Competitive Strengths

Our key competitive strengths are as follows:-

1. We have an established track record and name in the industry

   
   Over the last 10 years, we have established a track record and name for our ornamental fish and accessories. We have won awards and prizes which attest to the quality of the ornamental fish supplied or bred by us.
   For full list of Awards, please click here.
   
   

2. We have a committed and experienced management team

   
   We have a team of experienced executive Directors and Executive Officers who have been with us for many years and are committed to the development of our business.

   Each of our executive Directors, Kenny Yap Kim Lee, Alvin Yap Ah Seng and Andy Yap Ah Siong has more than 10 years of experience in the ornamental fish and aquarium and pet accessories industry. They have been with us since its formative years and are responsible for our growth.

   
   
   

3. We have an effective quality management system

   Our quality management system has been built into our operating procedures and management policies. This enables us to have effective control over the risks of contamination of our fish, maintain the standard of the quality of our fish as well as track the sources and quality of our supplies of fish.

   
   ISO 9002

   Qian Hu is the first ornamental fish farm in Singapore to be awarded the ISO 9002 certification for our quality management system in 1996.

   In 1997, our Wan Hu division was awarded the ISO 9002 certification for the trading, breeding and quarantine of Dragon Fish.

   In June 2000, our Yi Hu division was awarded the ISO 9002 certification for the retail and wholesale of our aquarium and pet accessories to the local and export markets.

   Our ISO 9002 certifications for our ornamental fish operations complement the quality requirement for exports of the Accredited Ornamental Fish Exporters Scheme which we have been a member of since 1995. The above scheme is administered by AVA (Agri-Food & Veterinary Authority Of Singapore) to encourage Singapore exporters to export fish that are of high quality and clinically free of disease through the maintenance of high standards of fish, the quality of the packing water used, hygiene standards and the management practices of the exporter.

   In our efforts to continuously seek improvement, we have also attained the Singapore Quality Class membership in May 2001. Singapore Quality Class is a scheme under the PSB's National Best Practice Programme, which gives recognition to organisations that have attained a commendable level of performance in business excellence through benchmarking against world-class performance standards.

   ISO 14001

   In 1998, we achieved the ISO 14001 certification for our environmental management system to preserve natural resources and minimise wastage. Based on our industry knowledge, we believe that we are the first in the ornamental fish industry to obtain such a certification.

   
   
   

4. We are a "one-stop" centre for our customers

   We believe that, based on our industry knowledge, we are the only ornamental fish farm in Singapore that provides a comprehensive "one-stop" shop for local and international customers, with products ranging from ornamental fish to a wide range of aquarium and pet accessories. We believe that we are the only farm in Singapore which is engaged in the farming, quarantine, export and wholesale of ornamental fish as well as breeding of Dragon Fish for commercial sale.

   We supply more than 500 species and varieties of fish to our customers. As a complementary business, we also distribute more than 5,000 types of aquarium and pet accessories. Our customers can therefore obtain most of their ornamental fish and aquarium needs from us.

   Our total turnover breakdown for the 9 months ending September 2002 are as follows:

   - ornamental fish : 40%
   - accessories and : 49%
   - plastics and other activities : 11%

   
   
   
   

5. We have a headstart in the breeding of Dragon Fish

   We believe that we are one of the earliest farms in Singapore to obtain the licence to breed and distribute Dragon Fish. There are presently 6 farms in Singapore registered with AVA for the breeding of Dragon Fish. The entry barriers to the breeding of Dragon Fish are high in view of the knowledge and experience required and the high capital investment involved in the breeding of Dragon Fish, for example, we have been breeding Dragon Fish (through Wan Hu) since 1995 and capitalised 350 pieces of Brooder Stock amounting to $1.5 million as fixed assets in 1999.

   
   We started breeding Dragon Fish for commercial sale in the second half of 2000. We completed the breeding cycle and successfully bred our second generation of Dragon Fish in end 1999. In the second half of 2000, we were licensed by CITES to sell Dragon Fish bred by our farm.

   With effect from FY 2002, the Taiwanese government has allowed the import of licensed Dragon Fish. Since January 2002, we have started export Dragon Fish to Taiwan to take advantage of the change in regulation.

   * Convention on International Trade in Endangered Species of Wild Fauna and Flora.

   
   
   

6. We have a wide distribution network

   
   At present, we distribute our ornamental fish to more than 250 retailers and 50 exporters in Singapore. We also export directly to more than 57 countries in the world and our primary markets are in Singapore, South-east Asia, North Asia (including Japan, Taiwan and China) and Europe (including UK, Germany and France). The Dragon Fish are sold locally and exported to primarily to Japan and Taiwan.

   We also export cold-water ornamental fish from our farm in China, mainly to Germany, Japan, Singapore and France.

   Similarly, we also distribute our aquarium and pet accessories to our primary markets in Singapore, South-east Asia and China.

   We intend to further penetrate into existing and new markets through our established network.

   
   
   

7. Strength in accessories

   The distribution of accessories complements our ornamental fish operations by providing a "one-stop" shop to meet the customers' aquarium needs. We distribute more than 5,000 types of aquarium and pet food/accessories for more than 20 major manufacturers and principals to retailers in mainly Asia and Singapore including supermarkets operated by NTUC FairPrice, Cold Storage and Carrefour.

   In addition, we have developed our own brands of aquarium and pet food/accessories under the name "OCEAN FREE", "BARK" and "ARISTO-CATS YI HU".

   
   
   

8. Commitment to be a high-tech knowledge company

   We recognize that today's dynamic business climate, full of external competitive forces and internal cultural and organizational barriers, would challenge us on several dimensions. To provide us the competitive differentiation, we are committed to the modernization of our operations and business processes, as well as fostering knowledge management initiatives by engaging appropriate technological elements.

   Some of our efforts that have yielded significant results in this aspect are:

   • Our company web site, which serves as a platform for global networking of investors, customers, suppliers, experts, hobbyists, academics and even competitors, enabling them to exchange ideas, knowledge and practices. As a truly international company with presence and associates in all four major continents, we are dedicated to fostering a culture that supports a strong sense of inclusiveness, trust and community.
     
     
   • Automation of the packing process, a critical and complex operation in our supply chain. Modernization by employing advanced mechanical and IT systems, and through enriching knowledge bases, formalizing best practices and deploying the best innovations, has dramatically improved our productivity and quality.
     
     
   • Corporate knowledge management system that practically transfers knowledge from the individual minds holding it to the knowledge network that needs it. By providing an efficient communications infrastructure supported by a high-performance, highly secured network, e-mail and SMS accessibility, it permits rapid access to corporate information, expertise and best practices anytime, worldwide. This comprehensive approach manages our intellectual capital, develops a knowledge culture and instills the practice of a learning corporation.
     
     
   • Qian Hu Voice, a VoiceXML application that combines leading technologies from the Internet and telephony worlds to deliver the latest stock quotes, members' reward points information and a means to provide feedback through telephone. A FIRST in the industry, Qian Hu Voice demonstrates our commitment to bring superior customer services to our customers around-the-clock, wherever they are.
     
     Our efforts effectively provide a blueprint for others in the industry to follow. While technology itself is available to everyone, we have distinctive capabilities to harness and leverage the right tools to unlock the values of technology and our human capital to achieve exceptional results.