Jinhui Shipping and Transportation : Fourth quarter report for the quarter ended 31 December 2020 and preliminary annual results for the year ended 31 December 2020

HIGHLIGHTS

For the Year Ended 31 December 2020

•  Revenue for the year: US$47 million

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

•  Basic loss per share: US$0.140

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

For the Fourth Quarter of 2020

•  Revenue for the quarter: US$15 million

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

•  Basic earnings per share: US$0.069

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 year ended 31 December 2020.

FOURTH QUARTER AND ANNUAL RESULTS

Revenue for the fourth quarter of 2020 decreased 24% to US$15,137,000, comparing to US$19,790,000 for the corresponding quarter in 2019. The Company recorded a consolidated net profit of US$7,550,000 for current quarter as compared to a consolidated net profit of US$5,649,000 for the corresponding quarter in 2019 due to the increase in net gain on financial assets at fair value through profit or loss from US$2,896,000 for the fourth quarter of 2019 to US$5,264,000 for the fourth quarter of 2020. Basic earnings per share was US$0.069 for the fourth quarter of 2020 as compared to basic earnings per share was US$0.052 for the corresponding quarter in 2019.

Revenue for the year 2020 decreased 25% to US$47,118,000, comparing to US$63,160,000 for the year 2019. The Company recorded a consolidated net loss of US$15,252,000 for the year 2020, while a consolidated net profit of US$4,495,000 was reported in 2019. The consolidated net loss for the year was mainly attributable to (1) poor business sentiment in early 2020 as affected by the outbreak of the Coronavirus Disease 2019 ("COVID-19") pandemic leading to a reduction in chartering freight and hire revenue; (2) the significant unrealized fair value loss on financial assets at fair value through profit or loss amid the COVID-19 pandemic that triggered an adverse global financial markets sell off in early 2020; and (3) an increase in shipping related expenses. Basic loss per share for the year was US$0.140 while basic earnings per share was US$0.041 for the year 2019.

DIVIDENDS

The Board has resolved not to recommend the payment of any final dividend for the year ended 31 December 2020. As there is no interim dividend payable during the year, there will be no dividend distribution for the whole year of 2020.

REVIEW OF OPERATIONS

Fourth Quarter of 2020. In the fourth quarter of 2020, the dry bulk freight market continued to benefit from strong demand for iron ore imports activities in China, and the surge of global seaborne trade of grain, soybean and other agricultural commodities pushed market freight rates upward in the quarter. Baltic Dry Index ("BDI") opened at 1,725 points at the beginning of October and rose to the peak of the quarter at 2,097 points and closed at 1,366 points by the end of December 2020. The average of BDI of the fourth quarter of 2020 was 1,361 points, which compares to 1,562 points in the same quarter in 2019.

Revenue for the fourth quarter of 2020 was US$15,137,000 representing a decrease of 24% as compared to US$19,790,000 for the same quarter in 2019. The decrease in revenue for the quarter was mainly due to the decrease in market freight rates in the fourth quarter. The average daily time charter equivalent rates ("TCE") earned by the Group's owned vessels decreased 17% to US$9,487 for the fourth quarter of 2020 as compared to US$11,419 for the corresponding quarter in 2019. Fleet utilization rate of the Group's owned vessels slightly increased from 98% in the fourth quarter of 2019 to 99% in the fourth quarter of 2020.

Average daily TCE of owned vessels	2020 Q4 US$	2019 Q4 US$	2020 US$	2019 US$
Post-Panamax fleet Supramax fleet	11,891 9,173	12,122 11,336	9,929 6,986	9,628 9,522
In average	9,487	11,419	7,269	9,533

Other operating income increased from US$4,046,000 for the fourth quarter of 2019 to US$8,933,000 for the fourth quarter of 2020 due to the increase in net gain on financial assets at fair value through profit or loss from US$2,896,000 for the fourth quarter of 2019 to US$5,264,000 for the fourth quarter of 2020 as Asian financial markets rebounded in the fourth quarter of 2020. In addition, the Group recognized a net gain of US$881,000 on bunker arising from shipping operations and such income was included in other operating income in the current quarter as compared to a net loss on bunker arising from shipping operations which was included in shipping related expenses for the corresponding quarter in 2019. Other operating income also included reversal of impairment loss on trade receivable of US$1,351,000 upon recovery of outstanding trade receivable in prior years.

Interest income decreased from US$1,232,000 for the fourth quarter of 2019 to US$1,073,000 for the current quarter. The decrease in interest income was mainly due to the reduction in investment in debt securities as compared with that of the corresponding quarter in 2019.

Shipping related expenses decreased from US$9,400,000 for the fourth quarter of 2019 to US$7,796,000 for the current quarter. Daily vessel running cost decreased to US$4,271 for the fourth quarter of 2020 as compared to US$4,467 for the fourth quarter of 2019. 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 increased from US$1,611,000 for the fourth quarter of 2019 to US$1,943,000 for the fourth quarter of 2020 due to the increase in revaluation deficit arisen from investment properties from US$245,000 for the fourth quarter of 2019 to US$659,000 for the fourth quarter of 2020.

Finance costs dropped from US$1,115,000 for the fourth quarter of 2019 to US$541,000 for the fourth quarter of 2020. The decrease was mainly attributable to the decrease in interest rate and the reduction in secured bank loans as compared with that of the corresponding quarter in 2019.