Hot weather in China hammered demand in the third quarter and sent earnings tumbling at Qian Hu Corp.
The ornamental fish firm recorded net profit of $79,000 for the three months to Sept 30, down 10.2 per cent from a year earlier.
Revenue came in at $20.5 million, largely unchanged from last year.
It reported yesterday that "lower demand for dragon fish in China during the sweltering summer months" sent ornamental fish sales down 3 per cent to $8.4 million for the third quarter.
Revenue for its plastics business dipped 2.6 per cent to $2.7 million but its accessories unit grew 3.3 per cent to $9.5 million.
This was "thanks to strong export orders, a different sales mix and continued strong support for its proprietary brands of innovative products", the firm said.
Earnings fell 7.3 per cent to $216,000 for the nine months to Sept 30 while revenue rose 0.5 per cent to $62.2 million.
Executive chairman and managing director Kenny Yap noted that the third quarter was "usually a low season for our ornamental fish export business, as people in Europe typically take their vacations during the summer months".
"In China, our customers were reluctant to hold more dragon fish inventory because of the severe hot climate this summer."
Mr Yap added that the company should see "a sustainable growth in its ornamental fish business in the quarters ahead".
It plans to push out new "revolutionary products that will woo both Asian and international buyers" at the China International Pet Show in Beijing next month while "boosting efficiency and productivity with advanced technology".
"Our business model remains robust and the diversity of our business has put us in good standing," said Mr Yap.
"We will be more aggressive in the strengthening of our fundamentals and financial position as well as in enhancing our ability to generate cash."
He added that the company will "continue to grow its revenue and be profitable" this financial year.
Earnings per share were unchanged at 0.02 cents while net asset value per share dropped from 11.23 cents as at Dec 31 to 11.20 cents.
This article was first published on Oct 16, 2014.
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