Jinhui Shipping & Transportation Ltd.

Good afternoon, those in Asia. Thank you for joining Jinhui Shipping & Transportation Ltd. Q1 2026 results presentation. I believe you've all had a look at the results. I have a copy of the presentation, so I shall begin. There are some of those still coming in. Everyone hear me okay? Great. Okay, for Q1 2026, revenue for the quarter, 33 million US dollars. Earnings before interest, tax, depreciation and amortization, 17 million US dollars. We have recorded a net profit of 4 million for the quarter. Basic earnings at 0.04 US dollars. And gearing ratio as of the end of the quarter, 5%. This slide shows the comparison quarter on quarter. I think the good news in particular is the average daily time charter equivalent has risen 23% quarter on quarter. While chartering revenue declined by 17% to $32.8 million, primarily due to a reduced number of vessels in operation. We've sold off a number of old vessels and of course at the same time we have committed to build some new ships which will be delivered going forward. The group recorded a consolidated net profit of $4 million for Q1 2026 compared to $17 million for Q1 2025. The decrease was mainly due to the absence of a one-off settlement income of 20.2 million from the non-performers of a charter party in the previous Q1 2025. Average TCE improved 23% as described just now. Our fleet renewal strategy is still going ahead. During the quarter, two vessels were disposed at an aggregate consideration of $47 million and scheduled deliveries to their new owners, the buyers, in Q3 2026. In February 2026, the group entered into two shipbuilding contracts for the construction of two Ultramax new buildings at a consideration both scheduled for delivery in 2029. Shipping-related expenses declined 36% from $21.6 million in the last corresponding quarter to $13.9 million in the current quarter. The reduction reflects a reduced number of vessels in operation alongside a decline in higher payments from expiry of certain chartered aircraft. engagements last year. The group recorded 4% increase in daily running costs to US$5,612 per day compared with Q1 2025. The increase is primarily due to higher crew costs, expenditure on spare parts for vessels, driven by an increase in operational demands and the need for maintenance to ensure optimal performance. During the quarter, total capex amounted to $9.8 million in which $9 million was paid for vessels under construction. Total secured borrowings decreased to $107 million as of end of the quarter with current portion of $12 million and non-current portion of $95 million. So here's a summary cap shot of the financials. Self-explanatory, so I won't go into details. As of Q1, 2026, our total assets is at 539 million U.S. dollars. Total equity, 383.8.9 million U.S. dollars. Total borrowings, 107, rounding up, 107 million U.S. dollars. Current rent ratio, 3.71 to 1. A gearing of 5%. We have available liquidity at 87.76 million US Dollars Return on Equity 1.13 Of course you know some may ask why are we keeping such a low gearing? It's not just for the sake of conservatives but of course we have new biddings coming in so we will have to make capacity for borings for our new vessels going forward. As of yesterday, we have 21 vessels, total carrying capacity of 1.68 million debris tons, and 98% utilization rate. In January, a supramaxis contractor disposed in December 2025 had been cancelled due to one of the contractual clauses cannot be fulfilled. In February, the group entered into two ship-holding contracts, each with a debt weight of 64,100 metric tons and a consideration of US$34 million per vessel to be delivered scheduled delivery in 2029. In March, Two vessels were sold for 23.5 million and 24 million US dollars respectively, both with deadweight of 63,485 metric tons. The vessels will be delivered to the buyers in Q3 2036. At the reporting date, the Group's order book comprised of eight new buildings, one to be delivered in 2026, 1 in 2027, 4 to be delivered in 2028, and 2 to be delivered in 2029. And as of the end of the quarter, we are operating 21 vessels, of which 18 are our own vessels and 3 targeted in. Here's the detail of our own vessels. And in terms of our charging vessels, we have two remaining, one Panamax and one Cape Salis. And below is the eight vessels New buildings to be delivered between 2026 and 2029. So here's our evolving fleet size. We are taking up the opportunity to renew and hopefully we'll slowly build up Our total debt included bank loans and other borrowings, $107 million. The bank loans represented revolving loans and term loans which were secured by groups, multivessels, land and buildings, investment properties, and financial assets of fair value through profit or loss to secure credit facilities. As of the end of the quarter, 11% will be repayable within one year, 68% will be repayable within two years, 8% within three to five, and 13% five years plus. In terms of cargo mix, 63% will be minerals, 13% coal, 8% agricultural products, 4% cement, 4% steel product, 3% fertilizers, and 5% other minerals. In terms of distribution of cargo, 32% South America, 21% Africa, 20% Asia excluding China, 13% Australia, 5% China, 4% Europe and 5% North America. In terms of the discharging ports, 45% of the cargo goes to China, 28% goes to Asia, excluding China, 21% goes to Africa, and 6% goes to South America. As of the end of Q1 2026, the TC has improved. fairly significantly, especially on the Cape size and Panamax sector. Cape size, TCE as of Q1 2026, 30,408 US dollars per day, that is. Panamax, 17,705 US dollars per day. Ultramax, 13,710 US dollars per day. This will be equivalent to an average for the entire fleet, $16,290 per day. As at the reporting date, we have successfully covered 33% of our cape size and 100% of Panamax vessels' days for the rest of 2026. With an average rate of 23,000 and 19,000 a day respectively. For Ultramax, Supermax, 51% of vessel days were covered at an average rate of 14,000 US dollars per day for the rest of 2026. Baby vessel running costs Q1 2026, 5,612 compared to Q1 2025 of 5,375 and the full year 2025, 5,895. To be honest, I don't see 30 big movements here. So, and I explained already in earlier on, crew costs, maintenance costs, operational needs, et cetera, there's a slight increase when compared quarter on quarter. Nothing alarming on this front. More importantly on the outlook, we see right now a very balanced freight market and asset market. And we hope and we expect that it will continue to be steady for the rest of the year. The supply and demand of driver vessels in very good, fairly good balance, particularly strong on the Cape size. However, at the same time, we do see some signs of a disconnection between enterprises and freight and that's why, you know, we will always stay cautious. At the same time, we will continue to look for opportunities to maintain a young fleet, i.e., for older vessels, if we see a good price in the market, we may consider disposal of older vessels, and then if they're available, whether in the second-hand market or new-roading market, good opportunities, we will do such trades again, continue. But most important of all, we'll continue to achieve growth while maintaining a healthy balance sheet. I think one thing that's very important for everyone that I'd like to hear is dividend. For this current quarter, there's no declaration of dividend by the board of directors. Now, if anybody has any questions, please fire away. Okay, in question one first on the Middle East, we actually have fairly minimal exposure of our vessels in the Middle East, whether it's during the conflict or normally. It's not an area that we frequently visit. No, we have minimal exposure there. And in terms of risk insurance, I believe you mean the walrus. I don't have a number right in front of you right now, but it's, again, it's minimal and it's actually paid by the charters, not us. Which are the countries in Africa that receives our cargoes? For, actually, for low... Shipping & Transportation Ltd. Shipping & Transportation Ltd. Shipping & Transportation Ltd. Shipping & Transportation Ltd. Shipping & Transportation Ltd. Not in front of me. We actually, most of our contracts are on time-charted basis. So we do not take cargo contracts in terms of if you're asking about the box of volume. No, we do TC's. If I am to sell the oldest cave size, what would be the price? We haven't put it in the market to tell, but if you work out the benchmark, a recently 2016 Imabari cave size has been reported to go for $16 million plus. The company has locked in at 51% of its out-to-match supply speed at a daily target of 14,000. Any update on this? This is the update. This is the update. Otherwise, I mean, we see a steady, you know, possibly improving market, you know, and the You know, we have to balance, you know, what we lock in and, you know, what we put on spot. You know, if we lock everything in, then we won't be able to take advantage of a rising free market if we have nothing on spot. Is that something you're considering, meaning selling the oldest each size? Built in 2008. I have to kill you if you are to know what joke. We can't say. It's something that we will always look at and see whether the price to fetch right away versus whether we see further upside in terms of freight. Right now, we do not have any plans to sell this order tape size. Not now. Not at this very moment, no. We look at all opportunities very seriously. Thank you. Thank you for your comments. Any further questions? Well hopefully Q2 will be better than Q1. That's all I am going to say. I can see how others, non-industry participants, from the financial markets, from an investment professional, thinking that we're overly conservative. Maybe we have the handicap of being in shipping for too long. We have seen extreme volatilities. Hence, we will tend to be conservative. At the same time, I'm not sure whether when you say you see us as perhaps overly conservative, does that mean in terms of leveraging But I think being conservative in our industry pays off overall in the longer term. I think I touched on this. Maybe we look like we're overly conservative right now in terms of gearing. But as we have a sizable new building closed down, In fact, if you look at it, as of March 2026, the capital commitment, you know, aggregates to US$232 million. And we will be, you know, adding on leverage, you know, to fund this new bidding program in due course. But we'll do it, you know, by stage. So you will see, you know, eventually, you know, are gearing, free-thinking up back again. Of course, you know, we will be delighted if it's still low, you know, two years down the road. That means, you know, in terms of cash flow, in terms of freight, we are making, you know, extremely, extremely healthy money. So, I think this is how we're approaching things. You know, we're freeing up capacity. We talk about conservative in terms of balance. You're freeing up capacity. to add on leverage in the meantime oh thank you yeah well i mean we've seen you know i've always described we've seen cash raining down shipping But we've also seen, you know, excuse me for my language, shit hits the fan, you know, so things can be very, very bad. And we remember the pain, so we believe being conservative, you know, will pain a lot. Any more questions from anyone? Okay, if I know further questions, I'll call this the end to the presentation. Thank you very much for dialing in, and I look forward to reporting even better numbers in coming quarters. Thank you.