On September 21, Jinhui Holdings Company Limited (hereinafter referred to as “Jinhui Group”) announced that its indirect subsidiaries, Jinmao Marine Inc. and Jinquan Marine Inc., had each entered into a shipbuilding contract with Jiangmen Nanyang Ship Engineering Co., Ltd. (hereinafter referred to as “Jiangmen Nanyang Ship”), for two shipbuilding contracts in total.

Jiangmen Nanyang Ship will build and sell one 64,500 dwt bulk carrier to each of the two buyers. The contract price for each vessel is US$35.7 million, and the total price of the two vessels is US$71.4 million. The first vessel is expected to be delivered on or before August 31, 2029, and the second vessel on or before September 30, 2029.

Payment will be made in four instalments. For each vessel, the first instalment is US$5.355 million, the second instalment is US$5.355 million, the third instalment is US$3.57 million, and the final instalment is US$21.42 million. The first instalment is payable within five banking days after the contract is signed and the seller’s bank refund guarantee is received; the second instalment after confirmation that construction of the vessel has commenced; the third instalment after confirmation of keel laying; and the final instalment upon delivery of the vessel. Approximately 65% of the total price of the two vessels is planned to be financed by bank financing, with the remainder funded by the Group’s internal resources.

The acquisition of the two vessels is part of Jinhui Group’s plan to renew its fleet by replacing older vessels with more modern, larger and higher-quality vessels. According to the announcement, it is currently difficult to find in the secondhand market high-quality, young secondhand vessels with suitable specifications, favorable delivery timing and reasonable prices, so it decided to order new vessels that comply with the latest maritime environmental protection regulations. The new vessels will have greater fuel efficiency and operating efficiency.

After completion of the acquisition, the two vessels will be chartered to third parties for the carriage of dry bulk cargoes, earning charter hire and bringing recurring freight and vessel income to the Group. The Group currently operates 19 vessels, of which 16 are owned and 3 are chartered-in; two of the owned vessels have been arranged for sale and leaseback.

Jiangmen Nanyang Ship has been established for more than 20 years and is principally engaged in building bulk carriers, providing ship repair services and undertaking steel structure engineering. Its ultimate beneficial owner is Liao Jiajie, and it is an independent third party. Both buyers are wholly-owned subsidiaries of Jinhui Shipping, in which Jinhui Group indirectly holds approximately 55.69% equity interest.