Homegrown premium seafood value chain manager Oceanus Group has reported a net profit of RMB3.6 million ($711,611) for the 1H20 ended June from a net loss of RMB6.2 million over the same period a year ago.

1H20 earnings for the group, however, stood at an RMB4.8 million loss from the earnings of RMB2.7 million a year ago. This was largely due to the RMB11.4 million loss in exchange differences on translation of foreign operations compared to the RMB5.8 million gain in 1H19.

For 2Q20, the group registered a 613% surge in net profit of RMB8.9 million from the RMB1.3 million a year ago, although it saw losses of RMB2.3 million from the earnings of RMB6.3 million in 2Q19.

Revenue for 2Q20 and 1H20 surged 131% and 110% y-o-y to RMB35.9 million and RMB40.4 million respectively. This was mainly due to the expansion of the group’s Distribution segment following the establishment of its new FMCG subsidiary Season Global Trading Pte Ltd, which has contributed RMB33.4 million in revenue in 1H20.

Cost of goods sold for 2Q20 and 1H20 increased 176% and 136% y-o-y to RMB33.2 million and RMB35.5 million respectively.

As a result, total gross profit for 2Q20 fell 24% y-o-y for 2Q20 to RMB2.7 million, while total gross profit for 1H20 registered a 16% y-o-y increase for 1H20 to RMB4.8 million.

The improvement in 1H20 was due to the strategic change of business model in the group’s Aquaculture segment to include farm lease-model as well as contract farming arrangements with other aquaculture farmers in the region.

In the half-year period, Oceanus received a one-off payment for a long-outstanding balance arising from a prior sale of a processing facility in China. This receipt of payment largely contributed to the Group’s other operating income for 1H20 amounting to RMB8.5 million, a 5.6-time increase from the RMB1.5 million in 1H19.

Earnings per share (EPS) for 2Q20 came in at 0.04 RMB cents a share compared to the 0.005 RMB cents a share a year ago.

For 1H20, EPS stood at 0.02 RMB cents a share compared to the loss per share of the same amount.

No dividend has been declared in respect of the group’s losses as at June 30.

For the same period, the group says it is in a positive net asset position of RMB111.8 million.

As at June 30, cash and cash equivalents stood at RMB79.1 million.

"We are pleased that our business transformation has yielded a good harvest and profitability for the Group. We are also encouraged that our collective efforts to build a synergistic business model along the aquaculture chain has gained traction, which will lead us into our next phase of growth. The company is confident that we will achieve our goals by end of the year despite of current global uncertainty," says CEO Peter Koh.

As at 1.09pm, shares in Oceanus are trading flat at 0.8 cents.