This printed article is located at http://qianhu.listedcompany.com/qa_20070122.html

Chat with Kenny

Dated 22 January 2007


Hi SI users,

Thanks for your questions posted over the past week. I am happy to answer your questions online. I will repost the questions in blue italics followed by my comments in black.Thanks for your questions posted over the past week. I am happy to answer your questions online. I will repost the questions in blue italics followed by my comments in black.

Kenny the Fish
Liong, you wrote:

Hi Kenny,

Based on last year's annual report, Qianhu has substantial fish farming land in Batu Pahat-Johor, which happened to be one of the worst hit flood areas in Malaysia.

Were the fish farms in any way affected? if not, what steps were taken to manage the risk?

Thanks

Hi Liong,

Happy New Year

During Qian Hu's IPO, I've have been asked by the underwriter about the risk of flooding as it had happened to us once in 1989.

I've told them our present location is much higher than the sea level and if Qian Hu were to be flooded, most of the Singapore will be underwater.

We have flood prevention devices for our ponds. For Batu Pahat, our farms there are based on Singapore design and the location there are much higher than the sea level. So far, no flooding has occured in any of our farms there.

Kenny the Fish
Alvin, you wrote:

Which country attributes the most to your jump in sales profit?

Hi Alvin,

Happy New Year

All the countries we have subsidiaries in contributed to the increase in sales and profit especially China and Malaysia. Our export to more than 65 countries also see double digit growth.

Kenny the Fish
Potential Investor, you wrote:

Hi Kenny,

First, let me congratulate you on a good set of results for FY06. I'm evaluating investing in your company. But before I do so, I'd like to know the following for your organisation moving forward:


Hi Potential Investor,

Happy New Year

Qian Hu does not provide forecast figure and I cannot reveal numbers other than what have been announced. Thus some of your questions cannot not be fully answered.

1) Does QianHu intend to develop a dividend policy in the future

Qian Hu not have a fixed dividend policy. The company strike a balance between cashflow for the company to grow and the need for shareholders to receive return on investment. Whenever possible when the compnay announces profit, dividends will be delcared unless urgent cashflow is needed for that particular year.

2) Do you have additional details on your retail strategy for your business.

We have 12 stores currently gaining experience as we run these chain stores. We are concentrating on the expansion in Malaysia by using self generated cashflow to finance it. We will have another one or two more stores opening this year.

a) Number of stores to be opened in next 2 years.

Let's see how FY07 pans out and then decide on 2008 later on.

b) ROI estimates.

We are unable to comment currently.

c) Profit targets for retail business segment for FY07.

Sensitive figure but will be higher than FY06.

d) Additional countries to open retail outlets.

Our foucs now is in expanding the Malaysia retail chain outlets.

Kenny the Fish
Richard Tan, you wrote:

Good afternoon Mr Yap,

Have the recent spikes in raw materials prices and shipping freight rates affected business in any way?

Hi Richard,

Happy New Year!

Raw materials prices were more volatile in Year 2005 and 2006. This year however with the lower oil prices, the situation has improved.

It has been the practice in our industry to pass the shipping cost to our customers.

Kenny the Fish

Francis, you wrote:

Hi Francis,

Happy New Year

Regarding the recent news of Qian Hu opening more retail stores in M'sia.

1) How is the M'sia market doing compare to S'pore?

In Singapore, we are the industry leader having the biggest market share.

Malaysia having a bigger domestic market than Singapore allows us to breed more dragon fish , run chain stores and do wholesale and export of fishes. This has translated to higher top line and bottom line for Qian Hu.

2) What is the business plan for FY07 in M'sia?

There has been no change in our strategy in Malaysia. We will open one or two more chain stores, breed more dragon fish and continue to export more fish and strengthen our wholesale business.

Thanks.

You're most welcomed!

Kenny the Fish
Tony, you wrote:

Hi Kenny,

Can you share with us what is the business outlook for Qian Hu this year?

Recently, Singapore government is actively looking at Middle East & Vietnam markets. Is Qian Hu making any plans also?

One last question on the sideline. I notice that sometimes you will follow overseas business trips to other countries together with our government officals. Is it by invitation only? If so, what is the criteria to be chosen? Just curious.

Regards,
Tony

Hi Tony,

Happy New Year!

You can find most of the information in our prospect statement when we released our result on Jan 15, 2007.

Qian Hu has always been interested in exploring investment opportunities in emerging markets like the Middle East, Vietnam and India. However, finding the right partners or people in order for the company to venture into these markets takes both time and luck.

Overseas mission trip can be thru invitation or by approaching IE Singapore. I would advise you to contact IE Singapore and indicate to them that you are interested in such mission trips requesting to be on their mailing list. Hope that help!

Kenny the Fish

Thanks again to all the investors who have posted their questions here. I hope I have answered them to your satisfaction. The next chance for us to correspond again will be the time when we announce our First Half Year 2007 results. In the meantime, do feel free to visit our corporate website: http://www.qianhu.com/ and our IR website: http://qianhu.listedcompany.com for more information.

Take care and I look forward to our next online Q&A.

Have a nice day!

Kenny the Fish


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