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 Derrick Ho, you wrote:
What products do Qian Hu sell to the United States that is made in China? What is your strategy to counter possible US tariffs on China imports?
Hi Derrick,
Happy Chinese New Year!
We export aquarium ornaments to the US from China. The sales are less than 5% of our total revenue. To mitigate the risk of tariffs, we have been exploring opportunities to partner manufacturers from ASEAN countries. To stay ahead, our series of new products must be innovative and appealing to global consumers, rather than relying solely on the U.S. market. Diversifying both our product designs and market reach will ensure sustainable growth for the future.
Thank You!
Best Regards,
Kok Cheng
Dear Valerie Tan, you wrote:
The government's 30 by 30 food security plan doesn't seem to be working due to the high cost of producing food in Singapore. What advice would you give the government to enhance food security as an Aquaculture producer?
Hi Valarie,
Happy Chinese New Year!
The "30 by 30" food security plan faces numerous challenges, but they are not solely due to the high cost of producing food in Singapore. Key issues include the uptake of local produce, building a robust ecosystem, securing government support to lower operational costs and levelling the playing field against cheap imports.
Government intervention is essential to grow this segment effectively as a free-market approach may not suffice. Agriculture in many countries is subsidised, a similar support might be necessary here, even if it involves using taxpayers' funds. Striking a balance will be difficult and require strong determination and strategic planning.
Thank You!
Best Regards,
Kok Cheng
Dear Douglas Ng, you wrote:
You mentioned Malaysia as key to expansion for Qian Hu. Do you plan to invest in the new Johor-Singapore Special Economic Zone in the future?
Hi Douglas,
Happy Chinese New Year!
We currently operate one aquaculture farm and one ornamental fish farm in Johor. Qur Pets and Aquarium distribution operations will soon be relocated to a newly acquired warehouse in Selangor. With the proximity of these facilities to JSE and our Singapore operations, we are well-positioned to explore future expansion opportunities to enhance productivity and efficiency.
We will await greater clarity on JSE's policies and plans before committing to further investments.
Thank You!
Best Regards,
Kok Cheng
Dear Gerald Tang, you wrote:
Will your collaboration with N&E Innovations to produce antimicrobial pet products involve equity investment?
Hi Gerald,
Happy Chinese New Year!
We have signed a licensing agreement with N&E Innovations. Our research and development team are collaborating with them on product development to create sustainable solutions. There is potential for new agreements to emerge as we achieve breakthroughs in our joint R&D efforts.
Thank You!
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 2025 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