On June 3, Jinhui Group announced an additional order for two 64,500 DWT Ultramax bulk carriers at Jiangmen Nanyang Shipbuilding.
The announcement shows that these two vessels were ordered by a wholly-owned subsidiary of Jinhui Shipping, which is a subsidiary in which Jinhui Group holds a 55.69% equity interest. The price per vessel is approximately US$34.15 million, with a total price of US$68.3 million (approximately RMB 462 million) for the two vessels. The new vessels are scheduled for delivery on or before December 31, 2030.
For reference, data from Clarksons shows that the current newbuilding price for bulk carriers of 61,000-64,500 DWT is approximately US$34.5 million (approximately RMB 233 million), a slight increase compared to US$33.5 million in the same period last year.
Jinhui Group stated that the contract amount will be paid in US dollars in cash. Approximately 55% of the expected total contract price will be financed through bank loans, with the remainder funded from the Group’s internal resources. The payment for the vessels is divided into four installments, with 60% being the final payment upon delivery. The pricing was determined through fair negotiation, comprehensively considering the shipyard’s quotation, delivery schedule, and recent market transaction conditions for similar vessels.
Jinhui Group pointed out that the Group’s main business is international ship leasing and vessel ownership. The acquisition of these two new vessels aligns with the Group’s ongoing strategy of renewing its fleet with modern, larger, and higher-quality vessels, gradually phasing out older vessels and replacing them with newer, younger ones. The availability of suitable, modern, low-age vessels on the second-hand market fluctuates significantly. Currently, the market does not offer high-quality, low-age second-hand vessels with appropriate specifications, favorable delivery times, and reasonable prices. The Company has referenced transaction prices of comparable vessels in recent market transactions and decided to order brand-new vessels that comply with the latest maritime regulations and incorporate specially designed features.
Compared to other bulk carriers currently operated by the Group, the newly ordered vessels have higher fuel efficiency and operational efficiency, meeting the latest environmental regulations and current specification requirements of the shipping industry. This decision supports the Company’s long-term goal of maintaining a young and modern fleet to provide better services to its customers and meet the specific needs of their cargo trades and destinations. After delivery, the new vessels will be chartered to third-party companies for the transportation of dry bulk commodities, generating charter hire and providing the Group with recurring freight and charter income.
Currently, Jinhui Group operates 21 vessels, including 18 owned vessels and 3 chartered vessels, with a total capacity of approximately 1.7 million DWT. Among the owned vessels, two have been arranged under sale and leaseback agreements, and two have been sold. The Board believes that now is the optimal time to further expand the fleet size to increase the Group’s operating revenue.
Earlier this year, Jinhui Group agreed to sell two 63,435 DWT vessels, “Jin Rui” and “Jin Ping” (both built in 2014).
Including the latest order, Jinhui Group currently has 8 Ultramax bulk carriers on order, comprising 6 vessels of 64,500 DWT built by Jiangmen Nanyang Shipbuilding and 2 vessels of 64,100 DWT built by Sumec Shipbuilding’s New Dayang Shipyard. These new vessels will be delivered successively between 2028 and 2030.
It is understood that Jinhui Group is an investment holding company that operates a global shipping business through its subsidiary Jinhui Shipping, in which it holds a 55.69% equity interest. The Group’s shipping business began in the 1980s, and it currently operates a modern fleet of bulk carriers ranging from Supramax to Capesize. In 1991, Jinhui Group was listed on the Hong Kong Stock Exchange as a holding company for several vessel-owning and vessel-leasing subsidiaries. In 1994, Jinhui Shipping was listed on the Oslo Stock Exchange in Norway.
The Ultramax bulk carrier has become the main ship type for Jiangmen Nanyang Shipbuilding. It is understood that Jiangmen Nanyang Shipbuilding has long focused on the construction of Handysize bulk carriers. Over the past 10 years, it has successively developed and launched the 39,000 DWT green environmental Handysize bulk carrier, the B-type 39,000 DWT green environmental Handysize bulk carrier, the 39,800 DWT multi-purpose bulk carrier, and the 40,000 DWT green environmental open-hatch bulk carrier. In 2024, Jiangmen Nanyang Shipbuilding entered the Ultramax market for the first time. In just over a year, it has continuously secured orders for more than 20 vessels of 64,500 DWT bulk carriers from multiple Chinese and Japanese shipowners, setting a new construction record for Jiangmen Nanyang Shipbuilding.
Including Jinhui Group’s latest order, data from Clarksons shows that Jiangmen Nanyang Shipbuilding currently holds an orderbook totaling 125 vessels of 6,453,500 DWT, including 65 vessels of 40,500 DWT bulk carriers, 2 vessels of 40,000 DWT bulk carriers, and 58 vessels of 64,500 DWT bulk carriers, with delivery schedules extending to 2030.
