$0.57—Stale · unknown old
OTC • Last print unknown ago
$0.57—Stale · unknown old
Unknown Executive: Good morning, everyone, in Europe. Good afternoon to those in Asia. Thank you for joining Jinhui Shipping and Transportation Limited Q2 and First Half 2026 financial results. Can everyone hear me? Sorry, there are other people joining, so I'll accept... I trust that you've all had a look at the financial results announcement, and you have a copy, and I've shared the presentation on the screen. So going through the highlights of current quarter. For Q2, we recorded USD 36 million for revenue, EBITDA of USD 17 million and a net profit for the quarter, USD 5 million. Basic earnings per share, USD 0.048 for Q2. For the first half of 2026, we recorded a revenue of USD 69 million, EBITDA of USD 34 million, a net profit of $10 million, basic earnings per share, 0.088 and a gearing ratio as of the end of June, 7%. Compared to Q2 2025, Q2 2026 recorded a slight decrease. This should be a 9% decrease. This should be quite apparent because we -- there's a reduction in the number of ships we sold some secondhand ships. Net profit, $5.3 million in Q2 2026, which represents a 374% quarter-on-quarter increase. Average daily TCE stands in Q2 2026, USD 18,015 per day, which is a 30% increase compared to Q2 2025 number. For the first half, first half 2026 revenue compared to first half 2025 is a 13% drop. Again, this is due to the lower number of vessels in our fleet, given that we've sold some. Net profit, $9.6 million, 37% drop compared to the first half of 2025. Average TCE in the first half 2026, USD 17,150 per day, a 30% increase compared to the first half in 2025. As I walk through this. First of all, shipping-related expense fell by $7.96 million to $14.9 million this quarter, primarily due to the decrease in the number of vessels owned by the vessels Group following the disposal of 8 vessels last year as well as a decline in higher payments resulting from the short-term charter leases amounted to $1.3 million during the quarter compared to $2.2 million in the same period last year. Daily running costs of owned vessels decreased from Q2 2025 of $6,719 to Q2 2026 of USD 5,407 per day, a decrease of 20%. Finance costs decreased from $2.1 million in Q2 2025 to USD 1.8 million in Q2 2026, primarily attributable to the lower market interest rates and lower level of bank and bank borrowings. CapEx of $11.8 million incurred in Q2 2026, mainly for installments paid for newbuildings and dry docking costs. During the current quarter, the group repaid bank loan and other borrowings in an aggregated amount of approximately USD 10 million. As of the end of June, total secured borrowings decreased to USD 98 million with current portion of USD 9 million and noncurrent portion of USD 89 million. This is -- should be a self-explanatory summary of our financials. Our total assets in Q2 2026 stands at $529 million to round it up. Total equity, $383.6 million. Total borrowings, USD 98.3 million. Current ratio of 3.56:1, gearing of 7% -- our current available liquidity is USD 70.6 million. Of course, this does not include our financial arrangement for our newbuildings because it's just pure cash, cash and cash equivalents. Return on equity, 1.37%. Currently, we have 20 vessels amounts to 1.62 million deadweight tons. Our fleet utilization is at 99%. In March, 2 Ultramaxes were sold for USD 23.5 million and USD 24 million, respectively. One was delivered in July 2026 and the other one will be delivered in Q3 2026 to the new owners. During Q1 2026, the group entered into 2 Ultramax shipbuilding contracts at a consideration of USD 34 million per vessel and both scheduled for deliveries in 2029. In June, 4 Ultramax shipbuilding contracts were entered into at a consideration of approximately USD 34 million per vessel, scheduled for deliveries in 2030. Our order book comprised of 12 Ultramax newbuildings, 1 to be delivered in 2026, 1 in 2027, 4 to be delivered in 2028, 2 in 2029 and 4 to be delivered in 2030. After the reporting date, we entered 4 sales and leaseback agreements for our 4 buildings -- 4 newbuildings. Total consideration was about $70 million. Here is a list of our own vessels. Average age, 14.82 years currently. On the top of this page is our newbuilding program and below the names, details of our 2 long-term chartered-in vessels. As of today, we have -- now have 17 vessels, owned vessels in our fleet. Our total debt as of the end of June 2026 amounts to USD 98 million. Bank loans represented revolving loans and term loans, which were secured by group motor vessels, land, buildings, investment properties and financial assets at fair value through P&L to secure credit facilities utilized by the group. Other borrowings represented additional working capital arise from sales and leaseback arrangements entered into for 2 owned vessels. For Q2 2026, 70% -- 74% of our cargo are minerals, 9% coal, 5% cement, 2% agricultural products, 2% steel products, 1% fertilizer and 7% other. In terms of distribution of our cargo in terms of chartering revenue 42% of our cargoes are loaded from China. 23% from Australia, 16% from Africa, 12% in Asia, excluding China and 7% North America. In terms of where the cargoes are being discharged, i.e., delivered to the shippers, 54% delivered or discharged in Chinese ports, 24% discharged in Asia, excluding China, 18% Africa, 3% South America and 1% Australia. Our TCE has been improving. For Q2 2026, our Capesize fleet time charter equivalent, USD 31,595 per day; Panamax, 19,974; Ultramax, $15,364; and an average of $18,015 per day for Q2 2026. If we look at the whole first half 2026, this translates to a TCE for Capesize, $31,010; Panamax, $18,833; Ultramax, 14,531; and an average of $17,150. Whether you look at Q2 or the first half 2026 and compare to the quarter-on-quarter or half-on-half or semiannual numbers, they both represent quite a significant increase, healthy increase. We are very happy with that. For Q2 2026, we have worked very hard to keep our costs under control, and we are happy to report to shareholders our daily running cost has dropped to USD 5,407 per day for our own fleet compared to in Q2 2025, USD 6,719. Depreciation, of course, has risen from USD 3,120 per day to USD 3,494 per day, given the average age of the ship has dropped. Before I go on to share with you what we think our outlook will be, I would like to -- there are certain questions from some shareholders who has e-mailed me, and I have not answered them so that I can share this information to everyone so that everybody is on a level playing field. In some of our recent announcement regarding the sales and leaseback, 2 of them, we disclosed the borrowing rate, the margin, where the other 2, we did not -- we did not write it in terms of the rate, but rather the actual -- in the term sheet is the sales and leaseback, the leaseback in cost. So we have been working, of course, to keep the funding cost as low as possible. So 2 of them would be roughly around 1.4% above SOFR. And the other 2 would be approximately 1.6% above -- and this is -- of course, there's 2 different duration for those 2 situations. The 1.6% above SOFR would be around 7 years and the 1.4% above SOFR would be approximately about 5 years. The leverage level would be -- they're both around the same, around 60%. So far, I've answered your question. I hope you're listening. Sorry, I didn't reply to you directly. In terms of outlook, we expect or we see the geopolitical uncertainties to continue to linger. Given the above geopolitical conflicts, we see that the global trade patterns will continue to change instead of the previous years as in globalization, we see more regionalization. Despite this chaotic environment or chaotic volatile environment, it somewhat translates to a very firm freight environment for shipping. And this firm freight environment has been beneficial in absorbing new tonnages that come online. There's very little disruption to freight environment, even though there are new vessels coming or joining the global fleet every -- literally every week. Against this backdrop, we will continue to look for opportunistic renewal. We have kept a very robust balance sheet, very low gearing -- this is to, of course, as our newbuildings join our fleet, our leverage will go up. But at the same time, we want to keep a very -- the capacity for potential future opportunities. That is all from me. If you have any questions, I encourage you to send them to me via the chat.
Unknown Executive: The traditional mode of financing in terms of plain vanilla shipping mortgages. Banks who are willing to take on or offer shipping mortgages has become scarcer. At the same time, the actual duration that they are willing to offer has shortened. I mean we are trying to stretch or keep good maturity profile, a healthy maturity profile rather than 3-year financing shipping mortgage to a bank or I would say, max, absolutely max is at a reasonable borrowing cost. So this is the reason why we have chosen to use sales and leaseback arrangements. Why does -- why do we invest in fixed coupon notes instead of buying back its own share given the significant account discount to NAV? This is a question that I don't -- I cannot answer. I better seek the ideas of the Board. I think -- but at the same time, buying back our own shares at a significant discount is -- I can see the attraction to shareholders or you guys. It offers a reason the share price to trade up temporarily. I don't think given that we would like to save or keep some dry powder for further opportunistic opportunities for renewal. We rather -- I would say, we'd rather invest in some fixed coupon notes to earn a good interest over our liquidity and we need to -- when we need to use this liquidity to, let's say, identify what in the secondhand market or newbuilding market, we can act very quickly. Do we plan to take our 4 '07 ships for 20-year classic? I guess, do you mean special survey? I guess you mean special survey? I honestly cannot tell you right now whether I will plan to take all 4 or all 2 of them through a special survey and continue to trade. As I said, we will continue to look at the secondhand market to make sure that if any of our older ships can fetch a good price, we will do so. So I cannot give you a definitive answer on that. We are always constantly comparing whether it's worth going through a 20-year special survey continue to trade or should we take the chips off the table, should there be interest, good offers in the secondhand market. If you talk about how much -- how many months of sailing given up for a special survey for our '07 ships, we maintain a very good condition for our ships. I do not see a very extensive loss of sailing time if we put one of these ships into special survey. Our estimate maybe it will take 4 to 6 weeks max my expectation of these '07, 20-year ships if they go through a special survey. No, we do not do the -- I believe you mean the freight forwarding agreements, no, we do not. We directly charter our vessels to our customers. It's all through time charter contracts or super majority of them anyway. Yes, it is very sad, the Phoenix property in Shanghai. It's the commercial real estate situation in the Mainland China even on the coastal cities is frankly, horrific to the extent beyond imagination. So it's very, very unfortunate that we have to make this decision. But I do not expect any clawback in the foreseeable future. Frankly, the market is basically flooded with CRE, commercial real estate. And we don't actually according to Phoenix -- the Phoenix Property, which we invest through, and we do sniff around the market. There are hardly any price takers as in -- even if we want to sell, there are no takers. It's very hard to sell commercial real estate in Shanghai in China right now. I wish to caveat that, of course, if we do, and there's -- if the property can be sold and there will be a clwaback, we'll definitely let -- everyone knows. Thank you for the comment on trying new diversification projects. I will just let our Board of Directors on behalf of Jinhui Shipping, on behalf of our Board of Directors, thank you very much, everyone, for joining, and thank you very much for your support. We will continue to work hard and hopefully deliver further good news down the road. Thank you. If there are no further questions, I'll call an end to this presentation. Thank you again.