Jinhui Shipping and Transportation : Q2 2023 Presentation

Second Quarter 2023

Results Presentation

Jinhui Shipping and Transportation Limited 28 August 2023

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' 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.

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Highlights

Q2 2023 Financial Highlights

Revenue for the quarter: US$23 million

Net loss for the quarter: US$7 million

Basic loss per share: US$0.060

Gearing ratio as at 30 June 2023: 8%

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Highlights for Q2 2023

Given the considerable pressure in freight rates of shipping market in first half of 2023, the Group reported consolidated net loss for the current quarter of US$7 million;

Chartering revenue decreased 55% to US$23 million for the current quarter as compared to US$51 million of corresponding quarter in 2022; mainly due to weak dry bulk shipping market sentiment amid the challenging macroeconomic and financial environment in first half of 2023 as compared to strong market freight rates in last year;

Reported average TCE of the Group's fleet was US$10,132 per day for Q2 2023, represented a decrease of 62% as compared to US$26,397 per day for Q2 2022;

Decline in vessel running cost mainly due to drop in crew cost and continue reduction in pandemic related manning expenses as a result of lifting Covid related restrictions;

Net loss of US$1 million on bunker was recognized during the quarter as compared to net gain of US$4 million on bunker in corresponding quarter in 2022;

Other operating expenses decreased as the Group recorded net loss of US$2.2 million on financial assets at fair value through profit or loss in current quarter as compared to net loss of US$4.5 million from corresponding quarter in 2022;

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Highlights for Q2 2023

Depreciation and amortization decreased from US$9.1 million for the second quarter of 2022 to US$7.9 million for the second quarter of 2023; mainly due to the decrease in depreciation on owned vessels as a result of reduced in carrying amounts of owned vessels after the recognition of impairment loss of owned vessels in 2022, and partially offset by the recognition of depreciation on right-of-use assets during the quarter;

Finance costs was increased for the current quarter mainly due to rising of average interest rates;

As at 30 June 2023,	secured	bank loans decreased from US$83 million as of
31 December 2022 to	US$81	million as of 30 June 2023; Current portion and

non-current portion of secured bank loans was US$24 million and US$57 million respectively;

During 1H 2023, net repayment of bank borrowings of US$2 million;

CAPEX was under control, about US$1.6 million was spent on dry-docking and BWTS during the quarter;

2022 declared final dividend of US$0.04 per share, total US$4.4 million was paid in Jun 2023;

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