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Orcoda Limited (ASX:ODA) is a logistics services company. The company primarily offers supply chain, fleet management solutions, distribution of goods, delivery solutions and other services. Serving customers in Australia, the company is headquartered in Melbourne.
On 11th January 2019, the company announced that the District Court of Gulou in Nanjing made the decision in favour of China Mobile. China Mobile Jiangsu is a related company of China Mobile Limited. This decision made by the Court was in relation to a commercial dispute between the Company and China Mobile Jiangsu. The whole matter was around A$4.1 million unpaid trade debt. The company disagreed with the Court’s decision stating that China Mobile failed to provide evidence supporting the case.
The company later requested aid from the Australian Embassy to China and asked for a meeting with China Mobile. ODA intended to appeal the Court’s decision subject to the outcome of the discussion with China mobile. On 11th January 2019, the company lodged and acknowledged the appeal in the Nanjing Intermediate Court. This decision had an adverse effect on the company’s share price, which nosedived by 2.632% on the given date, i.e. 11th Jan 2019.
On 10th May 2019, ODA announced this incident as an unfortunate event for the company and the appeal submitted to the Nanjing Intermediate Court has been dismissed. Orcoda’s Managing Director, Geoff Jamieson, stated that the company was disappointed with the decision and will not proceed further with the issue. This decision would end a legacy issue from the old SmartTrans.
He added that China has been assuring to treat foreign companies as equal to the local ones in legal matters to encourage foreign investors. As per the advice from the defendant, who is a state-owned enterprise, failed to provide the proof requested by the court; still, they managed to win the case and also defend the filed appeal.
In another news, on 3rd May 2019, the company announced that it had signed an order of under $10,000 for modelling solutions with CEVA Logistics Australia. CEVA is a supply chain management operator with 17 regional clusters and employs roundabout 42,000 people. The order is expected to bind the national partnership further and would add on to the company’s growing Transport Logistics division’s revenue base. ODA has been associated with CEVA since 2015.
Recently the company released its half-yearly report for the period ending 31 December 2018 in February this year. The company’s revenue was up 21% to $1,051k when compared to the corresponding half-year period. The net Loss for the period attributable to members was down 71% to $836k from $2,922k. No dividends were paid during the period. The company’s cash holdings at 31st December 2018 were $801k. Transport Logistics, Resource Logistics and Healthcare Logistics divisions have witnessed an increase in sales.
Share Price Information:
On the technical front, at the time of writing, i.e. on 13th May 2019, the stock of ODA was trading at a price of $0.094, with a market cap of $9.59 million. In the last six months, the stock has delivered a return of -56.28%, while the YTD return stands at -51.79%.
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