News

Proforma Full Year Financial Statement And Dividend Announcement

The Board of Directors of Qian Hu Corporation Limited is pleased to announce the results of the Group and of the Company for the financial year ended 31 December 2000.
These figures have not been audited.

		Group			Company
-	-	S$'000		%	S$'000		%
-	-.	Latest year	Previous year	Change	Latest year	Previous year	Change
1.(a)	Turnover	33,903	26,445	28.2	27,435	20,235	35.6
1.(b)	Investment income	0	0	0	0	0	0
1.(c)	Other income including interest income	8	1	700.0	8	1	700.0
2.(a)	Operating profit before income tax, minority interests, extraordinary items, interest on borrowings, depreciation and amortisation,foreign exchange gain/(loss) and exceptional items	5,150	2,795	84.3	4,040	2,314	74.6
2.(b)(i)	Interest on borrowings	(167)	(152)	9.9	(149)	(145)	2.8
2.(b)(ii)	Depreciation and amortisation	(949)	(841)	12.8	(725)	(622)	16.6
2.(b)(iii)	Foreign exchange gain/(loss)	95	2	N.M	76	2	N.M
2.(c)	Exceptional items	0	0	0	0	0	0
2.(d)	Operating profit before income tax, minority interests and extraordinary items but after interest on borrowings, depreciation and amortisation, foreign exchange gain/(loss) and exceptional items	4,129	1,804	128.9	3,242	1,549	109.3
.	.	Latest year	Previous year	Change	Latest year	Previous year	Change
2.(e)	Income derived from associated companies	8	(7)	N.M	0	0	0
2.(f)	Less income tax	(995)	(488)	103.9	(834)	(438)	90.4
2.(g)(i)	Operating profit after tax before deducting minority interests	3,142	1,309	140.0	2,408	1,111	116.7
2.(g)(ii)	Less minority interests	18	0	N.M	0	0	0
2.(h)	Operating profit after tax attributable to members of the company	3,160	1,309	141.4	2,408	1,111	116.7
2.(i)(i)	Extraordinary items	0	0	0	0	0	0
2.(i)(ii)	Less minority interests	0	0	0	0	0	0
2.(i)(iii)	Extraordinary items attributable to members of the company	0	0	0	0	0	0
2.(i)(iv)	Transfer to/from Exchange Reserve	0	0	0	0	0	0
2.(i)(v)	Transfer to Capital Reserve	0	0	0	0	0	0
2.(i)(vi)	Transfer to Reserve Fund	0	0	0	0	0	0
2.(j)	Operating profit after tax and extraordinary items attributable to members of the company	3,160	1,309	141.4	2,408	1,111	116.7

Group Figures
		Latest year	Previous year
3.(a)	Operating profit [2(g)(i) above] as a percentage of turnover [1(a) above]	9.27%	4.95%
3.(b)	Operating profit [2(h) above] as a percentage of issued capital and reserves at end of year	23.30%	19.70%
3.(c)	Earnings per ordinary share for the year based on 2(h) above :-
3.(c)(i)	Based on existing issued share capital	4.40 cents	1.87 cents
3.(c)(ii)	On a fully diluted basis	4.39 cents	1.87 cents
3.(d)	Earnings per share based on 2(j) above:-
	(i) Based on existing issued share capital	4.40 cents	1.87 cents
	(ii) On a fully diluted basis	4.39 cents	1.87 cents
3.(e)	Net tangible asset backing per ordinary share	15.60 cents	8.66 cents

-	-	Group			Company
-	-	S$'000		%	S$'000		%
-	-	Latest year	Previous year	Change	Latest year	Previous year	Change
-
4.(a)	Sales reported for first half year	17,024	12,859	32.4	13,693	9,737	40.6
4.(b)	Operating profit [2(g)(i) above] reported for first half year	1,763	1,140	54.7	1,466	921	59.2
4.(c)	Sales reported for second half year	16,879	13,586	24.2	13,742	10498	30.9
4.(d)	Operating profit [2(g)(i) above] reported for second half year	1,379	169	716.0	934	190	391.6

NIL

NIL

NIL

NIL

FY 2000
BUSINESS SEGMENTS

(S$'000)	Fish	Accessories	Plastics & others	Eliminations	Total
REVENUE
External sales	16,468	11,988	5,447		33,903
Inter-segment revenue	559	3,141	138	(3,838)	0
Total revenue	17,027	15,129	5,585	(3,838)	33,903
RESULTS
Segment results	2,092	2,056	441	71	4,660
Unallocated expenses					(364)
					_________
					4,296
Share of associates results			8		8
					_________
					4,304
Finanical expenses					(167)
Taxation					(995)
Minority interest					18
					_________
Net profit for the year					3,160
					========
ASSETS and LIABILITIES
Segment assets	9,892	6,649	4,396	0	20,937
Investment in associates					118
Unallocated assets					1,860
Consolidated total assets	9,892	6,649	4,396	0	22,915
Segment liabilities	3,134	2,132	1,698	0	6,964
Unallocated liabilities					2,322
Consolidated total liabilities	3,134	2,132	1,698	0	9,286
OTHER INFORMATION
Capital expenditure	379	343	499	0	1,221
Depreciation & Amortisation	461	344	144	0	949
Non-cash expenses (income)	99	(503)	(11)	0	(415)

(S$'000)	Revenue	Assets	Capital expenditure
Singapore	21,768	19,468	713
Overseas	15,973	3,447	508
Inter-segment elimination	(3,838)	0	0
	33,903	22,915	1,221

(S$'000)	Fish	Accessories	Plastics & others	Eliminations	Total
REVENUE
External sales	12,521	9,632	4,292		26,445
Inter-segment revenue	151	1,850	5	(2,006)	0
Total revenue	12,672	11,482	4,297	(2,006)	26,445
RESULTS
Segment results	677	1,228	310	(23)	2,192
Unallocated expenses					(236)
					_________
					1,956
Share of associates results			(7)		(7)
					_________
					1,949
Finanical expenses					(152)
Taxation					(488)
					_________
Net profit for the year					1,309
					========
ASSETS and LIABILITIES
Segment assets	9,372	4,315	2,824	0	16,511
Investment in associates					115
Unallocated assets					85
Consolidated total assets	9,372	4,315	2,824	0	16,711
Segment liabilities	2,509	1,790	1,285	0	5,584
Unallocated liabilities					4,483
Consolidated total liabilities	2,509	1,790	1,285	0	10,067
OTHER INFORMATION
Capital expenditure	480	475	858	0	1,813
Depreciation & Amortisation	369	368	104	0	841
Non-cash expenses (income)	284	(412)	27	0	(101)

(S$'000)	Revenue	Assets	Capital expenditure
Singapore	17,358	14,261	1,094
Overseas	11,093	2,450	719
Inter-segment elimination	(2,006)	0	0
	26,445	16,711	1,813

Turnover

The turnover for FY 2000 increased by approximately $7.5 million or 28.2% from $26.4 million in FY 1999 to $33.9 million in FY 2000. Turnover for ornamental fish, accessories, and plastics and other business increased by approximately $3.9 million or 31.5%, $2.4 million or 24.5% and $1.2 million or 26.9%, respectively as compared to FY 1999.

The increase in the turnover of ornamental fish is mainly due to export to more countries as well as export to new customers in existing overseas market as a result of greater product awareness though participation in trade shows overseas. In addition, in conjunction with the Agro-Tourism programme of the Singapore Promotion Board, we have set up the House of Dragon Fish in April 2000 for the sale of Dragon Fish and an in-house retail outlet in August 2000 to promote and showcase the higher value ornamental fish.

The increase in the turnover of accessories is as result of the expansion of our customer base, principally in South-east Asia. In addition, we managed to penetrate deeper into the local market by selling our accessories products in supermarkets from the second half of FY 1999. Our constant marketing and advertising effort also contributed to the increase in sale of accessories.

Turnover for plastic and others increased as we managed to expand our distribution channel in Singapore by supplying directly to the end-users instead of solely to wholesalers. In addition, one of our subsidiaries in PRC, which commenced its operations in September 2000, has contributed to the turnover of plastic bags in FY 2000.

Profit before Taxation

Our operating profit increased by $2.4 million or 84.3% to $5.2 million in FY 2000 as compared to FY 1999. Profit before taxation grown by 128.9% from $1.8 million in FY 1999 to $4.1 million in FY 2000.

The increase is mainly due to the improved gross profit margin achieved for both ornamental fish and accessories. We are increasing our focus on sales of ornamental fish to local retailers which commands higher margin and reducing our emphasis in promoting sale of ornamental fish to local exporters which fetches lower margin. In addition, since the second half of FY 1999, we have been selling our aquarium and pet accessories under our house brand as well as other brands of aquarium and pet accessories in supermarkets. As our operating expenses remained relatively stable, our operating profit margin for ornamental fish and accessories increased in line with the increase in gross profit margin.

Operating profit from our plastics and other business improved in FY 2000 due to better margins obtained by selling directly to end-users instead of solely to wholesalers. In addition, we have increased the manufacturing of antiseptic plastic bags used in electronics industry which fetch higher gross profit margin as compared with normal plastic bags.

No item, transaction or event of a material or unusual nature has arisen since the end of the year under review to the date of this report which would have effected materially the results of the Group and of the Company for the financial year ended 31 December 2000.

Our Directors expect to see the Group's overseas subsidiaries expanding at a faster rate than its Singapore operations. That notwithstanding, our Group intends to aggressively develop new markets and expand existing distribution channels for the export of ornamental fish, distribution of aquarium and pet accessories, and plastic bags.

We are in the process of establishing a 50-50 joint venture company, Wan Jiang Technology Co Ltd in Guangzhou, with a Taiwanese partner which will produce our proprietary brands of aquarium and pet accessories such as "Ocean Free", "ARISTO-CATS YI HU", "Nature's Gift" and "Bark" as well as other third-party brands. Initially, Wan Jiang will supply aquarium and pet accessories to our regional subsidiaries, it also intends to widen its distribution network to include countries such as Japan, Germany and United Kingdom.

Elsewhere in the region, the Group plans to increase its market presence for the distribution of pet and aquarium accessories in the region by appointing additional distributors and increasing the number of its sales representatives to cover these markets.

In Singapore, through our division Wan Hu, we have added 10 other retail outlets to our distribution network in Singapore, making it a total of 40 outlets authorised by the Agri-food and Veterinary Authority of Singapore (AVA) to sell Dragon Fish.

On the plastic manufacturing business, our subsidiary, Tat Leng, plans to move its manufacturing facility to a factory in Woodlands, leased from JTC Corporation, in March 2001. By moving to a bigger premises, we expect Tat Leng to increase its production capacity by 50 per cent, when fully phased in by FY 2002.

The positive contributions from our Group's overall manufacturing and distribution operations are expected to boost earnings in FY 2001. Our Directors envisage that our Group's turnover and profit will continue to increase in FY2001.

(a) Present Period
Name of Dividend	First & Final
Dividend Type	Cash
Dividend Rate	5 % per ordinary share less tax
Par value of shares	$0.10
Tax Rate	24.5%
(b) Any dividend declared for the previous corresponding period?		None
(c) Total Annual Dividend
-
-	Latest Year (S$'000)	Previous Year (S$'000)
Ordinary	312	0
Preference	0	0
Total:	312	0

Subject to shareholders' approval in the Annual General Meeting to be held on 16 May 2001, the dividends will be paid on 8 June 2001.

Registrable transfers received by the Company's Registrar, M&C Services Private Limited at 138 Robinson Road #17-00 Hong Leong Centre, Singapore 068906, up to 5 pm on 25 May 2001 will be registered before entitlements to the proposed dividend are determined. The Register of Transfer and the Register of Members of the Company will be closed from 28 May 2001 to 29 May 2001, both dates inclusive, for the preparation of dividend warrants.

NIL

	The Group	The Group	The Company	The Company
	31/12/2000	31/12/1999	31/12/2000	31/12/1999
Fixed assets	6,808,914	6,541,175	5,226,598	5,227,727
Land use rights	268,757	264,114	0	0
Trademarks/customer acquisition cost and product listing fees	251,916	236,667	251,916	236,667
Pre-operating expenses	133,878	78,153	0	0
Investments in subsidiaries	0	0	2,297,752	825,767
Investment in associated company	118,178	115,056	121,771	121,771
Loan to subsidiary (non-trade)	0	0	0	170,000
Advances in lieu of investment	206,160	50,000	206,160	50,000
CURRENT ASSETS
Stocks	4,801,257	3,300,038	2,719,720	2,373,093
Trade debtors	6,211,661	4,657,695	4,611,191	3,392,492
Other debtors, deposits and prepayments	883,206	535,636	518,750	300,684
Due from :
- subsidiaries (trade)	0	0	2,317,007	1,296,485
- subsidiaries (non-trade)	0	0	450,088	57,396
- holding company (non-trade)	0	1,300	0	1,300
- shareholders	0	109,369	0	109,369
Fixed deposits	477,956	38,806	372,099	8,081
Cash and bank balances	2,753,016	782,797	1,680,852	450,254
	15,127,096	9,425,641	12,669,707	7,989,154
CURRENT LIABILITIES
Trade creditors	3,304,106	2,683,575	2,422,354	2,175,439
Bills payable	903,687	317,675	903,689	317,675
Other creditors and accruals	1,933,112	1,778,508	1,409,735	843,939
Hire purchase creditors (current)	191,525	205,680	77,599	108,033
Due to :
- directors	492,594	1,747,736	0	971,273
- subsidiaries (trade)	0	0	1,051,569	597,458
- subsidiaries (non-trade)	0	0	114,567	102,167
- related parties	0	584,921	0	584,921
Bank term loan (current)	200,000	200,000	200,000	200,000
Provision for taxation	1,032,575	491,910	888,000	438,000
Bank overdrafts	0	1,001,834	0	1,001,834
Proposed dividend (net)	312,381	0	312,381	0
	8,369,980	9,011,839	7,379,894	7,340,739
Net Current Assets	6,757,116	413,802	5,289,813	648,415
less :
NON-CURRENT LIABILITIES
Bank term loan (non-current)	595,017	775,762	595,017	775,762
Deferred taxation	81,152	0	72,000	0
Hire purchase creditors (non-current)	239,796	279,769	186,900	119,011
	915,965	1,055,531	853,917	894,773
	13,628,954	6,643,436	12,540,093	6,385,574
Represented by :
Share Capital	8,310,962	5,195,248	8,310,962	5,195,248
Revenue Reserve	3,480,092	1,473,338	2,449,096	1,190,326
Share Premium	1,780,035	0	1,780,035	0
Foreign Currency Translation Reserve	(5,999)	(25,150)	0	0
	13,565,090	6,643,436	12,540,093	6,385,574
Minority Interest	63,864	0	0	0
	13,628,954	6,643,436	12,540,093	6,385,574

	Share Capital	Revenue Reserve	Share Premium	Translation Reserve	Total
Balance as at 1 January 2000	5,195,248	1,473,338	0	(25,150)	6,643,436
Capitalisation for bonus share issue	840,714	(840,714)	0	0	0
Capitalisation of amounts due to related parties & directors	1,000,000	0	0	0	1,000,000
Public issue of ordinary shares	1,275,000	0	2,550,000	0	3,825,000
Share issue expenses	0	0	(769,965)	0	(769,965)
Current year's profit	0	3,159,849	0	0	3,159,849
Proposed dividends (net)	0	(312,381)	0	0	(312,381)
Movement in translation reserve	0	0	0	19,151	19,151
Balance as at 31 December 2000	8,310,962	3,480,092	1,780,035	(5,999)	13,565,090

Note :

The proforma consolidated financial statements of the Group and of the Company for the years ended 31 December 2000 and 31 December 1999 have been prepared on the basis that the Group has been in place throughout the period. In arriving at the Group information, adjustments have been made as considered necessary to present the financial statements on a consistent and comparable basis.

During the year, in preparation for the Initial Public Offering ("IPO") of the Company on the Singapore Exchange, the following changes to the Company's share capital were made:

Authorised

The Company increased its authorised share capital from $4,000,000 divided into 4,000,000 ordinary shares of $1 each to $20,000,000 divided into 20,000,000 ordinary shares of $1 each.

Issued and paid-up

(a) Pursuant to a Group restructuring exercise, the Company issued 1,509,263 ordinary shares of $1 each at $1.20 per share credited as fully paid as consideration to assume the assets, undertakings and business of a division.

(b) Capitalisation of $840,714 from its revenue reserve by way of a bonus issue of 840,714 ordinary shares of $1 each credited as fully paid.

(c) Issued of 1,000,000 ordinary shares of $1 each via the capitalisation of $500,000 each from the amounts due to related parties and amount due to directors respectively.

(c) Sub-division of each of the authorised and issued ordinary share of $1 each into 10 ordinary shares of $0.10 each.

(d) Issued 12,750,000 ordinary shares of $0.10 each fully paid at $0.30 per share for cash pursuant to the IPO of the Company's shares.

During the financial year, pursuant to the approval of the Qian Hu Pre-IPO Share Option Scheme at the Company's EGM on 9 October 2000, options were granted to 93 employees to subscribe for 3,332,000 unissued ordinary shares of $0.10 each in the Company at an exercise price of $0.24 per share, representing a 20% discount to the IPO issue price. As at 31 December 2000, there were 3,332,000 unexercised options for unissued ordinary shares of $0.10 each. At the end of the financial year, none of the share options were exercised pursuant to the terms of the Scheme.

(a) Amount repayable in one year or less, or on demand
As at 31/12/2000		As at 30/6/2000
Secured	Unsecured	Secured	Unsecured
391,525	0	1,631,645	0

As at 31/12/2000

As at 30/6/2000

Secured	Unsecured	Secured	Unsecured
834,813	0	944,184	0

NIL

	31/12/2000	31/12/1999
Cash flows from operating activities
Profit before taxation	4,137,069	1,804,075
Adjustment for :
Share of results from associates	(8,230)	6,715
Amortisation of intangible assets	156,833	119,297
Bad debts written off	0	16,954
Depreciation of fixed assets	792,279	720,728
Fixed assets written off	0	24,671
Transfer of fixed assets	0	1,146,911
Interest expenses	166,775	153,226
Interest income	(8,412)	(1,101)
Profit on disposal of fixed assets	(5,748)	(54,505)
Provision for stock obsolescence written back	(508,657)	(298,566)
Provision for doubtful trade debts	99,241	227,212
Operating profit before working capital changes	4,821,150	3,865,617
(Increase)/Decrease :
Stocks	(992,562)	(2,174,198)
Debtors, deposits & prepayments	(1,950,777)	(5,195,373)
Related companies/parties balances	110,669	(306,038)
Increase/(Decrease) :
Creditors and accruals	828,135	2,694,757
Bills payable	586,009	317,675
Related companies/parties balances	(840,063)	2,218,951
Cash generated from operations	2,562,561	1,421,391
Payment of income tax	(368,347)	(3,910)
Net cash generated from operations	2,194,214	1,417,481
Cash flows from investing activities
Purchase of fixed assets	(1,053,358)	(1,137,408)
Proceeds from disposal of fixed assets	173,289	177,356
Advance in lieu of investment	(206,160)	(50,000)
Payment for intangible assets	(232,449)	(697,267)
Investment in associated company	0	(121,771)
Interest received	8,412	1,101
Net cash used in investing activities	(1,310,266)	(1,827,989)
Cash flows from financing activities
Contribution from minority interest	86,550	0
Proceeds from bank term loan	0	1,000,000
Repayment of bank term loans	(180,745)	(1,352,419)
Repayment of hire purchase creditors	(275,225)	(216,543)
Proceeds from hire purchase	0	675,953
Interest paid	(166,775)	(153,226)
Issue of share capital	3,825,000	0
Share issue expenses	(769,965)	0
Net cash generated from (used in) financing activities	2,518,840	(46,235)
Net effect of exchange rates changes on balances in foreign currencies	8,415	89,781
Net increase (decrease) in cash and cash equivalents	3,411,203	(366,962)
Cash and cash equivalents at beginning of the year	(180,231)	186,731
Cash and cash equivalents at end of the year	3,230,972	(180,231)
Cash and cash equivalents comprises :
Fixed deposits	477,956	38,806
Cash and bank balances	2,753,016	782,797
Bank overdrafts	0	(1,001,834)
	3,230,972	(180,231)

As at 31 December 2000, the Group and the Company have no contingent liabilities.