This printed article is located at http://qianhu.listedcompany.com/qa_20180119.html

19 January 2018


Dear friends,

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



Dear Derrick, you wrote:

1) Other than China, will Qian Hu be building its aquaculture business in Singapore as well, contributing to Singapore food sustainability efforts.

2) When do you foresee Qian Hu achieving its yearly net profit of $1 million and possibly $10 million forward.

Hi Derrick,

1) Yes, besides China, we are able to build aquaculture businesses in Indonesia, Malaysia, Thailand and Singapore where we have our own operation.

2) My apologies, we do not do forecasting on our financial results. Our intention is to grow our top and bottom line more aggressively from now on.

Happy New Year!

Kenny the fish



Dear Lee Chong Meng, you wrote:

Hi Kenny,

1) May i know what is the product whose trademarks and formulation rights amounting to $2.5 million was acquired in 4Q2017?

2) Are there any plans to reduce debt soon with interest rates going up?

3) Is the new venture shrimp/prawn farming profit margin better than grouper?

Hi Chong Meng,

1) The payment was for the acquisition of an antibiotics free formula and the use of its trademark.

2) Our debt level is currently acceptable due to our aggressive expansion plans. We note the uptrend in global interest rate but we need the leverage to expand the business. However, our long term goal is to reduce debt and become a debt free company in the future.

3) The nature and cycle of shrimp farming and growing grouper fingerlings are quite different. Shrimp farming is a volume business. The shrimp business can generate consistent revenue and profit. The grouper business turnover cycle is longer. We've just started the first phase of our grouper business and our second farm in the shrimp business has only just begun. We can only compare the margins once we've completed a full cycle of both businesses.

Happy New Year!

Kenny the fish



Dear Teo Soon Chye, you wrote:

Will Qian Hu be considering and looking into building vertical fish farms forward?

Hi Soon Chye,

For other countries without land constraints, having vertical fish farming is not cost effective. Even in Singapore, vertical fish farming has not been proven to be cost effective. There are other ways to maximise resources, vertical farming is only one of them.

Happy New Year!

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 Half Year 2018 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.

Kenny the fish


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