Oceanus

Oceanus: We note that the significant shareholders and insiders, CEO/ Chairman Ng Cher Yew and Non-Executive Director Yu De Hua have been steadily paring down their stakes in the open mkt since at least Aug and continuing into late Oct. Recall Oceanus experienced morbid abalone mortality in 3Q and 4Q11 which wiped out Rmb 350m in fair value of its biological assets, and at the yr end when new mgt took over, the group recorded further losses in fair value of Rmb 696m (from 2Q11) with the biological assets value reduced to Rmb 219m. In addition, new mgt subsequently culled abalones from the remaining biological assets population that were of poorer quality and replaced them with better quality juveniles. Since then, the co hasn't been in good financial health.