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Jinhui Shipping and Transport Ltd.
Interim Report • Aug 26, 2025
9906_rns_2025-08-26_8a5296e1-f35b-4fd0-9259-555b67d32af9.pdf
Interim Report
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JINHUI SHIPPING AND TRANSPORTATION LIMITED
Q2 & Half Yearly Report 2025 30 June 2025
HIGHLIGHTS
For the Second Quarter of 2025
- Revenue for the quarter: US\$40 million
- EBITDA for the quarter: US\$15 million
- Net loss for the quarter: US\$1.9 million
- Basic loss per share: US\$0.018
For the First Half of 2025
- Revenue for the period: US\$80 million
- EBITDA for the period: US\$50 million
- Net profit for the period: US\$15 million
- Basic earnings per share: US\$0.139
- Gearing ratio as at 30 June 2025: 15%
The Board of Jinhui Shipping and Transportation Limited (the "Company") is pleased to announce the unaudited condensed consolidated results of the Company and its subsidiaries (the "Group") for the quarter and six months ended 30 June 2025.
SECOND QUARTER AND HALF YEARLY 2025 RESULTS
Revenue for the second quarter of 2025 reached US\$40,242,000, representing a slight 2% decrease comparing to US\$41,245,000 for the corresponding quarter in 2024. The Group recorded a consolidated net loss of US\$1,925,000 for the current quarter as compared to a consolidated net profit of US\$8,816,000 for the corresponding quarter in 2024. Basic loss per share for the second quarter was US\$0.018 as compared to basic earnings per share of US\$0.081 for the same quarter in 2024. The second quarter results include a nonrecurring net loss of US\$2,436,000 on disposal of a vessel upon its delivery. The average daily time charter equivalent rate earned by the Group's fleet decreased from US\$15,407 of second quarter of 2024 to US\$13,860 of current quarter.
Revenue for the first half of 2025 increased 15% to US\$79,546,000, compared to US\$69,139,000 for the same period in 2024. The Group recorded a consolidated net profit of US\$15,149,000 for the first half of 2025 whereas a consolidated net profit of US\$11,221,000 was reported in the first half of 2024. Basic earnings per share for the period was US\$0.139 as compared to basic earnings per share of US\$0.103 for the first half of 2024. During the first half of 2025, the Group received a settlement income of US\$20,223,000 arising from a legal dispute on the non-performance of a charterparty. The average daily time charter equivalent rate for the Group's fleet declined 3% to US\$13,538 for the first half of 2025 as compared to US\$13,939 for the same period in 2024.
The dry bulk shipping market is a highly volatile market. Market conditions change rapidly due to factors like global economic conditions, supply and demand dynamics, and geopolitical events. During the first half of 2025, the Group entered into agreements to dispose of two aging Supramaxes as part of its ongoing fleet renewal strategy. One vessel was delivered to the purchaser within the reporting period, resulting in a loss on disposal of US\$2,436,000. The second vessel, delivered in early July 2025, was reclassified as assets held for sale as of the reporting date, with an impairment loss of US\$1,831,000 on assets held for sale (disposed vessel) recognized during the period. Additionally, an Ultramax acquired at the end of 2024 was delivered to the Group in January 2025. These fleet renewal initiatives contribute to lowering the overall age of our fleet profile, hence strengthening our market competitiveness and long-term sustainability.
INTERIM DIVIDEND
The Board has resolved not to recommend the payment of any interim dividend for the quarter ended 30 June 2025.
REVIEW OF OPERATIONS
Second Quarter of 2025. Dry bulk freight rates showed steady improvement throughout the second quarter of 2025 yet remained under pressure as weak market confidence persisted amid global economic and financial instability. Baltic Dry Index ("BDI") started at 1,598 points at the beginning of April, dropped to a low of 1,241 points by mid-April, then surged to a high of 1,975 by mid-June, ultimately closing at 1,489 points by the end of June 2025. The average BDI for the second quarter of 2025 was 1,467 points, compared to 1,848 points in the same quarter in 2024.
Second Quarter 2025 Statement of Profit or Loss
Revenue for the second quarter of 2025 reached US\$40,242,000, representing a slight 2% decrease comparing to US\$41,245,000 for the corresponding quarter in 2024. The Group generated consolidated operating profit before depreciation and amortization amounted to US\$14,961,000 for the current quarter as compared to consolidated operating profit before depreciation and amortization amounted to US\$20,850,000 for the last corresponding quarter. The Group recorded a consolidated net loss of US\$1,925,000 for the current quarter while a consolidated net profit of US\$8,816,000 was reported for the same period in 2024. Basic loss per share for the second quarter of 2025 was US\$0.018 as compared to basic earnings per share of US\$0.081 for the same quarter in 2024.
As of 30 June 2025, the Group operated a fleet of thirty-two vessels, of which twenty-five owned vessels (including the one which has been disposed of and reclassified under assets held for sale) and seven chartered-in vessels. Among the owned vessels were two that have been arranged under sale and leaseback agreements, both of which became effective in early July 2025. As at 30 June 2024, the Group operated a total of thirty-three vessels, consisting of twenty-three owned vessels and ten chartered-in vessels.
During the current quarter, the Group recognized a loss of US\$2,436,000 on the disposal of a vessel upon its delivery in May 2025, pursuant to an agreement entered into in the first quarter of 2025 for a consideration of US\$8,260,000.
In the second quarter of 2025, the average daily time charter equivalent rate ("TCE") of our Capesize fleet and Panamax fleet were US\$19,300 and US\$15,046, while the Ultramax/Supramax fleet recorded US\$13,158. In comparison, during the corresponding quarter of 2024, the Panamax fleet recorded US\$17,702 and the Ultramax/Supramax fleet recorded US\$15,110. The average fleet utilization rate of the Group's fleet is 98% for the current quarter.
| Average daily TCE of the Group's fleet | 2025 Q2 US\$ |
2024 Q2 US\$ |
2025 1st half US\$ |
2024 1st half US\$ |
2024 US\$ |
|---|---|---|---|---|---|
| Capesize fleet | 19,300 | - | 21,203 | - | 24,298 |
| Panamax fleet | 15,046 | 17,702 | 13,795 | 17,478 | 15,528 |
| Ultramax / Supramax fleet | 13,158 | 15,110 | 12,674 | 13,560 | 14,466 |
| In average | 13,860 | 15,407 | 13,538 | 13,939 | 14,741 |
During the quarter, a chartered-in vessel was employed on voyage charters to maximize potential business opportunity, generating freight income of US\$1,639,000.
Other operating income for the second quarter of 2025 amounted to US\$4,348,000, representing a decrease from US\$6,928,000 recorded in the same period of 2024. The decline was primarily due to the absence of a US\$3,500,000 settlement income received in the second quarter of 2024, which arose from a legal dispute related to the non-performance of a charterparty. Other operating income also included a recognition of net gain of US\$829,000 on financial assets at fair value through profit or loss for the second quarter of 2025 while a net gain of US\$1,739,000 on financial assets at fair value through profit or loss was recorded for the same quarter of 2024.
Shipping related expenses up from US\$21,332,000 for the second quarter of 2024 to US\$22,902,000 for the current quarter. The rise was primarily driven by the expansion of the Group's fleet, which reached twenty-five vessels as of 30 June 2025, compared to twenty-three vessels in the same period of last year. The fleet expansion led to higher shipping operational costs, contributing to the overall increase in shipping related expenses for the quarter. Additionally, bunker-related expenses rose due to increased fuel consumption associated with repositioning of vessels between time charter contracts and bunker usage for voyage charter operations. The rise in shipping related expenses was partially offset by the reduction in hire payments, following a decrease in number of chartered-in vessels during the quarter. The Group engaged in certain inward time charters engagements, incurring approximately US\$2.2 million in hire payments for these shortterm leases during the second quarter of 2025, as compared to approximately US\$6.9 million for the last corresponding quarter.
The daily vessel running cost of the Group's owned vessels increased to US\$6,719 for the second quarter of 2025 as compared to US\$5,396 for the second quarter of 2024 as certain initial running costs and expenses, especially spare parts and consumables stores, were incurred for newly delivered vessels. We will continue with our cost reduction effort, striving to maintain a highly competitive cost structure when stacked against other market participants.
Other operating expenses decreased from US\$3,114,000 in the second quarter of 2024 to US\$1,451,000 for the current quarter. In May 2025, the Group entered into a memorandum of agreement for the disposal of a Supramax vessel at a consideration of US\$10,225,000. The vessel was subsequently delivered to the purchaser in July 2025. For financial reporting purposes, this vessel was reclassified to "Assets held for sale" in accordance with IFRS 5 and HKFRS 5 "Non-current Assets Held for Sale and Discontinued Operations" at the reporting date, with an impairment loss on assets held for sale (disposed vessel) of US\$1,831,000 recognized and was included in other operating expenses for the period.
Other operating expenses also included a fair value loss of investment properties of US\$828,000 as compared to US\$1,715,000 for the last corresponding quarter.
Depreciation and amortization of the Group increased from US\$10,587,000 for the second quarter of 2024 to US\$14,751,000 for the second quarter of 2025. The increase was attributable to the recognition of US\$7,318,000 in depreciation on right-of-use assets for long-term chartered-in vessels for the current quarter, compared to US\$3,503,000 recorded in the corresponding period of the prior year. The Group's daily vessel depreciation declined to US\$3,120 for the current quarter as compared to US\$3,346 for the second quarter in 2024.
Finance costs increased from US\$1,447,000 in the second quarter of 2024 to US\$2,135,000 in the second quarter of 2025. The rise was mainly attributable to the loan drawdown for financing of vessels upon their deliveries from the second half of 2024 through the first half of 2025, as well as the increase in recognition of interest expenses on lease liabilities, which amounted to US\$852,000 during the quarter as compared to US\$432,000 for last corresponding quarter.
First Half of 2025. In the first half of 2025, the dry bulk shipping market faced challenges from seasonal slowdown and macroeconomic uncertainty. Freight rates softened amid reduced tonne-mile demand, particularly in key commodities such as coal, iron ore, and grains, followed by the intensive drydocking schedule of our fleet. BDI commenced at the beginning of the year at 997 points, declining to a period low of 715 points in January. It then rebounded and reached 1,975 points in mid of June, before closing at 1,489 points at the end of June 2025. The average of BDI for the first half of 2025 was 1,290 points, which compares to 1,836 points in the same period in 2024.
First Half of 2025 Statement of Profit or Loss
The Group recorded a 15% increase in revenue for the first half of 2025, reaching US\$79,546,000, compared to US\$69,139,000 in the same period of 2024. Reported average daily TCE for Capesize fleet, Panamax fleet and Ultramax/Supramax fleet of US\$21,203, US\$13,795 and US\$12,674 respectively, and US\$13,538 for the entire fleet in the first half of 2025.
In the first half of 2025, the consolidated operating profit before depreciation and amortization amounted to US\$49,910,000, compared with US\$33,796,000 recorded in the corresponding period of last year. The Group recorded a consolidated net profit of US\$15,149,000 for the period, while a consolidated net profit of US\$11,221,000 was reported in first half of 2024. Basic earnings per share for the period was US\$0.139 as compared to US\$0.103 for the first half of 2024.
Other operating income increased from US\$9,649,000 for the first half of 2024 to US\$28,200,000 for the first half of 2025 mainly due to receipt of settlement income from a legal dispute over the non-performance of a charterparty. Settlement income in amount of US\$20,223,000 was received in the first half of 2025 while US\$3,500,000 was received during the first half of 2024. In the first half of 2025, a net gain of US\$2,455,000 on financial assets at fair value through profit or loss was recognized, which comprised of a realized gain of US\$508,000 upon disposal of certain equity and debt securities and an unrealized fair value gain of US\$1,947,000 on financial assets at fair value through profit or loss. In contrast, the same period in 2024 recorded a higher net gain of US\$3,455,000 on financial assets at fair value through profit or loss, comprised of a realized gain of US\$1,013,000 upon disposal of certain equity and debt securities and an unrealized fair value gain of US\$2,442,000 on financial assets at fair value through profit or loss. Dividend income derived from financial assets was US\$757,000 for the first half of 2025.
Shipping related expenses increased from US\$34,823,000 for the first half of 2024 to US\$44,549,000 for the first half of 2025 primarily driven by bunker-related expenses, arising from fuel consumption during the repositioning of vessels between time charter contracts and bunker usage for voyage charter operations. The expansion of fleet size also resulted in higher shipping operational costs, contributing to the overall increase in shipping related expenses for the current period, particularly in crew costs, spare parts and consumables. The increase in shipping related expenses was partially offset by the reduction in hire payments of charteredin vessels under short term leases, which fell from US\$8.5 million in the first half of 2024 to US\$6.7 million in the first half of 2025, due to the expiry of inward time charter agreements during the current period.
The daily vessel running cost of the Group's owned vessels increased to US\$6,044 for the first half of 2025 as compared to US\$5,115 for the first half of 2024 as certain initial running costs and expenses, especially spare parts and consumables stores, were incurred for newly delivered vessels. We will continue with our cost reduction effort, striving to maintain a highly competitive cost structure when stacked against other market participants.
Other operating expenses for the first half of 2025 included a fair value loss of US\$828,000 on investment properties. This follows a fair value loss of US\$1,715,000 recognized in the first half of 2024.
Depreciation and amortization for the first half of 2025 was US\$30,034,000 as compared to US\$19,633,000 for first half of 2024. The increase was mainly due to the recognition of US\$14,592,000 in depreciation on right-of-use assets for long-term chartered-in vessels for the current period whereas US\$5,688,000 was recorded in last corresponding period. The Group's daily vessel depreciation decreased to US\$3,231 for the first half of 2025 as compared to US\$3,321 for the corresponding period in 2024.
Finance costs increased from US\$2,942,000 for the first half of 2024 to US\$4,727,000 for the current period. The increase was primarily driven by the loan drawdown for financing of vessels upon their deliveries from the second half of 2024 through the first half of 2025, as well as interest expenses on lease liabilities, which rose to US\$1,764,000 compared to US\$827,000 for the corresponding period of last year.
First Half of 2025 Statement of Cash Flows and Statement of Financial Position as at 30 June 2025
As at 30 June 2025, the Group maintained positive working capital position and had cash and cash equivalents of US\$23,426,000 (31/12/2024: US\$23,005,000). During the first half of 2025, net cash generated from operating activities after working capital changes was US\$44,167,000 (30/6/2024: US\$31,259,000), of which US\$6,296,000 (30/6/2024: US\$987,000) related to changes in working capital.
For the first half of 2025, the Group reported net cash used in investing activities amounted to US\$27,060,000, compared to US\$24,506,000 in the corresponding period of 2024. This included a balance payment of US\$29,264,000 for vessel deliveries and capitalized drydocking expenditures, net cash proceed in amount of US\$8,084,000 received from the completed disposal of a Supramax, as well as US\$6,800,000 in installments payment for vessels under construction, which are scheduled for deliveries to the Group in 2026 and 2027 respectively.
Net cash used in financing activities amounted to US\$16,686,000 in the first half of 2025, compared to net cash used in financing activities of US\$30,064,000 in the corresponding period of 2024. During the first half of 2025, the Group had drawn new secured bank loans of US\$15,000,000 (30/6/2024: US\$22,991,000) upon delivery of vessels and repaid US\$12,856,000 (30/6/2024: US\$46,440,000) of bank borrowings. Furthermore, a repayment of US\$15,718,000 (30/6/2024: US\$6,775,000) on lease liabilities was incurred.
The Group's total secured bank loans increased from US\$97,994,000 as at 31 December 2024 to US\$100,138,000 as at 30 June 2025, of which 10%, 10% and 80% are repayable respectively within one year, in the second year and in the third to fifth year. The bank borrowings represented term loans that were denominated in Hong Kong Dollars. All bank borrowings were committed on floating rate basis.
As at 30 June 2025, the total of the Group's equity and debt securities, bank balances and cash increased to US\$42,998,000 (31/12/2024: US\$40,908,000).
The gearing ratio, as calculated on the basis of net debts (total interest-bearing debts net of equity and debt securities, bank balances and cash) over total equity, was 15% (31/12/2024: 15%) as at 30 June 2025. With cash, marketable equity and debt securities in hand as well as available credit facilities, the Group has sufficient financial resources to satisfy its commitments and working capital requirements. As at 30 June 2025, the Group is able to service its debt obligations, including principal and interest payments.
Capital Expenditures and Commitments
Capital Expenditures
During the first half of 2025, the Group reported capital expenditure of US\$29,264,000, primarily for the balance payment on vessel deliveries and capitalized drydocking costs. Additionally, US\$6,800,000 was paid as installments for vessels under construction, and US\$145,000 was spent on other property, plant, and equipment.
For the last corresponding period, capital expenditure of US\$32,694,000 was incurred, including US\$32,548,000 on additions of motor vessels and capitalized drydocking costs and US\$146,000 on other property, plant and equipment.
Capital Commitments
In 2024, the Group entered into two shipbuilding contracts for the construction of two Ultramax newbuildings, each at a consideration of US\$34,000,000 of deadweight 63,500 metric tonnes, to be delivered in 2026 and 2027 respectively. As at 30 June 2025, installments of US\$6,800,000 for the vessels under construction were paid, and the capital expenditure commitments contracted by the Group but not provided for, net of installments paid, was approximately US\$61,200,000 (31/12/2024: US\$68,000,000).
In 2018, the Group entered into the co-investment documents to co-invest in a property project in Tower A of One Financial Street Center, Jing'an Central Business District, Shanghai, the PRC, pursuant to which the Group is committed to acquire non-voting participating class A shares of Dual Bliss Limited of US\$10,000,000. Dual Bliss Limited is one of the investors of the Co-investment. As at the reporting date, the capital expenditure commitments contracted by the Group but not provided for was US\$372,000 (31/12/2024: US\$372,000).
As at 30 June 2025, the total amount of capital expenditure commitments contracted by the Group but not provided for, net of installments paid, was US\$61,572,000.
As of 31 December 2024, the total amount of capital expenditure commitments contracted by the Group but not provided for was US\$117,080,000. In addition to the aforementioned commitments, the amount also included right-of-use assets of approximately US\$26,640,000 for the long term charter of a Capesize, which was delivered in January 2025, as well as a capital expenditure commitment of US\$22,068,000 for the acquisition of an Ultramax, which was acquired at the end of 2024 and delivered to the Group in January 2025.
Save as disclosed above, there was no other significant capital expenditure commitment contracted by the Group but not provided for as at the reporting date.
FLEET OVERVIEW
The Group operates a balanced and diversified fleet of dry bulk carriers, comprising Capesize, Panamax, Ultramax and Supramax bulk carriers. To stay competitive in the market, the Group focused on enhancing the quality of our fleet and adjusting our fleet profile, in particularly in terms of seeking to lower the overall age profile of our fleet. As at 30 June 2025, the Group operated a fleet of thirty-two vessels, of which twenty-five are owned vessels (including the one which has been disposed of and reclassified under assets held for sale) and seven chartered-in vessels, with total deadweight carrying capacity of approximately 2,347,000 metric tonnes. Among the owned vessels were two that have been arranged under sale and leaseback agreements, both of which became effective in early July 2025. As at 30 June 2025, the carrying amount of the motor vessels and capitalized drydocking costs was US\$387,438,000 (31/12/2024: US\$393,320,000).
| Number of vessels | ||||
|---|---|---|---|---|
| Owned* Chartered-in |
Total | |||
| Capesize fleet | 2 | 1 | 3 | |
| Panamax fleet | 1 | 2 | 3 | |
| Ultramax / Supramax fleet | 22 | 4 | 26 | |
| Total number of vessels | 25 | 7 | 32 |
* Included two vessels which have been arranged under sale and leaseback agreements, as well as one reclassified as assets held for sale.
During the first half of 2025, the Group was optimizing its fleet through strategic acquisitions, disposals and chartering activities with a view to maintaining high financial flexibility and maximize operational competitiveness at a lower level of capital investment.
Acquisition and Disposal of Vessels
During the first half of 2025, the Group entered into two agreements for the disposal of two Supramaxes.
On 19 March 2025, the Group entered into an agreement for the disposal of a Supramax of deadweight 53,350 metric tonnes, built in year 2007, at a consideration of US\$8,260,000. The vessel was delivered to the purchaser in May 2025.
On 16 May 2025, the Group entered into an agreement for the disposal of a Supramax of deadweight 56,952 metric tonnes, built in year 2008, at a consideration of US\$10,225,000. The vessel was delivered to the purchaser in July 2025. For financial reporting purposes, the vessel was reclassified to "Assets held for sale" in accordance with IFRS 5 and HKFRS 5 "Non-current Assets Held for Sale and Discontinued Operations" at the reporting date, and an impairment loss on assets held for sale (disposed vessel) of US\$1,831,000 was recognized and included in other operating expenses for the current quarter.
An Ultramax of deadweight 61,441 metric tonnes, built in year 2017, was acquired at the end of 2024 and delivered to the Group in January 2025.
Subsequent to the reporting date, the Group entered into three agreements for the disposal of three Supramaxes.
On 4 July 2025, the Group entered into an agreement for the disposal of a Supramax of deadweight 56,927 metric tonnes, built in year 2009, at a consideration of US\$10,800,000. The vessel was delivered to the purchaser in July 2025.
On 23 July 2025, the Group entered into an agreement for the disposal of a Supramax of deadweight 56,913 metric tonnes, built in year 2009, at a consideration of US\$11,000,000. The vessel was delivered to the purchaser in July 2025.
On 6 August 2025, the Group entered into an agreement for the disposal of a Supramax of deadweight 56,887 metric tonnes, built in year 2009, at a consideration of US\$10,500,000. The vessel will be delivered to the purchaser during the fourth quarter of 2025.
Lease of Vessels
The Group endeavoured further enhance and improve our fleet profile while limiting the capital expenditure on acquisition of vessels and maximizing flexibility. As at the reporting date, the Group maintained certain number of time charter engagements, with total deadweight carrying capacity of approximately 619,000 metric tonnes. As at the reporting date, the Group operated five long-term chartered-in vessels, two of them were long-term time charters with remaining lease terms for more than twelve months. The right-of-use assets which are calculated with the present value of total minimum hire payment at the inception of the lease terms of the charterparties and corresponding lease liabilities was recognized in the consolidated statement of financial position upon their deliveries of the vessels in accordance with IFRS 16 and HKFRS 16 Leases. As at 30 June 2025, the carrying amounts of the right-of-use assets and the lease liabilities were US\$44,599,000 (31/12/2024: US\$30,022,000) and US\$47,600,000 (31/12/2024: US\$32,385,000) respectively.
In the first half of 2025, the Group took delivery of a long term chartered-in Capesize, with deadweight 207,672 metric tonnes, built in year 2017, for a minimum term of thirty-three months.
Sale and Leaseback Arrangements
On 30 June 2025, the Group entered into a memorandum and charter agreement with the purchaser for the sale and leaseback arrangement of a vessel, under which the Group agreed to sell the vessel to the purchaser with consideration of CNH79,750,000 (equivalent to approximately US\$11,132,000), and the purchaser agreed to charter the vessel to the Group. The sale and leaseback arrangement became effective in early July 2025.
On 30 June 2025, the Group entered into a memorandum and charter agreement with the purchaser for the sale and leaseback arrangement of a vessel, under which the Group agreed to sell the vessel to the purchaser with consideration of CNH123,250,000 (equivalent to approximately US\$17,204,000), and the purchaser agreed to charter the vessel to the Group. The sale and leaseback arrangement became effective in early July 2025.
We will continuously monitor the market as well as our operations going forward and look out for opportunities to maintain a reasonably modern and competitive fleet, not ruling out any future disposal of smaller and older vessels and replace with newer vessels with larger carrying capacity and longer asset lives or charter-in of vessels. We will make such decisions on an ad hoc basis to maintain high financial flexibility and operational competitiveness.
SIGNIFICANT LITIGATION UPDATE
Galsworthy Limited ("Galsworthy"), a wholly owned subsidiary of the Company, was the disponent owners of the vessel "CANTON TRADER" which was later renamed "JIN KANG". On 17 June 2008, Galsworthy entered into a time charter with Parakou Shipping Pte Limited ("Parakou Shipping") for a period of approximately five years, with delivery not due until March 2009. On or about 13 March 2009, Parakou Shipping wrongfully refused to take delivery of the vessel and Galsworthy accepted their conduct as a repudiation of the charter, bringing it to an end.
The dispute was the subject of various proceedings, but principally in London arbitration. By Arbitration Awards dated 31 August 2010 and 13 May 2011, the London arbitrators upheld Galsworthy's claims and awarded damages of approximately US\$41.25 million plus interest and costs.
Parakou Shipping went into liquidation in 2011. Galsworthy has submitted a proof of debt in the liquidation in respect of its claim under the arbitration awards. Galsworthy has also been trying inter alia to enforce the arbitration awards against Parakou Shipping and its former directors and obtain compensation for its substantial losses. The outstanding amount is in excess of US\$60 million.
In one action Galsworthy has been funding Singapore proceedings commenced by the liquidator of Parakou Shipping against four of Parakou Shipping's former directors and related corporate entities (the "Defendants"), seeking to claw back assets into Parakou Shipping for distribution amongst the creditors. Judgment was obtained in February 2017 in a sum of SGD17 million against the Defendants, but the Defendants have now appealed the same. The Liquidator cross appealed to increase the judgment amount.
On 17 January 2018, the Singapore Court of Appeal substantially dismissed the Defendants' appeal and found in the Liquidator's favour. Amongst other things, the Singapore Court of Appeal upheld the Liquidator's argument that the London arbitration, and a litigation subsequently filed in the Hong Kong courts seeking indemnity against any liability in the arbitration, were commenced and pursued by the directors in breach of their fiduciary duties. The Court considered that evidence had been disregarded which showed that the directors' key concern was to avoid a statutory clawback period. The Court also agreed that certain asset sales that had taken place in late 2008 were done while Parakou Shipping was insolvent and were not part of a restructuring, as claimed by the former directors of Parakou Shipping. The Court found that a company resolution advanced as evidence of a restructuring plan by the Defendants was in fact an "an afterthought" produced later than its date under "suspicious circumstances". The Liquidator is entitled to seek either damages or an account of profits arising from the relevant breaches.
Legal actions also took place in South Africa over the arrest of the vessel "PRETTY SCENE", as well as in Hong Kong against three of the former directors of Parakou Shipping for unlawful means conspiracy. An injunction order, freezing assets belonging to the directors of Parakou Shipping, was obtained.
This multi jurisdiction legal saga dragged on for an extensive period of time. In April 2024, Galsworthy and Parakou Shipping had reached agreement to settle the Hong Kong legal action for a settlement income of US\$3.5 million, paving the way to bring the global actions to an end.
The termination of the Hong Kong legal action allowed Galsworthy to formally bring the ongoing legal dispute to an end and effect the application to the Singapore High Court for the receival of the settlement sum of the Singapore January 2018 judgment. In January 2025, Galsworthy received a sum of SGD27.6 million, a total of approximately US\$20.2 million, which was recorded as other operating income during the first half of 2025.
RISK FACTORS
This report may contain forward looking statements. These statements are based upon various assumptions, many of which are based, in turn, upon further assumptions, including the Company's management's examination of historical operating trends. Although the Company believes that these assumptions were reasonable when made, because assumptions are inherently subject to significant uncertainties which are difficult or impossible to predict and are beyond its control, the Company cannot give assurance that it will achieve or accomplish these expectations, beliefs or targets.
Key risk factors that could cause actual results to differ materially from those discussed in this report will include but not limited to the way world economies, currencies and interest rate environment may evolve going forward, general market conditions including fluctuations in charter rates and vessel values, financial market conditions including fluctuations in marketable securities value, counterparty risk, changes in demand in the dry bulk market, changes in operating expenses including bunker prices, crewing costs, drydocking and insurance costs, availability of financing and refinancing, inability to obtain restructuring or rescheduling of indebtedness from lenders in liquidity trough, changes in governmental rules and regulations or actions taken by regulatory authorities, potential liability from pending or future litigation, general domestic and international political conditions, potential disruption of shipping routes due to accidents, piracy or political events, and other important factors described from time to time in the reports filed by the Company.
OUTLOOK
2025 has been characterised by volatility due to uncertainties from all fronts, from financial markets, geopolitics, sanctions, to disruption in trade routes. We expect little change in the months ahead when uncertainties remain and market participants tend to have low risks appetite, in particular appetite for long term commitments.
Supply of new vessels has been increasing due to rise in orders albeit in relatively good balance. It is worth noting that newbuilding deliveries are slowly seeping into the market. We continue to see disconnections between freight rates and vessels values. As part of our strategy to maintain a young fleet, we have further reduced some older vessels to third parties given there is interest in older tonnages in the prevailing market.
As of the date of the announcement, we have successfully covered 67% of our Capesize and Panamax vessel days for the second half of 2025, with an average rate of US\$22,000 and US\$18,000 per day respectively. For Ultramax/Supramax, 45% of vessel days was covered at average rate of US\$14,000 per day for the second half of 2025.
Looking ahead, should global economic activity regain confidence with less uncertainty, our fleet will be well positioned to benefit from these supportive industry specific fundamentals. We also continue to look for fleet renewal opportunities.
We will remain alert to the increasingly frequent economic, geo-political, or other unforeseen surprises that will disrupt our business operations. We will continue to focus on taking sensible and decisive actions to achieve growth without sacrificing the maintenance of a strong financial position.
On behalf of the Board of Directors of the Company, I would like to first express our heartfelt appreciation to all our colleagues, as well as all customers and stakeholders for their ongoing support.
PUBLICATION OF FINANCIAL INFORMATION
This report is available on the website of the Company at www.jinhuiship.com and the NewsWeb of the Oslo Stock Exchange at www.newsweb.no.
By Order of the Board
Ng Siu Fai Chairman
26 August 2025
RESPONSIBILITY STATEMENT
We confirm, to the best of our knowledge, that the half yearly report for the period from 1 January to 30 June 2025 has been prepared in accordance with applicable accounting standards and gives a true and fair view of the assets, liabilities, financial position and results of operations of the Group and that the half yearly report includes a fair review of the development and performance of the business and the position of the Group together with a description of the key principal risks and uncertainty factors that the Group faces.
26 August 2025
Ng Siu Fai Ng Kam Wah Thomas Ng Ki Hung Frankie Chairman Managing Director and Deputy Chairman
Executive Director
Ho Suk Lin Cathy Tsui Che Yin Frank William Yau Executive Director Non-executive Director Non-executive Director
CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
| 3 months ended 30/6/2025 |
3 months ended 30/6/2024 |
6 months ended 30/6/2025 |
6 months ended 30/6/2024 |
Year ended 31/12/2024 |
||
|---|---|---|---|---|---|---|
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Audited) | ||
| Note | US\$'000 | US\$'000 | US\$'000 | US\$'000 | US\$'000 | |
| Revenue | 2 | 40,242 | 41,245 | 79,546 | 69,139 | 158,900 |
| Net loss on disposal of owned vessels | 3 | (2,436) | - | (2,436) | - | - |
| Other operating income | 4 | 4,348 | 6,928 | 28,200 | 9,649 | 16,991 |
| Interest income | 5 | 363 | 239 | 809 | 498 | 834 |
| Reversal of impairment loss on owned vessels and right-of-use assets |
- | - | - | - | 6,533 | |
| Shipping related expenses | (22,902) | (21,332) | (44,549) | (34,823) | (84,404) | |
| Staff costs | (3,203) | (3,116) | (6,429) | (6,191) | (14,707) | |
| Other operating expenses | (1,451) | (3,114) | (5,231) | (4,476) | (9,861) | |
| Operating profit before depreciation and amortization |
14,961 | 20,850 | 49,910 | 33,796 | 74,286 | |
| Depreciation and amortization | (14,751) | (10,587) | (30,034) | (19,633) | (44,189) | |
| Operating profit | 210 | 10,263 | 19,876 | 14,163 | 30,097 | |
| Finance costs | (2,135) | (1,447) | (4,727) | (2,942) | (6,092) | |
| Profit (Loss) before taxation | (1,925) | 8,816 | 15,149 | 11,221 | 24,005 | |
| Taxation | 7 | - | - | - | - | - |
| Net profit (loss) for the period / year | (1,925) | 8,816 | 15,149 | 11,221 | 24,005 | |
| Other comprehensive loss | ||||||
| Items that will not be reclassified to profit or loss: |
||||||
| Change in fair value of financial assets at fair value through OCI (non-recycling) |
(627) | (496) | (627) | (1,232) | (2,311) | |
| Items that may be reclassified subsequently to profit or loss: |
||||||
| Change in fair value of financial assets at fair value through OCI (recycling) |
- | - | - | - | (14) | |
| Total comprehensive income (loss) for the period / year attributable to shareholders of the Company |
(2,552) | 8,320 | 14,522 | 9,989 | 21,680 | |
| Earnings (Loss) per share | 8 | |||||
| - Basic and diluted | (US\$0.018) | US\$0.081 | US\$0.139 | US\$0.103 | US\$0.220 |
| CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION | |||||||
|---|---|---|---|---|---|---|---|
| 30/6/2025 | 30/6/2024 | 31/12/2024 | |||||
| (Unaudited) | (Unaudited) | (Audited) | |||||
| Note | US\$'000 | US\$'000 | US\$'000 | ||||
| ASSETS | |||||||
| Non-current assets | |||||||
| Property, plant and equipment | 401,931 | 352,161 | 401,279 | ||||
| Right-of-use assets | 10(a) | 44,599 | 40,864 | 30,022 | |||
| Investment properties | 11 | 20,045 | 23,544 | 20,873 | |||
| Financial assets at fair value through OCI | 12 | 4,739 | 6,459 | 5,366 | |||
| Loan receivables | 13 | 1,577 | 1,577 | 1,577 | |||
| Deposit paid for the acquisition of owned vessels | - | 3,095 | 2,452 | ||||
| 472,891 | 427,700 | 461,569 | |||||
| Current assets | |||||||
| Inventories | 2,852 | 2,106 | 2,709 | ||||
| Trade and other receivables | 17,088 | 16,286 | 15,985 | ||||
| Financial assets at fair value through profit or loss | 14 | 22,442 | 25,117 | 20,605 | |||
| Pledged deposits | 163 | 199 | 329 | ||||
| Bank balances and cash | 23,426 | 16,939 | 23,005 | ||||
| 65,971 | 60,647 | 62,633 | |||||
| Assets held for sale | 15 | 10,215 | - | - | |||
| 76,186 | 60,647 | 62,633 | |||||
| Total assets | 549,077 | 488,347 | 524,202 |
| CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION | ||||||
|---|---|---|---|---|---|---|
| 30/6/2025 | 30/6/2024 | 31/12/2024 | ||||
| (Unaudited) | (Unaudited) | (Audited) | ||||
| Note | US\$'000 | US\$'000 | US\$'000 | |||
| EQUITY AND LIABILITIES | ||||||
| Capital and reserves | ||||||
| Issued capital | 5,463 | 5,463 | 5,463 | |||
| Reserves | 377,391 | 354,456 | 366,147 | |||
| Total equity | 382,854 | 359,919 | 371,610 | |||
| Non-current liabilities | ||||||
| Secured bank loans | 16 | 90,406 | 49,501 | 89,707 | ||
| Lease liabilities | 10(b) | 25,005 | 28,464 | 13,693 | ||
| 115,411 | 77,965 | 103,400 | ||||
| Current liabilities | ||||||
| Trade and other payables | 18,320 | 14,932 | 22,030 | |||
| Amount due to holding company | 165 | 130 | 183 | |||
| Secured bank loans | 16 | 9,732 | 15,217 | 8,287 | ||
| Lease liabilities | 10(b) | 22,595 | 20,184 | 18,692 | ||
| 50,812 | 50,463 | 49,192 | ||||
| Total equity and liabilities | 549,077 | 488,347 | 524,202 |
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
| Issued capital |
Share premium |
Capital redemption reserve |
Contributed surplus |
Revaluation reserve |
Reserve for financial assets at fair value through OCI |
Retained profits |
Total equity |
|
|---|---|---|---|---|---|---|---|---|
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |
| US\$'000 | US\$'000 | US\$'000 | US\$'000 | US\$'000 | US\$'000 | US\$'000 | US\$'000 | |
| At 1 January 2024 | 5,463 | 95,585 | 719 | 16,297 | 843 | (2,294) | 233,317 | 349,930 |
| Comprehensive income | ||||||||
| Net profit for the period | - | - | - | - | - | - | 11,221 | 11,221 |
| Other comprehensive loss | ||||||||
| Change in fair value of financial assets at fair value through OCI |
- | - | - | - | - | (1,232) | - | (1,232) |
| Total comprehensive income for the period |
- | - | - | - | - | (1,232) | 11,221 | 9,989 |
| At 30 June 2024 | 5,463 | 95,585 | 719 | 16,297 | 843 | (3,526) | 244,538 | 359,919 |
| At 1 January 2025 | 5,463 | 95,585 | 719 | 16,297 | 843 | (4,619) | 257,322 | 371,610 |
| Comprehensive income | ||||||||
| Net profit for the period | - | - | - | - | - | - | 15,149 | 15,149 |
| Other comprehensive loss Change in fair value of financial assets at |
||||||||
| fair value through OCI | - | - | - | - | - | (627) | - | (627) |
| Total comprehensive income for the period |
- | - | - | - | - | (627) | 15,149 | 14,522 |
| 2024 final dividend paid | - | - | - | - | - | - | (3,278) | (3,278) |
| At 30 June 2025 | 5,463 | 95,585 | 719 | 16,297 | 843 | (5,246) | 269,193 | 382,854 |
| CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS | |||||
|---|---|---|---|---|---|
| 6 months | 6 months | Year | |||
| ended 30/6/2025 |
ended 30/6/2024 |
ended 31/12/2024 |
|||
| (Unaudited) | (Unaudited) | (Audited) | |||
| US\$'000 | US\$'000 | US\$'000 | |||
| OPERATING ACTIVITIES | |||||
| Cash generated from operations before changes in working capital |
53,440 | 34,462 | 68,279 | ||
| Decrease (Increase) in working capital | (6,296) | (987) | 12,303 | ||
| Cash generated from operations | 47,144 | 33,475 | 80,582 | ||
| Interest paid | (2,977) | (2,216) | (4,870) | ||
| Hong Kong Profits Tax refunded | - | - | 21 | ||
| Net cash from operating activities | 44,167 | 31,259 | 75,733 | ||
| INVESTING ACTIVITIES | |||||
| Interest received | 308 | 308 | 536 | ||
| Dividend income received | 757 | 547 | 1,173 | ||
| Purchase of property, plant and equipment | (29,409) | (32,694) | (95,095) | ||
| Installments paid for vessels under construction | (6,800) | - | - | ||
| Deposit paid for the acquisition of owned vessels | - | (3,095) | (2,452) | ||
| Proceeds from disposal of assets held for sale, net | - | 10,414 | 10,414 | ||
| Proceeds from disposal of property, plant and equipment, net | 8,084 | 14 | 15 | ||
| Net cash used in investing activities | (27,060) | (24,506) | (85,409) | ||
| FINANCING ACTIVITIES | |||||
| New secured bank loans | 15,000 | 22,991 | 65,338 | ||
| Repayment of secured bank loans | (12,856) | (46,440) | (55,511) | ||
| Decrease in pledged deposits | 166 | 160 | 30 | ||
| Payment of lease liabilities | (13,954) | (5,948) | (16,109) | ||
| Interest paid on lease liabilities | (1,764) | (827) | (1,317) | ||
| Dividend paid to shareholders of the Company | (3,278) | - | - | ||
| Net cash used in financing activities | (16,686) | (30,064) | (7,569) | ||
| Net increase (decrease) in cash and cash equivalents | 421 | (23,311) | (17,245) | ||
| Cash and cash equivalents at beginning of the period / year | 23,005 | 40,250 | 40,250 | ||
| Cash and cash equivalents at end of the period / year | 23,426 | 16,939 | 23,005 |
NOTES:
1. Basis of preparation and accounting policies
The unaudited condensed consolidated interim financial statements have been prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting" as issued by the International Accounting Standards Board and Hong Kong Accounting Standard 34 "Interim Financial Reporting" as issued by the Hong Kong Institute of Certified Public Accountants and have not been reviewed by our auditor, Grant Thornton Hong Kong Limited. The accounting policies and basis of preparation adopted in these interim financial statements are consistent with those adopted in the annual financial statements for the year ended 31 December 2024, except for the Group has adopted the amended IFRS Accounting Standards and HKFRS Accounting Standards, which are effective for the annual period beginning on 1 January 2025. The adoption of the amended IFRS Accounting Standards and HKFRS Accounting Standards does not have material impact on the Group's financial performance and financial position for the current and prior periods have been prepared and presented.
2. Revenue
The Group is principally engaged in the businesses of ship chartering and ship owning which are carried out internationally. Revenue represents chartering freight and hire income arising from the Group's owned and charteredin vessels. Revenue recognized during the periods / year are as follows:
| 3 months ended 30/6/2025 |
3 months ended 30/6/2024 |
6 months ended 30/6/2025 |
6 months ended 30/6/2024 |
Year ended 31/12/2024 |
|
|---|---|---|---|---|---|
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Audited) | |
| US\$'000 | US\$'000 | US\$'000 | US\$'000 | US\$'000 | |
| Chartering freight and hire income: | |||||
| Hire income under time charters 1 | 38,603 | 41,245 | 77,907 | 69,139 | 158,900 |
| Freight income under voyage 2 charters |
1,639 | - | 1,639 | - | - |
| 40,242 | 41,245 | 79,546 | 69,139 | 158,900 |
Notes:
-
- Hire income under time charters is accounted for as operating lease and is recognized on a straight-line basis over the period of each time charter contract. During the period, hire income included a non-lease component in relation to crewing service of US\$16,088,000 (30/6/2024: US\$13,342,000).
-
- Freight income under voyage charters is accrued over the period from the date of loading of charterer's cargo to the date of discharging the cargo and is recognized on percentage of completion basis measured by time proportion of each voyage charter contract.
3. Net loss on disposal of owned vessels
During the first half of 2025, the Group entered into an agreement to dispose of a Supramax of deadweight 53,350 metric tonnes at a consideration of US\$8,260,000 with a net loss of US\$2,436,000 which was recognized on completion of the disposal vessel in the period.
4. Other operating income
| 3 months | 3 months | 6 months | 6 months | Year | |
|---|---|---|---|---|---|
| ended | ended | ended | ended | ended | |
| 30/6/2025 | 30/6/2024 | 30/6/2025 | 30/6/2024 | 31/12/2024 | |
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Audited) | |
| US\$'000 | US\$'000 | US\$'000 | US\$'000 | US\$'000 | |
| Net gain on financial assets at fair | |||||
| value through profit or loss | 829 | 1,739 | 2,455 | 3,455 | 4,867 |
| Other shipping operating income | 2,630 | 982 | 4,160 | 1,727 | 4,746 |
| Settlement income 1 | - | 3,500 | 20,223 | 3,500 | 3,500 |
| Reversal of impairment loss on trade | |||||
| and other receivables, net | - | - | - | - | 1,848 |
| Dividend income | 713 | 491 | 757 | 547 | 1,173 |
| Gross rental income from operating | |||||
| leases on investment properties | 102 | 140 | 215 | 281 | 556 |
| Sundry income | 74 | 76 | 390 | 139 | 301 |
| 4,348 | 6,928 | 28,200 | 9,649 | 16,991 |
Note:
- The settlement income represents amounts received from legal proceedings involving the subsidiaries of the Company and Parakou Shipping Pte Limited in London and Hong Kong in relation to the non-performance of a charterparty. In 2024, Galsworthy Limited, a wholly owned subsidiary of the Company, and Parakou Shipping Pte Limited reached a settlement agreement to resolve the legal action. As a result, the Group received settlement income of US\$3.5 million in April 2024 and US\$20.2 million in January 2025, which have been recognized.
5. Interest income
| 3 months ended 30/6/2025 |
3 months ended 30/6/2024 |
6 months ended 30/6/2025 |
6 months ended 30/6/2024 |
Year ended 31/12/2024 |
|
|---|---|---|---|---|---|
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Audited) | |
| US\$'000 | US\$'000 | US\$'000 | US\$'000 | US\$'000 | |
| Interest income in respect of: | |||||
| Deposits with banks and other financial institutions |
235 | 151 | 403 | 321 | 453 |
| Loan receivables | 128 | 79 | 406 | 159 | 321 |
| Financial assets at fair value through profit or loss |
- | 9 | - | 18 | 25 |
| Others | - | - | - | - | 35 |
| 363 | 239 | 809 | 498 | 834 |
6. Operating profit before depreciation and amortization
This is stated after charging / (crediting):
| 3 months ended 30/6/2025 |
3 months ended 30/6/2024 |
6 months ended 30/6/2025 |
6 months ended 30/6/2024 |
Year ended 31/12/2024 |
|
|---|---|---|---|---|---|
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Audited) | |
| US\$'000 | US\$'000 | US\$'000 | US\$'000 | US\$'000 | |
| Realized gain on financial assets at fair value through profit or loss |
(492) | (518) | (508) | (1,013) | (2,409) |
| Unrealized gain on financial assets at fair value through profit or loss |
(337) | (1,221) | (1,947) | (2,442) | (2,458) |
| Net gain on financial assets at fair value through profit or loss |
(829) | (1,739) | (2,455) | (3,455) | (4,867) |
| Charter hire payments for time charters 1 |
2,200 | 6,907 | 6,663 | 8,471 | 21,784 |
| Net loss on disposal of owned vessel | 2,436 | - | 2,436 | - | - |
| Impairment loss (Reversal of impairment loss) on assets held for sale |
(601) | - | 1,831 | - | - |
| Change in fair value of investment properties |
828 | 1,715 | 828 | 1,715 | 4,386 |
| Reversal of impairment loss on owned vessels and right-of-use assets |
- | - | - | - | (6,533) |
| Reversal of impairment loss on trade and other receivables, net |
- | - | - | - | (1,848) |
Note:
- Represents short term leases with a term of twelve months or less.
7. Taxation
Taxation has not been provided as the Group has no assessable profit for all relevant periods / year.
There was no Bermuda income, corporation or profits tax, withholding tax, capital gains tax, capital transfer tax, estate duty or inheritance tax payable by the Company for the periods / year.
The Company has received from the Minister of Finance of Bermuda under The Exempted Undertakings Tax Protection Act 1966, as amended, an assurance that, in the event of there being enacted in Bermuda any legislation imposing tax computed on profits or income, or computed on any capital asset gain or appreciation or any tax in the nature of estate duty or inheritance tax, the imposition of such tax shall not until 31 March 2035 be applicable to the Company or to any of its operations, or to the shares, debentures or other obligations of the Company.
8. Earnings (Loss) per share
| 3 months | 3 months | 6 months | 6 months | Year | |
|---|---|---|---|---|---|
| ended | ended | ended | ended | ended | |
| 30/6/2025 | 30/6/2024 | 30/6/2025 | 30/6/2024 | 31/12/2024 | |
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Audited) | |
| Weighted average number of ordinary shares in issue |
109,258,943 | 109,258,943 | 109,258,943 | 109,258,943 | 109,258,943 |
| Net profit (loss) attributable to shareholders of the Company (US\$'000) |
(1,925) | 8,816 | 15,149 | 11,221 | 24,005 |
| Basic and diluted earnings (loss) per share |
(US\$0.018) | US\$0.081 | US\$0.139 | US\$0.103 | US\$0.220 |
Diluted earnings (loss) per share were the same as basic earnings (loss) per share as there was no potentially dilutive ordinary shares in existence for the relevant periods / year presented.
9. Dividend
| 3 months | 3 months | 6 months | 6 months | Year | |
|---|---|---|---|---|---|
| ended | ended | ended | ended | ended | |
| 30/6/2025 | 30/6/2024 | 30/6/2025 | 30/6/2024 | 31/12/2024 | |
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Audited) | |
| US\$'000 | US\$'000 | US\$'000 | US\$'000 | US\$'000 | |
| 2024 final dividend of | |||||
| US\$0.03 per share | - | - | - | - | 3,278 |
The final dividend for the year 2024 was approved by the Company's shareholders on the annual general meeting held on 28 May 2025. Such dividend was paid to the shareholders of the Company on 25 June 2025.
The Board has resolved not to recommend the payment of any interim dividend for the quarter ended 30 June 2025.
10. Right-of-use assets and lease liabilities
(a) Right-of-use assets
| 30/6/2025 | 30/6/2024 | 31/12/2024 | |
|---|---|---|---|
| (Unaudited) | (Unaudited) | (Audited) | |
| US\$'000 | US\$'000 | US\$'000 | |
| At 1 January | 30,022 | 21,095 | 21,095 |
| Additions | 27,711 | 27,821 | 27,881 |
| Lease remeasurement | 1,458 | (2,364) | (8,526) |
| Depreciation | (14,592) | (5,688) | (15,019) |
| Reversal of impairment loss | - | - | 4,591 |
| 44,599 | 40,864 | 30,022 |
(b) Lease liabilities
| 30/6/2025 | 30/6/2024 | 31/12/2024 | |
|---|---|---|---|
| (Unaudited) | (Unaudited) | (Audited) | |
| US\$'000 | US\$'000 | US\$'000 | |
| At 1 January | 32,385 | 29,139 | 29,139 |
| Additions | 27,711 | 27,821 | 27,881 |
| Lease remeasurement | 1,458 | (2,364) | (8,526) |
| Interest expense (included in finance costs) | 1,764 | 827 | 1,317 |
| Repayments of lease liabilities | (15,718) | (6,775) | (17,426) |
| 47,600 | 48,648 | 32,385 |
The lease liabilities were repayable as follows:
| 30/6/2025 | 30/6/2024 | 31/12/2024 | |
|---|---|---|---|
| (Unaudited) | (Unaudited) | (Audited) | |
| US\$'000 | US\$'000 | US\$'000 | |
| Within one year | 22,595 | 20,184 | 18,692 |
| After one year but within two years | 14,632 | 13,729 | 5,028 |
| After two years but within five years | 10,373 | 14,735 | 8,665 |
| 25,005 | 28,464 | 13,693 | |
| 47,600 | 48,648 | 32,385 |
During the first half of 2025, the total cash outflow for the lease was US\$22,392,000 (30/6/2024: US\$6,775,000).
At the reporting date, the Group operated five long-term chartered-in vessels, two of them were with remaining lease terms of more than twelve months. In the first half of 2025, the Group took delivery of a long term chartered-in Capesize, with deadweight 207,672 metric tonnes, built in year 2017, for a minimum term of thirty-three months.
In accordance with IFRS 16 and HKFRS 16 Leases, the Group recognized the right-of-use assets which is calculated with the present value of total minimum hire payment at the inception of the lease terms of the charterparties and corresponding lease liabilities was also recognized in the consolidated statement of financial position upon their deliveries of the vessels.
11. Investment properties
| 30/6/2025 | 30/6/2024 | 31/12/2024 | |
|---|---|---|---|
| (Unaudited) | (Unaudited) | (Audited) | |
| US\$'000 | US\$'000 | US\$'000 | |
| At 1 January | 20,873 | 25,259 | 25,259 |
| Change in fair value | (828) | (1,715) | (4,386) |
| 20,045 | 23,544 | 20,873 |
The Group's investment properties were stated at fair value and comprised of premises and car parks held under operating leases to earn rentals or held for capital appreciation, or both. These premises and car parks are held under long term leases.
At the reporting date, the fair values of the Group's investment properties were determined by Centaline Surveyors Limited, an independent qualified professional valuer, on direct comparison approach with reference to comparable transactions available in the relevant locality. In estimating the fair value of the investment properties, the highest and best use of the properties is their current use. The fair value measurement of these investment properties was categorized as Level 3 of the three-level fair value hierarchy as defined under IFRS 13 and HKFRS 13 and there was no transfer among the three levels of the fair value hierarchy during the periods / year.
12. Financial assets at fair value through OCI
| 30/6/2025 | 30/6/2024 | 31/12/2024 | |
|---|---|---|---|
| (Unaudited) | (Unaudited) | (Audited) | |
| US\$'000 | US\$'000 | US\$'000 | |
| Unlisted equity investments | |||
| Co-investment in a property project | |||
| At 1 January | 4,948 | 7,259 | 7,259 |
| Change in fair value 1 | (627) | (1,232) | (2,311) |
| 4,321 | 6,027 | 4,948 | |
| Unlisted club membership | |||
| At 1 January | 418 | 432 | 432 |
| Change in fair value 2 | - | - | (14) |
| 418 | 432 | 418 | |
| 4,739 | 6,459 | 5,366 |
Notes:
-
- Items that will not be reclassified to profit or loss.
-
- Items that may be reclassified subsequently to profit or loss.
Unlisted equity investments
In 2018, the Group entered into the co-investment documents to co-invest in a property project in Tower A of One Financial Street Center, Jing'an Central Business District, Shanghai, the PRC (the "Co-investment"), pursuant to which the Group is committed to acquire non-voting participating class A shares of Dual Bliss Limited of US\$10,000,000. Dual Bliss Limited is one of the investors of the Co-investment.
The Investment Manager of the Co-investment, Phoenix Property Investors Limited, reported an estimated loss of US\$627,000 on the fair value of equity instruments for the first half of 2025, mainly arising from the financing costs incurred for the shareholder loans. The reported loss on the Co-investment was recognized by the Group as a change in fair value of financial assets at fair value through OCI and was included in other comprehensive loss in the condensed consolidated statement of profit or loss and other comprehensive income. As at the reporting date, the estimated carrying amount of the unlisted equity investments was US\$4,321,000 (31/12/2024: US\$4,948,000). whereas the loan receivable arise from the Co-investment (note 13), together with the interest accrued thereon was US\$2,865,000 (31/12/2024: US\$2,459,000). The Group will closely monitor the performance of the Co-investment and will assess impairment allowances where appropriate.
There is no quoted market price in active market for unlisted equity investments. Transactions in such investments do not occur on a regular basis. The Group uses its net asset value (representing the fair value of the equity instruments reported by Phoenix Property Investors Limited, the Investment Manager) to determine its fair value as the Group determined that this is the fair price at which shareholders subscribe and redeem the investments or determined its fair value with generally accepted pricing models.
The fair value measurement of unlisted equity investments was categorized as Level 3 of the three-level fair value hierarchy as defined under IFRS 13 and HKFRS 13 and there was no transfer among the three levels of the fair value hierarchy during the periods / year.
Unlisted club membership
The investment in club membership is stated at fair values which is determined directly by reference to published price quotations in active markets and were categorized as Level 1 of the three-level fair value hierarchy as defined under IFRS 13 and HKFRS 13 and there was no transfer among the three levels of the fair value hierarchy during the periods / year.
13. Loan receivables
| 30/6/2025 | 30/6/2024 | 31/12/2024 | |
|---|---|---|---|
| (Unaudited) | (Unaudited) | (Audited) | |
| US\$'000 | US\$'000 | US\$'000 | |
| At 1 January | 1,577 | 1,577 | 1,577 |
| Provision of individual impairment | - | - | - |
| Loan receivables, net of provision | 1,577 | 1,577 | 1,577 |
A wholly owned subsidiary of the Company (the "Co-Investor") together with other co-investors signed an unsecured subordinated shareholder loan agreement with Triple Smart Limited, a special purpose vehicle invested by Dual Bliss Limited, for the purposes of funding the operating expenditure of the Co-investment in 2021. A maximum amount of US\$1,577,000 (31/12/2024: US\$1,577,000) was agreed and provided as at the reporting date. The loan receivables are unsecured and denominated in United States Dollars and has no repayment terms.
At the reporting date, the loan receivables have been reviewed by management to assess impairment allowances which are based on the evaluation of current creditworthiness, collection statistics and the net asset value of the Co-investment, and are not considered as impaired. The carrying amount of the loan receivables is considered to be a reasonable approximation of its fair value.
14. Financial assets at fair value through profit or loss
| 30/6/2025 | 30/6/2024 | 31/12/2024 | |
|---|---|---|---|
| (Unaudited) | (Unaudited) | (Audited) | |
| US\$'000 | US\$'000 | US\$'000 | |
| Held for trading | |||
| Listed equity securities | 19,572 | 22,421 | 17,903 |
| Listed debt securities | - | 599 | - |
| 19,572 | 23,020 | 17,903 | |
| Designated as such upon initial recognition | |||
| Investment funds | 2,870 | 2,097 | 2,702 |
| 22,442 | 25,117 | 20,605 |
At the reporting date, the fair value measurements of listed equity securities and listed debt securities were determined by reference to their quoted bid prices in active markets and were categorized as Level 1 and the fair value measurements of investment funds represented the quoted market prices on the underlying investments provided by financial institutions and were categorized as Level 2 of the three-level fair value hierarchy as defined under IFRS 13 and HKFRS 13. There was no transfer among the three levels of the fair value hierarchy during the periods / year.
15. Assets held for sale
On 16 May 2025, the Group entered into an agreement for the disposal of a Supramax of deadweight 56,952 metric tonnes, built in year 2008, at a consideration of US\$10,225,000. The vessel was delivered to the purchaser in July 2025. For financial reporting purposes, the vessel was reclassified to "Assets held for sale" in accordance with IFRS 5 and HKFRS 5 "Non-current Assets Held for Sale and Discontinued Operations" at the reporting date, with an impairment loss on assets held for sale (disposed vessel) of US\$1,831,000 was recognized in the first half of 2025 and was included in other operating expenses for the period.
16. Secured bank loans
The maturity of secured bank loans at the reporting date is as follows:
| 30/6/2025 | 30/6/2024 | 31/12/2024 | |
|---|---|---|---|
| (Unaudited) | (Unaudited) | (Audited) | |
| US\$'000 | US\$'000 | US\$'000 | |
| Within one year | 9,732 | 15,217 | 8,287 |
| In the second year | 10,009 | 49,501 | 8,844 |
| In the third to fifth year | 80,397 | - | 80,863 |
| Total secured bank loans | 100,138 | 64,718 | 97,994 |
| Less: Amount repayable within one year | (9,732) | (15,217) | (8,287) |
| Amount repayable after one year | 90,406 | 49,501 | 89,707 |
During the six months ended 30 June 2025, the Group had drawn new secured bank loans of US\$15,000,000 (30/6/2024: US\$22,991,000) and repaid US\$12,856,000 (30/6/2024: US\$46,440,000).
17. Capital expenditures and commitments
Capital Expenditures
During the first half of 2025, the Group reported capital expenditure of US\$29,264,000, primarily for the balance payment on vessel deliveries and capitalized drydocking costs. Additionally, US\$6,800,000 was paid as installments for vessels under construction, and US\$145,000 was spent on other property, plant, and equipment.
For the last corresponding period, capital expenditure of US\$32,694,000 was incurred, including US\$32,548,000 on additions of motor vessels and capitalized drydocking costs and US\$146,000 on other property, plant and equipment.
Capital Commitments
In 2024, the Group entered into two shipbuilding contracts for the construction of two Ultramax newbuildings, each at a consideration of US\$34,000,000 of deadweight 63,500 metric tonnes, to be delivered in 2026 and 2027 respectively. As at 30 June 2025, installments of US\$6,800,000 for the vessels under construction were paid, and the capital expenditure commitments contracted by the Group but not provided for, net of installments paid, was approximately US\$61,200,000 (31/12/2024: US\$68,000,000).
In 2018, the Group entered into the co-investment documents to co-invest in a property project in Tower A of One Financial Street Center, Jing'an Central Business District, Shanghai, the PRC, pursuant to which the Group is committed to acquire non-voting participating class A shares of Dual Bliss Limited of US\$10,000,000. Dual Bliss Limited is one of the investors of the Co-investment. As at the reporting date, the capital expenditure commitments contracted by the Group but not provided for was US\$372,000 (31/12/2024: US\$372,000).
As at 30 June 2025, the total amount of capital expenditure commitments contracted by the Group but not provided for, net of installment paid, was US\$61,572,000.
As of 31 December 2024, the total amount of capital expenditure commitments contracted by the Group but not provided for was US\$117,080,000. In addition to the aforementioned commitments, the amount also included rightof-use assets of approximately US\$26,640,000 for the long term charter of a Capesize, which was delivered in January 2025, as well as a capital expenditure commitment of US\$22,068,000 for the acquisition of an Ultramax, which was acquired at the end of 2024 and delivered to the Group in January 2025.
Save as disclosed above, there was no other significant capital expenditure commitment contracted by the Group but not provided for as at the reporting date.
18. Related party transactions
During the periods / year, the Group had related party transactions in relation to compensation of key management personnel as follows:
| 3 months ended 30/6/2025 |
3 months ended 30/6/2024 |
6 months ended 30/6/2025 |
6 months ended 30/6/2024 |
Year ended 31/12/2024 |
|
|---|---|---|---|---|---|
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Audited) | |
| US\$'000 | US\$'000 | US\$'000 | US\$'000 | US\$'000 | |
| Salaries and other benefits | 1,952 | 1,951 | 3,912 | 3,909 | 9,265 |
| Contributions to retirement benefits schemes |
112 | 112 | 223 | 223 | 446 |
| 2,064 | 2,063 | 4,135 | 4,132 | 9,711 |
19. Events after the reporting date
Subsequent to the reporting date, the Group entered into three agreements for the disposal of three Supramaxes.
On 4 July 2025, the Group entered into an agreement for the disposal of a Supramax of deadweight 56,927 metric tonnes, built in year 2009, at a consideration of US\$10,800,000. The vessel was delivered to the purchaser in July 2025.
On 23 July 2025, the Group entered into an agreement for the disposal of a Supramax of deadweight 56,913 metric tonnes, built in year 2009, at a consideration of US\$11,000,000. The vessel was delivered to the purchaser in July 2025.
On 6 August 2025, the Group entered into an agreement for the disposal of a Supramax of deadweight 56,887 metric tonnes, built in year 2009, at a consideration of US\$10,500,000. The vessel will be delivered to the purchaser during the fourth quarter of 2025.
Jinhui Shipping and Transportation Limited
Registered office: Clarendon House, 2 Church Street, Hamilton HM 11, Bermuda
Correspondence address:
26th Floor, Yardley Commercial Building, 1-6 Connaught Road West, Hong Kong SAR, PRC
Tel: (852) 2545 0951 E-mail: i n f o @ j i n h u i s h i p . c o m Fax: (852) 2541 9794 Website: w w w . j i n h u i s h i p . c o m