Oceanus Group’s appointment of Sammul Lin as its group chief operating officer marks the company’s focus on expanding its distribution business which contributes to the bulk of its turnover.
Lin was from Season Hong International Trading, a China-based distribution company that formed a joint venture with Oceanus back in May 2020.
The distribution joint venture, called Season Global Trading, is relied on by Oceanus to decisively reshape its old business of farming abalone into a new and faster-growing one in distribution.
Oceanus, under group CEO Peter Koh, has identified food security as a key plank of the company’s new growth phase.
The company is now in the network expansion phase, constantly talking to potential new suppliers and new customers, including most recently, Brunei and Mexico.
On Aug 14, Oceanus recently reported a loss of $818,000 for 1HFY2022 ended June, from earnings of $5 million in the year earlier period. This is despite revenue growth of 63% y-o-y to a record of $85.7 million.
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Part of the higher costs came from shifting to newer, bigger premises. The move, according to Koh, is to give Oceanus the right platform to move from being a predominantly local enterprise to an aspiring multinational.
As Oceanus was booking the topline from the distribution joint venture in China, it assumed all related costs too, he says.
“If you want to jump further you need to squat first,” reasons Koh.
Interestingly, despite the disruptions to global this couple of years first, by the pandemic and then, geopolitics, Oceanus was able to move ahead and make new wins in its distribution businesses.
For example, it was able to fulfill and successfully collect payment for a shipment of consumables to a Russian buyer. “Wet wipes are not part of the sanctions,” quips Koh.
When large parts of China went into lockdowns, Oceanus was able to use its Hong Kong-based office to consolidate the distribution of a major Australian wine brand under its fold.
According to Koh, this will give Oceanus better pricing power over certain product categories.
The company is mulling further acquisitions to widen its network further, in terms of sources, product categories and markets.
Alcohol, as a product category, accounts for the majority of Oceanus’ turnover from distribution currently, but the company is rapidly expanding the growth in other product categories too.
In the Sept 2 statement announcing Lin’s appointment, Oceanus says that he will oversee and manage the day-to-day operational functions of Oceanus, which include developing, establishing and implementing its operating policies and business plans.
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Lin was previously the company’s director of distribution – a role he held since January 2020 - overseeing the then-fledging distribution business pillar, and playing a pivotal role in its expansion.
Oceanus says that under his tenure as head of the company’s distribution business, he has vastly expanded the company’s portfolio of fast-moving consumer goods (FMCG), which now includes frozen meat, food commodities and agricultural products.
He also established subsidiary Sino Food Group in 2021, which became an approved distributor for China Resources Wufeng, a member of China state-owned enterprise China Resources.
To replace Lin as director of distribution, Oceanus has appointed Shero Dong to this role. According to the company, Dong, an integral part of the distribution team, played a “pivotal role” in securing the distribution rights of the Australian wine brand for China that makes Season Global one of the largest liquor exporters to China.
Thus far this year, Oceanus has made two other key appointments. First, Nick Tan, as head of Oceanus’ immersive media division and Adrian Teo, as head of the digital business division.
Shares of Oceanus closed flat at 1.5 cents on Sep 2.
