Oceanus jumps 17.6% after exiting SGX watch list
Singapore
SHARES of Oceanus Group hit a three-month high on Wednesday after it announced its exit from the Singapore Exchange's (SGX) watch list. The group was first put on the list on Dec 14, 2015.
The seafood supplier's counter jumped to a high of 4.2 Singapore cents as at 4.35pm on Wednesday, up 23.5 per cent or 0.8 cent.
It later closed 17.6 per cent or 0.6 cent higher at four cents, with 492 million shares changing hands, making Oceanus the most actively traded by volume. There were no married deals recorded, according to ShareInvestor data.
SGX's financial exit criteria indicate that firms may be removed from the watch list if they record consolidated pre-tax profit for the most recently completed financial year, and post an average daily market capitalisation of at least S$40 million over the last six months.
Oceanus said in a bourse filing before the market opened that it had demonstrated profitability since the second quarter of 2020.
Total revenue for the first half of 2021 stood at S$52.5 million, 6.5 times the S$8 million recorded the year before.
Meanwhile, the group recorded a net profit of S$5 million, seven times the S$700,000 recorded in the year-ago period.
Its total market capitalisation stands at S$971.9 million as at Wednesday.
The group has been granted four extensions to date to exit the watch list. Its fourth extension lasted 19 months until March 1 this year, with effect from the expiry of the third extension on July 31, 2019. It subsequently submitted its application to exit the watch list on April 13, 2021.
On Aug 23, Oceanus said it was in close communication with the SGX RegCo on the exit application. It was also working on providing SGX with further requested information and assurance in relation to its growing distribution business segment.
The group had earlier established its fast-moving consumer groups (FMCG) distribution subsidiary, Season Global Trading (SGT). It added in its Aug 23 announcement that SGT was expected to handle increased trading volumes in the upcoming year.
As part of its exit application, Oceanus provided audited financial statements of SGT for the six-month period starting Jan 1 to June 30, 2021.
The group's statutory auditors also issued an unqualified "clean" audit opinion on said financial statements.
Oceanus also submitted its consolidated segmental profit and loss statement for Jan 1 to June 30 period to SGX for consideration.
The group had recorded a S$4.7 million profit for the period, the highest contributor being its "others" segment at S$4.6 million.
The distribution segment recorded a profit of S$257,000, post-SGT audit. Meanwhile, Oceanus's services segment posted a loss of S$106,000.
Moving forward, Oceanus is integrating technology and digitalising its four pillars - food production, distribution as well as services and innovation.
It has entered into various partnerships and investments in the area of food production in order to develop its first foodtech hub and establish key aquaculture production facilities in the region.
When it comes to distribution, the group is establishing a digital exchange platform to allow businesses to access a portfolio of over 2,000 FMCG products.
Its recently established subsidiary Sino Food Group was also appointed as an approved distributor of China Resources Wufeng, a food enterprise group under state-owned enterprise China Resources (Group).
Oceanus said the digital exchange, Sino Food Group, and other online distribution efforts will amplify its presence on a global scale, bolster food security and boost its revenue.
It will also build its talent, strategic partnerships and identify synergistic technology businesses suitable for acquisition or investment.
