Jinhui Shipping & Transportation Ltd.

Good morning everyone in Europe. Good afternoon to those in Asia. Thank you for joining Jinhui Shipping & Transportation Ltd. Q2 and first half 2026 financial results. Can everyone hear me? Sorry, there are further people joining, so I'll accept first. I trust that you've all had a look at the financial results, the announcement, and you have a copy, and I'll share the presentation on the screen. Going through the highlights of current quarter. For Q2, we recorded $36 million for revenue, EBITDA of $17 million, and a net profit for the quarter, $5 million. Basic earnings per share, 0.048 for Q2. For the first half of 2026, we recorded a revenue of US$69 million, EBITDA of US$34 million, a net profit of US$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 there's a Reduction in the number of ships we sold some second-hand ships. Net profit, $5.3 million in Q2 2026, which represents a 374% quarter-on-quarter increase. Average daily TCE stands in Q2 2026, 18,015 US dollars per day, which is a 30% increase compared to Q2 2025 number. For the first half, first half 2026, your revenue compared to first half 2025 is a 13% drop. Again, this is due to the lower number of vessels in our feet, given that we've sold some. Net profit, $9.6 million. 37% drop compared to the first half of 2025. Average TCE in first half 2026, $17,150 per day, a 30% increase compared to the first half in 2025. Shipping related expenses fell by $7.96 million to $14.9 million this quarter, primarily due to the decrease in the number of vessels owned by the first group following the disposal of eight vessels last year, as well as a decline in prior payments resulting from short-term charging leases amounts to $1.3 million during the quarter, compared to $2.2 million in the same period last year. Daily running costs of old vessels decreased from Q2 2025 of $6,719 to Q2 2026 of $5,407. A decrease of 20%. Finance costs decreased from $2.1 million in Q2 2025 to $1.8 million in Q2 2026. Primarily attributable to the lower market interest rates and lower level of bank borrowings. A capex of $11.8 million incurred in Q2 2026, mainly for installments paid for new buildings and dry docking costs. During the current quarter, the group repaid bank loan and other borrowings in aggregated amount of approximately US$10 million. As of the end of June, total secured borrowings decreased to $98 million, with current portion of $9 million and non-current portion of $89 million. This 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, 98.3 million US dollars. Current ratio of 3.56 to 1. The gearing of 7%. Our current available liquidity is $70.6 million. Of course, this does not include our financial arrangement for our new buildings. This is 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, two Ultramaxes were sold for 23.5 million USD and 24 million USD respectively. One was delivered in July 2026, and the other one will be delivered in Q3 2026 to their new owners. During Q1 2026, the group entered into two Ultramax shipbuilding contracts at a consideration of $34 million per vessel, and both scheduled for delivery in 2029. In June, four Ultramax shipbuilding contracts were entered into at the consideration of approximately 34 million US dollars per vessel, scheduled for deliveries in 2030. Our order book comprised of 12 Ultramax new buildings, one to be delivered in 2026, one in 2027, four to be delivered in 2028, two in 2029, and four to be delivered in 2030. After the reporting date, we entered four sales and leaseback agreements for our four new buildings. Total consideration was about $70 billion. Here is the list of our own vessels. Average age 14.82 years currently. On the top of this page is our new wedding program and below The names, details of our two long-term chartered vessels. As of today, we now have 17 vessels, owned vessels, in our fleet. Our total debt as of the end of June 2026 amounts to $98 million. Bank loans represented revolving loans and term loans, which were secured by group multivessels, land, buildings, investment properties, and financial assets at their 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 or to old vessels. For Q2 2026, 70%, 74% of our cargo 9% coal 5% cement 2% agricultural products 2% steel products 1% fertilizer 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 Cave Size Fleet Time Charged Equipment $31,595 USD per day. Panamax $19,974 USD. Ultramax $15,364 USD. 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 Cape size $31,010, Panamax $18,833, Ultramax $18,833, 14,531 and an average of 17,150. Whether you look at Q2 or the first half of 2026 and compared to the quarter-on-quarter or half-on-half or semi-annual numbers, they both represent quite a 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 Our daily running cost has dropped to US$5,407 per day compared to in Q2 2025, US$6,719. Depreciation, of course, has risen from US$3,120 Before I go on to share with you what we think our outlook will be, I would like to share certain questions from some shareholders who have emailed 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 announcements regarding the sales and leaseback, two of them, we disclosed the borrowing rate, the margin, where the other two, we did not write it in terms of a rate, but rather the actual, in the term sheet, is the... Shipping & Transportation Ltd. Shipping & Transportation Ltd. Shipping & Transportation Ltd. Shipping & Transportation Ltd. Shipping & Transportation Ltd. The leverage level would be both around the same, around 60%. So, Thor, 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 context, we see that the global trade patterns will continue to change. Instead of the previous years, as in globalization, we see more regionalizations. 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 literally every week. Against this backdrop, we will continue to look for opportunistic renewal. We have kept a very robust balance sheet, you know, very low gearing. This is true, of course, you know, as our new buildings join our fleet, our leverage will go up. But at the same time, we want to keep 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 chatroom. 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, you know, the actual duration that they are willing to offer has shortened. I mean, we are trying to stretch or keep a good maturity profile, a healthy maturity profile, rather than, you know, three-year financing, you know, a shipping mortgage with a bank, or I would say max, absolutely max is five years. at a reasonable borrowing cost. So, this is the reason why we have chosen to use sales in these bank arrangements. Why do we invest in fixed group on notes instead of buying back its own share given the significant account discount to NAVM? This is a question that I cannot answer. I'd better seek the ideas of the board. I think, at the same time, buying back our own shares at a significant discount, I can see the attraction to shareholders or you guys. It offers a reason for 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 opportunities for renewal, we'd rather I would say we'd rather invest in some fixed-coupon notes to earn a good interest over our liquidity, and when we need to use this liquidity to, let's say, identify whether in a second-hand market or a new-building market, we can act very quickly. Do we plan to take our 407 ships for 20-year classes? 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 four or all four, two of them, through a special survey and continue to trade. As I said, we continue to look at the second-hand market to make sure that any of our older ships can fetch a good price. We will do so. So I cannot give you a definitive answer for 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 second-hand market? If you talk about how many months of sailing, even on a special survey for our O7 ships, We maintain a very good condition for our ships. You know, I do not see, you know, very extensive, you know, loss of sailing time, you know, if we put one of these ships into special service. I would estimate maybe, you know, it would take, you know, four to six 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 charge our vessels to our customers. is all through time charter contracts or super majority of them anyway. Yes, it is very sad. The Venus property in Shanghai, the commercial real estate situation in the mainland China even or 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 you know any fallback in the foreseeable future. Frankly, the market is basically flooded with CIE, commercial real estate, and we don't actually... Well, according to 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, you know, if we do, The property can be sold and there will be a callback. We'll definitely let everyone know. Thank you for the last comment on trying new diversification projects. I will just be let our board of directors. On behalf of Junio 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.