Latest / Investor Exchange / Oceanscape International's Entire Senior Management Team Resigns & The Company Makes A Shocking Pivot In 3QFY2025

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Oceanscape International's Entire Senior Management Team Resigns & The Company Makes A Shocking Pivot In 3QFY2025 · Investor Exchange

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  Time for another Investor Exchange podcast. Here are your hosts, Matt and Sally.
• 0:08
  Okay, let's unpack this. We are doing a deep dive today into,
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  well, a story of corporate desperation, total reinvention, and a really high
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  stakes bet on the future.
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  We are. The company is Oceanscape International Limited.
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  You might have known them just a few months ago as V2Y Corporation Limited.
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  And we're pulling apart their condensed Interim Financial Statements.
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  This is for the three and nine months ended September 30, 2025.
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  And our mission here is to get past the raw data pretty quickly,
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  you know, to understand the true state of play.
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  Why did the financial performance just crater? How did they stop the bleeding?
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  And what did these dizzying strategic shifts actually mean for their survival?
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  I think before we even look at a single number, there's this massive shadow
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  hanging over these statements. It's the critical context. Right.
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  Heading into this period, the audit from last year, FY 2024,
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  it contained two of the most serious warnings you can find in corporate finance.
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  The first was a disclaimer of opinion from the auditors.
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  And the second was a note on a material uncertainty relating to going concern.
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  And a disclaimer of opinion is, I mean, that's essentially the auditor saying what?
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  It's the auditor saying we couldn't get enough information or we couldn't trust
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  the historical figures enough to even form an opinion. it is the highest form of audit failure.
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  So the company started this period not just in financial trouble,
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  but fundamentally questioned.
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  The entire deep dive we're doing is about them trying to escape that narrative.
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  Desperately trying to escape it. Okay, so let's start with what was left of the old business.
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  The continuing operations, which was mainly their insert tech segment.
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  If you're looking for revenue here, you're going to be disappointed.
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  Staggeringly disappointed. I mean, if you focus just on the third quarter of
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  2025, revenue from continuing operations was zero dollars.
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  Zero. A 100% drop from the S-73K they managed in the same quarter last year.
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  The document doesn't even hide it.
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  It flat out says the insert tech business was inactive.
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  An active listed company with zero revenue from its core business.
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  And for the full nine-month period, it's not much better.
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  Continuing revenue dropped 91%. Yeah, from S-211,000 down to just $19,000.
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  So you'd think, logically, with the business basically shut down,
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  the losses would shrink. but they didn't.
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  That's the part that's so interesting. They got bigger. A lot bigger.
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  That's where the financial agony becomes really clear.
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  Despite revenue vanishing, the loss before tax from continuing operations grew
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  by 45% for that nine-month period.
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  It went from S744,000 to over a million dollars.
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  Yeah. S1.079 million dollars.
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  So the business stood still, but the losses accelerated.
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  So the big question is, where did that extra quarter million dollars in loss
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  come from if they weren't selling anything? You have to look at the spending.
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  And it was almost entirely driven by one line item, administrative expenses.
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  For the nine-month period, those jumped by nearly 28%. And when you dig in,
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  it's not like they were spending on marketing or R&D.
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  The major driver was higher legal and professional fees. Exactly.
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  I mean, that is a staggering implication.
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  The real continuing operation of V2I wasn't insert tech. It was the cost of
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  restructuring. It was the lawyers.
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  It was cleaning up the mess. They were spending more aggressively on sorting
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  out their severe financial and audit problems than they were losing on the failed
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  operations themselves.
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  The company was just hemorrhaging cash to maintain its corporate structure.
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  And that, of course, required short-term cash, which brings us to their finance costs.
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  Those spiked 271%. That was mainly from interest on a shareholder loan they got in June, right?
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  Yeah, and while they repaid it really quickly, by August, it just shows you
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  they were paying a premium just for access to, well, temporary life support.
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  And when you tally all of this up, the balance sheet as of September 30th,
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  that's the ultimate marker of the crisis.
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  The group is running with accumulated losses now totaling $6.3 million.
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  And as of that date, they were operating with negative equity of $789K.
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  So technically insolvent for months. That's the crisis point.
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  That is what forced the radical intervention that came next.
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  Okay, so here's where it gets really interesting.
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  The house is on fire. The only path forward is, like you said,
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  surgical retreat, triage.
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  This next section is about how they jettisoned the anchors of the old business.
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  The biggest move they made to stabilize the ship was the disposal of three loss-making subsidiaries.
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  This was in the food and beverage and trading segments. Right.
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  They completed that in the second quarter of 2025. Just started carving out
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  the parts of the business that were draining cash.
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  And the physical impact of that on their books is enormous.
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  We're talking about a company that just shrank almost overnight. Right.
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  Non-current assets fell from S2.3 million dollars at the end of 2024 to just
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  S314,000 dollars by September.
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  That's a virtual demolition. To put that in visual terms for you,
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  that's the physical infrastructure being carved out.
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  It was a S1.4 million dollar reduction in right of use assets.
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  So the leases for food stalls, restaurants. All of it.
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  Plus another S378,000 dollars in print and equipment. That's the kitchen gear,
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  the fittings, everything. It just vanished from the balance sheet.
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  And with it, the liabilities disappeared, too.
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  They shed over S1.3 million dollars in lease liabilities. They got smaller, but they got healthier.
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  In a way, yes. But let's look at the cash flow paradox this created.
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  Cash used in operating activities actually rose. It went up to S1.286 million
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  dollars used. Right, which is weird.
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  If they dumped the biggest loss makers, why did the hole get deeper?
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  And this is a great point. It shows the pressure they were under.
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  The commentary says this was mainly because they hadn't yet received the full
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  sale proceeds from the F&B disposal.
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  So they were so desperate to get the deal done, they agreed to terms that didn't
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  give them immediate cash.
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  It implies a certain urgency to complete the deal, even if the terms weren't
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  perfect for their immediate liquidity.
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  But the disposal served another vital purpose. It helped them address that going
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  concern issue from the auditor.
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  Management had four pillars to argue for their survival. They absolutely needed these four points.
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  First, as you said, the completed disposal of the F&B segment.
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  Second was securing debt conversion agreements with creditors.
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  Swapping debt for equity.
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  Exactly, which reduces cash outflow.
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  Third, the commitment to pursue new profitable business. But the fourth factor
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  is the one that changes everything. This is the big one.
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  Securing an enormous financial commitment of up to S-20 million dollars from
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  the new interim executive chairman, Mr. Lang Gingin.
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  Wait, 20 million? 20 million dollars.
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  That is the single most compelling piece of information in this entire report. Wow.
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  And that's breaking down into what? A loan? An interest-free loan of up to S-15
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  million dollars and an interest-free convertible loan of up to five million dollars.
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  It is a massive financial vote of confidence. So despite the negative equity,
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  despite the audit disclaimer, the new leadership is willing to bankroll the group's entire future.
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  That infusion of capital essentially replaces the material uncertainty with a concrete lifeline.
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  Which lets us pivot hard to the future. Because the transition described after
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  the reporting period is just astonishing.
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  We're not talking about triage anymore. This is a full-blown high-speed corporate rebirth.
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  And started with a management earthquake in October 2025.
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  This part is just dramatic.
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  Immediately after the reporting period, the company's leadership evaporated.
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  The CEO, the executive director, the chairman.
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  And the group financial controller, the key financial person.
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  All resigned, almost at the same time, within a 10-day window in October.
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  And a whole new team, led by Mr. Lang Jinjin, stepped in immediately.
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  You can almost feel the chair is still warm. And crucially, the new management
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  team stated in the documents that, Due to the sudden nature of it all,
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  they were not provided with the full records of the company.
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  Including the financial records. Yes.
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  It's extraordinary to see that published in an official release.
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  They're essentially admitting they've prepared these interim statements on a best-efforts basis.
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  They're scrambling to recover historical information while executing a massive pivot.
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  It's like taking over a construction project and finding out the blueprints
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  are missing. And despite that chaos, the new direction is radical.
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  Shareholders approved a massive diversification on November 25th.
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  The group is shedding its entire legacy identity.
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  They're transforming into a new enterprise focused on high-capital industrial
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  sectors. Renewable and sustainable energy generation.
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  And commodity trading, mainly metal ores. The name changed to Oceanscape International Limited.
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  It signals a complete break from the past. We means the last piece of the old
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  business has to go. The remaining continuing operations.
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  Insert tech. The segment that generated zero revenue in Q3. That's the one.
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  It's now officially slated for disposal.
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  Why? Because it's lost money for three straight years. This seals the transformation.
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  Soon, there will be nothing left of the old V2Y corporation.
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  And this contrast is so vital for you to understand.
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  They are moving from, you know, low-capital local digital businesses like Incertech and F&D.
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  To high-capital global-scale industrial operations.
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  And that is why that S20 million dollar lifeline is so critical.
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  It's the entry ticket into this new world. And the new management didn't waste a second.
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  We already have details of their first proposed deals, announced in early December.
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  They are moving fast. On the renewable energy side, they announced a proposed
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  purchase of solar panels.
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  For commodities, a proposed supply of iron ore fines.
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  But the most ambitious one is the bid for the Shandong Wind Power Project.
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  Right. Which requires an estimated 10% capital contribution of RMB 24 million.
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  That is $4.5 million in one shot. An incredible amount for a company that was
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  running on negative equity just weeks before.
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  Management's vision is clear, though. They see this as a transformational opportunity
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  designed to de-risk the group's operational profile.
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  They are betting that size and scale in these new sectors will give them the
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  resilience the old model never could.
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  These financial statements show a company clearing the decks to survive.
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  But the context around them reveals this high-stakes, rapid-fire corporate transition.
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  So what does this all mean for you listening to this? You've just witnessed
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  a complete corporate rebirth.
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  We watched a company go from being defined by a failing Incertech business and
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  an auditor's disclaimer to becoming highly capitalized through a massive injection of confidence.
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  And now attempting to become a major player in renewable energy and commodities
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  trading, all within a few chaotic months.
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  They surgically removed the past, injected a huge amount of money and hope into
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  the future, and now they're just racing to execute this massive industrial pivot.
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  The knowledge you have now isn't just a financial snapshot. It's really a front
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  row seat to one of the most drastic corporate turnarounds you could imagine.
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  So the company is plunging into these capital-intensive new sectors,
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  backed by F-20 million dollars, bud.
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  And this is the key. operating under extreme organizational uncertainty.
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  The ultimate knowledge you gain here is realizing that financial stability isn't the only risk.
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  The question is, when a company undergoes a complete rebirth this fast,
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  operating on a best efforts basis with incomplete records.
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  Can they even maintain the necessary operational integrity and accountability
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  to successfully pull off a transformation this drastic?