Homegrown food tech company Oceanus has existed the SGX Watch-list with effect from Sept 29, 2021.
The announcement comes after the company submitted an application to exit the Watch-list on April 13.
According to the filing put up by Oceanus, the company’s distribution business has registered “significant growth” in 2021, in line with its strategy to build its global supply chain capabilities.
“Today we see the fruition of my promise to all stakeholders. When I joined the Oceanus family six years ago, I made a promise to all shareholders to clean up our operations, pull the company out of the red and set it on a path of growth,” declares Oceanus’ CEO Peter Koh.
“As we conclude our build up phase, we have truly transformed a debt-ridden and distressed company into one with sustainable profit centres and a strong foundation to support long-term growth,” he adds.
Oceanus’ exit represents the first time in the history of the SGX-ST, where a company has successfully achieved a “complete turnaround through concerted restructuring efforts”, says Koh.
Oceanus has been consistently profitable since the 2QFY2020 ended June. The company has also reported a record-high turnover and net profit in the 1HFY2021, with total revenue at $52.5 million, 6.5 times higher y-o-y.
1HFY2021 net profit rose close to seven times to $5.0 million.
“Indeed, we have consistently delivered profitability since last year, driven by our four synergistic growth pillars. We are well-placed to continue our growth path to drive further business expansion through our food production, distribution, services and innovation divisions by tapping on strategic partnerships, and the creation of new revenue streams,” says Koh.
In the same statement, Oceanus says it is looking to integrate technology and digitalise its four pillars for the next phase of growth.
Under its food production pillar, the company has entered into various partnerships and investments to develop the first Oceanus FoodTech Hub and establish key aquaculture production facilities in the region.
With its distribution pillar, Oceanus is in the process of establishing a digital exchange platform, where businesses can access a portfolio of over 2,000 fast moving consumer goods (FCMG) products.
Its recently-established subsidiary, Sino Food Group, was appointed as an approved distributor of China Resources Wufeng, a food enterprise group under China Resources. China Resources is one of the Fortune Global 500 companies and a state-owned enterprise.
Within the distribution business, Oceanus has recently formed a Singapore Farmer (SG Farmer) website, where its own brand of products, along with other FCMG offerings are sold in Singapore and China.
The company adds that it will be looking to cultivate strategic partners and identify “synergistic technology businesses suitable for acquisition or investment”.
“Together with the board, we want to thank our shareholders, business partners and friends for the trust placed in us and will continue to stay true to our promise in building sustainable value for all stakeholders. We also wish to thank our management team and staff for their resilience, commitment and hard work,” says Koh.
“I am excited as I look forward to the new future of Oceanus Group. Even as my earlier promise has been fulfilled, we will not simply rest on our laurels. We will push on to harness the best of technology and digitalise our business, and also seek the patience from our stakeholders, for a more sustainable future,” he adds.
Shares in Oceanus closed flat at 3.4 cents on Sept 28.
Photo: Oceanus
