sale of our in-house proprietary products, which collectively enhanced the profitability of the segment.

Plastics

The reduction in profit generated from our plastic activities by $0.1 million or 23.2% in the first half of 2025 as compared to the corresponding period in 2024 was consistent with the decline in revenue, couple with higher raw material costs, increased operational expenses and differences in sales mix recorded during both periods.

Unallocated corporate expenses

Unallocated corporate expenses, comprised staff costs and corporate/administrative expenses related to the oversight of the Group’s local and overseas operations, rose marginally by 2.4% to $1.7 million during the current financial period as compared to the corresponding period in 2024.

Consolidated Statement of Financial Position

Total assets (Group) as at 30 June 2025 were $58.4 million, increased by approximately $0.4 million from $58.0 million as at 31 December 2024.

The increase was due to –

• increase in property, plant and equipment by approximately $1.9 million, primarily due to capital expenditure of approximately $3.2 million incurred for the acquisition of a freehold office-cum-warehouse freehold building in Selangor, Malaysia (the “Property”), along with ongoing enhancements to farms and other facilities in Singapore and overseas, which was partially offset by depreciation charge during the current financial period.
• increase in financial assets at fair value through profit and loss (FVTPL) by $0.1 million arising from the purchase of a life insurance policy for a key management personnel of the Group.

The above increases were partially offset by –

• decrease in inventory by $0.3 million resulting from ongoing efforts to streamline our inventory management process so as to better and effectively manage our inventory holding.
• decrease in trade and other receivables outstanding by $0.8 million, primarily due to a $0.5 million grant reimbursement received following the completion of an IT digitalisation project during the current financial period, coupled with a reduction of approximately $0.3 million in advance payments to suppliers for purchases.
• decrease in cash and cash equivalents of approximately $0.5 million, attributed to payments for purchases, the settlement of trade and non-trade liabilities, bonus payments to employees, and the cash outflows related to the acquisition of the Property during the current financial period.

Total liabilities (Group) as at 30 June 2025 were $17.0 million, increased by approximately $1.0 million from $16.0 million as at 31 December 2024.

The increase was mainly due to an increase in loans and borrowings of approximately $3.0 million as a result of the drawdown of bank borrowings of $3.8 million primarily for the payment of the Property purchased. This was partially offset by regular monthly repayments of lease liabilities during the current financial period.

The above increase was further mitigated by a decrease in trade and other payables of approximately $2.0 million, following the settlement of trade liabilities and payments to non-trade suppliers, as well as a reduction in accrued staff costs as a result of bonus payment made in January 2025.

Consolidated Statement of Cash Flows

Despite a lower profit recorded, the improvement in net cash from operating activities for the first half of 2025, as compared to its corresponding period in 2024, was primarily driven by a reduction in inventory holdings and the receipts of a grant reimbursement during the current financial period. This was partially offset by higher cash outflows for the settlement of trade liabilities and payments to non-trade suppliers.

Net cash used in investing activities was mainly attributable to capital expenditure incurred in relation to the acquisition of the Property, as well as ongoing enhancements made to farms and other facilities in Singapore and overseas. In addition, there was payment made for the purchase of a life insurance policy for a key management personnel of the Group during the current financial period.

Net cash from financing activities was largely generated from the drawdown of bank loans granted by financial institutions mainly to finance the Property acquisition. These inflows were offset by the repayment of lease liabilities, servicing of monthly interest payments, as well as the payment of dividend made to the shareholders of the Company in April 2025.

VARIANCE FROM PROSPECT STATEMENT

There is no variance from the previous prospect statement, included in the full year results announcement for the year ended 31 December 2024, released via the SGXNET on 15 January 2025.

PROSPECTS

Moving into the second half of 2025, Qian Hu envisages continued uncertainty in the global business landscape.

On-going instability in key regions, particularly in the Middle East and Eastern Europe, continues to disrupt commodity markets and fuel volatility in energy prices. Meanwhile, escalating U.S. tariffs have further eroded business confidence and accelerated the fragmentation of global supply chains. These trade measures have introduced greater uncertainty into international markets, especially contributing to a broader economic slowdown in China’s domestic market, as well as our export from China to the United States. Although the shift toward regional sourcing and nearshoring aims to improve resilience, it has introduced new inefficiencies, regulatory complexities, and transitional costs — resulting in increased operational costs for many businesses. Collectively, these developments underscore a global business environment marked by disruption, caution, and the imperative for strategic agility.

In navigating these challenges, Qian Hu remains focus on strengthening its core capabilities. We will continue to drive innovation, expand our diversified product mix, and enhance our resilient distribution network. At the same time, we are leveraging technology and artificial intelligence to boost productivity, streamline operations, and better respond to evolving customer needs. We are also actively pursuing strategic partnerships to unlock new growth opportunities, extend our market reach, and tap into complementary strengths. Our broad product portfolio allows us to adapt swiftly to changing demand patterns, while our regionally diversified distribution channels provide critical stability amid ongoing supply chain disruptions.

Through a steadfast focus on innovation, digitalisation, diversification, and collaboration, Qian Hu is well-positioned to stay agile, competitive, and on a path of sustainable long-term growth in an increasingly complex and rapidly changing global environment.

Barring any unforeseen circumstances, the Group expects to maintain profitability in the second half of 2025.