OceanScape International Limited: FY2025 Financial Analysis

OceanScape International Limited, formerly known as V2Y Corporation Ltd., is a Singapore-listed investment holding company with recent strategic shifts toward renewable energy and commodities trading. The FY2025 audited consolidated financial statements were released with a disclaimer of opinion by the independent auditor, reflecting significant uncertainties and limitations in audit scope. This article provides a deep dive into OceanScape’s recent financial performance, key metrics, exceptional events, and outlook for investors.

Key Financial Metrics

Historical Performance Trends

Over the past two years, OceanScape has experienced deepening losses and consistent deficits in both its group and company-level balance sheets. The company has disposed of its loss-making food & beverage and insurtech businesses during FY2025, reporting a gain on disposal but also significant net losses. The company’s capital deficiency has worsened, with total liabilities exceeding assets by \$2.35 million (up from \$459k last year), and cash flow from operations remains negative.

Errors and Inconsistencies

• Auditor’s Disclaimer: The independent auditor issued a disclaimer of opinion due to significant uncertainties, inability to access records prior to October 2025, and unresolved issues related to going concern, completeness of income and expenses, and discontinued operations.
• Restatements: Prior year figures for investments and receivables were restated due to previously unrecorded amounts and impairment adjustments.
• Comparative Figures: Prior year’s opening balances were not reliably stated, impacting comparability and audit assurance.

Exceptional Earnings and Expenses

• Gain on Disposal: \$522k gain recognized from divestment of discontinued operations.
• Allowance for Expected Credit Loss: \$880k allowance recognized for receivables due from purchasers of the F&B business.
• Legal and Professional Fees: \$785k incurred, a sharp increase, mainly due to disputes and restructuring.

Chairman’s Statement

“The Board is of the opinion that (i) the Group and the Company will be able to continue as going concern, and that the use of the going concern assumption in the preparation of the Financial Statements is appropriate, based on the factors set out in Note 3 to the Financial Statements; and (ii) sufficient information have been disclosed to shareholders, and the Board confirms that all material disclosures relating to the Disclaimer of Opinion have been provided in this announcement.”
– Lang Jinjun, Executive Chairman

The tone of the statement is cautiously optimistic, emphasizing management’s belief in going concern despite material uncertainties flagged by the auditor.

Directors’ Remuneration

• Directors’ Fees: \$119k for FY2025, down from \$160k in FY2024.
• Key Management Compensation: \$656k (including directors’ remuneration and staff costs).

Divestments, Fundraising, and Asset Sales

• Discontinued Operations: F&B and insurtech businesses disposed during FY2025 for \$880k (F&B) and \$1 (insurtech).
• Fundraising: Executive Chairman provided a \$20 million financing facility (\$15m interest-free loan, \$5m convertible loan; \$500k drawn post-year-end).
• Debt Conversion: Agreements with creditors to reduce debt and cash outflow.

Legal Disputes and Whistleblowing Complaint

• A whistleblowing complaint led to regulatory investigations. The current Board found factual inconsistencies and has initiated legal proceedings against the former Board and sponsor for alleged breaches of fiduciary duties and misleading statements.

Corporate Actions and Share Dilution

• Convertible Loan: Potential conversion of \$5m loan could issue up to 793 million shares, triggering a mandatory general offer under Singapore Takeover Code.

Forecasted Events and Outlook

• Strategic diversification into renewable energy and commodities trading, with new subsidiaries established in Singapore and Malaysia.
• Management expects the remaining \$4.5m convertible loan to be drawn within three months from March 2026.

Conclusion and Investor Recommendations

Overall, OceanScape International Limited’s FY2025 performance is weak. The company continues to report material losses, capital deficiency, and negative operating cash flows. The auditor’s disclaimer of opinion highlights persistent uncertainties and unresolved issues, including limited access to records, questionable asset recoverability, and ongoing legal disputes. Although management is pursuing new business streams and has secured substantial credit facilities, the financial outlook remains highly uncertain.

Recommendations:

• If you are currently holding this stock: Consider reducing exposure or closely monitoring developments. The ongoing legal issues, deepening losses, and auditor disclaimer signal elevated risk. Maintain a cautious stance until tangible improvements in core operations or new business ventures materialize.
• If you are not currently holding this stock: Avoid entering until audit issues are resolved, financial stability is restored, and the impact of strategic diversification becomes clearer. OceanScape remains a speculative play with significant downside risk.

Disclaimer: The above recommendations are based strictly on the audited financial report and reflect only the information disclosed therein. Investors should conduct their own due diligence and consider their risk tolerance before making investment decisions. This is not financial advice.

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