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.
Kok Cheng
Dear David Lee, you wrote:
Hi,
How much does the AI system "AquaEasy" cost? How much cost reduction and productivity increase can it deliver? Thank you.
Thank you.
David Lee
Hi David,
We are on a revenue sharing model with AquaEasy where our cost is a percentage share of the output. AquaEasy AI has helped us to improve the feeds conversion rate by 30% and reduction in manpower cost by 35%.
Best Regards,
Kok Cheng
Dear Alex Sim, you wrote:
The S$1 million unsecured convertible loan to AquaEasy. What is the percentage stake if fully converted to AquaEasy shares?
Hi Alex,
The percentage stake will only be known upon the next funding exercise.
Best Regards,
Kok Cheng
Dear John Ng, you wrote:
Think we should focus more on aquaculture rather than hobby fish biz. Perhaps, regarding the latter, just do the science part of the biz, like research and abandon the actual rearing and selling of fancy fish.
Would appreciate comments from management on the future of Qian Hu.
Thanking you for your advice.
John Ng
Hi John,
Ornamental fish and accessories are our core business, accounting for more than 80% of the group's turnover and are growing organically.
We have been focusing on growing our Aquaculture business, building up farms in the region and working on technologies that will accelerate the growth on the Aquaculture business.
We can continue to grow our Ornamental fish business while accelerating the growth of our Aquaculture business.
Best Regards,
Kok Cheng
Dear Yvonne Neo, you wrote:
Your aquaculture business transhipments is doing very well. When will you separate aquaculture in your financial statements from fish which now also includes ornamental fishes? This will give investors a clearer view how the aquaculture business is developing.
Hi Yvonne,
We are transforming some of the Ornamental fish activities to Aquaculture. Once that is completed, we will separate it from the Ornamental fish reporting. We will consider segmenting the Aquaculture business when it accounts for more than 10% of the group's turnover.
Best Regards,
Kok Cheng
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 2022 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 looks forward to our next online Q&A.
Kok Cheng