For the 3QFY2020 ended Sept 30, Oceanus Group has reported earnings of RMB9.5 million ($1.9 million), from its losses of RMB7.3 million in the year before.
Earnings for the 9MFY2020 stood at RMB4.7 million from the RMB4.5 million loss reported in 9MFY2019.
Earnings per share (EPS) for the 3QFY2020 and 9MFY2020 stood at 0.01 RMB cents and 0.02 RMB cents respectively.
3QFY2020 revenue saw a 626% surge y-o-y to RMB135.0 million, while revenue for the 9MFY2020 registered a 364% surge y-o-y to RMB175.3 million.
The higher revenue represents the highest level of turnover for the group since FY2011, it says in a statement via SGX dated Nov 9.
The increase in revenue is primarily attributable to the increase of rental and contract farming revenue from the group’s aquaculture segment, which contributed RMB11.0 million in revenue for the nine-month period, as well as the expansion of the group’s distribution segment in fast-moving consumer (FMCG) goods, which contributed some RMB155.9 million in revenue for the 9MFY2020.
Cost optimising strategies implemented by the group during the period also saw a reduction in other operating expenses by RMB2.6 million to RMB13.6 million in the nine-month period.
In the 9MFY2020, the group also received one-off proceeds for a long-outstanding balance from a prior sale of a processing facility in China. The proceeds, which were awarded following the winning of a court case, saw the group’s other operating income rise 243% y-o-y to RMB9.3 million for the period.
See: Oceanus posts net profit of RMB3.6 mil for 1H20
As at Sept 30, cash and cash equivalents stood at RMB66.9 million.
Oceanus’ Chief Executive Officer, Peter Koh, said, “During the 2018 Annual General Meeting, after the successful restructuring, we reassured our shareholders that Oceanus is no longer in any danger of sinking. However, we were like a big ship drifting without an engine because the Group did not have a real profitable business. Therefore, we turned our focus to the next step of our growth strategy, towards building our fundamentals in the next three years, bearing in mind that we cannot afford to be a one product, one country company.”
“Three years later, I am pleased to share that we have successfully built our foundation for profitability and growth. Oceanus now harness the synergies from our ecosystem spanning across four pillars of growth, Aquaculture, Distribution, Services, and Innovation, ensuring sustainable long-term growth for our shareholders and stakeholders. As of November 2020, Oceanus has 13 offices spanned over seven countries, with over 2,000 products and service offerings,” he adds.
Oceanus, in Nov 2020, signed an agreement with the Hainan Raffles Group to set up the world’s first Oceanus FoodTech Hub in Hainan, China.
The hub will be located at the Hainan Laocheng Economic Development Zone, China’s fourth comprehensive trade free zone.
Shares in Oceanus closed 0.1 cent higher or 12.5% up at 0.9 cent on Nov 9.
