SGX-listed Oceanus Group, the world’s largest land-based abalone producer, posted a net profit to RMB217.5 million ($41.9 million) in the nine months ended 30 September 2010 (9M2010), lower than the RMB 280.2 million posted in 9M2009.

The drop was largely due to a net loss of RMB 36.7 million incurred by its F&B segment which included an impairment charge of RMB 14.3 million arising from closure of six restaurants, notional interest of RMB27.4 million in 9M2010 in respect of the convertible bonds, and to a transition in the business model from heavy-reliance on live abalone sales to a mix of live and processed abalones sales resulting in a lengthened sales cycle.

Total sales for 9M2010 improved by 26% to RMB297.9 million on the back of strong sales of processed abalones and F&B which rose by 289% and 159% to RMB50.7 million and RMB56.0 million respectively.