Jinhui Holdings Company Limited announced that three approximately 55.69% indirect subsidiaries—Jinsheng Marine Inc., Jinyao Marine Inc. and Huafeng Shipping Inc., each wholly owned by Jinhui Shipping and Transportation Limited—entered into separate shipbuilding contracts with Jiangmen Nanyang Ship Engineering Co., Ltd. for three bulk carriers of 64,500 deadweight tonnes each.
The contract price per vessel is US$33,050,000 (about HK$257,790,000), totaling US$99,150,000 (about HK$773,370,000).
Deliveries are scheduled on or before 31 January 2028, 29 February 2028 and 31 March 2028. The contracts are separate and not inter-conditional.
For each vessel, the price will be paid in four instalments: US$6,610,000 within five banking days after signing and receipt of a refund guarantee; US$3,305,000 upon first steel cutting; US$3,305,000 upon keel laying; and US$19,830,000 upon delivery.
The agreements include adjustment mechanisms in case of delays, speed deficiency, excess fuel consumption or deadweight deficiency. If delivery is delayed by 210 days from the thirty-first day after the agreed delivery date, the relevant purchaser may rescind and obtain a refund with interest.
Each contract is conditional on shareholder approval at a general meeting. The seller will provide refund guarantees from a specified bank.
Construction is to be supervised by a classification society surveyor and by the purchaser’s supervisor, with stage certificates required before instalments are paid. Jinhui Shipping will guarantee punctual payment of the contract prices by the purchasing subsidiaries within 30 days of signing.
Funding of the total consideration is expected to come about 70% from bank financing and the balance from internal resources. Jinhui stated that the decision to order new ships reflected fleet renewal needs, tighter maritime regulations and the absence of “high-quality young second-hand vessels” with suitable specifications, timelines and pricing.
The group operates 29 vessels, including 21 owned and eight chartered-in, with two owned vessels under sale-and-leaseback arrangements and one classified as held for sale.
According to Chapter 14 of the Listing Rules, each of the three contracts qualifies as a major transaction; taken together they constitute a very substantial acquisition requiring a circular and shareholder approval.
Jinhui Holdings Company Limited is a company incorporated in Hong Kong with limited liability.
