Jinhui Shipping and Transportation : Conference call - 25 Feb 2021

JINHUI SHIPPING

AND TRANSPORTATION LIMITED

Disclaimer

This presentation 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 presentation 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.

Q4 2020 Financial Highlights

•  Revenue for the quarter: US$15 million

•  Net profit for the quarter: US$8 million

•  EBITDA: US$12 million

•  Basic earnings per share: US$0.069

Year 2020 Financial Highlights

•  Revenue for the year: US$47 million

•  Net loss for the year: US$15 million

•  EBITDA: US$3 million

•  Basic loss per share: US$0.140

•  Gearing ratio as at 31 December 2020: 15%

•  Consolidated net loss of US$15 million for current year mainly due to:

  •  1. poor business sentiment by the outbreak of COVID-19, leading to a reduction in chartering freight and hire revenue;

  •  2. significant unrealized fair value loss on financial assets at fair value through profit or loss due to adverse global financial markets;

  •  3. increase in shipping related expenses, mainly due to bunker consumption from positioning of owned vessels between time charter contracts and bunker related expenses of US$5 million;

•  A net loss of US$3.9 million from financial assets at fair value through profit or loss was recognized in current year, as compared to net gain of US$1.5 million from last year;

•  Increase in interest income of 34% was attributable to the stable interest income generated from loan receivables during the year;

•  During the year, the Group drawn new secured bank loan of US$19 million and repaid US$45 million;