Faucet

Ocean Commerce Public Company Limited (OCEAN)’s Board of Directors has resolved to approve the discontinuation of products in the manufacturing business of accessories and faucet products as operating results have been declining. In 2017, OCEAN’s total revenue amounted to ฿294 million, which was decreased from ฿332 million in 2016 or representing a decrease by 11%, thereby causing OCEAN’s net profits in 2017 to face a loss of ฿32 million, which was decreased from ฿2 million in 2016. OCEAN sees that should it wishes to continue the operation of the manufacturing business in the future, OCEAN is required to bear such loss, in which case, the revenues from such business are likely to reduce further, which would result in such business being at a loss. Therefore, the company foresees that it is not worthwhile to continue the operation of the manufacturing business, and that the percentage of revenues from this sector accounted for 4.4 – 9.6% of the total revenues, and the gross operating profits accounted for 1 – 5 of the total gross operating profits, and as such, the discontinuation will not affect the overall operating results, whereby the Company will continue to focus on its trading business of accessories and faucet products. Moreover, OCEAN has started the business of trading crude palm oil type A (CPOA) since October 2018, which will help boost the revenues and ensure OCEAN’s constant operating results. Regarding to the discontinuation in manufacturing business of accessories and faucet products and to continue its trading business of accessories and faucet products, the company foresees that its liquidity is a key factor to carry out the trading business of accessories and faucet products. In other words, should OCEAN’s liquidity remain high, it will be able to purchase more goods for sale, in which case, OCEAN will act as an intermediary to generate profits more from price margins. The Board of Directors also resolved to grant approval to propose the extraordinary general meeting of shareholders to consider and approve the increase of OCEAN’s registered capital in the amount of ฿150,806,129.75 from the existing registered capital of ฿301,612,259.75 to be the registered capital of ฿452,418,389.50. The increase on registered capital will be done by issuing not exceeding 603,224,519 newly issued ordinary shares at the par value of ฿0.25/share to accommodate the exercise of the warrants to purchase OCEAN’s newly issued ordinary shares issued and allocated to the company’s existing shareholders according to their shareholding percentages (Right Offering).