TIDMYUJ
RNS Number : 9729S
Yujin International Ltd
30 September 2014
30 September 2014
Yujin International Ltd
("Yujin" or "the Company" or "the Group")
Interim Results
Yujin International Ltd, the owner and charterer of a fleet of
tankers operating in the Asia Pacific region is pleased to announce
its unaudited interim results for the six months ended 30(th) June
2014.
Key Points
v Shipping Revenue down 55% from US$ 7.2 million to US$ 3.2
million year-on-year. The decline in year-on-year revenue reflects
the Company's exit from the bunker market and continued weak
charter rates.
v Regional chemical tanker, MT Team Bee is on a spot contract
and the other regional bitumen tanker, MT Arcturus is on a term
contract.
v No revenue or contribution has been recorded for bunker
tankers in 2014 due to the sale of the fleet of vessels.
v Yujin's subsidiary, JR Orion Services, managed 10 ships as at
30 June 2014 down from 13 ships at the same time last year.
v Unrealized foreign exchange loss of US$ 238,000 due to the
weakening of the US Dollar.
v Reduction of operating expenses through a combination of
reduced staff numbers and decreased employee compensation.
v Yujin expects business to remain difficult due to the
challenging shipping environment which currently exists in the Asia
Pacific region.
v As announced, the Company remains in discussions with
potential strategic partners to explore other business
opportunities in both related as well as unrelated industries.
For further information please contact:
Yujin International Ltd. Tel: 00 (65) 6226 2963
Keen Whye LEE
Or visit www.yujininternational.com
Cantor Fitzgerald Europe
Rick Thompson / Catherine Leftley / Michael Reynolds Tel: 020 7894 7000
CHAIRMAN'S STATEMENT
The Board of Yujin is pleased to present its interim financial
report for the six months ended 30 June 2014.
Shipping revenue is down 55% year-on-year to US$ 3.2 million
after the sale of our Bunker Tankers and a drop in charter rates,
resulting in an operating loss of US$ 0.9 million.
A summary of the Group's unaudited revenue, operating profit or
loss before tax for the six months ended 30 June 2014, and
comparative figures for the same period in 2013, is presented
below:
Operating (loss)
Revenue / profit
USD'000 2014 2013 Change 2014 2013 Change
Bunker tankers - 2,956 (2,956) - 914 (914)
Regional tankers 2,792 3,643 (851) (185) 809 (994)
Ship management
and other income 447 591 (144) (455) 120 (575)
------ ------ -------- ------ ------ --------
Shipping revenue 3,239 7,190 (3,951) (640) 1,843 (2,483)
Bunker trade (non-core
activity) - 391 (391) - 132 (132
------ ------ --------
Total 3,239 7,581 (4,342) (640) 1,975 (2,615)
====== ====== ========
Finance costs (265) (158) (107)
Profit/Loss before
tax (905) 1,817 (2,722)
====== ====== ========
REGIONAL TANKERS
One of Yujin's owned chemical tankers, MT Team Bee has been on a
spot contract since November 2013. Yujin's other owned regional
bitumen tanker, MT Arcturus is on a term contract. Inspite of tight
operating cost controls, the drop in revenue flowed straight onto
the bottom line and was compounded by an increase in repair and
maintenance costs for Team Bee.
BUNKER TANKERS
All of Yujin's bunker tankers had been sold by October 2013 and
as a result no revenue or contributions have been recorded in
2014.
SHIP MANAGEMENT AND RELATED ACTIVITIES
The ship management operation incurred major losses due to the
loss of four third party owned ships as well as the four Yujin
bunker tankers. As at 30(th) June 2014, the Group manages a total
of 10 ships.
FINANCE COST
The finance cost was mainly due to unrealized foreign exchange
loss of US$ 238,000 due to the weakening of the US Dollar.
CURRENT TRADING AND OUTLOOK
The Company is still in discussions with the potential strategic
partner who had asked for the opportunity of a possible investment
with the Company that would maintain our listing on AIM.
The Directors are of the opinion that, aside from the cash flows
generated from ongoing operating activities, the Group will need to
find other sources of funding to enable the Group to grow the
current business. This is most likely to be through cash flows
arising on investing or financing activities.
The shipping market is expected to continue to remain weak.
Freight rates in many sectors have remained soft reflecting a
continued demand/supply imbalance and fuel costs, which have been
stable recently, remained high. If freight rates and fuel costs do
not improve, the environment in which the Group operates will
remain challenging with potential negative effects on its financial
performance.
In response to this challenging operating environment and
decline in the Group's financial performance, the Board has
implemented plans to reduce operating expenses through a
combination of reduced staff numbers and decreased employee
compensation.
LEE Keen Whye
Non Executive Chairman
Yujin International Ltd
30 September 2014
Consolidated Statement of Comprehensive Income
Unaudited interim results for the six months ended 30 June
2014
Unaudited Unaudited Audited
Six months Six months Year ended
to 30 June to 30 June 31 December
Note 2014 2013 2013
USD'000 USD'000 USD'000
Revenue 3,104 7,007 9,367
Other income 135 574 988
------------------ ----------------- -----------------
3,239 7,581 10,355
Costs and expenses
Cost of sales 2,091 3,565 4,579
Bad debts written off - - -
Depreciation 664 1,422 2,080
Directors' fees - - 94
Directors' salary - - 602
Staff costs 1,053
Other operating expenses 1,124 1,392 853
------------------ ----------------- -----------------
(3,879) (6,379) (9,261)
------------------ ----------------- -----------------
Profit from operations (640) 1,202 1,094
Non-operating expenses
Impairment loss on property, plant and equipment - - (706)
Loss on disposal on property, plant and equipment - - (867)
Finance income / (costs) (265) 615 (216)
------------------ ----------------- -----------------
Profit/(Loss) before tax (905) 1,817 (695)
Income tax expense 3 - - (423)
PROFIT/(LOSS) FOR THE PERIOD (905) 1,817 (1,118)
================== ================= =================
Other comprehensive income
Foreign currency translation differences for subsidiaries 209 88 (627)
Revaluation of property, plant and equipment - - (1,041)
-------- ------ --------
Other comprehensive income/(loss) for the year, net of tax 209 88 (1,668)
TOTAL COMPREHENSIVE INCOME/(LOSS) FOR THE PERIOD (696) 1,905 (2,786)
======== ====== ========
Attributable to :
Equity holders of the Company (718) 1,782 (2,711)
Non-controlling interests 22 123 (75)
Total comprehensive income/(loss) for the period (696) 1,905 (2,786)
======== ====== ========
Attributable to :
Equity holders of the Company (927) 1,694 (1,043)
Non-controlling interests 22 123 (75)
Loss for the period (905) 1,817 (1,118)
======== ====== ========
Earnings per share
Basic (in USD) 4 (0.032) 0.050 (0.030)
Diluted (in USD) 4 (0.032) 0.050 (0.030)
Consolidated Statement of Financial Position
Unaudited interim results at 30 June 2014
Unaudited Unaudited Audited
As As
at at As at
30 30 31
June June December
Note 2014 2013 2013
ASSETS USD'000 USD'000 USD'000
Non-current assets
Property, plant and
equipment 10,586 15,358 11,249
Deferred tax 200 1,168 200
------------ ------------ -------------
10,786 16,526 11,449
Current assets
Trade and other receivables 5 975 1,271 1,255
Amount receivable
from a related company - - -
Cash and cash equivalents 439 3,058 744
------------ ------------ -------------
1,414 4,329 1,999
Total assets 12,200 20,855 13,448
============ ============ =============
EQUITY AND LIABILITIES
Equity attributable to equity
holders of the Company
Share capital 3,318 3,318 3,318
Revaluation reserve 1,744 2,519 1,744
Currency translation
reserve 1,792 2,703 2,604
Retained earnings (1,428) 2,236 (501)
------------ ------------ -------------
5,426 10,776 7,165
Non-controlling interests (484) (308) (506)
Total equity 4,942 10,468 6,659
============ ============ =============
Non-current liabilities
Loans from related companies - 1,970 -
Term loan (secured) 1,712 - 1,712
Deferred tax 1,623 2,863 1,623
------------ ------------ -------------
3,335 4,833 3,335
Current liabilities
Trade and other payables 3,571 2,467 1,934
Amount payable from a
related company - - 114
Term loan (secured) 352 3,087 705
Income tax (payable) - - 701
------------ ------------ -------------
3,923 5,554 3,454
------------ ------------ -------------
Total liabilities 7,258 10,387 6,789
Total equity and liabilities 12,200 20,855 13,448
============ ============ =============
Consolidated Cash Flow Statement
Unaudited interim results for the six months ended 30 June
2014
Unaudited Unaudited Audited
Six Six Year
months months ended
to
30 to 30
June June 31 December
2014 2013 2013
USD'000 USD'000 USD'000
Cash flows from operating
activities
Profit/(loss) before
taxation (905) 1,817 (695)
Adjustments for:
Bank loan interest 21 159 216
Bad debts written off - - 32
Impairment loss on property,
plant and equipment - - 706
Provision for impairment
loss on receivable (trade) - 42
Loss on disposal of property,
plant and equipment - 867
Depreciation 663 1,422 2,080
Write off deposit - - -
-------------- -------------- -----------------
684 1,581 3,943
-------------- -------------- -----------------
Operating profit before
working capital changes (221) 3,398 3,248
Decrease/(Increase) in
trade and other receivables 280 207 149
(Decrease)/Increase in
trade and other payables 822 (1,547) (2,491)
-------------- -------------- -----------------
1,102 (1,340) (2,342)
-------------- -------------- -----------------
Cash generated from operations 881 2,058 906
Income tax paid - - -
-------------- -------------- -----------------
Net cash flows from operating
activities 881 2,058 906
Cash flows from investing
activities
Sale / (Purchase) of property,
plant and equipment - 17,694 10,536
-------------- -------------- -----------------
Net cash flows used in
investing activities - 17,694 10,536
Cash flows from financing
activities
Payment of term loan interest (21) (159) (204)
Payment of interest to
related parties - - (19)
Payment of term loan financing (353) (15,972) (8,744)
Loan from related company - - (2,206)
Amount payable to a related
company - (244) 15
--------------- -------------- ------------------
Net cash flows from/(used
in) financing activities (374) (16,375) (11,158)
Net decrease in cash and
cash equivalents 507 3,377 284
Cash and cash equivalents
at beginning of period 744 475 475
Effect of exchange rate
changes (812) (794) (15)
Cash and cash equivalents
at end of period 439 3,058 744
=============== ============== ==================
Consolidated Statement of Changes in Equity
Unaudited interim results for the six months ended 30 June
2014
Total attributable
to equity
Share Translation Revaluation Retained holders Non-controlling Total
of the
capital reserve reserve earnings Company interests equity
USD'000 USD'000 USD'000 USD'000 USD'000 USD'000 USD'000
Balance at 1
January
2013 3,318 3,497 2,519 542 9,876 (431) 9,445
Total comprehensive
income/(loss)
for the year
Loss for the
year - - - (1,043) (1,043) (75) (1,118)
Other
comprehensive
income :
Revaluation of
property,
plant and
equipment - - (1,041) - (1,041) - (1,041)
Currency
translation
differences - (893) 266 - (627) - (627)
--------- ----------------- ------------------ --------------- ----------------------- ----------------- --------------
Total
comprehensive
income - (893) (775) (1,043) (2,711) (75) (2,786)
--------- ----------------- ------------------ --------------- ----------------------- ----------------- --------------
Balance at 31
December
2013 3,318 2,604 1,744 (501) 7,165 (506) 6,659
Total comprehensive
income/(loss)
for the period
Loss for the
period - - - (927) (927) 22 (905)
Other
comprehensive
income :
Currency
translation
differences - (812) - - (812) - (812)
--------- ----------------- ------------------ --------------- ----------------------- ----------------- --------------
Total
comprehensive
income - (812) - (927) (1,739) 22 (1,717)
--------- ----------------- ------------------ --------------- ----------------------- ----------------- --------------
Balance at 30
June
2014 3,318 1,792 1,744 (1,428) 5,426 (484) 4,942
========= ================= ================== =============== ======================= ================= ==============
Notes to the Interim Financial Information
1. General Corporate Information
Yujin International Ltd., company registration No. 200414709R,
is a limited liability company, incorporated and domiciled in
Singapore.
2. Basis of preparation
The consolidated interim financial information of the Group for
the six months ended 30 June 2014 and the comparative numbers,
unless indicated, are unaudited and do not comprise statutory
accounts within the provision of the Singapore Companies Act,
Chapter 50.
The results for the year ended 31 December 2013 have been
extracted from the consolidated financial statements for the
Company for the year ended 31 December 2013 which are prepared
under International Financial Reporting Standards. The interim
financial information should be read in conjunction with the annual
financial statements for the year ended 31 December 2013, as
described in those financial statements.
The accounting policies applied by the Group in this interim
financial information are the same as those applied in the Group's
consolidated financial statements for the year ended 31 December
2013 and are also those expected to be applied in the forthcoming
financial statements for the year ending 31 December 2014.
The interim financial information for the six months ended 30
June 2014 was approved by the directors on 26 September 2014.
3. Taxation
The tax charge for the six months period to 30 June 2014 is
estimated at US$ Nil (2013: US$ Nil) or Nil (2013: Nil) which is
the estimated effective rate of tax.
4. Earnings/(loss) per share
The basic and diluted loss per share in each period are
calculated by reference to the earnings attributable to ordinary
shareholders divided by the weighted average number of shares in
issue, as follows:
Basic and diluted profit attributable to equity holders of the
Company: (US$ 972,000)
2013: US$ 1,694,000
Weighted average number of ordinary shares in issue for the
purpose of calculating earnings per share: 30,000,010
2013: 30,000,010
Profit per share: (US$ 0.032)
2013: US$ 0.050
5. Trade and other receivables
Unaudited Unaudited Audited
Year
Six months Six months ended
to 30 to 30
June June 31 December
USD'000 2014 2013 2013
Trade receivables 641 801 881
Other receivables 77 244 173
Deposits 77 76 76
Prepayments 180 150 125
----------- ----------- ------------
975 1,271 1,255
=========== =========== ============
6. Dividend
No dividend has been declared or paid in this interim
period.
7. Operating segment
IFRS 8 requires operating segments to be identified on the basis
of internal reports about components of the Group that are
regularly reviewed by the chief operating decision makers in order
to allocate resources to the segment and to assess its performance.
The primary format is based upon the Group's management and
internal reporting structure which reflects the statutory
subsidiaries of the Group. Segment results constitute items
directly attributable to the business. Certain centrally funded
costs are allocated to the business segments to arrive at operating
profits or losses. The Group's reportable segments are as
follows:
1. Bunker tanker chartering
2. Regional tanker chartering
3. Ship management and other related shipping activities.
The Group occasionally trades in marine fuel oil. This activity
does not have a significant impact on the Company's profitability
as the trades are done on cost plus a thin margin to cover
administrative costs associated with the trades. The aggregate
amount of the marine fuel oil trade is disclosed in the financial
statements. The Board does not consider this to be a core business
segment activity. It is carried out as an additional service to
support selected customers.
The segmented revenue and their corresponding operating profit
and loss are presented below.
8. Operating segment (continued)
Revenue
Unaudited Unaudited Audited
Year
Six months Six months ended
to 30 to 30
June June 31 December
USD'000 2014 2013 2013
Bunker tankers - 2,956 3,139
Regional tankers 2,792 3,643 5,122
Ship management
and other income 447 591 1,685
------------------ ----------------- -------------------
Shipping revenue 3,239 7,190 9,946
Bunker trade (non-core
activity) - 391 409
3,239 7,581 10,355
================== ================= ===================
Operating profit
Unaudited Unaudited Audited
Year
Six months Six months ended
to 30 to 30
June June 31 December
USD'000 2014 2013 2013
Bunker tankers - 914 438
Regional tankers (185) 809 362
Ship management
and other income (455) 120 287
------------------ ----------------- -------------------
Continuing operations (640) 1,843 1,087
Bunker trade (non-core
activity) - 132 7
(640) 1,975 1,094
================== ================= ===================
There have been no material changes to the total assets from the
amounts disclosed in the last financial statements.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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