JINHUI SHIPPING
AND TRANSPORTATION LIMITED
2024
ANNUAL REPORT
Contents
2 CORPORATE INFORMATION
3 CHAIRMAN’S STATEMENT
5 STRATEGIES AND BUSINESS PROFILE
9 HIGHLIGHTS
12 SHAREHOLDERS’ DIARY
13 CORPORATE GOVERNANCE REPORT
33 BOARD OF DIRECTORS AND EXECUTIVE PERSONNEL
35 DIRECTORS’ REPORT
67 RESPONSIBILITY STATEMENT
68 INDEPENDENT AUDITOR’S REPORT
75 CONSOLIDATED STATEMENT OF PROFIT OR LOSS
AND OTHER COMPREHENSIVE INCOME
76 CONSOLIDATED STATEMENT OF FINANCIAL POSITION
78 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
79 CONSOLIDATED STATEMENT OF CASH FLOWS
80 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
153 GLOSSARY
JINHUI SHIPPING AND TRANSPORTATION LIMITED
1
ANNUAL REPORT 2024
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JINHUI SHIPPING AND TRANSPORTATION LIMITED
ANNUAL REPORT 2024
Corporate Information
BOARD OF DIRECTORS
Executive Directors
Ng Siu Fai,
Chairman
Ng Kam Wah Thomas,
Managing Director and
Deputy Chairman
Ng Ki Hung Frankie
Ho Suk Lin Cathy
Non-executive Directors
Tsui Che Yin Frank
William Yau
AUDIT COMMITTEE
Tsui Che Yin Frank,
Chairman
William Yau
REMUNERATION COMMITTEE
Tsui Che Yin Frank,
Chairman
William Yau
COMPANY SECRETARY
Ho Suk Lin Cathy
AUDITOR
Grant Thornton Hong Kong Limited
Certified Public Accountants
Registered Public Interest Entity Auditor in accordance
with the Accounting and Financial Reporting Council
Ordinance
SHARE LISTING
The Company’s shares are listed on the
Oslo Stock Exchange (Oslo Børs)
(stock code: JIN)
SHARE REGISTRARS
Conyers Corporate Services (Bermuda) Limited
Clarendon House
2 Church Street
Hamilton HM 11
Bermuda
Branch Register
Euronext Securities Oslo
Transfer Agent
Nordea Bank Abp, Filial i Norge
Postboks 1166 Sentrum
0107 Oslo, Norway
REGISTERED OFFICE
Clarendon House
2 Church Street
Hamilton HM 11
Bermuda
CORRESPONDENCE ADDRESS
26th Floor
Yardley Commercial Building
1-6 Connaught Road West
Hong Kong, PRC
CONTACTS
Tel: (852) 2545 0951
Fax: (852) 2541 9794
E-mail: [email protected]
WEBSITE
www.jinhuiship.com
JINHUI SHIPPING AND TRANSPORTATION LIMITED
3
ANNUAL REPORT 2024
Chairman’s Statement
The Board is pleased to present the annual report of Jinhui Shipping and Transportation Limited for the financial
year 2024.
In 2024, the global shipping market was experiencing a general recovery, driven by the steady rebound in
manufacturing and the resolution of supply chain disruptions caused by geopolitical events. The Baltic Dry Index
increased by 27% year-on-year on average over the last year. The Group also expanded the size of its vessel fleet,
both owned and chartered-in vessels, which led to the year-on-year increase of the total deadweight carrying capacity
of vessel fleet by 61% to 2.3 million metric tonnes from 1.4 million metric tonnes in the last year. As a result of the
above, the Group recorded a significant increase in the chartering freight and hire revenue for 2024 as compared to
the depressed freight market upon the weak dry bulk shipping market sentiment in 2023.
The Group achieved a revenue of US$158,900,000 for the year 2024, marking a significant 94% increase compared
to US$81,868,000 for the year 2023. The rise mainly attributable to the increase in number of owned vessels and
chartered-in vessels, along with the improved revenue earned from the average daily time charter equivalent rate
earned by the Group’s fleet, improving 63% to US$14,741 for the year 2024 as compared to US$9,063 for the year
2023. The Company generated a consolidated operating profit before depreciation and amortization amounted to
US$74,286,000 for 2024 as compared to consolidated operating loss before depreciation and amortization for 2023 of
US$11,828,000.
The Company recorded a consolidated net profit of US$24,005,000 for the year 2024, which included a net reversal
of impairment loss of US$1,942,000 on owned vessels and a reversal of impairment loss of US$4,591,000 on right-
of-use assets, as compared to the consolidated net loss of US$55,055,000 which included a net impairment loss of
US$14,011,000 on owned vessels and an impairment loss of US$5,693,000 on right-of-use assets for the year 2023.
Basic earnings per share for the year was US$0.220 as compared to basic loss per share of US$0.504 for the year
2023.
Under the prevailing dry bulk shipping market conditions, the Group performed a reversal of impairment review on
the Group’s fleet at end of 2024 to reflect our change in the expectation of the global economic and the dry bulk
shipping industry outlook. The assumptions applied in estimation of the value in use of our owned vessels and
right-of-use assets were therefore adjusted accordingly. At 31 December 2024, a net reversal of impairment loss
of US$1,942,000 on owned vessels and a reversal of impairment loss of US$4,591,000 on right-of-use assets were
recognized.
The dry bulk shipping market is a highly volatile market. Market conditions can change rapidly due to factors
like global economic conditions, supply and demand dynamics, and geopolitical events. The Group believes that
maintaining a suitable proportion of chartered-in vessels to owned vessels allows the Group to maintain a sizeable
fleet of vessels whilst limiting its capital commitments and maximizing flexibility in its business operations. In 2024,
the Group engaged a well-established shipyard to construct two Ultramax newbuildings, with expected deliveries
in 2026 and 2027. In addition to the newly constructed vessels, the Group also contracted to acquire two Capesizes,
one Panamax and one Ultramax during the year. For the year ended 31 December 2024, the Group also entered into
certain chartered-in vessel engagements with a total deadweight carrying capacity of approximately 827,000 metric
tonnes.
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JINHUI SHIPPING AND TRANSPORTATION LIMITED
ANNUAL REPORT 2024
Chairman’s Statement
The Board recommended the payment of a final dividend of US$0.03 per share for the year ended 31 December
2024, subject to the approval by the shareholders of the Company at the forthcoming annual general meeting of the
Company.
We will continuously monitor the market as well as our operations going forward and look out for opportunities to
maintain a reasonably modern and competitive fleet, not ruling out any future disposal of smaller and older vessels
and replace with newer vessels with larger carrying capacity and longer asset lives or charter-in of vessels. We will
make such decisions on an ad hoc basis to maintain high financial flexibility and operational competitiveness. As
of 31 December 2024, the Group operated twenty-five owned vessels and eight chartered-in vessels as compared to
twenty-three owned vessels and one chartered-in vessel as at 31 December 2023.
On behalf of the Board of Directors of the Company, I would like to first express our heartfelt appreciation to our
seafarers as well as all customers and stakeholders for their ongoing support. Going forward, we will continue to
operate with a conservative yet nimble mindset, and be ready to act in the best interest of our shareholders under all
kinds of scenarios. We will continue to exercise our best efforts to be a trustworthy business partner. I would also like
to take this opportunity to express my gratitude to my colleagues on the Board for their valuable contribution and to
the staff for their hard work, commitment and dedication throughout the year.
Ng Siu Fai
Chairman
18 March 2025
JINHUI SHIPPING AND TRANSPORTATION LIMITED
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ANNUAL REPORT 2024
Strategies and Business Profile
Jinhui Shipping is a leading owner of dry bulk vessels offering high quality marine transportation services. It expands
its modern and high quality fleet of dry bulk carriers through well-planned and timely acquisition and chartering of
vessels.
Jinhui Shipping was incorporated with limited liability in Bermuda on 16 May 1994. Following a reorganization in
June 1994, the Company became the immediate holding company of the shipping and investment group. Since 1994,
Jinhui Shipping’s shares have been trading under a full listing on the Oslo Stock Exchange (Oslo Børs) (stock code:
JIN).
As at date of this annual report, the major shareholder of the Company is Jinhui Holdings Company Limited which
holds approximately 55.69% interests in the Company.
STRATEGIES
The Group operates a diverse fleet of dry bulk carriers, encompassing a wide range of sizes from Supramax to
Capesize. The Group believes that operating a versatile and diverse fleet could bring significant economic benefits
to the Group. The Group will focus on taking decisive actions when opportunities arise, while maintaining a strong
financial position and moderate leverage, as well as adjusting our fleet profile and size in a flexible and responsive
manner. We will focus further on prudence and stability as our core objectives going forward and seek to be a
preferred vessel provider for customers.
On the commercial side, our strategy is to maintain a flexible chartering policy to achieve an optimal balance between
longer term time charterparties which generate a robust cash inflow, and spot exposure which allows the Group to
take advantage of any upside in future charter rates. We will also further boost up our risk management efforts with
the objective to minimize potential counterparty risks.
The objectives of the Company are set out in its Memorandum of Association, which include the businesses of, inter
alia:
• acting and performing all the functions of a holding company;
• acting as ship owners, managers, operators and agents; and
• acquiring, owning, selling, chartering, repairing or dealing in ships.
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JINHUI SHIPPING AND TRANSPORTATION LIMITED
ANNUAL REPORT 2024
Strategies and Business Profile
SHIPPING BUSINESS
The Group’s shipping activities began in the mid 1980’s, principally in the form of chartering dry bulk carriers
worldwide. The Group masterminds a meticulous and complex shipping operation linking suppliers with end users
around the world. Its chief task is to identify the exact requirements of customers and use suitable vessels to carry
bulk cargoes for specific voyages or periods of time.
The Group operates a modern fleet of dry bulk carriers which are either used for carrying cargoes or time chartered-
out to other shipping operators whichever is expected to bring a higher economic benefit to the Group.
The key success factors in the ship chartering business are timing, performance and relationship. Ship charterers
have to know their customers and suppliers well, building up mutual trust and respect. It is in this important area
that the Group has always excelled, helping to cement contracts and maintain reasonable business flow even during
difficult periods when the economy is weak.
It is the Group’s policy to comply with all applicable environmental rules and regulations in its shipping operations
as well as in its daily working environment to avoid the emission of noxious liquids into the environment. The
Group’s owned vessels are well maintained and we place great emphasis on the operation in compliance with
safety and environmental laws and regulations including but not limited to ISM Code, ISPS Code, MARPOL and
other applicable rules regulated by IMO. We ensure all crew on board are trained and certificated in accordance
with STCW Convention. Our owned vessels are also subject to the laws, regulations and rules of each country and
port they visit. We have developed policies and procedures intended to ensure our compliance with these laws,
regulations and rules. With the increasing attention towards environmental issues in the shipping industry, we are
committed to operate our business in an environmentally and socially responsible manner, heading to the target of
decarbonization.
JINHUI SHIPPING AND TRANSPORTATION LIMITED
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ANNUAL REPORT 2024
Strategies and Business Profile
SHIPPING BUSINESS
(Continued)
Owned Vessels
As at 31 December 2024, the Group had twenty five owned vessels and 590 crew employed on board.
Name Built Builder DWT(MT)
JIN CHENG 2012 Imabari 181,279
JIN MEI 2008 Shanghai Waigaoqiao 178,021
JIN LI 2019 Jiangsu Hantong 81,567
JIN HENG 2014 Jiangsu Hantong 63,518
JIN PING 2014 Jiangsu Hantong 63,485
JIN CHAO 2014 Jiangsu Hantong 63,469
JIN RUI 2014 Jiangsu Hantong 63,435
JIN XIANG 2012 Oshima 61,414
JIN HONG 2011 Oshima 61,414
JIN RONG 2008 Tsuneishi 58,729
JIN SUI 2008 Shanghai Shipyard 56,968
JIN TONG 2008 Shanghai Shipyard 56,952
JIN YUE 2010 Shanghai Shipyard 56,934
JIN GANG 2009 Shanghai Shipyard 56,927
JIN AO 2010 Shanghai Shipyard 56,920
JIN JI 2009 Shanghai Shipyard 56,913
JIN WAN 2009 Shanghai Shipyard 56,897
JIN JUN 2009 Shanghai Shipyard 56,887
JIN MAO 2012 Jiangsu Hantong 56,469
JIN BI 2012 Jiangsu Hantong 56,361
JIN AN 2007 Kawasaki 55,866
JIN XING 2007 Oshima 55,496
JIN YI 2007 Oshima 55,496
JIN YUAN 2007 Oshima 55,496
JIN SHUN 2007 Shanghai Shipyard 53,350
1,720,263
Note:
In December 2024, the Group entered into an agreement for the acquisition of a bulk carrier of deadweight 61,441 metric tonnes, built
in year 2017, at a purchase price of US$24,520,000. The vessel was delivered to the Group in January 2025.
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JINHUI SHIPPING AND TRANSPORTATION LIMITED
ANNUAL REPORT 2024
Strategies and Business Profile
SHIPPING BUSINESS
(Continued)
Ordered Vessels
As at 31 December 2024, the Group committed to acquire two newbuildings under construction.
Name Built Builder DWT(MT) Expected delivery
JIN HAN 2026 Jiangsu Hantong 63,500 Dec 2026
JIN MING 2027 Jiangsu Hantong 63,500 Nov 2027
127,000
Chartered-in Vessels
The Group had five long-term chartered-in vessels as at the date of this annual report.
Name Built DWT(MT) Charter-in date
TAHO CIRCULAR 2022 84,484 Jun 2022
EVER SHINING 2021 81,842 Jan 2024
PACIFIC LILY 2016 61,452 Apr 2024
PACIFIC JASMINE 2016 61,473 May 2024
TRUE NEPTUNE 2017 207,672 Jan 2025
496,923
JINHUI SHIPPING AND TRANSPORTATION LIMITED
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ANNUAL REPORT 2024
Highlights
While the Group’s expertise remains in Asia, by deploying a flexible and responsive sales strategy as well as an
efficient fleet of vessels, the Group managed to serve a balancing portfolio of customers geographically during the
year.
Loading Ports Analysis
2024 2023
(Expressed as a percentage of revenue)
% %
Asia excluding China 47.7 64.4
China 24.1 15.0
South America 11.3 9.3
Australia 6.6 1.1
Africa 5.9 3.0
North America 3.4 3.6
Europe 1.0 2.8
Others – 0.8
100.0 100.0
Discharging Ports Analysis
2024 2023
(Expressed as a percentage of revenue)
% %
China 42.6 70.4
Asia excluding China 35.4 21.5
Africa 14.5 2.7
North America 4.2 –
Europe 2.0 1.3
South America 1.3 2.8
Others – 1.3
100.0 100.0
Types of Cargoes carried by the Group’s Fleet
2024 2023
Metric Tonnes Metric Tonnes
(in ’000) % (in ’000) %
Minerals 9,407 59.5 11,063 72.0
Coal 2,813 17.8 1,785 11.6
Steel products 1,738 11.0 2,008 13.1
Agricultural products 611 3.9 329 2.1
Cement 364 2.3 158 1.0
Fertilizer 234 1.4 – –
Others 636 4.1 25 0.2
15,803 100.0 15,368 100.0
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JINHUI SHIPPING AND TRANSPORTATION LIMITED
ANNUAL REPORT 2024
Highlights
KEY PERFORMANCE INDICATORS FOR SHIPPING BUSINESS
2024 2023
US$ US$
Average daily time charter equivalent rate
1
14,741 9,063
Daily vessel running cost
2
5,606 5,569
Daily vessel depreciation
3
3,343 3,486
Daily vessel finance cost
4
10 157
8,959 9,212
Average utilization rate
5
98% 99%
As of 31 December 2024, the Group operated twenty-five owned vessels and eight chartered-in vessels as compared
to twenty-three owned vessels and one chartered-in vessel as at 31 December 2023. The Group achieved a revenue
of US$158,900,000 for the year 2024, marking a significant 94% increase compared to US$81,868,000 for the year
2023. The rise mainly attributable to the increase in number of owned vessels and chartered-in vessels, along with
the improved revenue earned from the average daily time charter equivalent rate earned by the Group’s fleet,
improving 63% to US$14,741 for the year 2024 as compared to US$9,063 for the year 2023. Daily vessel running cost
of the Group’s owned vessels rose to US$5,606 in 2024, up from US$5,569 in 2023 as certain initial running costs
and expenses were incurred for the newly delivered vessels. Daily vessel depreciation of the Group’s owned vessels
decreased to US$3,343 for the year 2024 as compared to US$3,486 for the year 2023. The decrease was mainly
attributable to the decrease in depreciation on owned vessels due to the reduction in carrying amounts of owned
vessels after the recognition of impairment loss on owned vessels by end of 2023. As vessel mortgage loans were
fully repaid during the year, the finance cost associated with the vessel mortgage loans was minimal for the year
2024. Fleet utilization rate slightly decreased from 99% for the year 2023 to 98% for the year 2024. We will continue
with our cost reduction effort, striving to maintain a highly competitive cost structure when stacked against other
market participants.
Notes:
1. Average daily time charter equivalent rate is calculated as the time charter revenue, and voyage revenue less voyage expenses
divided by the number of available days in the year.
2.
Daily vessel running cost is calculated as the aggregate of crew expenses, insurance, consumable stores, spare parts, repairs
and maintenance and other vessels’ miscellaneous expenses divided by ownership days in the year.
3.
Daily vessel depreciation is calculated as the aggregate of vessels’ depreciation charge divided by ownership days in the year.
4.
Daily vessel finance cost is calculated as the aggregate of vessels’ finance costs divided by ownership days in the year.
5.
Average utilization rate is calculated as the number of operating days divided by the number of available days in the year.
JINHUI SHIPPING AND TRANSPORTATION LIMITED
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ANNUAL REPORT 2024
Highlights
FIVE-YEAR FINANCIAL SUMMARY
2024 2023 2022 2021 2020
US$’000 US$’000 US$’000 US$’000 US$’000
Key Items in the Consolidated
Statement of Profit or Loss and
Other Comprehensive Income
Revenue 158,900 81,868 152,466 131,069 47,118
Operating profit (loss) 30,097 (48,822) (3,655) 196,136 (11,902)
Finance costs (6,092) (6,234) (3,438) (1,749) (3,117)
Profit (Loss) before taxation 24,005 (55,056) (7,093) 194,387 (15,019)
Taxation – 1 (20) (190) (233)
Net profit (loss) for the year 24,005 (55,055) (7,113) 194,197 (15,252)
Other comprehensive income (loss) (2,325) (1,782) (2,899) 1,996 1,710
Total comprehensive income (loss)
for the year attributable to
shareholders of the Company 21,680 (56,837) (10,012) 196,193 (13,542)
Earnings (Loss) per share
– Basic and diluted US$0.220 US$(0.504) US$(0.065) US$1.777 US$(0.140)
Key Items in the Consolidated
Statement of Financial Position
Non-current assets 461,569 389,035 450,708 434,131 262,446
Current assets 62,633 94,598 87,604 113,594 103,718
Total assets 524,202 483,633 538,312 547,725 366,164
Total equity 371,610 349,930 411,137 432,075 239,160
Non-current liabilities 103,400 79,748 73,724 39,943 51,789
Current liabilities 49,192 53,955 53,451 75,707 75,215
Total equity and liabilities 524,202 483,633 538,312 547,725 366,164
Other Financial Information
Gearing ratio 15% 7% 5% 4% 15%
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JINHUI SHIPPING AND TRANSPORTATION LIMITED
ANNUAL REPORT 2024
Shareholders’ Diary
Annual general meeting 28 May 2025
Ex-dividend date for final dividend 2024 30 May 2025
Payment of final dividend 2024 On or about 25 June 2025
Announcement for the first quarter results 2025 29 May 2025*
Announcement for the second quarter results 2025 29 August 2025*
Announcement for the third quarter results 2025 28 November 2025*
Announcement for the fourth quarter results 2025 27 February 2026*
* Subject to change
JINHUI SHIPPING AND TRANSPORTATION LIMITED
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ANNUAL REPORT 2024
Corporate Governance Report
Jinhui Shipping recognizes the importance of good corporate governance to the Company’s value creation and has
devoted considerable efforts to identify and formulate corporate governance practices appropriate to the Company in
terms of practicality and suitability. The Board has the overall responsibility for the Company’s corporate governance
and ensures the Company implements sound corporate governance practice.
SECTION 3-3B OF THE NORWEGIAN ACCOUNTING ACT
The following specifies the items or information that must be disclosed under Section 3-3b of the Norwegian
Accounting Act:
1. A statement of the code of practice and regulatory framework for corporate governance
Pursuant to Section 4.4 of the Oslo Rule Book II – Issuer Rules, companies listed on the Oslo Stock Exchange
(Oslo Børs) must publish a comprehensive report on the company’s corporate governance in the directors’
report or in a document that is referred to in the directors’ report. The report must cover every section of the
Norwegian Code of Practice for Corporate Governance (the “Norwegian Code of Practice”) and must include
the required report contents as set out in Section 3-3b of the Norwegian Accounting Act.
Jinhui Shipping has applied the principles as set out in the Norwegian Code of Practice as its corporate
governance structure. The Company gives an annual review of the corporate governance report which covers
every section for its compliance with the Norwegian Code of Practice, and explains the deviations with
selected alternative approaches on pages 16 to 32 with the numbers refer to the section’s numerical order of
the Norwegian Code of Practice.
2. Information on where the code of practice and regulatory framework is publicly
available
The Norwegian Code of Practice, which was published on 14 October 2021 is available on the Norwegian
Corporate Governance Board website (www.nues.no) and the Oslo Rule Book II – Issuer Rules is available on
Oslo Børs Euronext website (www.euronext.com/en/markets/oslo).
Jinhui Shipping adhered to the Norwegian Code of Practice throughout the year except for certain deviations.
We report our conformance and provide explanation of the reasons for the deviations and what solution we
have selected in below fifteen separate sections as described in the Norwegian Code of Practice.
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JINHUI SHIPPING AND TRANSPORTATION LIMITED
ANNUAL REPORT 2024
Corporate Governance Report
SECTION 3-3B OF THE NORWEGIAN ACCOUNTING ACT
(Continued)
3. Description of the main elements of the Group’s internal control and risk management
systems associated with the financial reporting process
The Board is responsible for ensuring financial reporting process is subject to adequate control and has laid
down instructions and guidelines on its own works as well as for the executive personnel on day-to-day
operations and ongoing financial monitoring. The Board carries out a review of the Group’s most significant
risk areas in every six months and performs an annual review of its internal control systems. The Audit
Committee assists the Board relating to the efficiencies of the Group’s internal control over the financial
reporting process; the effectiveness of the Group’s risk management policies; and the qualifications and
independence of the external auditor.
The Group adopts a uniform generally accepted accounting practice in the preparation of financial statements
of the Company and its subsidiaries. The internal control systems identified in the financial reporting process
are primarily designed to mitigate the risks including financial reporting risk, compliance-related risk, fraud
risk, and risk on financial-accounting-related IT systems. The control procedures mainly include authorizations,
segregation of duties, reconciliations, management review and IT controls over financial-accounting-related
IT systems. To ensure adequate and effective internal control on financial reporting process is adopted and
implemented, key control procedures are ongoing monitored by the executive personnel, regularly assessed
by the Board and the Audit Committee and annually reviewed by the external professionals.
4. Provision in the Company’s Memorandum of Association governing general meetings
The Company’s Memorandum of Association and Bye-Laws laid down the shareholders’ right proceedings
at general meetings, voting rights, proxies, transfer of shares, and also the rules governing the alteration or
amendment to bye-laws and memorandum of association. Both do not extend or depart from the general
rules laid down in Chapter 5 of the Norwegian Public Limited Liability Companies Act, which governs general
meetings. The Company’s Memorandum of Association and Bye-Laws have been publicly disclosed in the
website of the Company.
5. Composition of the Board and the main elements in the prevailing board instructions
and guidelines
The Board adopted the Company’s Bye-Laws 36 to 52 as its prevailing board instructions of procedures which
laid down general powers, proceedings and administrative procedures of the directors of the Company.
The Board Committees, which include the Audit Committee and the Remuneration Committee, are
appointed by the Board under respective terms of reference that specified their authorities, duties, reporting
responsibilities and reporting procedures. The respective terms of reference of the Audit Committee and the
Remuneration Committee have been publicly disclosed in the website of the Company. The composition of the
Board and the board committee functions are further discussed below in Section 8 and Section 9 under the
Norwegian Code of Practice.
JINHUI SHIPPING AND TRANSPORTATION LIMITED
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ANNUAL REPORT 2024
Corporate Governance Report
SECTION 3-3B OF THE NORWEGIAN ACCOUNTING ACT
(Continued)
6. Provision in the Company’s Bye-Laws that regulates the appointment and replacement
of members of the Board
Pursuant to the Company’s Bye-Law 36, the Directors shall be elected or appointed in the first place at the
statutory meeting of members and thereafter in accordance with Bye-Law 38 and shall hold office until the
next appointment of Directors or until their successors are elected or appointed.
Bye-Law 38 stipulates that notwithstanding any other provisions in the Company’s Bye-Laws, at each annual
general meeting one-third of the Directors for the time being (or, if their number is not a multiple of three,
the number nearest to but not greater than one-third) shall retire from office by rotation provided that
notwithstanding anything herein, the Chairman and/or the Managing Director shall not, whilst holding such
office, be subject to retirement by rotation or be taken into account in determining the number of Directors to
retire in each year.
There are also provisions in Bye-Law 40 and Bye-Law 41 in relation to the removal of Directors and the
disqualification of Directors.
7. Mandate that gives the Board the right to issue new shares and provision in the
Company’s Bye-Laws that gives the Board the right to decide on share repurchases
There is an existing general mandate in place that gives the Board the power to issue, allot and dispose of
shares of the Company not exceeding the aggregate of 30% of the issued share capital of the Company on
the date of the resolution. This general mandate was granted to the Board in the Company’s annual general
meeting held on 24 May 2024 and is valid until the earlier of the date of the next annual general meeting or
otherwise revoked or determined by shareholders at a general meeting of the Company. The provision in the
Company’s Bye-Law 2 giving the Board the right to issue new shares.
The provision in the Company’s Bye-Law 3 giving the Board the right to purchase its shares as the Board shall
think fit. In view of the increasingly volatile nature of today’s financial markets, the Board shall make timely
decision on the purchase of its shares according to the then prevailing market conditions to generate the most
value for shareholders of the Company.
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JINHUI SHIPPING AND TRANSPORTATION LIMITED
ANNUAL REPORT 2024
Corporate Governance Report
NORWEGIAN CODE OF PRACTICE FOR CORPORATE GOVERNANCE
The section numbers mentioned below refer to the fifteen sections under the Norwegian Code of Practice.
Section 1 Implementation and reporting on corporate governance
Jinhui Shipping has applied and followed the principles as set out in the Norwegian Code of Practice. The corporate
governance report of 2024 covered every section of Norwegian Code of Practice with the description of our
conformance throughout the year and the explanation of the reasons for the deviations.
Section 2 Business
The objectives of Jinhui Shipping are set out in its Memorandum of Association, which include the businesses of
inter alia:
•
acting and performing all the functions of a holding company;
•
acting as ship owners, managers, operators and agents; and
•
acquiring, owning, selling, chartering, repairing or dealing in ships.
The Group’s main objectives, strategies and risk profiles for our businesses are discussed in “Strategies and Business
Profile” on pages 5 to 8 and in the section of Risk Management in “Directors’ Report” on pages 61 to 63.
The Company has promulgated a set of Company Code, which sets out the corporate standards and practices used by
the Group to direct and manage its business affairs. The Company Code also includes corporate social responsibility
guidelines and ethical guidelines and is prepared and updated by referencing to the principles set out in the
Norwegian Code of Practice and other applicable rules and regulations. In addition to formalizing existing corporate
governance principles and practices, the Company Code also serves the purpose of assimilating existing practices
with benchmarks prescribed by the Norwegian Code of Practice and ultimately ensuring high transparency and
accountability to the Company’s shareholders. The directors and employees of Jinhui Shipping are subject to a range
of rules laid down by legislation and regulations, as well as the Company Code and rules and ethical values and
guidelines described in the staff handbooks. Section 3-3c of the Norwegian Accounting Act is relevant for Norwegian
companies and also for third country issuers that have taxable operations in Norway. The Company did not present
social responsibility statement as required under Section 3-3c of the Norwegian Accounting Act as the Company
is incorporated in Bermuda and does not have any taxable operations in Norway. Nevertheless, we include the
Company’s principles on material social responsibility matters related to external environment, working environment,
and employees’ right and equal treatment in the Directors’ report. We also commit to conduct our business in a
responsible, ethical and lawful manner and complied applicable rules and regulations in our business practices.
Jinhui Shipping shall maximize shareholders’ values in a sustainable manner by increasing the Company’s equity
value and distributing dividends to shareholders and the Board evaluates the objectives, strategies and risk profiles
annually.
JINHUI SHIPPING AND TRANSPORTATION LIMITED
17
ANNUAL REPORT 2024
Corporate Governance Report
NORWEGIAN CODE OF PRACTICE FOR CORPORATE GOVERNANCE
(Continued)
Section 3 Equity and dividends
Equity
Jinhui Shipping’s capital adequacy is kept under constant review in relation to its objectives, strategies and risk
profile. As at 31 December 2024, the Group’s total equity was US$371,610,000, accounting for 71% of its consolidated
total assets. The Board considers the present equity structure to be satisfactory.
Dividend policy
The Company may declare and distribute dividends to the shareholders of the Company. Our policy aims to provide
stable and consistent dividends with steady growth when supported by our earnings whilst ensuring that sufficient
financial resources can be maintained to fund our business growth. In addition, the amount and timing of any
dividend distributions in the future will depend, among other things, on our compliance with covenants in our credit
facilities, earnings, financial condition, cash position, Bermuda law affecting the dividend distributions, restrictions
in our financing agreements and other factors. As dry bulk shipping market is cyclic and volatile, it’s particularly
challenging to establish a clear and predictable dividend policy. There can be no assurance that a dividend will be
proposed or declared in any given year.
The Board has resolved to recommend the payment of a final dividend of US$0.03 per share for the year ended
31 December 2024 and such dividend, if approved by the shareholders at the forthcoming annual general meeting
scheduled on 28 May 2025, will be paid to the beneficial owners of the shares of the Company whose names are
registered in the Euronext Securities Oslo, the Norwegian Central Securities Depository, at the close of business on
2 June 2025. The Company’s shares listed on the Oslo Stock Exchange will be traded including dividend up until and
including 28 May 2025. The ex dividend date is 30 May 2025 and the dividend will be paid on or about 25 June 2025.
The dividend policy will be regularly assessed by the Board and will depend, among other things, on the Group’s
financial obligations, leverage, liquidity and capital resources, and the market conditions. There was no proposal for
the Board to be given any mandate to approve the distribution of dividends.
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(Continued)
Section 3 Equity and dividends
(Continued)
Increase in share capital
At the 2024 Annual General Meeting of the Company, a general mandate had been granted to the directors of the
Company to increase not exceeding the aggregate of 30% of the issued share capital of the Company which would
be valid until the earlier of the date of the next annual general meeting or otherwise revoked or determined by
shareholders at a general meeting of the Company. No shares were being issued under this authorization in 2024.
According to the Norwegian Code of Practice, the mandate granted to the board of directors to increase the
company’s share capital should be restricted to defined purposes.
In view of the increasingly volatile nature of today’s financial markets, the Board believes having a general mandate
in place enables the Company to respond swiftly to the then prevailing market conditions should an equity fund
raising exercise be determined to be the appropriate funding channel and proposes this general mandate at the
forthcoming annual general meeting.
Purchase of own shares
The provision in the Company’s Bye-Law 3 giving the Board the right to purchase its shares as the Board shall think
fit. In view of the increasingly volatile nature of today’s financial markets, the Board shall make timely decision on the
purchase of its shares according to the then prevailing market conditions to generate the most value for shareholders
of the Company.
Section 4 Equal treatment of shareholders
Equal treatment of shareholders
Jinhui Shipping has one class of shares in issue. All shares have equal voting rights. There are provisions in the
Company’s Bye-Law 4 in relation to shareholder’s voting rights.
Share issues
According to the Company’s Bye-Law 4.3, the shareholders shall have the first and preferential right to subscribe
for and be allotted any shares of the Company proposed to be issued in proportion to the number of shares held by
them, unless the Company by special resolution otherwise decides to waive the shareholders’ preferential rights in
respect of a particular issue of shares or generally for any period not exceeding five years.
In the event of an increase in share capital where the Board resolves to carry out an increase in share capital on the
basis of a mandate granted to the Board that waives the pre-emption rights of existing shareholders, the justification
will be publicly disclosed in a stock exchange announcement issued in connection with the increase in share capital.
No shares were being issued in 2024.
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(Continued)
Section 4 Equal treatment of shareholders
(Continued)
Transactions in its own shares
Jinhui Shipping’s shares are liquid. In the event the Company carries out transactions in its own shares, it would only
carry out such transactions either through the stock exchange or at prevailing stock exchange prices if carried out
in any other way. If there is limited liquidity in the Company’s shares, the Company would consider other ways to
ensure equal treatment of all shareholders. No transactions in shares were being carried out by the Company in 2024.
Section 5 Shares and negotiability
Jinhui Shipping’s shares are freely traded in the Oslo Stock Exchange (Oslo Børs). The Company’s shares are
registered shares with the Branch Register of the Company kept at the Euronext Securities Oslo, and Nordea Bank
Abp is the transfer agent of the Company. Shareholders of the Company may transfer their shares by an instrument
of transfer in the usual common form or in such form as decided by the Board.
In general, all shares are freely negotiable. However, the Board may deny the transfer of shares according to the Bye-
Law 11 of the Company. The Board has the option to decline to register the transfer of any share if the registration
of such transfer would be likely to result in 50% or more of the aggregate issued share capital and the votes of the
Company being held or owned directly or indirectly by a person or persons resident for tax purposes in Norway.
The Board considers that it is appropriate to impose such restriction which protects the existing Norwegian
shareholders from unexpected tax changes in Norway for the common interest of the Company and the shareholders.
This type of restriction is common for Bermuda and other low-tax jurisdiction companies listed on the Oslo Stock
Exchange (Oslo Børs).
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(Continued)
Section 6 General meetings
Attendance by shareholders
The Company provides detailed procedures and comprehensive information are distributed to shareholders to allow
shareholders to form the view on all matters to be considered at the general meeting. Shareholders of the Company
are entitled to attend shareholders’ meeting in person or by proxy. Electronic meeting is not applicable as it would
be contrary to the Bye-Laws of the Company. All shareholders who are registered in the Euronext Securities Oslo,
the Norwegian Central Securities Depository, will receive notification of the general meeting. The notice of calling
general meeting and the supporting information, including the procedures for representation at the meeting through
a proxy, the deadline for registering the intention to attend the general meeting, the information for each resolution
to be considered at the general meeting and for each of the candidates nominated for election, are published on the
Company’s website no later than 21 days prior to the date of the general meeting.
As a general rule, decisions which shareholders are entitled to make pursuant to Bermuda law may be made by
a simple majority of votes cast at a general meeting. However, the Bye-Laws of the Company provides that any
decision to, inter alia, amend Bye-Laws of the Company or alter the share capital of the Company requires the
approval of at least two-thirds of votes cast by those members present in person or by proxy at a general meeting.
The annual general meeting approves the annual financial statements, the Directors’ report and the Independent
Auditor’s report and any dividend proposed by the Board. The annual general meeting also approves the
remuneration of members of the Board and consider the guideline for the renumeration of the executive personnel
of the Company, as well as fix the remuneration of the auditor. The meeting agenda may also include authorization
to purchase own shares, increase the share capital, or any other matters listed in the notice of the general meeting.
Minutes from annual general meetings will be made available on Company’s website immediately after the annual
general meeting.
JINHUI SHIPPING AND TRANSPORTATION LIMITED
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(Continued)
Section 6 General meetings
(Continued)
Participation by shareholders in absentia
Shareholders are given information on the procedures for representation at the general meeting through a proxy.
As an alternative to vote in person in the general meetings, shareholders may appoint the chairman of the general
meeting or to appoint another person as their proxies to attend and vote at the general meeting according to the
procedures and instructions as shown in the notice of general meetings.
In order to be valid, the proxy together with the power of attorney or other authority (if any) under which it is signed,
or a notarially certified copy thereof, must be deposited at Nordea Bank Abp, Filial i Norge, Nordea Issuer Services
at Essendrops gate 7, 0368 Oslo or Postboks 1166 Sentrum, 0107 Oslo, Norway or by e-mail to [email protected],
not less than 48 hours before the time appointed for holding the general meetings. Completion and submission of a
proxy will not preclude you from attending and voting in person if you are subsequently able to be present.
The proxy form of the Company is drawn up with separate voting instructions for each matter to be considered
by the meeting. At the meeting, votes shall be cast separately on each subject and for each office/candidate in the
elections. For directors who are subject to retirement by rotation at the annual general meeting, shareholders are
given the opportunity to vote separately for each candidate nominated for election or re-election as director of the
Company.
Attendance by the board of directors and auditor
The Chairman attends and chairs the general meetings. Other members of the Board are entitled to attend the general
meetings, and the external auditor is present at the annual general meeting. The 2025 Annual General Meeting is
scheduled on 28 May 2025. Notice of 2025 Annual General Meeting will be published on the websites of the Company
and the NewsWeb of the Oslo Stock Exchange (Oslo Børs) and will be dispatched to shareholders of the Company in
late April 2025.
Chairman of the general meetings
According to Bye-Law 27 of the Company, every general meeting of the Company should be chaired by the president
of the Company or the Chairman, or in his absence, another Director.
This constitutes a deviation from the Norwegian Code of Practice which states that the general meeting should be
chaired by an independent chairman.
The Board considers that as the leader of the Group and having sufficient experience and knowledge, the Chairman is
the most suitable person to chair a general meeting.
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(Continued)
Section 7 Nomination Committee
The Company has not established a nomination committee and there is no provision for establishing such committee
in its Bye-Laws. This constitutes a deviation from the Norwegian Code of Practice.
The Board considers that it could monitor the need for any changes in the composition of its members and to
maintain contacts with shareholders, board committee members and executive personnel. The Board believes that
the current board composition is sufficient to represent the interests of all shareholders.
The Board will undertake adequate due diligence in respect of such individual and consider a variety of factors
including without limitation the following in assessing the suitability of the proposed candidate:
(a)
Reputation for integrity;
(b)
Accomplishment, business experience and reputation in the shipping industry and other relevant sectors;
(c)
Commitment in respect of sufficient time, interest and attention to the Company’s business;
(
d)
Diversity
in all aspects, including but not limited to gender, age, cultural/educational and professional
background, skills, knowledge and experience;
(e)
The ability to assist and support management and make significant contributions to the Company’s success;
and
(f)
Any other relevant factors as may be determined by the Board from time to time.
The appointment of any proposed candidate to the Board or re-appointment of any existing member(s) of the Board
shall be made in accordance with the Company’s Bye-Laws and other applicable rules and regulations.
JINHUI SHIPPING AND TRANSPORTATION LIMITED
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(Continued)
Section 8 Board of Directors: composition and independence
The Board has the ultimate responsibility for the management and administration of the affairs of the Company and
for supervising day-to-day management and activities in general; it also has the overall responsibility for the Group’s
good corporate governance practices, internal control and risk management.
During the year, the Board comprised of four executive directors, including the Chairman and the Managing Director,
and two non-executive directors. The Chairman is responsible for overseeing the functioning of the Board whilst
the Managing Director, supported by the executive directors, is responsible for managing the Group’s business,
including the implementation of major strategies and initiatives adopted by the Board. All non-executive directors,
who are shareholder-elected members and independent of executive personnel, material business contacts and main
shareholders of the Company, serve the important function of advising the management on strategies development
and ensure that the Group maintains high standards of financial and other mandatory reporting as well as providing
adequate checks and balances for safeguarding the interests of shareholders and the Company as a whole.
All directors of the Company are kept informed on a timely basis of major changes that may affect the Group’s
business, including relevant rules and regulations. The Board meets regularly and approves the Group’s overall
strategies, major acquisitions and disposals, annual and quarterly results and any other significant operational
and financial matters. Members of the Board are encouraged to own shares in the Company. The directors will
seek independent professional advice in performing their duties where appropriate. Executive personnel have the
responsibility for implementation of the Group’s strategic planning and decision made by the Board and monitoring
day-to-day operation of the Company.
Bye-Law 38 stipulates that notwithstanding any other provisions in the Company’s Bye-Laws, at each annual general
meeting one-third of the Directors for the time being (or, if their number is not a multiple of three, the number
nearest to but not greater than one-third) shall retire from office by rotation provided that notwithstanding anything
herein, the Chairman and/or the Managing Director shall not, whilst holding such office, be subject to retirement
by rotation or be taken into account in determining the number of Directors to retire in each year. As at date of this
annual report, directors who hold office of the Company are listed below:
Executive Directors
Ng Siu Fai
1
,
Chairman
Ng Kam Wah Thomas
1
,
Managing Director and Deputy Chairman
Ng Ki Hung Frankie
1
Ho Suk Lin Cathy
1
Non-executive Directors
Tsui Che Yin Frank
2
William Yau
2
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(Continued)
Section 8 Board of Directors: composition and independence
(Continued)
Notes:
1. Mr. Ng Siu Fai, Mr. Ng Kam Wah Thomas, Mr. Ng Ki Hung Frankie and Ms. Ho Suk Lin Cathy are executive directors of Jinhui
Holdings Company Limited, the Company’s holding company.
2.
Mr. Tsui Che Yin Frank and Mr. William Yau are independent non-executive directors of Jinhui Holdings Company Limited.
There are departures from the Norwegian Code of Practice which states that general meeting should elect the
chairman of the board of directors; the board of directors should not include executive personnel; and the term of
office for members of the board of directors should not be longer than two years at a time.
Dry bulk shipping is a highly specialized industry and requires executives with substantial amount of industry
experience to fully comprehend and to monitor the performance of the Group. The Chairman and the Managing
Director have extensive experience and knowledge in dry bulk shipping business and their duties for overseeing
the functioning of the Board and all aspects of the Group’s operations are clearly beneficial to the Group. Despite
the executive directors being executive personnel of the Group and performing executive management function in
day to-day operations, the leadership of the Chairman and the Managing Director is vital to the Group’s business
continuity and stability and the other two executive directors are with extensive experiences in shipping business and
management. In addition, members of the Board are obliged to disqualify themselves from participation in handling
of individual matters in which the board member, or its close associates, has a particular interest. The Company
believes the current board composition is sufficient to represent the interests of all shareholders and this will not
impair the balance of power and authority between the Board and the management of the Company. The directors,
including the non-executive directors, have brought a wide spectrum of valuable business experience, knowledge and
professionalism to the Board for its efficient and effective delivery of the Board functions. The biographical details of
the directors of the Company are set out in “Board of Directors and Executive Personnel” on pages 33 and 34.
Board meetings attendance
The Board meets at least quarterly and on other occasions when a Board decision is required on major issues. In
2024, the Board held thirteen meetings. The attendance record of each member of the Board is set out below:
Executive Directors Attendance
Ng Siu Fai 13
Ng Kam Wah Thomas 12
Ng Ki Hung Frankie 13
Ho Suk Lin Cathy 13
Non-executive Directors
Tsui Che Yin Frank 13
William Yau 12
JINHUI SHIPPING AND TRANSPORTATION LIMITED
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(Continued)
Section 9 The work of the Board of Directors
The Board deals with matters of strategic and major financial importance to the Company on a regular basis. At least
one Board meeting per annum is set aside for discussion of the Group’s strategies. During such meetings, the Board
reviews the expectation of the Group’s business outlook and financial forecast perspective and discusses the overall
strategies going forward. In any material event that the Chairman has an active involvement, the Board meeting will
be chaired by other members of the Board. In addition, the Company has established guidelines to make sure the
directors of the Company and executive personnel would notify the Board if they have any material direct or indirect
interest in any transaction entered into by the Company and its subsidiaries and would pay particular attention to
obtain independent valuations for any material transactions between the Group and its close associates. According
to the Company Code, members of the Board are obliged to disqualify themselves from participation in handling of
individual matters in which the board members, or its close associates, have a particular interest. These practices
would ensure independence of matters to be considered by the Board. The Board has guidelines on its own works
as well as for the executive personnel with clear internal allocation of responsibilities and duties and instruction in
handling the agreements with related parties, if any.
Transactions with close associates
Jinhui Shipping is a listed issuer on the Oslo Stock Exchange (Oslo Børs) and is a subsidiary of Jinhui Holdings
Company Limited, whose shares are listed on the Hong Kong Stock Exchange. The directors of the Company and
executive personnel have the obligations to follow rules, regulations and guidelines in relation to transactions with
close associates as set out by the Financial Supervisory Authority of Norway, the Stock Exchange of Hong Kong
Limited, the International Accounting Standards Board and the Hong Kong Institute of Certified Public Accountants.
Board committees
The Board is assisted by two board committees which are Audit Committee and Remuneration Committee. Their
existence does not reduce the responsibility of the Board as a whole. Board committee meetings are convened to
prepare matters for consideration and final decision by the Board as a whole. Material information that comes to the
attention of board committees are also communicated to other members of the Board.
As a general principle, the board committees have an advisory role to the Board and members of such committees
are restricted to members of the Board who are independent of executive personnel. They assist the Board in specific
areas and make recommendations to the Board. However, only the Board has the power to make final decisions.
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(Continued)
Section 9 The work of the Board of Directors
(Continued)
Audit Committee
The Audit Committee was established on 17 March 2006. The members of Audit Committee comprised of two non-
executive directors, namely Mr. Tsui Che Yin Frank (chairman of Audit Committee) and Mr. William Yau. The primary
duties of the Audit Committee include review and monitor the Group’s financial reporting, compliance with legal
and regulatory requirements, the nature and scope of audit review as well as the effectiveness of the systems of
risk management and internal control. The Audit Committee is also responsible for making recommendations in
relation to the appointment, re-appointment, and removal of the auditor, and reviewing and monitoring the auditor’s
independence and objectivity. In addition, the Audit Committee discusses matters raised by the auditor, professionals
and regulatory bodies to ensure that appropriate recommendations are implemented.
The Audit Committee has reviewed with the management, the accounting principles and practices adopted by the
Group and discussed auditing, risk management, internal control and financial reporting matters including the review
of the Company’s half-yearly and annual reports before submission to the Board. The Group’s annual consolidated
financial statements for the year ended 31 December 2024 have been reviewed by the Audit Committee, which is
of the opinion that such statements comply with applicable accounting standards and legal requirements, and that
adequate disclosures have been made.
During the year, three meetings were held by the Audit Committee. Among these meetings, the annual consolidated
financial statements for the year ended 31 December 2023, the half-yearly report for the period ended 30 June 2024
and the risk management and internal control systems have been reviewed.
Remuneration Committee
The Remuneration Committee was established on 17 March 2006. The members of Remuneration Committee
comprised of two non-executive directors, namely Mr. Tsui Che Yin Frank (chairman of Remuneration Committee)
and Mr. William Yau. The role and function of the Remuneration Committee include the determination of the
specific remuneration packages of all executive directors and executive personnel, including salaries, bonuses,
benefits in kind, pension rights and compensation payments, and make recommendations to the Board on the fees
for the non-executive directors. The Remuneration Committee should consider factors such as the performance of
executive directors and executive personnel, the profitability of the Group, salaries paid by comparable companies,
time commitment and responsibilities of the executive directors and executive personnel, employment conditions
elsewhere in the Group and desirability of performance-based remuneration. The Remuneration Committee has to
ensure that the Group is able to attract, retain and motivate a high-caliber team which is essential to the success of
the Group.
As a matter of principle, no loans or advances are granted to any director. Presently, no share options are granted to
any director by the Company.
The Remuneration Committee holds a meeting annually to review the remuneration to directors of the Company and
executive personnel of the Group and makes recommendations to the Board.
JINHUI SHIPPING AND TRANSPORTATION LIMITED
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(Continued)
Section 10 Risk management and internal control
It is the Board’s responsibility for evaluating and determining the nature and extent of the risks it is willing to take
in achieving the Group’s strategic objectives, and ensuring that the Group establishes and maintains appropriate
and effective risk management and internal control systems. The Board also oversees management in the design,
implementation and monitoring of the risk management and internal control systems on an ongoing basis, and
management shall confirm to the Board on the effectiveness of these systems at least annually.
The Board, through the assistance of Audit Committee, has conducted an annual review of the effectiveness of the
Group’s risk management and internal control systems, covering all material financial, operational and compliance
controls. In particular, the adequacy of resources, qualifications and experience of staff, training programs and budget
of the Group’s accounting and financial reporting functions are reviewed. The annual review also covered the Group’s
significant and emerging risks in shipping business; the quality of management’s ongoing monitoring of risks and of
the internal control systems; the extent and frequency of communication of monitoring results to the Audit Committee
and the Board; whether there is any significant control failings or weaknesses identified and the effectiveness of the
Group’s processes for financial reporting and relevant legislation and regulations compliance. For the year 2024, the
review of the effectiveness of the Group’s risk management and internal control systems has been conducted and
certain key internal control systems have been independently performed by PAL Advisory Limited and are reviewed
by the Audit Committee on an ongoing basis so that the practical and effective systems are implemented. The review
also includes identification weaknesses of the risk management and internal control systems and proposals for
improvement. The findings are reported subsequently at Board meetings to enable the Board to assess the Group’s
risk management and internal control system and the Board is satisfied that such systems are effective and adequate
and appropriate actions have been taken.
The risk management and internal control systems and accounting system of the Group are designed to identify and
evaluate the Group’s risk and formulate risk mitigation strategies, and to provide reasonable assurance that assets
are safeguarded against unauthorized use or disposition, transactions are executed in accordance with management’s
authorization, and the accounting records are reliable for preparing financial information used within the business
for publication, maintaining accountability for assets and liabilities and ensuring the business operations are in
accordance with relevant legislation, regulations and internal guidelines, including guidelines for corporate social
responsibility.
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(Continued)
Section 10 Risk management and internal control
(Continued)
The Group has a defined organizational structure with clearly defined lines of responsibility and authority. Each
business unit/department is accountable for its daily operations and is required to report to executive directors
on a regular basis. Policies and procedures are set for each business unit/department, which includes approvals,
authorization, verification, recommendations, performance reviews, assets security and segregation of duties. The
key control procedures include establishing and maintaining effective policies to ensure proper management of
risks to which the Group are exposed and taking appropriate and timely action to manage such risks, establishing a
structure with defined authorities and proper segregation of duties; monitoring the strategic plan and performance;
designing an effective accounting and information system; controlling price sensitive information; and ensuring
swift actions and timely communication with our stakeholders. At least twice a year, the management will report to
the Audit Committee on the effectiveness of risk management and internal control systems. The Audit Committee
review how management designs, implements and monitors risk management and internal control procedures,
findings and recommendations and follow-up procedures on the annual assessment; and the Audit Committee will
report on the overall effectiveness of the risk management and internal control systems to the Board annually. The
Group’s risk management and internal control systems can only provide reasonable and not absolute assurance
against material misstatement or loss, as they are designed to manage, rather than eliminate the risk of failure to
achieve business objectives. With respect to the procedures and internal controls for the handling and dissemination
of inside information, the Group has internal policy and procedures which strictly prohibit unauthorized use of
inside information and has communicated to all staff; the Board is aware of its obligations to announce any inside
information in accordance with the relevant legislation and regulations. Based on the size and simple operating
structure of the Group as well as the existing internal control processes, the Board has decided not to set up an
internal audit department for the time being, when necessary, the Audit Committee under the Board would carry out
the internal audit function and for reviewing the adequacy and effectiveness of the risk management and internal
control systems of the Group. Details of the Group’s risk management policies are set out in “Directors’ Report” on
pages 61 to 63 and note 39 to the consolidated financial statements on pages 136 to 144.
Section 11 & 12 Remuneration of the Board of Directors and executive personnel
Directors’ fees represent remuneration to members for holding capacity as directors of the Company and are
determined based on the responsibility and expertise of the members, time commitment and the complexity of
the Company’s activities and do not link to the Company’s performance. Directors’ other emoluments represent
remuneration to executive directors for being executive personnel of the Group and performing executive
management functions in day-to-day operations and their other emoluments are determined based on guideline for
the remuneration of the executive personnel. The remuneration guideline contributes to the business strategy, long
term interests and sustainability of the Company. The guideline is also included in the Company’s upcoming Notice
of 2025 Annual General Meeting for shareholders’ consideration.
JINHUI SHIPPING AND TRANSPORTATION LIMITED
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(Continued)
Section 11 & 12 Remuneration of the Board of Directors and executive personnel
(Continued)
The guideline for the remuneration of executive personnel, which is considered an advisory guideline (non-binding) is
as follows:
(a) Fixed remuneration component
For fixed elements which include non-performance-based fixed base salary and allowances, and contributions
to retirement benefits schemes, these are assessed and determined by the complexity and responsibility
of the position, with a view to attract, retain and motivate high performing individuals and in line with the
prevailing market conditions and local market practice. No individual should determine his or her own fixed
remuneration. Fixed remuneration to individual executive directors and executive personnel are reviewed
annually by the Remuneration Committee and subject to the Board’s approval.
(b)
Variable remuneration component
For
variable elements which include performance-based discretionary bonus, these are assessed and
determined by the overall performance of the individual and contribution to the business strategy and
objectives, as well as shareholders’ values of the Company. No individual should determine his or her own
variable remuneration. Variable remuneration to individual executive directors and executive personnel are
reviewed annually by the Remuneration Committee and subject to the Board’s approval.
Since the dry bulk shipping industry is highly volatile and heavily influenced by external forces, it is
inappropriate to link the performance-based variable remuneration solely to any financial measurable
targets over a particular period or set an absolute limit to each remuneration component as it may generate
meaningless results. The Board seeks to ensure appropriate balance amongst all performance factors in
determination of variable remuneration component to executive personnel.
This constitutes deviations from the Norwegian Code of Practice which states that members of the board
of directors should not take on specific assignments for the company in addition to their appointment
as a member of the board; remuneration of the board of directors should not be linked to the company’s
performance; and performance-based remuneration to executive personnel should be based upon measurable
targets and quantifiable factors over which the employee in question can have influence and the performance
related remuneration should be subject to an absolute limit.
Currently, the Company has not adopted any share option scheme and no equity-based compensation
arrangement is granted to any directors and executive personnel. For any special equity-based compensation
arrangement that will be granted to eligible executive personnel in future, these compensation arrangements
will be determined by the individual’s contribution to the promotion of and enhancement of the long-term
value of the Company. This equity-based remuneration will be considered by the Board and be included as a
separate binding resolution in the general meeting subject to the shareholders’ approval.
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(Continued)
Section 11 & 12 Remuneration of the Board of Directors and executive personnel
(Continued)
(b) Variable remuneration component
(Continued)
As mentioned in section 8, executive directors are performing executive personnel function, they received
remuneration for additional duties as member of the Board. The Remuneration Committee has been
established to assist the Board in developing and administering a fair procedure for determining on the
specific remuneration packages of all executive directors and executive personnel of the Company. At the
meeting held on 28 February 2025, the Remuneration Committee reviewed and made recommendations
to the Board on the fees of the executive directors, other emoluments of the individual executive directors
and executive personnel for the year 2024, and made recommendations to the Board on the remuneration
packages of the individual executive directors and executive personnel for the year 2025 as well as fees for
non-executive directors. Each component of remuneration to members of the Board are disclosed to the full
board and approved by the Remuneration Committee and the Board. Details of the fees and other emoluments
of the directors of the Company for the year 2024 are set out in note 12 to the consolidated financial
statements.
Section 13 Information and communications
Jinhui Shipping strives to promote efficient and non-discriminatory communication of information to market
participants. In order to further promote effective communication, the Company maintains a website to disseminate
information electronically on a timely basis.
Financial reporting
The Board is responsible for the accounts and the presentation of the financial results to shareholders in general
meetings. The Board reviews the Group’s financial position and exposure in the Board meetings with the
management every quarter. In such Board meetings, the management presents the Group’s financial performance
and the market situation to the Board where key profitability and financial ratios and any changes to the Group’s
strategies in response to changing market situation are discussed.
The quarterly results announcements are released by the Company for each quarter of a financial year within two
months subsequent to each quarter end. Annual report together with audited consolidated financial statements
are usually adopted by the Board within four months subsequent to each financial year end and are distributed to
shareholders of the Company no later than 21 days prior to the annual general meeting.
The consolidated financial statements have been prepared in accordance with IFRS Accounting Standards, which
collective term includes all applicable individual IFRS Accounting Standards, International Accounting Standards
and Interpretations issued by the International Accounting Standards Board, and Hong Kong Financial Reporting
Standards, which collective term includes all applicable individual Hong Kong Financial Reporting Standards, Hong
Kong Accounting Standards and Interpretations issued by the Hong Kong Institute of Certified Public Accountants.
The Company emphasizes the production of accounts and financial reporting in which shareholders and other
investors alike can have confidence. Details of the Group’s material accounting policies are set out in note 4 to the
consolidated financial statements.
JINHUI SHIPPING AND TRANSPORTATION LIMITED
31
ANNUAL REPORT 2024
Corporate Governance Report
NORWEGIAN CODE OF PRACTICE FOR CORPORATE GOVERNANCE
(Continued)
Section 13 Information and communications
(Continued)
Other market information
Jinhui Shipping maintains the company’s website to disseminate information electronically on a timely basis and
has established guidelines for open communication of market information to market participants other than through
general meeting. The Company also publishes major events such as annual general meeting, annual and quarterly
reports, financial calendar, public conference call, dividend payment and other material transactions through
websites of the Company at www.jinhuiship.com and the NewsWeb of the Oslo Stock Exchange (Oslo Børs) at
www.newsweb.no.
In addition, only Directors and delegated officers can act as the Group’s spokesperson and respond to external
enquiries about the Group’s affairs.
Section 14 Take-overs
According to the Norwegian Code of Practice, the board of directors should establish guiding principles for how the
Company will act in the event of a take-over bid. However, there is no provision in the Bye-Laws of the Company
regulating the Board’s competence in the event of a take-over bid.
Nevertheless, the Board will adopt the provisions in the Norwegian Code of Practice as the guiding principles for how
the Company will act in the event of a take-over bid and will not attempt to influence, hinder or obstruct take-over
bids for the Company’s activities or shares.
In potential take-over situations, the Board will evaluate any offers that are commercially and financially beneficial
to all shareholders of the Company, consider and arrange an independent valuation where the bidder is a major
shareholder, and commit to act with extensive concern regarding representing the interest of all shareholders. The
Board will follow the relevant rules and regulations as set out in the Norwegian Code of Practice in due course.
32
JINHUI SHIPPING AND TRANSPORTATION LIMITED
ANNUAL REPORT 2024
Corporate Governance Report
NORWEGIAN CODE OF PRACTICE FOR CORPORATE GOVERNANCE
(Continued)
Section 15 Auditor
The Board strives to have close and open cooperation with Grant Thornton Hong Kong Limited, the auditor of
the Company. The Audit Committee obtains annual confirmation that the auditor satisfies the independence and
objectivity requirements. The auditor submits an annual audit plan and presents the main features and scope of
the planned work to the Audit Committee before commencement of annual audit. The Board particularly assesses
whether the auditor exercises an adequate control function and the performance of the auditor has been reviewed.
The auditor participates in meetings of the Board that deal with the annual accounts. At these meetings, the auditor
reviews the material changes in the Group’s accounting principles and policies, identifies the significant risks and
exposures of the Group during the course of audit. The auditor also attends the annual general meeting of the
Company.
The Board has issued guideline that regulate management’s access to use the auditor of the Company for various
services as follows:
Audit services – include audit services provided in connection with the audit of the financial statements.
Other services – include services that would normally be provided by auditor other than audit services, for example,
audit of the Group’s provident funds, tax compliance, due diligence and accounting advice related to merge and
acquisition and issuance of special audit reports for tax or other non-assurance purposes. The auditor is invited to
undertake those services that it must or is best place to undertake in capacity as auditor.
Other specific services – include reviews of third parties to assess compliance with contracts, risk management
diagnostics and assessments, and non-financial systems consultations. The auditor is also permitted to assist
management with internal investigations and fact-finding into alleged improprieties, where appropriate and
necessary. These services are subject to specific approval by the Audit Committee.
In the forthcoming general meeting, the Board will report the remuneration paid to auditor including the details
of the fee paid for audit services and any fees paid for other specific assignments. In 2024, the remuneration paid
and payable to the auditor of the Company for the provision of the Group’s audit services and other services were
US$217,000 and US$5,000 respectively. Fees paid for other services included fees for tax compliance services of
US$5,000. The auditor’s remuneration excluded VAT as the external auditor performed its services in Hong Kong,
where no VAT being imposed.
JINHUI SHIPPING AND TRANSPORTATION LIMITED
33
ANNUAL REPORT 2024
Board of Directors and Executive Personnel
BOARD OF DIRECTORS
Mr. Ng Siu Fai,
Chairman
Aged 68. Appointed as a Director of the Company since 1994. As one of the two founders of the Group in 1987,
Mr. Ng was appointed as the chairman of Jinhui Holdings, the Company’s holding company, in 1991. His
responsibility is to formulate strategic planning for the Group as well as overseeing all aspects of the Group’s
operations. Mr. Ng has extensive knowledge and working experience in the shipping industry as well as business
management and China trade.
Mr. Ng is a brother of Messrs. Ng Kam Wah Thomas and Ng Ki Hung Frankie, both are directors of the Company (as
disclosed hereinafter).
Mr. Ng Kam Wah Thomas,
Managing Director and Deputy Chairman
Aged 62. Appointed as a Director of the Company since 1994. Mr. Ng is the other founder of the Group in 1987 and
was appointed as a director of Jinhui Holdings since 1991. He is responsible for the Group’s shipping activities.
Mr. Ng has extensive knowledge and working experience in the shipping industry and business management. Mr. Ng
holds a Bachelor’s Degree in Arts from the University of Guelph in Canada and a Diploma in Management Studies,
specializing in shipping, from the Plymouth Polytechnic in the United Kingdom.
Mr. Ng Ki Hung Frankie,
Executive Director
Aged 71. Appointed as a Director of the Company since 1994 and a director of Jinhui Holdings since 1991. Mr. Ng is
responsible for the Group’s investments and business management. Mr. Ng has extensive working experience in the
shipping industry as well as business management and China trade.
Ms. Ho Suk Lin Cathy,
Executive Director
Aged 61. Appointed as a Director and the Company Secretary of the Company since 1994 and a director of Jinhui
Holdings since 1993. Ms. Ho is responsible for the Group’s financial controls and secretarial matters. Ms. Ho has
extensive working experience in finance and management. Prior to joining the Group in 1991, she worked in an
international accounting firm. Ms. Ho is a fellow member of the Association of Chartered Certified Accountants, the
Hong Kong Institute of Certified Public Accountants and the Institute of Chartered Accountants in England and Wales.
34
JINHUI SHIPPING AND TRANSPORTATION LIMITED
ANNUAL REPORT 2024
Board of Directors and Executive Personnel
BOARD OF DIRECTORS
(Continued)
Mr. Tsui Che Yin Frank,
Non-executive Director
Aged 67. Appointed as a Non-executive Director of the Company since 2006 and an independent non-executive
director of Jinhui Holdings since 1994. Mr. Tsui has extensive experience in investment and banking industries
and held senior management positions at various international financial institutions. Mr. Tsui is an independent
non-executive director of Melco International Development Limited listed in Hong Kong. Mr. Tsui graduated with a
Bachelor’s and a Master’s Degree in Business Administration from the Chinese University of Hong Kong and with
a Law Degree from the University of London. He holds a Doctoral Degree in Business Administration from The
University of Newcastle, Australia.
Mr. William Yau,
Non-executive Director
Aged 57. Appointed as a Non-executive Director of the Company since 2006 and an independent non-executive
director of Jinhui Holdings since 2004. Mr. Yau has extensive experience gained from his senior management
positions in various industries. He is at present a director of American Phil Textiles Limited and Forum Restaurant
(1977) Limited, and a supervisor of Fujian Shishi Rural Commercial Bank Co., Ltd. Mr. Yau is a member of the Gansu
Provincial Committee of the Chinese People’s Political Consultative Conference. Mr. Yau graduated with a Bachelor
Degree of Computer Systems Engineering from the Carleton University in Canada.
EXECUTIVE PERSONNEL
Mr. Ching Wei Man Raymond,
Vice President
Aged 50. Joined the Group in 2004 as Vice President, and is responsible for overseeing various activities for the
Group, with particular focus in shipping related investments, corporate finance matters, investor relations, and new
business development. Mr. Ching has extensive experience in shipping investments and in finance. Prior to joining
the Group, he worked for a number of years in the investment banking division for a major US bank. Mr. Ching holds
a Master of Engineering and a Master of Science (Finance), both from the Imperial College of Science, Technology
and Medicine in London.
Mr. Shum Yee Hong,
Head of Management and Operation Department
Aged 72. Joined the Group in 1992 as Head of Management and Operation Department, responsible for the ship
operation activities of the Group. Mr. Shum has over 30 years of working experience in the shipping industry. Before
joining the Group, Mr. Shum was a marine superintendent for an international shipping company.
JINHUI SHIPPING AND TRANSPORTATION LIMITED
35
ANNUAL REPORT 2024
Directors’ Report
The Directors present their report and the audited consolidated financial statements of Jinhui Shipping and its
subsidiaries for the year ended 31 December 2024.
PRINCIPAL ACTIVITIES
The principal activity of the Company is investment holding. The principal activities of its subsidiaries are ship
chartering and ship owning which are carried out internationally. There were no significant changes in the nature of
the Group’s principal activities during the year.
REGISTERED OFFICE
The Company is an exempted company registered in Bermuda and its registered office is Clarendon House, 2 Church
Street, Hamilton HM 11, Bermuda.
RESULTS AND APPROPRIATIONS
The results of the Group for the year 2024 are set out in the “Consolidated Statement of Profit or Loss and Other
Comprehensive Income” on page 75.
The Board has resolved to recommend the payment of a final dividend of US$0.03 per share for the year ended
31 December 2024 and such dividend, if approved by the shareholders at the forthcoming annual general meeting
scheduled on 28 May 2025, will be paid to the beneficial owners of the shares of the Company whose names are
registered in the Euronext Securities Oslo, the Norwegian Central Securities Depository, at the close of business on
2 June 2025. The Company’s shares listed on the Oslo Stock Exchange will be traded including dividend up until and
including 28 May 2025. The ex dividend date is 30 May 2025 and the dividend will be paid on or about 25 June 2025.
As there was no interim dividend payable during the year, the proposed final dividend as mentioned above, if
approved, will bring the total dividend for 2024 to US$0.03 per share.
ALLOCATION OF NET PROFIT
The Board has proposed the net profit of the Group for the year 2024 amounting to US$24,005,000 to be allocated as
an addition to retained profits.
RESERVES
Details of movements in reserves of the Group during the year are set out in the “Consolidated Statement of Changes
in Equity” on page 78.
36
JINHUI SHIPPING AND TRANSPORTATION LIMITED
ANNUAL REPORT 2024
Directors’ Report
DIVIDEND POLICY
The Company may declare and distribute dividends to the shareholders of the Company. Our policy aims to provide
stable and consistent dividends with steady growth when supported by our earnings whilst ensuring that sufficient
financial resources can be maintained to fund our business growth. In addition, the amount and timing of any
dividend distributions in the future will depend, among other things, on our compliance with covenants in our credit
facilities, earnings, financial condition, cash position, Bermuda law affecting the dividend distributions, restrictions
in our financing agreements and other factors. As dry bulk shipping market is cyclic and volatile, it’s particularly
challenging to establish a clear and predictable dividend policy. There can be no assurance that a dividend will be
proposed or declared in any given year.
BUSINESS REVIEW
Dry bulk shipping market remained healthy and performed well during the year supported by demand growth for
dry bulk commodities and limited supply of vessels, the combined effect led to a surge of market freight rates.
Market freight rates have recovered from the low level as seen from last year despite the simultaneous occurrence of
multiple geo-political issues that affected business sentiment. Both Baltic Dry Index and charter rates across all vessel
classes had been showing encouraging improvements as compared to year 2023. Baltic Dry Index opened at 2,094
points in January, continued to rise to the highest of the year at 2,419 points in March and then continued to decline
and hit to the lowest of the year at 976 points in December and closed at 997 points by the end of 2024. The average
Baltic Dry Index for the year 2024 was 1,755 points, which compares to 1,378 points in 2023.
Baltic Dry Index & Baltic Supramax Index
Jan
2024
Apr Jul Oct Apr Jul Oct Apr Jul Oct Apr Jul OctJan
2020
Jan
2021
Jan
2022
Jan
2023
Jan
2025
Apr Jul Oct
Baltic Dry Index
Baltic Supramax Index
0
1,000
2,000
3,000
4,000
5,000
6,000
Source: Bloomberg
JINHUI SHIPPING AND TRANSPORTATION LIMITED
37
ANNUAL REPORT 2024
Directors’ Report
BUSINESS REVIEW
(Continued)
Average daily time charter equivalent rates 2024 2023
US$ US$
Capesize fleet 24,298 –
Panamax fleet 15,528 13,126
Ultramax / Supramax fleet 14,466 8,892
In average 14,741 9,063
As at 31 December 2024, the Group operated twenty five owned vessels and eight chartered-in vessels. The Group’s
revenue represents chartering freight and hire income arising from the Group’s owned and chartered-in vessels. Hire
income under time charter is accounted for as operating lease and is recognized on a straight-line basis over the
period of each time charter contract.
The Group achieved a revenue of US$158,900,000 for the year 2024, marking a significant 94% increase compared
to US$81,868,000 for the year 2023. The rise mainly attributable to the increase in number of owned vessels and
chartered-in vessels, along with the improved revenue earned from the average daily time charter equivalent rate
earned by the Group’s fleet, improving 63% to US$14,741 for the year 2024 as compared to US$9,063 for the year
2023. The Company generated a consolidated operating profit before depreciation and amortization amounted to
US$74,286,000 for 2024 as compared to consolidated operating loss before depreciation and amortization for 2023 of
US$11,828,000.
The Company recorded a consolidated net profit of US$24,005,000 for the year 2024, which included a net reversal
of impairment loss of US$1,942,000 on owned vessels and a reversal of impairment loss of US$4,591,000 on right-
of-use assets, as compared to the consolidated net loss of US$55,055,000 which included a net impairment loss of
US$14,011,000 on owned vessels and an impairment loss of US$5,693,000 on right-of-use assets for the year 2023.
Basic earnings per share for the year was US$0.220 as compared to basic loss per share of US$0.504 for the year
2023.
Revenue of US$22,847,000, US$16,560,000 and US$11,767,000 were derived from three charterers that contributed
14%, 10% and 7% respectively to the Group’s revenue for the year 2024. Management has a credit policy in place for
approving the credit limits to charterers and the exposures to credit risk are monitored such that any outstanding
trade receivables are reviewed and followed up on an ongoing basis. For trade receivables from customers, credit
evaluations including assessing the customer’s creditworthiness and financial standing are performed on customers
requiring a credit over certain amount. The management consider that the credit risks inherent in the Group’s
outstanding trade receivables within one year past due was immaterial.
38
JINHUI SHIPPING AND TRANSPORTATION LIMITED
ANNUAL REPORT 2024
Directors’ Report
BUSINESS REVIEW
(Continued)
Key Performance Indicators for Shipping Business 2024 2023
US$ US$
Average daily time charter equivalent rate 14,741 9,063
Daily vessel running cost 5,606 5,569
Daily vessel depreciation 3,343 3,486
Daily vessel finance cost 10 157
8,959 9,212
Average utilization rate 98% 99%
Daily vessel running cost of the Group’s owned vessels rose to US$5,606 in 2024, up from US$5,569 in 2023 as
certain initial running costs and expenses were incurred for the newly delivered vessels. Daily vessel depreciation of
the Group’s owned vessels decreased to US$3,343 for the year 2024 as compared to US$3,486 for the year 2023. The
decrease was mainly attributable to the decrease in depreciation on owned vessels due to the reduction in carrying
amounts of owned vessels after the recognition of impairment loss on owned vessels by end of 2023. As vessel
mortgage loans were fully repaid during the year, the finance cost associated with the vessel mortgage loans was
minimal for the year 2024. Fleet utilization rate slightly decreased from 99% for the year 2023 to 98% for the year
2024. We will continue with our cost reduction effort, striving to maintain a highly competitive cost structure when
stacked against other market participants.
FLEET OVERVIEW
The Group operates a balanced and diversified fleet of dry bulk carriers, comprising Capesize, Panamax, Ultramax
and Supramax bulk carriers. To stay competitive in the market, the Group focused on enhancing the quality of our
fleet and adjusting our fleet profile, in particularly in terms of seeking to lower the overall age profile of our fleet.
As at 31 December 2024, the Group operated twenty-five owned vessels and eight chartered-in vessels, with total
deadweight carrying capacity of approximately 2,276,000 metric tonnes. As at 31 December 2024, the carrying amount
of the motor vessels and capitalized drydocking costs was US$393,320,000 (2023: US$324,947,000).
Number of vessels
Owned Chartered-in Total
Capesize fleet 2 – 2
Panamax fleet 1 3 4
Ultramax / Supramax fleet 22 5 27
Total number of vessels 25 8 33
JINHUI SHIPPING AND TRANSPORTATION LIMITED
39
ANNUAL REPORT 2024
Directors’ Report
FLEET OVERVIEW
(Continued)
During the year, the Group entered into agreements to acquire or charter-in vessels with a view to maintaining high
financial flexibility and also maximize operational competitiveness at a lower level of capital investment.
Acquisition and disposal of vessels
During the year, the Group concluded to acquire four second-hand vessels and committed to acquire two
newbuildings with independent third parties.
The Group entered into an agreement for the acquisition of a Capesize of deadweight 181,279 metric tonnes, built in
year 2012, at a purchase price of US$30,950,000 which was delivered to the Group in August 2024. In addition, the
Group entered into an agreement for the acquisition of a Panamax of deadweight 81,567 metric tonnes, built in year
2019, at a purchase price of US$31,122,000 and the Panamax was delivered to the Group in May 2024. The Group
also contracted to acquire a Capesize of deadweight 178,021 metric tonnes, built in year 2008, at a purchase price of
US$24,000,000. The vessel was delivered to the Group in November 2024. Further to the end of the year, the Group
entered into an agreement for the acquisition of an Ultramax of deadweight 61,441 metric tonnes, built in year 2017,
at a purchase price of US$24,520,000 and the Ultramax was delivered to the Group in January 2025. These mark
a significant step for the Group, as it has not acquired vessels for the transportation of dry bulk commodities with
larger capacities for many years.
During the year, the Group entered into two shipbuilding contracts for the construction of two Ultramax
newbuildings, each at a consideration of US$34,000,000 of deadweight 63,500 metric tonnes, to be delivered in 2026
and 2027 respectively. The acquisition of two newbuildings is consistent with the Group’s ongoing strategy to renew
the fleet with modern, larger and high-quality vessels, by gradually phasing out its older vessels and replacing them
with newer and younger vessels. In addition, the two newbuildings are more fuel-efficient and of higher operational
efficiency than the other bulk carriers of the Group currently in operation, which meets the latest environmental
regulations and prevailing specification requirements in the shipping industry.
A Supramax of deadweight 52,050 metric tonnes which was contracted for disposal in December 2023 at a
consideration of US$10,430,000 was delivered to the purchaser during the year.
Lease of vessels
To further enhance and improve our fleet profile while limiting the capital expenditure on acquisition of vessels and
maximizing flexibility, the Group entered into certain inward time charters engagements during the year with total
deadweight carrying capacity of approximately 827,000 metric tonnes. As at the reporting date, the Group operated
eight chartered-in vessels, in which, three of them were long-term time charters with remaining lease term for more
than twelve months. The right-of-use assets which are calculated with the present value of total minimum hire
payment at the inception of the lease terms of the charterparties and corresponding lease liabilities were recognized
in the consolidated statement of financial position upon their deliveries of the vessels in accordance with IFRS 16 and
HKFRS 16 Leases. As at 31 December 2024, the carrying amounts of the right-of-use assets and the lease liabilities
were US$30,022,000 (2023: US$21,095,000) and US$32,385,000 (2023: US$29,139,000) respectively.
During the year, the Group entered into three long-term inward time charters with independent third parties.
40
JINHUI SHIPPING AND TRANSPORTATION LIMITED
ANNUAL REPORT 2024
Directors’ Report
FLEET OVERVIEW
(Continued)
Lease of vessels
(Continued)
A charterparty was entered into for the leasing of an Ultramax with deadweight 61,452 metric tonnes, built in year
2016, for a minimum term of twenty-two months, and the vessel was delivered to the Group in late April 2024.
The Group took delivery of another Ultramax in May 2024 under a long-term inward time charter for a minimum term
of twenty months. The vessel was built in year 2016 with deadweight 61,473 metric tonnes.
Besides, the Group entered into a charterparty in respect of leasing of a Capesize of deadweight 207,672 metric
tonnes, built in year 2017 for a minimum term of thirty-three months. The vessel was delivered to the Group in
January 2025.
We will continuously monitor the market as well as our operations going forward and look out for opportunities to
maintain a reasonably modern and competitive fleet, not ruling out any future disposal of smaller and older vessels
and replace with newer vessels with larger carrying capacity and longer asset lives or charter-in of vessels. We will
make such decisions on an ad hoc basis to maintain high financial flexibility and operational competitiveness.
FINANCIAL REVIEW
Revenue and operating profit. The Group achieved a revenue from chartering freight and hire of US$158,900,000
for the year 2024, marking a significant 94% increase compared to US$81,868,000 for the year 2023. The rise mainly
attributable to the increase in number of owned vessels and chartered-in vessels, along with the improved revenue
earned from the average daily time charter equivalent rate earned by the Group’s fleet, improving 63% to US$14,741
for the year 2024 as compared to US$9,063 for the year 2023. The Company generated a consolidated operating profit
before depreciation and amortization amounted to US$74,286,000 for 2024 as compared to consolidated operating
loss before depreciation and amortization for 2023 of US$11,828,000.
The Company recorded a consolidated net profit of US$24,005,000 for the year 2024, which included a net reversal
of impairment loss of US$1,942,000 on owned vessels and a reversal of impairment loss of US$4,591,000 on right-
of-use assets, as compared to the consolidated net loss of US$55,055,000 which included a net impairment loss of
US$14,011,000 on owned vessels and an impairment loss of US$5,693,000 on right-of-use assets for the year 2023.
Basic earnings per share for the year was US$0.220 as compared to basic loss per share of US$0.504 for the year
2023.
Other operating income. Other operating income increased from US$7,643,000 for the year 2023 to US$16,991,000 for
the current year. The increase was mainly due to receipt of a settlement income of US$3,500,000 from a legal dispute
over the non-performance of a charterparty and recognition of net gain of US$4,867,000 on financial assets at fair
value through profit or loss, comprised of a realized gain of US$2,409,000 upon disposal of certain equity and debt
securities and an unrealized fair value gain of US$2,458,000 on financial assets at fair value through profit or loss for
the current year. On the contrary, a net loss of US$827,000 on financial assets at fair value through profit or loss was
recorded and included in other operating expenses for 2023.
JINHUI SHIPPING AND TRANSPORTATION LIMITED
41
ANNUAL REPORT 2024
Directors’ Report
FINANCIAL REVIEW
(Continued)
Reversal of impairment loss on owned vessels and right-of-use assets. As at 31 December 2024, the Group reviewed
the dry bulk shipping market environment, the overall macroenvironment and the market value of dry bulk vessels,
the management considered that reversal of impairment indication of the Group’s fleet existed at end of 2024 and
performed a review of recoverable amount of our owned vessels and right-of-use assets.
With due considerations of factors affecting the long term intrinsic values of owned dry bulk vessels in the reversal of
impairment review, certain of the Group’s owned vessels’ recoverable amounts which were determined based on the
higher of the fair value less costs of disposal and value in use and were higher than their respective carrying amounts
at end of 2024. Accordingly, a net reversal of impairment loss of US$1,942,000 on owned vessels classified in
property, plant and equipment was recognized at 31 December 2024 to reflect the Group’s change in the expectation
of the global economic and the dry bulk shipping industry outlook which affect the assumptions applied in estimation
of the value in use and fair value less cost of disposal of the Group’s owned vessels as compared to 2023. The Group
also performed a review on the recoverable amounts of the right-of-use assets based on the value-in-use approach
using discounted cash flow method by comparing the carrying value and the recoverable amounts of the right-of-
use assets. Based on the assessment, the Group concluded that the recoverable amounts of the right-of-use assets
are higher than the carrying amounts. Hence, the Group recognized a reversal of impairment loss of US$4,591,000 on
right-of-use assets for the year ended 31 December 2024.
Shipping related expenses. Shipping related expenses mainly comprised of crew expenses, insurance, consumable
stores, spare parts, repairs and maintenance and other vessels’ expenses. Shipping related expenses increased from
US$58,490,000 in 2023 to US$84,404,000 in the current year. This significant rise was primarily attributable to the rise
in hire payments upon the increase in the number of short-term chartered-in vessels. Throughout the year, the Group
engaged in certain inward time charters engagements, leading to approximately US$21,784,000 in hire payments
for these short-term leases during the current year. Notably, there were no corresponding payments recorded in
2023. As a result of the enlarged fleet, expenditure on crew costs, consumables and shipping related expenses were
increased accordingly upon the delivery of three vessels during the year. The Group’s daily vessel running cost of
owned vessels rose to US$5,606 in 2024, up from US$5,569 in 2023 as certain initial running costs and expenses were
incurred for the newly delivered vessels. In response to these rising expenses, we are committed to implementing
stringent cost-control measures and enhancing operational efficiency. Our goal is to maintain a highly competitive
cost structure that aligns with industry standards and positions us favorably against other market participants.
Other operating expenses. Other operating expenses increased slightly from US$9,748,000 in 2023 to US$9,861,000
in current year. This figure includes a fair value loss of US$4,386,000 on investment properties for the current year,
compared to a fair value loss of US$2,334,000 on investment properties and the recognition of an impairment loss on
assets held for sale (disposed vessel), amounting to US$1,288,000 recorded in 2023. Other operating expenses for the
year 2024 also included directors’ fee of US$777,000, professional fee of US$547,000, auditor’s remuneration related
to audit services of US$217,000 and remaining are various office administrative expenses.
42
JINHUI SHIPPING AND TRANSPORTATION LIMITED
ANNUAL REPORT 2024
Directors’ Report
FINANCIAL REVIEW
(Continued)
Depreciation and amortization. Depreciation and amortization increased from US$36,994,000 for the year 2023 to
US$44,189,000 for the year 2024. The increase was attributable to the recognition of depreciation of US$15,019,000
on right-of-use assets for long-term chartered-in vessels for the current year whereas US$5,466,000 was recorded in
last corresponding year. The Group’s daily vessel depreciation of the Group’s owned vessels decreased to US$3,343
for the year 2024 as compared to US$3,486 for the year 2023. The decrease was mainly attributable to the decrease
in depreciation on owned vessels due to the reduction in carrying amounts of owned vessels after the recognition of
impairment loss on owned vessels by end of 2023.
Finance costs. Finance costs decreased from US$6,234,000 for the year 2023 to US$6,092,000 for the year 2024. This
decrease was primarily due to the reduced recognition of interest expenses on lease liabilities, which amounted to
US$1,317,000 in 2024 compared to US$1,424,000 in 2023.
Financial assets at fair value through profit or loss. As at 31 December 2024, the Group’s portfolio of investment in
financial assets at fair value through profit or loss was US$20,605,000 (2023: US$24,094,000), in which US$17,903,000
(2023: US$21,491,000) was investment in listed equity securities and US$2,702,000 (2023: US$1,731,000) was
investment in investment funds. There was no (2023: US$872,000) investment in debt securities at the end of the year
2024.
During the year, the Group’s net gain on financial assets at fair value through profit or loss was US$4,867,000
(2023: net loss on financial assets at fair value through profit or loss of US$827,000), comprised of a realized gain
of US$2,409,000 (2023: US$701,000) upon disposal of certain equity and debt securities during the year, and an
unrealized fair value gain of US$2,458,000 (2023: unrealized fair value loss of US$1,528,000) on financial assets at fair
value through profit or loss for the year. The aggregate interest income and dividend income from financial assets
was US$2,007,000 (2023: US$1,990,000).
Investment properties. As at 31 December 2024, the Group’s investment properties were stated at fair value of
US$20,873,000 (2023: US$25,259,000) and comprised of premises and car parks held under operating leases to earn
rentals or held for capital appreciation, or both. These premises and car parks are held under long term leases.
Right-of-use assets and lease liabilities. As at 31 December 2024, the Group operated eight chartered-in vessels,
in which three of them were long-term time charters with remaining lease term for more than twelve months. In
accordance with IFRS 16 and HKFRS 16 Leases, the Group recognized the right-of-use assets which is calculated
with the present value of total minimum hire payment at the inception of the lease terms of the charterparties and
corresponding lease liabilities was also recognized in the consolidated statement of financial position upon their
deliveries of the vessels.
As at 31 December 2024, the carrying amounts of the right-of-use assets and the lease liabilities were US$30,022,000
(2023: US$21,095,000) and US$32,385,000 (2023: US$29,139,000) respectively. During the year, the total cash outflow
for the lease was US$39,232,000 (2023: US$4,879,000).
JINHUI SHIPPING AND TRANSPORTATION LIMITED
43
ANNUAL REPORT 2024
Directors’ Report
FINANCIAL REVIEW
(Continued)
Loan receivables. As at 31 December 2024, the Group’s loan receivables of US$1,577,000 (2023: US$1,577,000) arise
from Co-investment, are unsecured and denominated in United States Dollars and has no fixed repayment terms. At
the reporting date, these receivables have been reviewed by management to assess impairment allowances which are
based on the evaluation of current creditworthiness, collection statistics and the net asset value of the Co-investment,
and are not considered as impaired. The carrying amount of the loan receivables is considered to be a reasonable
approximation of its fair value.
Trade and other payables. As at 31 December 2024, the Group’s trade and other payables was US$22,030,000 (2023:
US$16,221,000), including trade payables of US$820,000 (2023: US$133,000), accrued charges of US$4,756,000 (2023:
US$2,830,000) and other payables of US$16,454,000 (2023: US$13,258,000). Other payables mainly included payables
related to vessel running cost and ship operating expenses of US$11,526,000 (2023: US$9,104,000) for owned vessels,
hire receipt in advance of US$2,733,000 (2023: US$2,607,000) from charterers, loan interest payables of US$71,000 (2023:
US$166,000) and accrued employee benefits payables of US$1,952,000 (2023: US$1,203,000).
Liquidity, financial resources and capital structure. As at 31 December 2024, upon financing the delivery of three
vessels, the Group maintained positive working capital position and had cash and cash equivalents of US$23,005,000
(2023: US$40,250,000). Net cash generated from operating activities after working capital changes was US$75,733,000
(2023: US$15,944,000), of which US$12,303,000 (2023: US$11,494,000) related to changes in working capital.
For the year 2024, net cash used in investing activities was US$85,409,000 (2023: US$5,212,000). This included
US$94,698,000 on acquisition of three vessels and dry-docking expenditure and US$2,452,000 on deposit paid for
acquisition of an Ultramax which was delivered to the Group in January 2025, partially offset by US$10,414,000
proceeds from completed disposal of one Supramax.
Net cash used in financing activities was US$7,569,000 (2023: US$3,835,000) for 2024. During the year, the Group had
drawn new secured bank loans of US$65,338,000 (2023: US$57,696,000) upon delivery of three vessels and repaid
US$55,511,000 (2023: US$52,367,000). Further, repayment of US$17,426,000 (2023: US$4,879,000) on lease liabilities
was incurred.
The Group’s total secured bank loans increased from US$88,167,000 as at 31 December 2023 to US$97,994,000 as at
31 December 2024, of which 8%, 9% and 83% are repayable respectively within one year, in the second year and in
the third to fifth year. The bank borrowings represented revolving loans, term loans and property mortgage loans that
were denominated in Hong Kong Dollars. All bank borrowings were committed on floating rate basis.
As at 31 December 2024, the total of the Group’s equity and debt securities, bank balances and cash decreased to
US$40,908,000 (2023: US$62,613,000).
The gearing ratio, as calculated on the basis of net debts (total interest-bearing debts net of equity and debt
securities, bank balances and cash) over total equity, was 15% (2023: 7%) as at 31 December 2024. With cash,
marketable equity and debt securities in hand as well as available credit facilities, the Group has sufficient financial
resources to satisfy its commitments and working capital requirements. As at 31 December 2024, the Group is able to
service its debt obligations, including principal and interest payments.
44
JINHUI SHIPPING AND TRANSPORTATION LIMITED
ANNUAL REPORT 2024
Directors’ Report
FINANCIAL REVIEW
(Continued)
Cash flows. The Company’s consolidated statement of cash flows had been prepared in accordance with IAS 7 and
HKAS 7. It provided information that enables users to evaluate the changes in the Group’s inflows and outflows of
cash and cash equivalents during the year.
The consolidated statement of cash flows was classified by operating, investing and financing activities and had
been prepared under the indirect method, whereby operating profit or loss was adjusted for the effects of non-cash
transactions, any deferrals or accruals of past or future operating cash receipts or payments, and items of income or
expense associated with investing or financing cash flows.
Operating activities – Cash flows arising from operating activities are primarily derived from the principal revenue
producing activities of the Group. The Group’s net cash from operating activities for the year was US$75,733,000 (2023:
US$15,944,000). Net cash from operating activities was determined by adjusting non-cash items such as depreciation
and amortization, provisions and impairment losses; change in fair value of non-financial assets; changes in operating
assets and liabilities consist of inventories, receivables and payables, and financial assets at fair value through profit
or loss; and all other items for which the cash effects were included in investing or financing activities, such as
net gain or loss on disposal of property, plant and equipment, dividend income and interest income; and including
interest expenses paid during the year.
Investing activities – Cash flows arising from investing activities are primarily derived from cash proceeds or cash
expenditures that result in a change in recognized assets in the consolidated statement of financial position which
are not included in cash and cash equivalents. The Group’s net cash used in investing activities for the year was
US$85,409,000 (2023: US$5,212,000). This mainly included US$94,698,000 on acquisition of three vessels and
dry-docking expenditure and US$2,452,000 on deposit paid for acquisition of an Ultramax which was delivered to the
Group in January 2025, partially offset by US$10,414,000 proceeds from completed disposal of one Supramax.
Financing activities – Cash flows arising from financing activities are primarily derived from cash proceeds or cash
expenditures that result in changes in equity and subordinated liabilities. The Group’s net cash used in financing
activities for the year was US$7,569,000 (2023: US$3,835,000). During the year, the Group had drawn new secured
bank loans of US$65,338,000 (2023: US$57,696,000) upon delivery of three vessels and repaid US$55,511,000 (2023:
US$52,367,000). Further, repayment of US$17,426,000 (2023: US$4,879,000) on lease liabilities was incurred.
Cash and cash equivalents – Cash and cash equivalents are short-term, highly liquid investments that are readily
convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. At the
reporting date, the Group’s cash and cash equivalents was US$23,005,000 (2023: US$40,250,000).
Pledge of assets. As at 31 December 2024, the Group’s property, plant and equipment with an aggregate net book
value of US$252,113,000 (2023: US$220,591,000), investment properties with an aggregate carrying amount of
US$17,301,000 (2023: US$20,653,000), financial assets at fair value through profit or loss of US$6,994,000 (2023:
US$12,564,000) and deposits of US$329,000 (2023: US$359,000) placed with banks were pledged together with the
assignment of fifteen (2023: fourteen) subsidiaries’ income to secure credit facilities utilized by the Group.
JINHUI SHIPPING AND TRANSPORTATION LIMITED
45
ANNUAL REPORT 2024
Directors’ Report
FINANCIAL REVIEW
(Continued)
Capital expenditures and commitments.
Capital expenditures
During the year, the Group incurred capital expenditure of US$94,698,000 (2023: US$24,220,000) on additions
of motor vessels and capitalized drydockings and US$397,000 (2023: US$113,000) on other property, plant and
equipment.
Capital commitments
During the year, the Group entered into two shipbuilding contracts for the construction of two Ultramax
newbuildings, each at a consideration of US$34,000,000 of deadweight 63,500 metric tonnes, to be delivered in 2026
and 2027 respectively. As at the reporting date, the capital expenditure commitments contracted by the Group but not
provided for was US$68,000,000 (2023: nil).
The Group further entered into a charterparty in respect of leasing of a Capesize of deadweight 207,672 metric
tonnes, built in year 2017, for a term of minimum thirty-three months; the vessel was delivered to the Group in
January 2025. The right-of-use assets of approximately US$26,640,000 will be recognized on the date of delivery of
the vessel. As at the reporting date, the capital expenditure commitments contracted by the Group but not provided
for was approximately US$26,640,000 (2023: nil).
During the year, the Group entered into an agreement for the acquisition of an Ultramax of deadweight 61,441
metric tonnes, built in year 2017, at a purchase price of US$24,520,000. The vessel was delivered to the Group in
January 2025. As at the reporting date, a deposit of US$2,452,000 for the vessel was paid, the capital expenditure
commitments contracted by the Group but not provided for, net of deposits paid, was approximately US$22,068,000
(2023: nil).
In 2018, the Group entered into the co-investment documents to co-invest in a property project in Tower A of
One Financial Street Center, Jing’an Central Business District, Shanghai, the PRC, pursuant to which the Group is
committed to acquire non-voting participating class A shares of Dual Bliss Limited of US$10,000,000. Dual Bliss
Limited is one of the investors of the Co-investment. As at the reporting date, the capital expenditure commitments
contracted by the Group but not provided for was US$372,000 (2023: US$372,000).
As at the reporting date, the total amount of capital expenditure commitments contracted by the Group but not
provided for, net of deposits paid, was US$117,080,000 (2023: US$372,000).
Save as disclosed above, there was no other significant capital expenditure commitments contracted by the Group
but not provided for as at the reporting date.
46
JINHUI SHIPPING AND TRANSPORTATION LIMITED
ANNUAL REPORT 2024
Directors’ Report
SIGNIFICANT LITIGATION UPDATE
Galsworthy Limited (“Galsworthy”), a wholly owned subsidiary of the Company, was the disponent owner of the
vessel “CANTON TRADER” which was later renamed “JIN KANG”. On 17 June 2008, Galsworthy entered into a
time charter with Parakou Shipping Pte Limited (“Parakou Shipping”) for a period of approximately five years, with
delivery not due until March 2009. On or about 13 March 2009, Parakou Shipping wrongfully refused to take delivery
of the vessel and Galsworthy accepted their conduct as a repudiation of the charter, bringing it to an end.
The dispute was the subject of various proceedings, but principally in London arbitration. By Arbitration Awards
dated 31 August 2010 and 13 May 2011, the London arbitrators upheld Galsworthy’s claims and awarded damages of
approximately US$41.25 million plus interest and costs.
Parakou Shipping went into liquidation in 2011. Galsworthy has submitted a proof of debt in the liquidation in respect
of its claim under the arbitration awards. Galsworthy has also been trying inter alia to enforce the arbitration awards
against Parakou Shipping and its former directors and obtain compensation for its substantial losses. The outstanding
amount is in excess of US$60 million.
In one action Galsworthy has been funding Singapore proceedings commenced by the liquidator of Parakou Shipping
against four of Parakou Shipping’s former directors and related corporate entities (the “Defendants”), seeking to claw
back assets into Parakou Shipping for distribution amongst the creditors. Judgment was obtained in February 2017
in a sum of SGD17 million against the Defendants, but the Defendants have now appealed the same. The Liquidator
cross appealed to increase the judgment amount.
(For more information with regards to the February 2017 judgment issued by Singapore High Court, please visit
www.elitigation.sg/gd/s/2017_SGHC_15)
On 17 January 2018, the Singapore Court of Appeal substantially dismissed the Defendants’ appeal and found in the
Liquidator’s favour. Amongst other things, the Singapore Court of Appeal upheld the Liquidator’s argument that the
London arbitration, and a litigation subsequently filed in the Hong Kong courts seeking indemnity against any liability
in the arbitration, were commenced and pursued by the directors in breach of their fiduciary duties. The Court
considered that evidence had been disregarded which showed that the directors’ key concern was to avoid a statutory
clawback period. The Court also agreed that certain asset sales that had taken place in late 2008 were done while
Parakou Shipping was insolvent and were not part of a restructuring, as claimed by the former directors of Parakou
Shipping. The Court found that a company resolution advanced as evidence of a restructuring plan by the Defendants
was in fact an “an afterthought” produced later than its date under “suspicious circumstances”. The Liquidator is
entitled to seek either damages or an account of profits arising from the relevant breaches.
(For more information with regards to the January 2018 judgment issued by Singapore Court of Appeal, please visit
www.elitigation.sg/gd/s/2018_SGCA_3)
Legal actions also took place in South Africa over the arrest of the vessel “PRETTY SCENE”, as well as in Hong
Kong against three of the former directors of Parakou Shipping for unlawful means conspiracy. An injunction order,
freezing assets belonging to the directors of Parakou Shipping, was obtained.
JINHUI SHIPPING AND TRANSPORTATION LIMITED
47
ANNUAL REPORT 2024
Directors’ Report
SIGNIFICANT LITIGATION UPDATE
(Continued)
This multi jurisdiction legal saga dragged on for an extensive period of time. In April 2024, Galsworthy and Parakou
Shipping had reached agreement to settle the Hong Kong legal action for a settlement income of US$3.5 million,
paving the way to bring the global actions to an end.
The termination of the Hong Kong legal action allowed Galsworthy to formally bring the ongoing legal dispute to an
end and effect the application to the Singapore High Court for the receival of the settlement sum of the Singapore
January 2018 judgment. Galsworthy received a sum of SGD27.6 million, a total of approximately US$20.3 million in
January 2025.
PROPERTY, PLANT AND EQUIPMENT
Details of movements in property, plant and equipment of the Group during the year are set out in note 18 to the
consolidated financial statements.
SUBSIDIARIES
Details of the Company’s principal subsidiaries are set out in note 42 to the consolidated financial statements.
PURCHASE, SALE OR REDEMPTION OF THE COMPANY’S LISTED SECURITIES
There was no purchase, sale or redemption of the Company’s listed securities by the Company or any of its
subsidiaries during the year.
RELATED PARTY TRANSACTIONS
Details of the Group’s related party transactions are set out in note 37 to the consolidated financial statements.
EVENTS AFTER THE REPORTING DATE
Regarding the legal proceedings between the subsidiaries of the Company and Parakou Shipping Pte Limited (“Parakou
Shipping”) in London and Hong Kong in relation to the non-performance of a charterparty, Galsworthy Limited, a
wholly owned subsidiary of the Company and Parakou Shipping had reached an agreement to settle the legal action,
and the Group received a sum of SGD27.6 million, a total of approximately US$20.3 million in January 2025. For
details, please refer to the section SIGNIFICANT LITIGATION UPDATE on page 46.
Save as disclosed above, there were no other significant events occurred after the reporting date and up to the date
of this report.
GOING CONCERN
We confirm that the consolidated financial statements have been prepared under the assumption of going concern.
This assumption is based on sound financial positions backed by cash generated from operation before changes
in working capital, cash and marketable equity and debt securities, existing and available credit facilities and the
Group’s long term strategic and income forecasts. There exists good basis for the continued operations of the Group.
48
JINHUI SHIPPING AND TRANSPORTATION LIMITED
ANNUAL REPORT 2024
Directors’ Report
AUDITOR
The consolidated financial statements for the year ended 31 December 2024 had been audited by Grant Thornton
Hong Kong Limited. A resolution for the re-appointment of Grant Thornton Hong Kong Limited as the Company’s
auditor for the ensuing year will be proposed at the forthcoming annual general meeting.
EMPLOYEES
The employees are the Group’s most important resource and are crucial to the Group’s success in achieving its
targets for long term value creation. The Group provides various resources for staff training and development.
The Group remunerates its employees, including the Executive Directors, in accordance with their performances,
experiences and prevailing market practices and provides them with usual fringe benefits including medical insurance
and contributions to provident funds. As far as the Group is aware, it complies with all relevant applicable regulations
concerning employment, social benefits and labour safety.
The Group pursues a policy of gender equality. Workload and working hours depend on positions while promotion
and recruitment depend on performance and experience. At 31 December 2024, the Group had 74 (2023: 66)
full-time employees, of whom 41 (2023: 37) employees were male and 33 (2023: 29) employees were female. As at
31 December 2024, the Board consists of six members, of whom five members are male and one member is female.
Employment and labour standards. To promote a high-quality and diverse workforce, the Group provided equal
opportunities to its employees in respect of recruitment, training and development, job advancement, and
remuneration and benefits. The Group’s staff handbook is designed to communicate important laws and work ethics
surrounding employment, benefits and welfare, training and development, occupational health and safety, and code
of conduct guidelines. It is an essential tool in helping to define the expectations of both the management and the
employees, and to protect employees from unfair or inconsistent treatment and discrimination at work.
Procedures regarding recruitment, promotion and salary review are carefully reviewed with due consideration to
avoid gender discrimination. The Group aims to ensure equal opportunities and rights in workplace. In addition to
basic salary, the Group offers various performance bonus, employee allowances, overtime payment to compensate
and reward performing employees. The Group maintains a good relationship with its employees and seafarers and
has not experienced any disruption of its operation as a result of industrial disputes.
The Group does not tolerate any use of child or forced labour. During recruitment, human resources department
will verify the personal information of candidates according to the requirements of the Company’s policies and
procedures and check their identity cards to verify their age in order to avoid child labour. Prior to commencement
of employment, employees are provided with key information, such as job duties and working hours of the position
concerned, and the employment conditions are in line with the terms in the employment contract to prevent any
forced labour. Furthermore, our staff undergoing unfair treatment can report through our whistleblowing policy.
We provide fringe benefits and welfare to our people including but not limited to medical and life insurance, pension
schemes, paid leave for various purposes, travel or meals for business-related work, and other benefits to improve
employees’ well-being.
JINHUI SHIPPING AND TRANSPORTATION LIMITED
49
ANNUAL REPORT 2024
Directors’ Report
EMPLOYEES
(Continued)
All employment of the Group is complied with particular local labour legislations and there was no reported incident
of non-compliance or grievances in relation to human rights or labour practices standards and regulations that would
have a material or significant impact on the Group during the reporting period.
RESEARCH AND DEVELOPMENT
Given the nature of the Group’s principal activities being ship chartering and ship owning which are carried out
internationally, the Group had no research expenditure or development costs being expensed or capitalized during
the year.
WORKING ENVIRONMENT
In order to attract and retain the best people for the sustainable growth of the Company, we place emphasis on a
healthy and safe workplace on board in our vessels and ashore at our office and support all kinds of community
activities that contribute to our community.
We put safety as our top priority in business operation. Accident preventions and efforts for improvement in working
environment are given high priority in the business management, conventions and all parts of operations. We strive
to comply with applicable safety and environmental laws and regulations to which seafarers of all ranks must be
trained and certificated in order to be able to carry out their respective duties on board in our vessels. We ensure all
seafarers on board are trained and certificated in accordance with STCW Convention.
Health and safety. In order to foster the environmentally friendly practices in our vessels, we follow an internal safety
management manual, which defines our objectives and commitments in complying with all applicable national and
international rules and regulations, code and guidelines and standards recommended by IMO, flag states and other
maritime industry organizations. These codes and guidelines and standards, together with our safety manual have
been kept ashore and on our fleet and strictly followed by our team.
For the purpose to attract and retain the best people for the sustainable growth of the Company, we place emphasis
on a healthy and safe workplace on board in our vessels and ashore at our office. The Group is committed to
preventing any work-related injury to its employees, and has complied with relevant laws and regulations to provide
a safe working environment and protecting employees from occupational hazards. During the years 2024 and 2023,
there were no work-related fatalities.
During the year, absence due to sickness was 1.4% (2023: 1.1%) of the total hours worked by employees. Work-
related injuries or accidents was 0.8% (2023: 0.5%) of employees of the Group. During the year, the Group was not
aware of any non-compliance to health and safety related rules and regulations.
50
JINHUI SHIPPING AND TRANSPORTATION LIMITED
ANNUAL REPORT 2024
Directors’ Report
WORKING ENVIRONMENT
(Continued)
Development and training. The Group recognizes the importance of skilled and professionally trained employees
to its business growth and future success. Hence, it is firmly believed that it is necessary to improve employees’
professional standards continuously through training. We encourage and support all employees taking training
courses and workshops that are relevant to job duties to enrich their knowledge and perspective in discharging their
duties.
Management and senior staff had access to a variety of training activities, including attending seminars, workshops
and conferences and receiving regulatory updates relevant to their business and duties, anti-corruption practices
as well as their directors’ duties and responsibilities when acting as directors. They received sufficient internal and
external training to better equip themselves to fulfil their roles in supporting the Group.
We ensure all seafarers on board are trained and certificated in accordance with STCW Convention. Our owned
vessels are also subject to the laws, regulations and rules of each country and port they visit. We have developed
policies and procedures intended to ensure our compliance with these laws, regulations and rules. In order to reduce
the number of incidents that may happen or minimize the level of accidents on vessels, we arrange emergency drills
for seafarers to deal with unexpected situations. We also hold emergency personnel training. Anti-piracy drills are
also performed periodically for our seafarers for the proper procedures when there is a pirate attack.
EXTERNAL ENVIRONMENT ISSUES
The Board has overall responsibility for the long term sustainability and environmental, social and governance
strategies which support growth and enhance value for the business and its stakeholders, as well as contribution to
the environment and the community growing.
We are committed to operate our business in an environmentally and socially responsible manner. When setting the
standards, we consider the needs and requirements of the business, our stakeholders and relevant guidelines. We
discuss and review the risks and opportunities, performance, progress, goals and targets regularly to monitor our
environmental, social and governance performance, related issues and potential risks.
The Group’s businesses and functional departments also help to formulate relevant strategies in their respective
areas and monitor the effectiveness of the implementation in accordance with the sustainable development strategies
and objectives suggested by the Board. Reviews are also arranged regularly to evaluate the effectiveness of current
policies and procedures and develop appropriate solutions to improve the overall performance of environmental,
social and governance policies.
The possible environment impact may include air pollutants emissions, ballast water discharges and oil pollution
in environmental disaster. By maintaining operational safety and providing quality training of our seafarers in
compliance with applicable environmental laws and regulations, we believe that the operation of our vessels is in
substantial compliance with applicable environmental laws and regulations. To achieve this, we strive to comply
with all applicable rules and regulations with our best efforts in shipping operation as well as in our daily working
environment to minimize any adverse impact to the environment.
JINHUI SHIPPING AND TRANSPORTATION LIMITED
51
ANNUAL REPORT 2024
Directors’ Report
EXTERNAL ENVIRONMENT ISSUES
(Continued)
Carbon Dioxide (“CO
2
”) and greenhouse gas (“GHG”) emissions
Target 70% Reduction On Carbon Intensity Emission
Target 50% Reduction On GHG Emission
Both By 2050 Compared 2008
The International Maritime Organization (“IMO”) adopted an Initial Strategy on the reduction of emissions, both CO
2
emission and GHG emission from ships. The strategy represents a framework for the industry, setting out a vision for
international shipping, the levels of ambitions to reduce emissions and guiding principles.
IMO adopted a revised 2023 IMO GHG Strategy on reducing emissions, identifying levels of ambitions for the sector
including the reduction of CO
2
emissions per transport work, as an average across the industry, by at least 40% by
2030, compared to 2008. The 2023 IMO GHG Strategy also includes a new level of ambition relating to the uptake
of zero or near-zero GHG emission technologies, fuels or energy sources which represent at least 5% to 10% of the
energy used by international shipping by 2030. The strategy also identifies the reduction of the total annual GHG
emissions from international shipping by at least 20% to 30% by 2030, and by at least 70% to 80% by 2040, compared
to 2008.
We support the IMO’s targets as our short term and long term targets of decarbonization.
Starting from January 2024, the European Union’s (“EU”) Emissions Trading System (“ETS”) extended to cover
CO
2
emissions from maritime transport entering EU ports. Shipping companies have to purchase and use EU ETS
emission allowances for each tonne of reported CO
2
emissions. We believe ETS inclusion of maritime transport
will drive a faster reduction of emissions among the industry. The Group will strive as much as possible to reduce
emissions to enjoy the lowest carbon price.
Acting as a participant in the marine market, the Group always concerns the issue of increasing GHG and
consumption of fossil fuels. We own a modern and high-quality fleet of dry bulk carriers and as at 31 December 2024,
the Group had twenty five owned vessels. We ensure our owned fleet be equipped with proven green and energy
efficient equipment and technologies to minimize the emission of toxic pollutants.
Energy efficiency operational indicator (“EEOI”)
Target Minimum 2% Reduction on EEOI
Compared With Previous Year
2024: the average EEOI of the fleet is about 9.48 grammes CO
2
/ MT.Mile
2023: the average EEOI of the fleet is about 10.0 grammes CO
2
/ MT.Mile
Our fleet’s carbon intensity, EEOI of 2024 decreased about 0.52 grammes from the EEOI of 2023, representing a
decrease of 5.2% as compared to 2023. The decrease was mainly due to fewer ballast voyages arranged in 2024 as
compared to the year 2023.
52
JINHUI SHIPPING AND TRANSPORTATION LIMITED
ANNUAL REPORT 2024
Directors’ Report
EXTERNAL ENVIRONMENT ISSUES
(Continued)
Energy efficiency operational indicator (“EEOI”)
(Continued)
The fuel oil consumption and the corresponding CO
2
emission of the fleet are as follows:
Fuel oil consumption:
2024: Fuel oil consumption – 117,068 tonnes
2023: Fuel oil consumption – 112,375 tonnes
Corresponding CO
2
emission:
2024: CO
2
emission – 364,884 tonnes
2023: CO
2
emission – 350,179 tonnes
As the Group continued to seek to fine tune the quality of our fleet during the year, fuel oil consumption increased
slightly under the fleet changes.
ACHIEVE DECARBONIZATION
In order to meet the short term and long term target of decarbonization, a mix of design, technical, operational
measures and innovative measures are through below (i) to (v):
(i)
Calculation and verification energy efficiency existing ship index (“EEXI”)
(ii)
Compliance of energy efficiency design index for newbuilding ship energy efficiency (“EEDI”)
Target All Vessels Comply EEXI
Target New Join Vessels Comply EEDI
We have implemented the Engine Power Limitation for those vessels which have not met the EEXI requirement. We
believe that it is the first step and the fastest way to lower the emissions. We try to make our vessels more efficient
by reducing the amount of energy needed to propel it through the water. Propeller boss cap fins and propeller duct
have been installed on our vessels. We also switch to using silicon anti-fouling paints and deploy de-rated main
engines to our vessels in order to maintain the speeds of our vessels but with less fuel consumption.
Implementing operational performance techniques brings significant advantages to our fleet by combining tiny
improvements. Propeller polishing and hull cleaning are scheduled periodically for our vessels for a smoother
propel in the water. We optimize our fleet engine by implementing weather routing, optimization of ballast and trim,
optimized voyage planning, usage of fuel oil additives, and optimum settings of fuel oil purifiers. We believe small
improvements can add up to substantial fuel savings.
In 2024, the Group acquired three vessels which were already in compliance with EEXI or EEDI with Engine Power
Limitation. In addition, two newbuildings with modern eco-design and complied EEDI were ordered in 2024, which to
be delivered in 2026 and 2027 respectively.
JINHUI SHIPPING AND TRANSPORTATION LIMITED
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EXTERNAL ENVIRONMENT ISSUES
(Continued)
(iii) Carbon intensity indicator (“CII”)
Target Rated C Or Above For All Vessels
CII gives vessels an annual rating on scale of A to E, with A being the least carbon intensive. The rating measures
how efficiently a vessel transports goods and is given in grams of CO
2
emitted per cargo-carrying capacity and
nautical mile. A vessel rated D for three consecutive years, or rated E for a particular year, will need to develop a
work plan of corrective actions.
It became mandatory for all vessels to calculate their CII rating to measure the annual operational emissions in
2023. Our fleet has joined the Data Collection and Reporting System since 2019 which enables data to be analyzed
and verified by RINA Services S.p.A. (“RINA”). The official evaluation results of our fleet were yet to be released,
however, under our estimation, a number of our vessels will be getting rated D or below on CII. These vessels have
been put through a series of planned works as mentioned to improve the CII rating. We have consistently delivered
additional features to support CII monitoring, aiming to achieve a rating of C or above for all of our vessels on CII.
(iv)
Ship energy efficiency management plan (“SEEMP”)
The vessels’ SEEMP plans are approved by RINA and certified in compliance with IMO Resolutions.
CO
2
emission reduction – since February 2013, the Group has adopted the SEEMP, a plan that individual vessel can
follow and improve each vessel’s energy efficiency and reduction in fuel consumption through a series of procedures
and efforts.
Our vessels adopted IMO Data Collection System on fuel consumption to allow us monitor and improve fuel efficiency
and mitigate emissions. The Group implemented of initial SEEMP in 2013, adopted SEEMP Part II in 2021 and SEEMP
Part III in 2022. SEEMP Part III also complies with the latest requirement to provide information for assessing the
operation of the CII of the vessels.
(v) For newbuilding projects, we may choose the most energy efficient design and will include the possibility of
using dual fuel engines.
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Directors’ Report
EXTERNAL ENVIRONMENT ISSUES
(Continued)
Low sulphur oil
Since 2020, our vessels have switched over to 0.5% low sulphur content heavy fuel oil according to IMO 2020 Sulphur
Cap requirement.
New requirements for China Emission Control Areas (“ECA”) in Chinese territorial waters as announced by the
Chinese Ministry of Transport came into effect on 1 January 2019. When our vessels enter regional emission control
areas, we switch to 0.1% ultra-low sulphur content fuel oil to minimize fuel consumption and emission.
Fuel oil consumption:
2024: 0.5% low sulphur content heavy fuel oil consumption – 114,125 tonnes
2023: 0.5% low sulphur content heavy fuel oil consumption – 109,748 tonnes
2024: 0.1% ultra-low sulphur content fuel oil consumption – 2,943 tonnes
2023: 0.1% ultra-low sulphur content fuel oil consumption – 2,627 tonnes
Hazardous and non-hazardous waste produced
Target Zero Hazardous & Non-Hazardous Waste Discharge
Waste from our vessels included garbage and food waste which are trivial and not hazardous. These wastes are
disposed of by incineration, shore collection and other means according to The International Convention for the
Prevention of Pollution from ships (“MARPOL”) Annex V and local requirements.
We were committed to operate our vessels in compliance with MARPOL regulations pertaining to hazardous
ozone depleting substances; and there was no material marine waste discharge or environment pollution incidents
happened in 2024 and 2023.
Garbage and waste management plan
The Group also implements garbage and waste management plan for all vessels. All vessels are equipped with
colored recycle trashes for garbage sorting. It is aimed to dispose garbage and waste in a diversified way ashore.
The purpose is not only to reduce the level of waste but also have economic benefits to the Group. The less garbage
disposed; the less wastage charged by each local port when the ship reaches that port when discharge.
Water consumption
Target <3 Tonnes Per Vessel Per Day By 2030
Fresh water consumption for the use of boiler, machinery cooling and deck and hold cleaning is produced from the
vessel’s own desalination plants on board and running on waste heat of engines. This reduces the need to source
fresh water from ashore and the consumption of natural water. Potable water is consumed for drinking, cooking and
other domestic purposes.
JINHUI SHIPPING AND TRANSPORTATION LIMITED
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ANNUAL REPORT 2024
Directors’ Report
EXTERNAL ENVIRONMENT ISSUES
(Continued)
Water consumption
(Continued)
Water consumption remained approximately 6 tonnes per vessel per day in both 2024 and 2023.
2024: Water consumption – 54,750 tonnes
2023: Water consumption – 55,000 tonnes
In order to reduce the use of water resources, we keep good maintenance on boilers and other equipment that use
fresh water and also ensure that there is no leakage of water. Water log has been used for recording the usage
of daily fresh water and locating leakage when abnormal consumption was found. On the other hand, we also
educate seafarers to use water in a frugal way. We encourage seafarers to efficiently use washing machines. We use
appliances, shower heads and equipment that conserve water. In the future, vacuum toilet systems will be considered
when planning to acquire the newbuild vessels.
Ballast water management
Target All Vessels Installed BWTS
Target Zero Failure In The Ballast Water Record Book
Ballast water is essential for safe and efficient modern shipping operations, but it may pose serious ecological,
economic and health problems due to the multitude of marine species carried in ships’ ballast water. These include
bacteria, microbes, small invertebrates, eggs, cysts and larvae of various species. The transferred species may survive
to establish a reproductive population in the host environment, becoming invasive, out-competing native species and
multiplying into pest proportions.
Investment project that installing the Ballast Water Treatment System (“BWTS”) in our fleet completed in 2024. We
implemented ballast water management with clearly stated instructions for dealing with ballast water in different
situations and ensure the ballast water management plans are carried out to the standards set out by IMO. We
prohibit unnecessary discharge of ballast water. Vessels need to replace the ballast water at least 50 nautical miles
from the nearest shore and at least 200 meters deep when facing abnormal or special situations. Ballast Water Record
Book must be kept on each vessel to record the discharge.
Climate change
The Group understands climate change affects our business and operations; hence it is crucial for the Group to react
to prevent the risks associated with the climate change.
To enable a comprehensive review of the climate risks and opportunities, the Group conducted a climate risk
assessment and scenario analysis and combine them with our business development. The climate-related risks that
are likely to have corresponding business and financial impacts on the Group are discussed as below.
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JINHUI SHIPPING AND TRANSPORTATION LIMITED
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Directors’ Report
EXTERNAL ENVIRONMENT ISSUES
(Continued)
Climate change
(Continued)
Physical risks
Acute risk – long term The increased frequency and severity of extreme weather such as typhoons, floods, sea
level rise and tropical cyclones can disrupt the Group’s operations by damaging the fleet, ports and communication
infrastructures, causing power failure and injuring employees during their work, leading to reduced capacity and
decrease in productivity, or expose the Group to risks associated with non-performance and delayed performance.
These risks affect the operational ability of the organization resulting in reputational damage, direct loss of revenue
and increase operating cost.
Transition risks
Laws and regulation risk – short to medium term
The Group anticipates that there will be more stringent climate
legislations and regulations to support the global vision of carbon neutrality. From a listed company’s perspective,
the Group acknowledges the increasing requirements of climate-related information disclosures.
The Group commits to environmental protection and strives to comply with disclosure requirements, however, this
may increase the risk of higher operating costs and maintenance costs.
Market
and reputational risk – short to medium term
The
shipping market is constantly changing, and the
increasing attention by the public towards environmental protection led to the change in customer behavior and
preference. This change in market pattern led to a change in the demand of the shipping industry – increased
demand for green transportation represents an increase in demand for low-sulphur oil with constant performance
thus resulting a higher running cost.
We continue to assess the climate change phenomena and consider that there is no material and immediate threat
to our operating business in short term. In medium and long term, we will monitor main climate change hazards,
extreme weathers at seas, weather-related disruption to port and cargo loading activities across the global seaborne
hubs and route. With flexible chartering policy and experienced captains and seafarers, we will swiftly respond to
the climate change challenge by operating our vessels in geographical regions that are safe and practical. We will
also reinvest, equip and modify our fleet to enable maximum environmental performance and compliance to climate
change and maritime regulations.
In response to policy and legal risk as well as market and reputational risk, the Group will closely monitor any change
in environmental regulations and policies, and respond in a timely manner.
JINHUI SHIPPING AND TRANSPORTATION LIMITED
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ANNUAL REPORT 2024
Directors’ Report
EXTERNAL ENVIRONMENT ISSUES
(Continued)
Supply chain management
The Group realizes the importance of the role of suppliers to our operations and prosperity. We pay great attention
to the supplier relationship, particularly actively and regularly listening to them in order to improve, innovate and co-
construct.
Standard procedures were developed for purchase management and vendor management by the Group. The
procedures define the responsibilities and activities of procurement to ensure that goods and services are purchased
from suppliers of approved reputation and capability, regulate the process for evaluation, selection and monitoring of
suppliers under certain criteria and control the purchase and verification.
We believe our selection of suppliers affects the performance of the Group. We carefully choose our suppliers that
align with our requirements, thus enabling us to maintain our quality. We assess potential suppliers carefully before
confirming any engagement. The procedures give guidelines for selecting suppliers according to their ability to
provide quality goods and services, their conformity to all relevant legislation and their ability to deliver on time
and at the right price. The Group sets up guidelines on the assessment to ensure the suppliers are committed to
the environment, social and human rights and good ethical practices, including those dealing with human rights,
environmental protection, sustainable development, corruption and child protection.
Identified potential suppliers will be included in an approved suppliers list which is maintained within the Group’s
purchasing system. Key suppliers are monitored based on historical and current performance and records are
updated accordingly.
For the year ended 31 December 2024, number of suppliers by geographical region as below:
Geographical region Number of suppliers
Africa 8
Asia excluding China 97
China 228
Europe 33
North America 20
South America 1
Total 387
58
JINHUI SHIPPING AND TRANSPORTATION LIMITED
ANNUAL REPORT 2024
Directors’ Report
DIRECTORS
The Directors who held office of the Company during the year and up to the date of this report were:
Executive Directors:
Mr. Ng Siu Fai
Mr. Ng Kam Wah Thomas
Mr. Ng Ki Hung Frankie
Ms. Ho Suk Lin Cathy
Non-executive Directors:
Mr. Tsui Che Yin Frank
Mr. William Yau
In accordance with the Company’s Bye-Laws, Mr. William Yau will retire from office at the forthcoming annual
general meeting and, being eligible, will offer himself for re-election.
Brief biographical details of the Directors and executive personnel are set out in “Board of Directors and Executive
Personnel” on pages 33 and 34.
DIRECTORS’ SERVICE CONTRACTS
None of the directors who are proposed for re-election at the forthcoming annual general meeting has a service
contract with the Company which is not determinable within one year without payment of compensation, other than
statutory compensation.
JINHUI SHIPPING AND TRANSPORTATION LIMITED
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ANNUAL REPORT 2024
Directors’ Report
DIRECTORS’ INTERESTS IN TRANSACTIONS, ARRANGEMENTS OR CONTRACTS
No transaction, arrangement or contract of significance to which the Company, or any of the Company’s holding
company, subsidiaries or fellow subsidiaries was a party and in which a director of the Company or a connected
entity of the director of the Company had a material interest, whether directly or indirectly, subsisted at the end of
the year or at any time during the year.
DIRECTORS’ INTERESTS IN SHARES AND RIGHTS TO ACQUIRE SHARES
(i) As at 31 December 2024, directors’ interests in shares of the Company were as follows:
Number of shares in the Company
held and capacity
Name
Beneficial
owner
Interest of
spouse
Interest in
corporation Total
Ng Siu Fai 4,141,830 1,101,096 407,858
Note 1
5,650,784
Ng Kam Wah Thomas 864,900 – 260,000
Note 2
1,124,900
Notes:
1. Mr. Ng Siu Fai is deemed to be interested in 407,858 shares of the Company through his 51% interests in Fairline
Consultants Limited.
In
addition, Mr. Ng Chi Lam Michael, another beneficial owner of 49% interests in Fairline Consultants Limited,
being a close associate of Mr. Ng Siu Fai, is also the beneficial owner of 1,685,331 shares of the Company as at
31 December 2024.
2. Mr. Ng Kam Wah Thomas is deemed to be interested in 260,000 shares of the Company through his wholly owned
company, Timberfield Limited.
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JINHUI SHIPPING AND TRANSPORTATION LIMITED
ANNUAL REPORT 2024
Directors’ Report
DIRECTORS’ INTERESTS IN SHARES AND RIGHTS TO ACQUIRE SHARES
(Continued)
(ii) Directors’ interests in shares of Jinhui Holdings
Jinhui Holdings, the controlling shareholder of the Company, held 60,841,240 shares of the Company
representing approximately 55.69% of the Company’s issued shares as at 31 December 2024.
Number of shares in Jinhui Holdings
held and capacity
Name
Beneficial
owner
Interest of
spouse
Interest in
corporation Total
Ng Siu Fai 25,203,000 15,140,000 205,325,568
Note 1
245,668,568
Ng Kam Wah Thomas 5,909,000 – 136,883,712
Note 2
142,792,712
Ng Ki Hung Frankie 3,000,000 – – 3,000,000
Ho Suk Lin Cathy 3,850,000 – – 3,850,000
Tsui Che Yin Frank 1,000,000 – – 1,000,000
William Yau 441,000 – – 441,000
Notes:
1. Mr. Ng Siu Fai is deemed to be interested in 205,325,568 shares of Jinhui Holdings held by his 51% owned company,
Fairline Consultants Limited. Mr. Ng Siu Fai is the director of Fairline Consultants Limited.
2.
Mr.
Ng Kam Wah Thomas is deemed to be interested in 136,883,712 shares of Jinhui Holdings held by his wholly
owned company, Timberfield Limited. Mr. Ng Kam Wah Thomas is the director of Timberfield Limited.
3. The number of issued shares of Jinhui Holdings as at 31 December 2024 was 530,289,480 shares.
Save as disclosed herein, none of the Directors or their associates had any interest either beneficially or
non-beneficially in any shares of the Company, its holding company or any of its subsidiaries and associated
corporations at the reporting date.
JINHUI SHIPPING AND TRANSPORTATION LIMITED
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Directors’ Report
CORPORATE GOVERNANCE
Jinhui Shipping recognizes the importance of good corporate governance to the Company’s value creation. The
corporate governance report of 2024 was set out in “Corporate Governance Report” on pages 13 to 32, which
covered every section of Norwegian Code of Practice with the description of our conformance throughout the year
and provided explanation of the reasons for the deviations. It also included the required report contents as set out in
Section 3-3b of the Norwegian Accounting Act.
Restrictions in the Bye-Laws of the Company that may limit the rights to freely trade the shares. Jinhui Shipping’s
shares are freely traded in the Oslo Stock Exchange (Oslo Børs). The Company’s shares are registered shares with its
shareholders register located at Bermuda. Shareholders of the Company may transfer their shares by an instrument
of transfer in the usual common form or in such form as decided by the Board. In general, all shares are freely
negotiable. However, the Board may deny the transfer of shares according to the Bye-Law 11 of the Company. The
Board has the option to decline to register the transfer of any share if the registration of such transfer would be likely
to result in 50% or more of the aggregate issued share capital and the votes of the Company being held or owned
directly or indirectly by a person or persons resident for tax purposes in Norway. This type of restriction is common
for Bermuda and other low-tax jurisdiction companies listed on the Oslo Stock Exchange (Oslo Børs).
RISK MANAGEMENT
The Group is principally exposed to various risks and uses appropriate measures to manage risks related to its
business and operations.
Business and operational risks. The Group is exposed to the business and operational risks to the extent that certain
changes may have a negative effect on the Group’s cash flows and operations. These changes include the fluctuations
in charter rates of the shipping market; the changes in demand and supply in the dry bulk market; the drop in vessel
values which results in impairment loss of the Group’s assets; the changes in operating expenses including bunker
prices, crewing costs, drydocking and insurance costs; and the maintenance expenses which include costs of spare
parts. The dry bulk market is highly volatile and market freight rates may fluctuate significantly within a short period
of time. We will continue to adopt a flexible chartering policy and manage different business risk exposures by
diversification of counterparties, sourcing reliable charterers from a wider range of ship brokers, and maintaining a
good balance of geographical positioning of our fleet.
The Group operates a balanced and diversified fleet of dry bulk carriers, comprising Capesize, Panamax, Ultramax
and Supramax bulk carriers. To stay competitive in the market, the Group focused on enhancing the quality of our
fleet and adjusting our fleet profile, in particularly in terms of seeking to lower the overall age profile of our fleet.
During the year, the Group entered into agreements to acquire or charter-in vessels with a view to maintaining high
financial flexibility and also maximize operational competitiveness at a lower level of capital investment.
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Directors’ Report
RISK MANAGEMENT
(Continued)
Acquisition and disposal of vessels
During the year, the Group concluded to acquire four second-hand vessels and committed to acquire two
newbuildings with independent third parties.
The Group entered into an agreement for the acquisition of a Capesize of deadweight 181,279 metric tonnes, built in
year 2012, at a purchase price of US$30,950,000 which was delivered to the Group in August 2024. In addition, the
Group entered into an agreement for the acquisition of a Panamax of deadweight 81,567 metric tonnes, built in year
2019, at a purchase price of US$31,122,000 and the Panamax was delivered to the Group in May 2024. The Group
also contracted to acquire a Capesize of deadweight 178,021 metric tonnes, built in year 2008, at a purchase price of
US$24,000,000. The vessel was delivered to the Group in November 2024. Further to the end of the year, the Group
entered into an agreement for the acquisition of an Ultramax of deadweight 61,441 metric tonnes, built in year 2017,
at a purchase price of US$24,520,000 and the Ultramax was delivered to the Group in January 2025. These mark
a significant step for the Group, as it has not acquired vessels for the transportation of dry bulk commodities with
larger capacities for many years.
During the year, the Group entered into two shipbuilding contracts for the construction of two Ultramax
newbuildings, each at a consideration of US$34,000,000 of deadweight 63,500 metric tonnes, to be delivered in 2026
and 2027 respectively. The acquisition of two newbuildings is consistent with the Group’s ongoing strategy to renew
the fleet with modern, larger and high-quality vessels, by gradually phasing out its older vessels and replacing them
with newer and younger vessels. In addition, the two newbuildings are more fuel-efficient and of higher operational
efficiency than the other bulk carriers of the Group currently in operation, which meets the latest environmental
regulations and prevailing specification requirements in the shipping industry.
During the year, the Group entered into three long-term inward time charters with independent third parties.
A charterparty was entered into for the leasing of an Ultramax with deadweight 61,452 metric tonnes, built in year
2016, for a minimum term of twenty-two months, and the vessel was delivered to the Group in late April 2024.
The Group took delivery of another Ultramax in May 2024 under a long-term inward time charter for a minimum term
of twenty months. The vessel was built in year 2016 with deadweight 61,473 metric tonnes.
Besides, the Group entered into a charterparty in respect of leasing of a Capesize of deadweight 207,672 metric
tonnes, built in year 2017 for a minimum term of thirty-three months. The vessel was delivered to the Group in
January 2025.
We will continuously monitor the market as well as our operations going forward and look out for opportunities to
maintain a reasonably modern and competitive fleet, not ruling out any future disposal of smaller and older vessels
and replace with newer vessels with larger carrying capacity and longer asset lives or charter-in of vessels. We will
make such decisions on an ad hoc basis to maintain high financial flexibility and operational competitiveness.
JINHUI SHIPPING AND TRANSPORTATION LIMITED
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Directors’ Report
RISK MANAGEMENT
(Continued)
Market risk. Market risk is the risk of operational loss or financial loss due to adverse changes in the market exposure.
It also includes the adverse change of value of a financial instrument or portfolio of financial instruments when
there are changes in market factors such as underlying interest rates, exchange rates, equity securities prices, debt
securities prices or in the volatility of these factors. The Group’s major market risk exposures on financial instruments
mainly arise from bank borrowings committed on floating rate basis, and investments in equity and debt securities. In
the ordinary course of business, the Group identifies these risks and mitigates their financial impact through the use
of appropriate financial instruments in accordance with the Group’s risk management policies. Additional information
regarding the Group’s use of financial instruments is disclosed in the “Financial Risk Management and Policies” in
note 39 to the consolidated financial statements.
Credit risk. Credit risk is the risk of financial loss to the Group if the counterparty fails to discharge its contractual
obligations under the terms of the financial instrument. The Group’s exposures to credit risk principally arising from
the trade receivables from charterers, loan receivables to third parties and deposits or other financial assets placed
with financial institutions. The potential loss is generally limited to the carrying amount of receivables and liquid
assets as shown in the Group’s consolidated statement of financial position. Credit risk also includes concentration
risk of large exposures or concentrations to certain counterparties. The Group will, wherever possible, maintain a
diversified customer portfolio or only enter into financial instruments with creditworthy counterparties. The Group
regularly monitors the potential exposures to each significant counterparty and performs ongoing credit quality
assessment and does not expect to incur material credit losses on managing the financial instruments.
Liquidity risk. Liquidity risk is the risk that the Group fails to meet its obligations associated with its financial
liabilities. The Group takes conservative treasury policies to maintain sufficient cash reserves, readily realizable
marketable equity and debt securities and obtain credit facilities from well-known financial institutions. The
management actively involves in treasury management to ensure adequate cash flows to meet the expected liquidity
requirements, working capital and capital expenditures needs. With the dry bulk market being extremely challenging,
preserving optimal liquidity is of pinnacle importance. The Group will be working closely with lenders to devise ways
to maximize liquidity position in case of the challenging freight environment will continue for longer than expected.
We will continuously review the prevailing market conditions of the shipping industry and monitor and adjust the
Group’s fleet profile as appropriate and make adjustments to its capital structure in the light of changes in economic
conditions, recent market values of the Group’s assets as well as the risk characteristics of the underlying assets.
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Directors’ Report
RISK FACTORS
This report 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’s 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 report 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.
JINHUI SHIPPING AND TRANSPORTATION LIMITED
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ANNUAL REPORT 2024
Directors’ Report
OUTLOOK
2025 is expected to be an interesting year, where we expect increase volatility in the freight markets. With trade route
disruptions due to military conflicts potentially coming to an end going forward, we have continued to work hard to
look at longer-term employments for part of our fleet in order to lock in some revenue visibility.
As of the date of the announcement, we have successfully covered 100% of our Capesize and Panamax vessel days
for the first quarter of 2025, with an average rate of US$24,750 and US$13,528 per day respectively. For Ultramax /
Supramax, 47% of vessel days was covered at average rate of US$15,488 per day for the first quarter of 2025.
Transportation of commodities will continue to be affected by non-economical and non-industry specific factors, with
geopolitical events and whether interest rates will remain elevated, being the main uncertainty going forward. Supply
of new vessels remains to be tight, with newbuilding supply at moderate levels. We saw some disconnection between
freight rates and vessels values a few months back and second-hand vessel values have been weakening.
Looking ahead, should global economic activity regain confidence with less uncertainty, our fleet will be well
positioned to benefit from these supportive industry specific fundamentals. We also continue to look for fleet renewal
opportunities at reasonable prices should they resurface.
We will remain alert to the increasingly frequent economic, geo-political, or other unforeseen surprises that can
trigger volatility to our business performance, as well as the carrying value of our shipping assets and financial
assets. We will continue to focus on taking sensible and decisive actions to achieve growth without sacrificing the
maintenance of a strong financial position.
On behalf of the Board of Directors of the Company, I would like to first express our heartfelt appreciation to our
seafarers who have continued to remain professional under an extremely challenging environment, as well as all
customers and stakeholders for their ongoing support.
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Directors’ Report
PUBLICATION OF FINANCIAL INFORMATION
This report is available on the website of the Company at www.jinhuiship.com and the NewsWeb of the Oslo Stock
Exchange (Oslo Børs) at www.newsweb.no.
18 March 2025
Ng Siu Fai Ng Kam Wah Thomas Ng Ki Hung Frankie
Chairman Managing Director and
Deputy Chairman
Executive Director
Ho Suk Lin Cathy Tsui Che Yin Frank William Yau
Executive Director Non-executive Director Non-executive Director
JINHUI SHIPPING AND TRANSPORTATION LIMITED
67
ANNUAL REPORT 2024
Responsibility Statement
We confirm, to the best of our knowledge, that the audited consolidated financial statements for the year from
1 January to 31 December 2024 have been prepared in accordance with applicable accounting standards and give a
true and fair view of the assets, liabilities, financial position and results of operations of the Group and the Company,
and that the Directors’ Report includes a true and fair review of the development and performance of the business
and the position of the Group and the Company together with a description of the key principal risks and uncertainty
factors that the Group and the Company face.
18 March 2025
Ng Siu Fai Ng Kam Wah Thomas Ng Ki Hung Frankie
Chairman Managing Director and
Deputy Chairman
Executive Director
Ho Suk Lin Cathy Tsui Che Yin Frank William Yau
Executive Director Non-executive Director Non-executive Director
68
JINHUI SHIPPING AND TRANSPORTATION LIMITED
ANNUAL REPORT 2024
Independent Auditor’s Report
To the members of
Jinhui Shipping and Transportation Limited
(incorporated in Bermuda with limited liability)
REPORT ON THE AUDIT OF THE CONSOLIDATED FINANCIAL STATEMENTS
OPINION
We have audited the consolidated financial statements of Jinhui Shipping and Transportation Limited (the “Company”)
and its subsidiaries (together, the “Group”) set out on pages 75 to 152, which comprise the consolidated statement of
financial position as at 31 December 2024, and the consolidated statement of profit or loss and other comprehensive
income, the consolidated statement of changes in equity and the consolidated statement of cash flows for the year then
ended, and notes to the consolidated financial statements, including material accounting policy information.
In our opinion, the consolidated financial statements give a true and fair view of the consolidated financial position of
the Group as at 31 December 2024, and of its consolidated financial performance and its consolidated cash flows for
the year then ended in accordance with IFRS Accounting Standards issued by the International Accounting Standards
Board (“IASB”) and Hong Kong Financial Reporting Standards (“HKFRSs”) issued by the Hong Kong Institute of Certified
Public Accountants (“HKICPA”).
BASIS FOR OPINION
We conducted our audit in accordance with Hong Kong Standards on Auditing (“HKSAs”) issued by the HKICPA.
Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the
Consolidated Financial Statements section of our report. We are independent of the Group in accordance with the
HKICPA’s Code of Ethics for Professional Accountants (the “Code”), and we have fulfilled our other ethical responsibilities
in accordance with the Code. We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our opinion.
JINHUI SHIPPING AND TRANSPORTATION LIMITED
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ANNUAL REPORT 2024
Independent Auditor’s Report
KEY AUDIT MATTERS
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the
consolidated financial statements of the current period. These matters were addressed in the context of our audit of the
consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate
opinion on these matters.
Carrying value of owned vessels and leased vessels (right-of-use assets)
The Key Audit Matters How the matter was addressed in our audit
Refer to notes 4.10, 5, 18 and 19 to the consolidated financial
statements.
The Group’s carrying amount of motor vessels and capitalized
drydocking costs included in property, plant and equipment
and leased vessels included in right-of-use asset amounted
to US$393,320,000 and US$29,967,000 respectively as at 31
December 2024 and a net reversal of impairment loss of
US$6,533,000 was recognised in the Consolidated Statement
of Profit or Loss and Other Comprehensive Income during
the year.
The Group assesses at each reporting date (i) whether there
are indicators of impairment and if there are such indicators,
an estimate is made of the recoverable amount of owned
and leased vessels concerned; and (ii) whether there are
indications that an impairment loss recognised in prior
periods for owned vessels and leased vessels may no longer
exist or may have decreased. Management has exercised
judgement in assessing whether there is any objective
evidence of impairment and reversal of impairment loss of
such owned and leased vessels.
Our audit procedures included:
•
evaluating the process of identifying indicators of
potential impairment or reversal of impairment on
owned and leased vessels;
•
evaluating VIU calculation prepared by the
management’s expert including the methodology
and assumptions adopted;
•
assessing the independence and competence of
the management’s expert;
•
testing, on a sample basis, the mathematical
accuracy of the VIU calculation;
•
assessing the reasonableness of the key
assumptions including discount rate, hire rates,
useful life and utilization rate by comparing the
current year actual performance and prior year
projections and by reference to the market and
industry information;
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JINHUI SHIPPING AND TRANSPORTATION LIMITED
ANNUAL REPORT 2024
Independent Auditor’s Report
KEY AUDIT MATTERS
(Continued)
Carrying value of owned vessels and leased vessels (right-of-use assets)
(Continued)
The Key Audit Matters How the matter was addressed in our audit
The recoverable amounts of owned vessels were determined
based on higher of fair value less costs of disposal reference
to market transactions, or the value in use (“VIU”) calculation
which is estimated based on the estimated future cash flows
projections from the continuous use of such vessels and the
recoverable amounts of leased vessel was also determined
based on the VIU calculation. Independent qualified appraisal
firms were engaged by management to appraise the fair
value of owned vessels and VIU calculation which involves
significant judgements and estimates about the future
performance, key assumptions including discount rate, useful
life, hire rates and utilisation rate of the owned and leased
vessels.
We focused on this area considering the significance of
judgements and estimates and the financial impacts of the
impairment assessment in respect of the Group’s owned
and leased vessels.
• involving our valuation specialists in assessing
the appropriateness of discount rate and hire
rates;
• evaluating the fair values estimated by the
management’s expert including the methodology
and assumptions adopted;
•
involving our valuation specialist in assessing the
reasonableness of fair values estimated; and
•
testing, on a sample basis, the mathematical
accuracy of the impairment assessment with
reference to the estimated recoverable amounts
based on VIU calculation or fair value less costs
of disposal.
We obtained supportive evidence for the significant
judgements and estimates in respect of VIU calculation
and key assumptions applied in the estimated future
cash flows projections and the estimation of fair value
less cost of disposal.
JINHUI SHIPPING AND TRANSPORTATION LIMITED
71
ANNUAL REPORT 2024
Independent Auditor’s Report
OTHER INFORMATION
The directors are responsible for the other information. The other information comprises all the information in the 2024
annual report of the Company, but does not include the consolidated financial statements and our auditor’s report thereon.
Our opinion on the consolidated financial statements does not cover the other information and we do not express any
form of assurance conclusion thereon.
In connection with our audit of the consolidated financial statements, our responsibility is to read the other information
and, in doing so, consider whether the other information is materially inconsistent with the consolidated financial
statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the
work we have performed, we conclude that there is a material misstatement of this other information, we are required
to report that fact. We have nothing to report in this regard.
RESPONSIBILITIES OF DIRECTORS FOR THE CONSOLIDATED FINANCIAL STATEMENTS
The directors are responsible for the preparation of the consolidated financial statements that give a true and fair view
in accordance with IFRS Accounting Standards issued by IASB and HKFRSs issued by the HKICPA, and for such internal
control as the directors determine is necessary to enable the preparation of consolidated financial statements that are
free from material misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, the directors are responsible for assessing the Group’s ability to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern
basis of accounting unless the directors either intend to liquidate the Group or to cease operations, or have no realistic
alternative but to do so.
The directors assisted by the Audit Committee are responsible for overseeing the Group’s financial reporting process.
AUDITOR’S RESPONSIBILITIES FOR THE AUDIT OF THE CONSOLIDATED FINANCIAL STATEMENTS
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our
opinion. We report our opinion solely to you, as a body, in accordance with section 90 of the Bermuda Companies Act
1981 and for no other purpose. We do not assume responsibility towards or accept liability to any other person for the
contents of this report.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with
HKSAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are
considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of these consolidated financial statements.
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JINHUI SHIPPING AND TRANSPORTATION LIMITED
ANNUAL REPORT 2024
Independent Auditor’s Report
AUDITOR’S RESPONSIBILITIES FOR THE AUDIT OF THE CONSOLIDATED FINANCIAL STATEMENTS
(Continued)
As part of an audit in accordance with HKSAs, we exercise professional judgement and maintain professional skepticism
throughout the audit. We also:
• identify and assess the risks of material misstatement of the consolidated financial statements, whether due to
fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is
sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement
resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional
omissions, misrepresentations, or the override of internal control.
• obtain an understanding of internal control relevant to the audit in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the
Group’s internal control.
• evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and
related disclosures made by the directors.
• conclude on the appropriateness of the directors’ use of the going concern basis of accounting and, based on
the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast
significant doubt on the Group’s ability to continue as a going concern. If we conclude that a material uncertainty
exists, we are required to draw attention in our auditor’s report to the related disclosures in the consolidated
financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based
on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may
cause the Group to cease to continue as a going concern.
• evaluate the overall presentation, structure and content of the consolidated financial statements, including the
disclosures, and whether the consolidated financial statements represent the underlying transactions and events
in a manner that achieves fair presentation.
• plan and perform the group audit to obtain sufficient appropriate audit evidence regarding the financial information
of the entities or business units within the Group as a basis for forming an opinion on the group financial
statements. We are responsible for the direction, supervision and review of the audit work performed for purposes
of the group audit. We remain solely responsible for our audit opinion.
JINHUI SHIPPING AND TRANSPORTATION LIMITED
73
ANNUAL REPORT 2024
Independent Auditor’s Report
AUDITOR’S RESPONSIBILITIES FOR THE AUDIT OF THE CONSOLIDATED FINANCIAL STATEMENTS
(Continued)
We communicate with the Audit Committee regarding, among other matters, the planned scope and timing of the audit
and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide the Audit Committee with a statement that we have complied with relevant ethical requirements
regarding independence, and to communicate with them all relationships and other matters that may reasonably be
thought to bear on our independence, and where applicable, actions taken to eliminate threats or safeguards applied.
From the matters communicated with the Audit Committee, we determine those matters that were of most significance
in the audit of the consolidated financial statements of the current period and are therefore the key audit matters. We
describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or
when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because
the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such
communication.
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
Report on Compliance with Requirement on European Single Electronic Format (ESEF)
OPINION
As part of the audit of the consolidated financial statements of Jinhui Shipping and Transportation Limited, we have
performed an assurance engagement to obtain reasonable assurance about whether the consolidated financial statements
included in the annual report, with the file name jinhui-2024-12-31-en.zip, have been prepared, in all material respects,
in compliance with the requirements of the Commission Delegated Regulation (EU) 2019/815 on the European Single
Electronic Format (ESEF Regulation) and regulation pursuant to Section 5-5 of the Norwegian Securities Trading Act,
which includes requirements related to the preparation of the annual report in XHTML format, and iXBRL tagging of
the consolidated financial statements.
In our opinion, the consolidated financial statements, included in the annual report, have been prepared, in all material
respects, in compliance with the ESEF Regulation.
DIRECTORS’ RESPONSIBILITIES
The directors are responsible for the preparation of the annual report in compliance with the ESEF Regulation. This
responsibility comprises an adequate process and such internal control as the directors determine is necessary.
74
JINHUI SHIPPING AND TRANSPORTATION LIMITED
ANNUAL REPORT 2024
Independent Auditor’s Report
AUDITOR’S RESPONSIBILITIES
Our responsibility, based on audit evidence obtained, is to express an opinion on whether, in all material respects, the
consolidated financial statements included in the annual report have been prepared in compliance with ESEF Regulation.
We conducted our work in accordance with the Hong Kong Standard on Assurance Engagements (HKSAE) 3000 (Revised)
“Assurance engagements other than audits or reviews of historical financial information” issued by the HKICPA. The
standard requires us to plan and perform procedures to obtain reasonable assurance about whether the consolidated
financial statements included in the annual report have been prepared in compliance with the ESEF Regulation.
As part of our work, we have performed procedures to obtain an understanding of the Group’s processes for preparing
the consolidated financial statements in accordance with the ESEF Regulation. We examine whether the financial
statements are presented in XHTML-format. We evaluate the completeness and accuracy of the iXBRL tagging of the
consolidated financial statements and assess directors’ use of judgement. Our procedures include reconciliation of the
iXBRL tagged data with the audited financial statements in human-readable format. We believe that the evidence we
have obtained is sufficient and appropriate to provide a basis for our opinion.
Grant Thornton Hong Kong Limited
Certified Public Accountants
11th Floor
Lee Garden Two
28 Yun Ping Road
Causeway Bay
Hong Kong SAR
18 March 2025
Shaw Chi Kit
Practising Certificate No.: P04834
JINHUI SHIPPING AND TRANSPORTATION LIMITED
75
ANNUAL REPORT 2024
Consolidated Statement of Profit or Loss and
Other Comprehensive Income
Year ended 31 December 2024
2024 | 2023 | ||
Note | US$’000 | US$’000 | |
| Revenue | 7 | ||
Net loss on disposal of owned vessels | ( | ||
| Other operating income | 8 | ||
| Interest income | 9 | ||
Reversal of impairment loss (Impairment loss) on owned vessels and right-of-use assets | 10 | ( | |
Shipping related expenses | ( | ( | |
| Staff costs | 11 | ( | ( |
| Other operating expenses | 13 | ( | ( |
Operating profit (loss) before depreciation and amortization | ( | ||
Depreciation and amortization | ( | ( | |
Operating profit (loss) | ( | ||
Finance costs | ( | ( | |
Profit (Loss) before taxation | ( | ||
| Taxation | 15 | ||
Net profit (loss) for the year | ( | ||
| Other comprehensive income (loss) | |||
| Items that will not be reclassified to profit or loss: | |||
Change in fair value of financial assets at fair value through OCI (non-recycling) | ( | ( | |
| Change in fair value arisen from reclassification from leasehold land | |||
and buildings to investment properties (non-recycling) | |||
| Items that may be reclassified subsequently to profit or loss: | |||
Change in fair value of financial assets at fair value through OCI (recycling) | ( | ( | |
| Total comprehensive income (loss) for the year | |||
attributable to shareholders of the Company | ( | ||
| Earnings (Loss) per share | 16 | ||
– Basic and diluted | US$ | US$( |
76
JINHUI SHIPPING AND TRANSPORTATION LIMITED
ANNUAL REPORT 2024
Consolidated Statement of Financial Position
As at 31 December 2024
2024 | 2023 | ||
Note | US$’000 | US$’000 | |
| ASSETS | |||
| Non-current assets | |||
| Property, plant and equipment | 18 | ||
| Right-of-use assets | 19(a) | ||
| Investment properties | 20 | ||
| Financial assets at fair value through OCI | 21 | ||
| Loan receivables | 23 | ||
Deposit paid for the acquisition of owned vessels | |||
| Current assets | |||
Inventories | |||
| Trade and other receivables | 24 | ||
| Financial assets at fair value through profit or loss | 25 | ||
| Pledged deposits | 35(c) | ||
Bank balances and cash | |||
Assets held for sale | |||
Total assets | |||
| EQUITY AND LIABILITIES | |||
| Capital and reserves | |||
| Issued capital | 27 | ||
Reserves | |||
Total equity |
JINHUI SHIPPING AND TRANSPORTATION LIMITED
77
ANNUAL REPORT 2024
Consolidated Statement of Financial Position
As at 31 December 2024
2024 | 2023 | ||
Note | US$’000 | US$’000 | |
| Non-current liabilities | |||
| Secured bank loans | 29 | ||
| Lease liabilities | 19(b) | ||
| Current liabilities | |||
| Trade and other payables | 30 | ||
Amount due to holding company | |||
| Secured bank loans | 29 | ||
| Lease liabilities | 19(b) | ||
Total equity and liabilities |
Approved and authorized for issue on 18 March 2025
Ng Siu Fai Ng Kam Wah Thomas Ng Ki Hung Frankie
Chairman Managing Director and
Deputy Chairman
Executive Director
Ho Suk Lin Cathy Tsui Che Yin Frank William Yau
Executive Director Non-executive Director Non-executive Director
78
JINHUI SHIPPING AND TRANSPORTATION LIMITED
ANNUAL REPORT 2024
Consolidated Statement of Changes in Equity
Year ended 31 December 2024
| Reserve for | ||||||||
| financial | ||||||||
| assets at | ||||||||
| Capital | fair value | |||||||
| Issued | Share | redemption | Contributed | Revaluation | through | Retained | Total | |
| capital | premium | reserve | surplus | reserve | OCI | profits | equity | |
US$’000 | US$’000 | US$’000 | US$’000 | US$’000 | US$’000 | US$’000 | US$’000 | |
At 1 January 2023 | ( | |||||||
| Comprehensive loss | ||||||||
Net loss for the year | ( | ( | ||||||
| Other comprehensive income (loss) | ||||||||
| Change in fair value of financial | ||||||||
assets at fair value through OCI | ( | ( | ||||||
Change in fair value arisen from reclassification from leasehold land | ||||||||
and buildings to investment properties | ||||||||
Total comprehensive loss for the year | ( | ( | ( | |||||
2022 final dividend paid | ( | ( | ||||||
At 31 December 2023 | ( | |||||||
At 1 January 2024 | ( | |||||||
| Comprehensive income | ||||||||
Net profit for the year | ||||||||
| Other comprehensive loss | ||||||||
| Change in fair value of financial | ||||||||
assets at fair value through OCI | ( | ( | ||||||
Total comprehensive income for the year | ( | |||||||
At 31 December 2024 | ( |
JINHUI SHIPPING AND TRANSPORTATION LIMITED
79
ANNUAL REPORT 2024
Consolidated Statement of Cash Flows
Year ended 31 December 2024
2024 | 2023 | ||
Note | US$’000 | US$’000 | |
| OPERATING ACTIVITIES | |||
| Cash generated from operations | 31 | ||
Interest paid | ( | ( | |
Hong Kong Profits Tax refunded | |||
Net cash from operating activities | |||
| INVESTING ACTIVITIES | |||
Interest received | |||
Dividend income received | |||
Purchase of property, plant and equipment | ( | ( | |
Deposit paid for the acquisition of owned vessels | ( | ||
Proceeds from disposal of assets held for sale, net | |||
Proceeds from disposal of property, plant and equipment, net | |||
Net cash used in investing activities | ( | ( | |
| FINANCING ACTIVITIES | |||
New secured bank loans | |||
Repayment of secured bank loans | ( | ( | |
Decrease in pledged deposits | |||
Payment of lease liabilities | ( | ( | |
Interest paid on lease liabilities | ( | ( | |
Dividends paid to shareholders of the Company | ( | ||
Net cash used in financing activities | ( | ( | |
Net increase (decrease) in cash and cash equivalents | ( | ||
Cash and cash equivalents at 1 January | |||
Cash and cash equivalents at 31 December |
80
JINHUI SHIPPING AND TRANSPORTATION LIMITED
ANNUAL REPORT 2024
Notes to the Consolidated Financial Statements
Year ended 31 December 2024
1. GENERAL INFORMATION
businesses of ship chartering and ship owning which are carried out internationally.
The Group is controlled by Jinhui Holdings Company Limited , a company incorporated in Hong Kong which
holds approximately 55.69% of the Company’s shares at the reporting date. The registered office of Jinhui
Holdings, where its consolidated accounts can be obtained, locates at 26th Floor, Yardley Commercial Building,
1-6 Connaught Road West, Hong Kong, PRC.
The consolidated financial statements for the year ended 31 December 2024 were approved for issue by the
Board on 18 March 2025.
2. STATEMENT OF COMPLIANCE
The consolidated financial statements have been prepared in accordance with IFRS Accounting Standards, which
collective term includes all applicable individual IFRS Accounting Standards, International Accounting Standards
and Interpretations issued by the International Accounting Standards Board, and Hong Kong Financial Reporting
Standards, which collective term includes all applicable individual Hong Kong Financial Reporting Standards, Hong
Kong Accounting Standards and Interpretations issued by the Hong Kong Institute of Certified Public Accountants.
3. ADOPTION OF NEW AND AMENDED IFRS ACCOUNTING STANDARDS AND HKFRSs
In current year, the Group has applied for the first time, the following amendments to IFRS Accounting Standards
and HKFRSs issued by the IASB and the HKICPA, which are relevant to and effective for the Group’s consolidated
financial statements for the accounting period beginning on 1 January 2024.
Amendments to IFRS 16 and HKFRS 16 Lease Liability in a Sale and Leaseback
Amendments to IAS 1 and HKAS 1 Classification of Liabilities as Current or Non-current and
related amendments to Hong Kong Interpretation 5
(2020)
Amendments to IAS 1 and HKAS 1 Non-current Liabilities with Covenants
Amendments to IAS 7, HKAS 7, IFRS 7 and
HKFRS 7
Supplier Finance Arrangements
The adoption of the amendments to IFRS Accounting Standards and HKFRSs does not have material impact on
the Group’s financial performance and financial position for the current and prior periods have been prepared
and presented.
JINHUI SHIPPING AND TRANSPORTATION LIMITED
81
ANNUAL REPORT 2024
Notes to the Consolidated Financial Statements
Year ended 31 December 2024
3. ADOPTION OF NEW AND AMENDED IFRS ACCOUNTING STANDARDS AND HKFRSs
(Continued)
At the date of authorization of these consolidated financial statements, certain new and amendments to IFRS
Accounting Standards and HKFRSs have been published but are not yet effective, and have not been early adopted
by the Group. The management anticipated that all pronouncements will be adopted in the Group’s accounting
policy for the first accounting period beginning after the effective dates of the pronouncements. Information on
these new pronouncements that are expected to be relevant to the Group’s consolidated financial statements
is provided below.
IFRS 18 and HKFRS 18 Presentation and Disclosure in Financial Statements
3
IFRS 19 and HKFRS 19 Subsidiaries without Public Accountability: Disclosures
3
Amendments to IFRS 10 and HKFRS 10,
and IAS 28 and HKAS 28
Sales or Contributions of Assets between an
Investor and its Associate or Joint Venture
4
Amendments to IAS 21 and HKAS 21 Lack of Exchangeability
1
Amendments to IFRS 9 and HKFRS 9,
IFRS 7 and HKFRS 7
Amendments to the Classification and
Measurement of Financial Instruments
2
Amendments to IFRS and HKFRS
Accounting Standards
Annual Improvements to IFRS and HKFRS
Accounting Standards – Volume 11
2
Amendments to Hong Kong Interpretation 5 Presentation of Financial Statements – Classification by the
Borrower of a Term Loan that Contains a Repayment on
Demand Clause
3
Amendments to IFRS 9 and IFRS 7,
and HKFRS 9 and HKFRS 7
Contracts Referencing Nature-dependent Electricity
2
Notes:
1. Effective for annual periods beginning on or after 1 January 2025
2.
Effective for annual periods beginning on or after 1 January 2026
3.
Effective for annual periods beginning on or after 1 January 2027
4.
Effective date not yet determined
The management is currently assessing the possible impact of these new and amendments to standards and
interpretations on the Group’s results and financial position in the first year of application.
82
JINHUI SHIPPING AND TRANSPORTATION LIMITED
ANNUAL REPORT 2024
Notes to the Consolidated Financial Statements
Year ended 31 December 2024
4. SUMMARY OF MATERIAL ACCOUNTING POLICIES
JINHUI SHIPPING AND TRANSPORTATION LIMITED
83
ANNUAL REPORT 2024
Notes to the Consolidated Financial Statements
Year ended 31 December 2024
4. SUMMARY OF MATERIAL ACCOUNTING POLICIES
(Continued)
84
JINHUI SHIPPING AND TRANSPORTATION LIMITED
ANNUAL REPORT 2024
Notes to the Consolidated Financial Statements
Year ended 31 December 2024
4. SUMMARY OF MATERIAL ACCOUNTING POLICIES
(Continued)
JINHUI SHIPPING AND TRANSPORTATION LIMITED
85
ANNUAL REPORT 2024
Notes to the Consolidated Financial Statements
Year ended 31 December 2024
4. SUMMARY OF MATERIAL ACCOUNTING POLICIES
(Continued)
86
JINHUI SHIPPING AND TRANSPORTATION LIMITED
ANNUAL REPORT 2024
Notes to the Consolidated Financial Statements
Year ended 31 December 2024
4. SUMMARY OF MATERIAL ACCOUNTING POLICIES
(Continued)
4.7 Income tax
(Continued)
JINHUI SHIPPING AND TRANSPORTATION LIMITED
87
ANNUAL REPORT 2024
Notes to the Consolidated Financial Statements
Year ended 31 December 2024
4. SUMMARY OF MATERIAL ACCOUNTING POLICIES
(Continued)
88
JINHUI SHIPPING AND TRANSPORTATION LIMITED
ANNUAL REPORT 2024
Notes to the Consolidated Financial Statements
Year ended 31 December 2024
4. SUMMARY OF MATERIAL ACCOUNTING POLICIES
(Continued)
JINHUI SHIPPING AND TRANSPORTATION LIMITED
89
ANNUAL REPORT 2024
Notes to the Consolidated Financial Statements
Year ended 31 December 2024
4. SUMMARY OF MATERIAL ACCOUNTING POLICIES
(Continued)
90
JINHUI SHIPPING AND TRANSPORTATION LIMITED
ANNUAL REPORT 2024
Notes to the Consolidated Financial Statements
Year ended 31 December 2024
4. SUMMARY OF MATERIAL ACCOUNTING POLICIES
(Continued)
4.12 Financial assets
(Continued)
JINHUI SHIPPING AND TRANSPORTATION LIMITED
91
ANNUAL REPORT 2024
Notes to the Consolidated Financial Statements
Year ended 31 December 2024
4. SUMMARY OF MATERIAL ACCOUNTING POLICIES
(Continued)
4.12 Financial assets
(Continued)
Subsequent measurement of financial assets (Continued)
92
JINHUI SHIPPING AND TRANSPORTATION LIMITED
ANNUAL REPORT 2024
Notes to the Consolidated Financial Statements
Year ended 31 December 2024
4. SUMMARY OF MATERIAL ACCOUNTING POLICIES
(Continued)
4.12 Financial assets
(Continued)
Impairment of financial assets (Continued)
JINHUI SHIPPING AND TRANSPORTATION LIMITED
93
ANNUAL REPORT 2024
Notes to the Consolidated Financial Statements
Year ended 31 December 2024
4. SUMMARY OF MATERIAL ACCOUNTING POLICIES
(Continued)
4.12 Financial assets
(Continued)
Impairment of financial assets (Continued)
94
JINHUI SHIPPING AND TRANSPORTATION LIMITED
ANNUAL REPORT 2024
Notes to the Consolidated Financial Statements
Year ended 31 December 2024
4. SUMMARY OF MATERIAL ACCOUNTING POLICIES
(Continued)
JINHUI SHIPPING AND TRANSPORTATION LIMITED
95
ANNUAL REPORT 2024
Notes to the Consolidated Financial Statements
Year ended 31 December 2024
4. SUMMARY OF MATERIAL ACCOUNTING POLICIES
(Continued)
96
JINHUI SHIPPING AND TRANSPORTATION LIMITED
ANNUAL REPORT 2024
Notes to the Consolidated Financial Statements
Year ended 31 December 2024
4. SUMMARY OF MATERIAL ACCOUNTING POLICIES
(Continued)
4.18 Employee benefits
(Continued)
JINHUI SHIPPING AND TRANSPORTATION LIMITED
97
ANNUAL REPORT 2024
Notes to the Consolidated Financial Statements
Year ended 31 December 2024
4. SUMMARY OF MATERIAL ACCOUNTING POLICIES
(Continued)
4.19 Leases
(Continued)
98
JINHUI SHIPPING AND TRANSPORTATION LIMITED
ANNUAL REPORT 2024
Notes to the Consolidated Financial Statements
Year ended 31 December 2024
4. SUMMARY OF MATERIAL ACCOUNTING POLICIES
(Continued)
4.19 Leases
(Continued)
JINHUI SHIPPING AND TRANSPORTATION LIMITED
99
ANNUAL REPORT 2024
Notes to the Consolidated Financial Statements
Year ended 31 December 2024
4. SUMMARY OF MATERIAL ACCOUNTING POLICIES
(Continued)
100
JINHUI SHIPPING AND TRANSPORTATION LIMITED
ANNUAL REPORT 2024
Notes to the Consolidated Financial Statements
Year ended 31 December 2024
5. CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS
Estimates and judgements are continually evaluated and are based on historical experience and other factors
including expectations of future events that are believed to be reasonable under the circumstances. The significant
estimates and judgements made in the process of applying the Group’s accounting policies are discussed below.
Reversal of impairment loss on owned vessels and right-of-use assets
Dry bulk shipping market remained healthy and performed well during the year supported by demand growth for
dry bulk commodities and limited supply of vessels, the combined effect led to a surge of market freight rates
and market value of dry bulk vessels. Both Baltic Dry Index and charter rates across all vessel classes had been
showing encouraging improvements as compared to year 2023. The Group reviewed the dry bulk shipping market
environment, the overall macro environment and the market value of dry bulk vessels at the reporting date. The
management considered that the reversal of impairment indication of the Group’s fleet existed at reporting date
and performed reversal of impairment review on 31 December 2024.
Key assumptions applied in calculation of reversal of impairment assessment for owned vessels and right-of-
use assets
(a) Reversal of impairment loss on owned vessels, net
With due considerations of factors affecting the long term intrinsic values of owned dry bulk vessels in
the reversal of impairment loss review, certain of the Group’s owned vessels’ recoverable amounts which
were determined based on the higher of the fair value less costs of disposal and value in use and were
higher than their respective carrying amounts at the end of 2024. Those vessels with carrying amount
of US$109,690,000 was estimated based on the value in use under discounted cash flow method, using
estimated future cash flows projections from the continuous use of such vessels. Key assumptions applied
in value in use calculation mainly included discount rate and hire rates earned by each vessel as the value
in use is most sensitive to the changes in these two factors. Other assumptions applied in the estimated
future cash flows projections included the first five-year period from the continuous use of such vessels
and cash flows beyond the five-year period are extrapolated using the zero growth rate.
The hire rates applied in the reversal of impairment test on owned vessels were based on management’s
best estimation, taking into consideration of historical performances, market research data and market
expectation. The hire rates would have an average of 1% decline (2023: 1% growth) for the first
five-year period and cash flows beyond the five-year period are extrapolated using the zero growth rate.
The discount rate applied to the value in use calculation on owned vessels was 10.5% (2023: 10.5%),
which was a pre-tax rate that reflected current market assessments of time value of money and the risks
specific to the assets. It is based on weighted average cost of capital in which the cost of equity, cost of
debt and capital structure are the key parameters. Other assumptions included utilization rate which is
assumed to be 98% (2023: 95%) in all subsequent years; and vessels are expected to have useful life of 25
(2023: 25) years from the date of the initial delivery from the shipyards. The net cash flow also reflected
the estimated drydocking and special surveys costs and vessels operating expense.
JINHUI SHIPPING AND TRANSPORTATION LIMITED
101
ANNUAL REPORT 2024
Notes to the Consolidated Financial Statements
Year ended 31 December 2024
5. CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS
(Continued)
Reversal of impairment loss on owned vessels and right-of-use assets
(Continued)
Key assumptions applied in calculation of reversal of impairment assessment for owned vessels and right-of-
use assets (Continued)
(a) Reversal of impairment loss on owned vessels, net
(Continued)
Certain owned vessels with carrying amount of US$143,105,000 are determined based on fair value less
cost of disposal. The fair value less cost of disposal is based on valuation performed by independent valuer
and the valuation is under market comparison approach and such measurement of these owned vessels
was categorized as Level 2 of the three-level fair value hierarchy as defined under IFRS 13 and HKFRS 13.
Key assumptions applied in fair value less cost of disposal mainly included quoted recent transactions of
similar vessels. Other assumptions included estimated cost of disposal of these vessels which are based
on the Group’s historical acquisition and disposal transactions of its fleets.
Accordingly, a net reversal of impairment loss of US$1,942,000 (2023: net impairment loss of US$14,011,000)
on owned vessels classified in property, plant and equipment was recognized at 31 December 2024 to
reflect the Group’s change in the expectation of the global economic and the dry bulk shipping industry
outlook which affect the assumptions applied in estimation of the value in use and fair value less cost of
disposal of the Group’s owned vessels.
(b) Reversal of impairment loss on right-of-use assets
The Group carried out a review of the recoverable amounts of the right-of-use assets based on the
value-in-use approach using discounted cash flow method by comparing the carrying value and the
recoverable amounts of the right-of-use assets. The key assumptions for the discounted cash flow method
are those regarding the discount rates, hire rates, growth rate and utilization rate during the lease term
of the charterparty.
The hire rates applied in the reversal of impairment test on right-of-use assets were based on management’s
best estimation, taking into consideration of historical performances, market research data and market
expectation. The hire rates would have an average of 1% (2023: 1%) decline during the lease term of the
charterparty. The discount rate applied to the value in use calculation on right-of-use assets was 10.5%
(2023: 10%), which was a pre-tax rate that reflected current market assessments of time value of money
and the risks specific to the assets. It is based on weighted average cost of capital in which the cost of
equity, cost of debt and capital structure are the key parameters. Utilization rate of 98% (2023: 95%) is
assumed during the lease term of the charterparty.
Based on the reversal of impairment test performed, the recoverable amounts of the right-of-use assets
exceed its carrying amount and accordingly, a reversal of impairment loss of US$4,591,000 (2023:
impairment loss of US$5,693,000) was recognized for the year ended 31 December 2024.
The reversal of impairment loss on owned vessels and right-of-use assets of US$6,533,000 (2023: net impairment
loss of US$19,704,000) for the year ended 31 December 2024 are non-cash in nature and do not have impact on
the operating cash flows of the Group.
102
JINHUI SHIPPING AND TRANSPORTATION LIMITED
ANNUAL REPORT 2024
Notes to the Consolidated Financial Statements
Year ended 31 December 2024
5. CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS
(Continued)
Reversal of impairment loss on owned vessels and right-of-use assets
(Continued)
Sensitivity in calculation of reversal of impairment assessment of owned vessels and right-of-use assets
Value in use
With all other variables remaining constant, it was estimated that a decrease of 5% in hire rates applied in the
reversal of impairment test at the reporting date, the net reversal of impairment loss on owned vessels recognized
and net profit for the year would decrease by approximately US$11,440,000 and the carrying amount of the
Group’s owned vessels would decrease by 2.91%.
With all other variables remaining constant, it was estimated that a decrease of 5% in hire rates applied in the
reversal of impairment test at the reporting date, the reversal of impairment loss on right-of-use assets recognized
and net profit for the year would decrease by approximately US$752,000 and the carrying amount of the right-
of-use assets would decrease by 2.51%.
With all other variables remaining constant, it was estimated that an increase of 75 basis points in discount rate
applied in the reversal of impairment test at the reporting date, the net reversal of impairment loss on owned
vessels recognized and net profit for the year would decrease by approximately US$4,246,000 and the carrying
amount of the Group’s owned vessels would decrease by 1.08%.
With all other variables remaining constant, it was estimated that an increase of 75 basis points in discount rate
applied in the reversal of impairment test at the reporting date, the reversal of impairment loss on right-of-use
assets recognized and net profit for the year would decrease by approximately US$320,000 and the carrying
amount of the right-of-use assets would decrease by 1.07%.
Fair value less cost of disposal
With all other variables remaining constant, it was estimated that a decrease of 5% in selling price quoted from
the transactions of similar vessels applied in the reversal of impairment test at the reporting date, the net reversal
of impairment loss on owned vessels recognized and net profit for the year would decrease by approximately
US$8,142,000 and the carrying amount of the Group’s owned vessels would decrease by 2.07%.
Valuation of investment properties
As at 31 December 2024, the Group’s investment properties were stated at fair value of US$20,873,000 (2023:
US$25,259,000). Change in fair value loss of investment properties of US$4,386,000 (2023: US$2,334,000) was
recognized in profit or loss during the year. The fair values of the Group’s investment properties were determined
by an independent qualified professional valuer. The valuations are dependent on certain unobservable inputs,
including market unit sale rate per square feet / carpark which are determined based on comparable transactions
after applying adjusting factors such as the age, location, size, view, floor level and quality of buildings and
carparks to reflect the conditions and locations of the subject properties. Details of the valuation methodologies
and significant unobservable inputs used in the valuations are disclosed in note 20.
JINHUI SHIPPING AND TRANSPORTATION LIMITED
103
ANNUAL REPORT 2024
Notes to the Consolidated Financial Statements
Year ended 31 December 2024
5. CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS
(Continued)
Fair values of financial assets at fair value through OCI
Fair values of financial assets at fair value through OCI that are not traded in an active market is determined
by using valuation techniques. The Group determines the fair values primarily based on the recent transaction
prices, net asset value (representing the fair value of the equity instruments reported by the investment manager
of the investees) and take into account of its financial results and other factors. The fair values of financial assets
at fair value through OCI that are not traded in active market are determined by using valuation techniques as
disclosed in note 21.
Impairment of trade receivables and other financial assets
As at 31 December 2024, the carrying amount of the trade receivables (note 24) was US$1,093,000 (2023:
US$1,000,000). For trade receivables, the Group applies a simplified approach in calculating ECL and recognizes
a loss allowance based on lifetime ECL at each reporting date. These are the expected shortfalls in contractual
cash flows, considering the potential for default at any point during the life of the financial assets. To measure
the ECL, trade receivables have been grouped based on shared credit risk characteristics and the days past due.
For other financial assets measured at amortized cost or fair value through OCI (note 39(a)), the Group measures
the loss allowance for these financial assets equal to 12-month ECL, unless there has been a significant increase
in credit risk since initial recognition, the Group recognizes lifetime ECL. The assessment of whether lifetime ECL
should be recognized is based on significant increase in the likelihood or risk of default occurring since initial
recognition. In assessing whether the credit risk for other financial assets has increased significantly since initial
recognition, the Group compares the risk of a default occurring on the financial assets at the reporting date with
the risk of default occurring on the financial assets at the date of initial recognition. In making this assessment,
the Group considers both quantitative and qualitative information that is reasonable and supportable, including
historical experience and forward-looking information that is available without undue cost or effort.
For loan receivables (note 23) which arise from co-investment, the Group measures the loss allowance for these
financial assets equal to 12-month ECL with taking the net asset value of the co-investment into accounts unless
when there has been a significant increase in credit risk since initial recognition or classified as credit impaired,
the Group recognizes lifetime ECL. The assessment of whether lifetime ECL should be recognized is based on
significant increase in the likelihood or risk of default occurring since initial recognition or classified as credit
impaired. The loan receivables are reviewed by the management at the reporting date to assess impairment
allowance which are based on the evaluation of current creditworthiness, collection statistic and the net asset
value of the co-investment.
104
JINHUI SHIPPING AND TRANSPORTATION LIMITED
ANNUAL REPORT 2024
Notes to the Consolidated Financial Statements
Year ended 31 December 2024
6. SEGMENT INFORMATION
The Group is principally engaged in the business of ship chartering and ship owning and the management has
regarded this business as the only dominant reportable operating segment to be reported to the chief operating
decision maker.
While the Group’s revenue was mainly attributable to its chartering operations which are carried out internationally
and cannot be attributable to any particular geographical location, analysis of revenue from chartering freight
and hire business by geographical split of revenue by charterers’ location is presented in note 7.
The Group’s non-current assets mainly consist of property, plant and equipment, right-of-use assets and investment
properties. Property, plant and equipment and right-of-use assets mainly comprised of the Group’s owned vessels
and chartered-in vessels respectively. As the Group’s motor vessels are operated across different geographical
regions, it is meaningless to identify the specific geographical locations of the motor vessels at the reporting
date. The Group’s investment properties comprised of premises and car parks and all are located in Hong Kong.
While majority of the Group’s non-current assets other than financial instruments cannot be attributable to any
particular geographical location, no analysis of non-current assets other than financial instruments by geographical
area is presented in the consolidated financial statements.
7. REVENUE
Revenue represents chartering freight and hire income arising from the Group’s owned and chartered-in vessels.
Revenue recognized during the year is as follows:
2024 | 2023 | |
US$’000 | US$’000 | |
| Chartering freight and hire income: | ||
Hire income under time charters 1 | 158,900 | 81,868 |
Note:
1. Hire income under time charter is accounted for as operating lease and is recognized on a straight-line basis over the
period of each time charter contract. During the year, hire income included a non-lease component in relation to crewing
service of US$27,688,000 (2023: US$30,463,000).
JINHUI SHIPPING AND TRANSPORTATION LIMITED
105
ANNUAL REPORT 2024
Notes to the Consolidated Financial Statements
Year ended 31 December 2024
7. REVENUE
(Continued)
Information about major charterers
Revenue of US$22,847,000, US$16,560,000 and US$11,767,000 (2023: US$16,024,000, US$15,543,000 and
US$13,145,000) were derived from three charterers that contributed 14%, 10% and 7% (2023: 20%, 19% and
16%) respectively to the Group’s revenue for the year 2024.
Information about geographical distribution
Revenue from external customers (charterers) is as follows:
2024 | 2023 | |
US$’000 | US$’000 | |
| Geographical split of revenue by charterers’ location: | ||
China | 94,776 | 53,657 |
Singapore | 43,159 | 23,759 |
Japan | 4,312 | 1,878 |
Norway | 2,914 | 404 |
United Arab Emirates | 2,449 | – |
South Korea | 2,330 | 621 |
Switzerland | 788 | 1,549 |
Other countries | 8,172 | – |
158,900 | 81,868 |
106
JINHUI SHIPPING AND TRANSPORTATION LIMITED
ANNUAL REPORT 2024
Notes to the Consolidated Financial Statements
Year ended 31 December 2024
8. OTHER OPERATING INCOME
2024 | 2023 | |
US$’000 | US$’000 | |
Net gain on financial assets at fair value through profit or loss | 4,867 | – |
Other shipping operating income | 4,746 | 4,350 |
Settlement income | 3,500 | – |
Reversal of impairment loss on trade and other receivables, net | 1,848 | 1,274 |
Dividend income | 1,173 | 1,171 |
Gross rental income from operating leases on investment properties | 556 | 569 |
Sundry income | 301 | 279 |
16,991 | 7,643 |
9. INTEREST INCOME
2024 | 2023 | |
US$’000 | US$’000 | |
| Interest income in respect of: | ||
Deposits with banks and other financial institutions | 453 | 470 |
Loan receivables | 321 | 310 |
Financial assets at fair value through profit or loss | 25 | 39 |
Others | 35 | – |
834 | 819 |
JINHUI SHIPPING AND TRANSPORTATION LIMITED
107
ANNUAL REPORT 2024
Notes to the Consolidated Financial Statements
Year ended 31 December 2024
10. REVERSAL OF IMPAIRMENT LOSS (IMPAIRMENT LOSS) ON OWNED VESSELS AND
RIGHT-OF-USE ASSETS
Given the prevailing dry bulk shipping market conditions, management considered that reversal of impairment
indication of the Group’s fleet and right-of-use assets existed at the end of 2024. A review on the recoverable
amount of our owned vessels and right-of-use assets was performed to reflect our change in the expectation of
the global economic and the dry bulk shipping industry outlook.
(a) Reversal of impairment loss on owned vessels, net
With due considerations of factors affecting the long term intrinsic values of owned dry bulk vessels in
the reversal of impairment loss review, certain of the Group’s owned vessels’ recoverable amounts which
were determined based on the higher of the fair value less costs of disposal and value in use and were
higher than their respective carrying amounts at the end of 2024. Those vessels with carrying amount
of US$109,690,000 was estimated based on the value in use under discounted cash flow method, using
estimated future cash flows projections from the continuous use of such vessels. Key assumptions applied
in value in use calculation mainly included discount rate and hire rates earned by each vessel as the value
in use is most sensitive to the changes in these two factors. Other assumptions applied in the estimated
future cash flows projections included the first five-year period from the continuous use of such vessels
and cash flows beyond the five-year period are extrapolated using the zero growth rate.
The hire rates applied in the reversal of impairment test on owned vessels were based on management’s
best estimation, taking into consideration of historical performances, market research data and market
expectation. The hire rates would have an average of 1% decline (2023: 1% growth) for the first five-
year period and cash flows beyond the five-year period are extrapolated using the zero growth rate. The
discount rate applied to the value in use calculation on owned vessels was 10.5% (2023: 10.5%), which
was a pre-tax rate that reflected current market assessments of time value of money and the risks specific
to the assets. It is based on weighted average cost of capital in which the cost of equity, cost of debt and
capital structure are the key parameters. Other assumptions included utilization rate which is assumed
to be 98% (2023: 95%) in all subsequent years; and vessels are expected to have useful life of 25 (2023:
25) years from the date of the initial delivery from the shipyards. The net cash flow also reflected the
estimated drydocking and special surveys costs and vessels operating expense.
Certain owned vessels with carrying amount of US$143,105,000 are determined based on fair value less
cost of disposal. The fair value less cost of disposal is based on valuation performed by independent valuer
and the valuation is under market comparison approach and such measurement of these owned vessels
was categorized as Level 2 of the three-level fair value hierarchy as defined under IFRS 13 and HKFRS 13.
Key assumptions applied in fair value less cost of disposal mainly included quoted recent transactions of
similar vessels. Other assumptions included estimated cost of disposal of these vessels which are based
on the Group’s historical acquisition and disposal transactions of its fleets.
Accordingly, a net reversal of impairment loss of US$1,942,000 (2023: net impairment loss of US$14,011,000)
on owned vessels classified in property, plant and equipment was recognized at 31 December 2024 to
reflect the Group’s change in the expectation of the global economic and the dry bulk shipping industry
outlook which affect the assumptions applied in estimation of the value in use and fair value less cost of
disposal of the Group’s owned vessels.
108
JINHUI SHIPPING AND TRANSPORTATION LIMITED
ANNUAL REPORT 2024
Notes to the Consolidated Financial Statements
Year ended 31 December 2024
10. REVERSAL OF IMPAIRMENT LOSS (IMPAIRMENT LOSS) ON OWNED VESSELS AND
RIGHT-OF-USE ASSETS
(Continued)
(b) Reversal of impairment loss on right-of-use assets
The Group carried out a review of the recoverable amounts of the right-of-use assets based on the value-
in-use approach using discounted cash flow method by comparing the carrying value and the recoverable
amounts of the right-of-use assets. The key assumptions for the discounted cash flow method are those
regarding the discount rates, hire rates, growth rate and utilization rate during the lease term of the
charterparty.
The hire rates applied in the reversal of impairment test on right-of-use assets were based on management’s
best estimation, taking into consideration of historical performances, market research data and market
expectation. The hire rates would have an average of 1% (2023: 1%) decline during the lease term of the
charterparty. The discount rate applied to the value in use calculation on right-of-use assets was 10.5%
(2023: 10%), which was a pre-tax rate that reflected current market assessments of time value of money
and the risks specific to the assets. It is based on weighted average cost of capital in which the cost of
equity, cost of debt and capital structure are the key parameters. Utilization rate of 98% (2023: 95%) is
assumed during the lease term of the charterparty.
Based on the reversal of impairment test performed, the recoverable amounts of the right-of-use assets
exceed its carrying amount and accordingly, a reversal of impairment loss of US$4,591,000 (2023:
impairment loss of US$5,693,000) was recognized for the year ended 31 December 2024.
The reversal of impairment loss on owned vessels and right-of-use assets of US$6,533,000 (2023: net impairment
loss of US$19,704,000) for the year ended 31 December 2024 are non-cash in nature and do not have impact on
the operating cash flows of the Group.
11. STAFF COSTS
2024 | 2023 | |
US$’000 | US$’000 | |
| Directors’ emoluments (excluding directors’ fees): | ||
Salaries and other benefits | 8,673 | 8,122 |
Contributions to retirement benefits schemes | 435 | 435 |
| Other staff costs: | ||
Salaries and other benefits | 5,385 | 4,580 |
Contributions to retirement benefits schemes | 214 | 199 |
14,707 | 13,336 |
At the reporting date, the Group has 74 (2023: 66) full-time employees.
JINHUI SHIPPING AND TRANSPORTATION LIMITED
109
ANNUAL REPORT 2024
Notes to the Consolidated Financial Statements
Year ended 31 December 2024
12. DIRECTORS’ EMOLUMENTS
| Contributions | |||||
| to retirement | |||||
| Directors’ | Salaries and | Discretionary | benefits | ||
fees 1 | allowances 2 | bonus 2 | schemes 2 | Total | |
US$’000 | US$’000 | US$’000 | US$’000 | US$’000 | |
| 2024 | |||||
| Executive Directors | |||||
Ng Siu Fai | 248 | 3,846 | 833 | 231 | 5,158 |
Ng Kam Wah Thomas | 248 | 3,077 | 577 | 185 | 4,087 |
Ng Ki Hung Frankie | 170 | 123 | – | 7 | 300 |
Ho Suk Lin Cathy | 60 | 204 | 13 | 12 | 289 |
| Non-executive Directors | |||||
Tsui Che Yin Frank | 28 | – | – | – | 28 |
William Yau | 23 | – | – | – | 23 |
777 | 7,250 | 1,423 | 435 | 9,885 | |
| 2023 | |||||
| Executive Directors | |||||
Ng Siu Fai | 248 | 3,846 | 481 | 231 | 4,806 |
Ng Kam Wah Thomas | 248 | 3,077 | 384 | 185 | 3,894 |
Ng Ki Hung Frankie | 170 | 123 | – | 7 | 300 |
Ho Suk Lin Cathy | 60 | 211 | – | 12 | 283 |
| Non-executive Directors | |||||
Tsui Che Yin Frank | 28 | – | – | – | 28 |
William Yau | 23 | – | – | – | 23 |
777 | 7,257 | 865 | 435 | 9,334 |
Notes:
1. The directors’ fees were provided by the Company. None of the Directors received directors’ fees from its subsidiaries.
2. Directors’ other emoluments, which included salaries and allowances, discretionary bonus and contributions to retirement
benefits schemes, were provided by a subsidiary.
110
JINHUI SHIPPING AND TRANSPORTATION LIMITED
ANNUAL REPORT 2024
Notes to the Consolidated Financial Statements
Year ended 31 December 2024
13. OTHER OPERATING EXPENSES
Other operating expenses for the year 2024 mainly included change in fair value of investment properties of
US$4,386,000, directors’ fee of US$777,000, professional fee of US$547,000, auditor’s remuneration related to
audit services of US$217,000 and remaining are various office administrative expenses.
Other operating expenses for the year 2023 mainly included change in fair value of investment properties
of US$2,334,000, an impairment loss on assets held for sale (disposed vessel) of US$1,288,000, net loss on
financial assets at fair value through profit or loss of US$827,000, directors’ fee of US$777,000, professional fee
of US$651,000, auditor’s remuneration related to audit services of US$210,000 and remaining are various office
administrative expenses.
JINHUI SHIPPING AND TRANSPORTATION LIMITED
111
ANNUAL REPORT 2024
Notes to the Consolidated Financial Statements
Year ended 31 December 2024
14. OPERATING PROFIT (LOSS) BEFORE DEPRECIATION AND AMORTIZATION
2024 | 2023 | |
US$’000 | US$’000 | |
Auditor’s remuneration 1 : | ||
Audit services | 217 | 210 |
Other services | 5 | 4 |
Charter hire payments for time charters 2 | 21,784 | – |
Hire income arising from chartered-in vessels classified as right-of-use assets | (20,249) | (4,791) |
Rent and rates payments in respect of premises | 101 | 94 |
| Net loss (gain) on financial assets at fair value through profit or loss | ||
Realized gain on financial assets at fair value through profit or loss | (2,409) | (701) |
Unrealized loss (gain) on financial assets at fair value through profit or loss | (2,458) | 1,528 |
| Interest income in respect of: | ||
Deposits with banks and other financial institutions | (453) | (470) |
Loan receivables | (321) | (310) |
Financial assets at fair value through profit or loss | (25) | (39) |
Others | (35) | – |
Dividend income | (1,173) | (1,171) |
Impairment loss (Reversal of impairment loss) on owned vessels and right-of-use assets | (6,533) | 19,704 |
Reversal of impairment loss on trade and other receivables, net | (1,848) | (1,274) |
Change in fair value of investment properties | 4,386 | 2,334 |
Gain on disposal of property, plant and equipment, other than owned vessels | (15) | – |
Loss on write-off of property, plant and equipment | 1 | 3 |
Gross rental income from operating leases on investment properties | (556) | (569) |
Outgoings in respect of investment properties | 31 | 30 |
Net exchange loss | 94 | 48 |
Net loss on disposal of owned vessels | – | 880 |
Impairment loss on assets held for sale | – | 1,288 |
112
JINHUI SHIPPING AND TRANSPORTATION LIMITED
ANNUAL REPORT 2024
Notes to the Consolidated Financial Statements
Year ended 31 December 2024
15. TAXATION
Taxation has not been provided as the Group has no assessable profit for the year (2023: nil).
There was no Bermuda income, corporation or profits tax, withholding tax, capital gains tax, capital transfer tax,
estate duty or inheritance tax payable by the Company for the years.
The Company has received from the Minister of Finance of Bermuda under The Exempted Undertakings Tax
Protection Act 1966, as amended, an assurance that, in the event of there being enacted in Bermuda any legislation
imposing tax computed on profits or income, or computed on any capital asset gain or appreciation or any tax in
the nature of estate duty or inheritance tax, the imposition of such tax shall not until 31 March 2035 be applicable
to the Company or to any of its operations, or to the shares, debentures or other obligations of the Company.
The amount of taxation charged (credited) to the consolidated statement of profit or loss and other comprehensive
income represents:
2024 | 2023 | |
US$’000 | US$’000 | |
| Hong Kong Profits Tax | ||
Over provision in prior year | – | (1) |
Reconciliation between taxation charge (credit) and accounting profit (loss) at the applicable tax rates:
2024 | 2023 | |
US$’000 | US$’000 | |
Profit (Loss) before taxation | 24,005 | (55,056) |
Income tax at the applicable tax rates in the tax jurisdictions concerned | (3,041) | (3,152) |
Non-deductible expenses | 932 | 571 |
Tax exempted revenue | (554) | (262) |
Unrecognized tax losses | 3,196 | 2,879 |
Unrecognized temporary differences | (44) | (34) |
Utilization of previously unrecognized tax losses | (489) | (2) |
Over provision in prior year | – | (1) |
Taxation charge (credit) for the year | – | (1) |
The applicable tax rates are the weighted average of current rates of taxation ruling in the relevant jurisdictions.
JINHUI SHIPPING AND TRANSPORTATION LIMITED
113
ANNUAL REPORT 2024
Notes to the Consolidated Financial Statements
Year ended 31 December 2024
16. EARNINGS (LOSS) PER SHARE
2024 | 2023 | |
Weighted average number of ordinary shares in issue | 109,258,943 | 109,258,943 |
Net profit (loss) attributable to shareholders of the Company (US$’000) | 24,005 | (55,055) |
Basic and diluted earnings (loss) per share | US$0.220 | US$(0.504) |
Diluted earnings (loss) per share for the years 2024 and 2023 were the same as basic earnings (loss) per share
as there was no potentially dilutive ordinary shares in existence for the years 2024 and 2023.
17. DIVIDENDS
2024 | 2023 | |
US$’000 | US$’000 | |
2024 final dividend, proposed of US$0.03 per share | 3,278 | – |
The proposed final dividend for the year 2024 is subject to the approval of the Company’s shareholders at the
forthcoming annual general meeting scheduled on 28 May 2025.
114
JINHUI SHIPPING AND TRANSPORTATION LIMITED
ANNUAL REPORT 2024
Notes to the Consolidated Financial Statements
Year ended 31 December 2024
18. PROPERTY, PLANT AND EQUIPMENT
Motor vessels 1 | ||||
| and capitalized | Leasehold | |||
| drydocking | land and | |||
| costs | buildings | Others | Total | |
US$’000 | US$’000 | US$’000 | US$’000 | |
| Cost | ||||
At 1 January 2023 | 738,296 | 25,927 | 7,120 | 771,343 |
Reclassification to assets held for sale 2 | (42,153) | – | (3) | (42,156) |
Reclassification to investment properties 3 | – | (92) | – | (92) |
Additions | 24,220 | – | 113 | 24,333 |
Disposals / Write-off | (24,427) | – | (179) | (24,606) |
At 31 December 2023 | 695,936 | 25,835 | 7,051 | 728,822 |
Additions | 94,698 | – | 397 | 95,095 |
Disposals / Write-off | (3,485) | – | (227) | (3,712) |
At 31 December 2024 | 787,149 | 25,835 | 7,221 | 820,205 |
| Accumulated depreciation | ||||
| and impairment loss | ||||
At 1 January 2023 | 362,961 | 17,508 | 6,213 | 386,682 |
Reclassification to assets held for sale 2 | (30,442) | – | (3) | (30,445) |
Reclassification to investment properties 3 | – | (76) | – | (76) |
Impairment loss, net 4 | 14,011 | – | – | 14,011 |
Charge for the year | 30,574 | 795 | 159 | 31,528 |
Eliminated on disposals / write-off | (6,115) | – | (176) | (6,291) |
At 31 December 2023 | 370,989 | 18,227 | 6,193 | 395,409 |
Reversal of impairment loss, net 5 | (1,942) | – | – | (1,942) |
Charge for the year | 28,267 | 699 | 204 | 29,170 |
Eliminated on disposals / write-off | (3,485) | – | (226) | (3,711) |
At 31 December 2024 | 393,829 | 18,926 | 6,171 | 418,926 |
| Net book value | ||||
At 31 December 2024 | 393,320 | 6,909 | 1,050 | 401,279 |
At 31 December 2023 | 324,947 | 7,608 | 858 | 333,413 |
JINHUI SHIPPING AND TRANSPORTATION LIMITED
115
ANNUAL REPORT 2024
Notes to the Consolidated Financial Statements
Year ended 31 December 2024
18. PROPERTY, PLANT AND EQUIPMENT
(Continued)
Notes:
1. All motor vessels are held for use under operating leases.
2.
Reclassification to assets held for sale:
In 2023, the Group entered into an agreement for the disposal of a Supramax of deadweight 52,050 metric tonnes at a
consideration of US$10,430,000. The vessel was delivered to the purchaser in January 2024.
3.
Reclassification to investment properties:
In 2023, an owner-occupied leasehold land and building was reclassified to an investment property and a revaluation
surplus of US$367,000 was credited to revaluation reserve.
4.
Impairment loss, net:
A net impairment loss of US$14,011,000 on owned vessels classified in property, plant and equipment was recognized
at 31 December 2023.
5.
Reversal of impairment loss, net:
A net reversal of impairment loss of US$1,942,000 on owned vessels classified in property, plant and equipment was
recognized at 31 December 2024 to reflect the Group’s change in the expectation of the global economic and the dry bulk
shipping industry outlook which affect the assumptions applied in estimation of the value in use and fair value less cost
of disposal of the Group’s owned vessels as compared to 2023. The net reversal of impairment loss on owned vessels
is non-cash in nature and does not have impact on the operating cash flows of the Group.
Details of the events that led to the recognition of reversal of impairment loss, reversal of impairment indicators, key
assumptions applied in the value in use calculation and fair value less cost of disposal, recoverable amounts of impaired
assets and the sensitivity analysis are provided in note 5 and note 10(a).
Details of the Group’s certain owned vessels and information about the determination of the fair values less cost of
disposal of these vessels, in particular the valuation techniques, significant unobservable inputs and category of the fair
value hierarchy are disclosed as below:
| Relationship of | |||||
| significant unobservable | |||||
| Fair value | Valuation | Significant | Range of | inputs to fair value less | |
| hierarchy | technique | unobservable inputs | unobservable inputs | cost of disposal | |
2024 | 2023 | ||||
Level 2 | Direct | Selling price quoted | US$12.2 million - | US$14 million - | An increase in percentage |
| comparison | from the transactions | US$29 million | US$14.2 million | of selling price quoted | |
| method | of similar vessels, after | per vessel | per vessel | from the transactions of | |
| taking into account the | similar vessels would | ||||
| individual factors such as | result in an increase in | ||||
| year of built, shipyards | fair value measurement of | ||||
| and size of vessels | the vessels, and vice versa |
116
JINHUI SHIPPING AND TRANSPORTATION LIMITED
ANNUAL REPORT 2024
Notes to the Consolidated Financial Statements
Year ended 31 December 2024
19. RIGHT-OF-USE ASSETS AND LEASE LIABILITIES
2024 | 2023 | |
US$’000 | US$’000 | |
At 1 January | 21,095 | 28,997 |
Additions | 27,881 | – |
Lease remeasurement | (8,526) | 3,257 |
Depreciation | (15,019) | (5,466) |
Reversal of impairment loss (Impairment loss) | 4,591 | (5,693) |
At 31 December | 30,022 | 21,095 |
(b) Lease liabilities
2024 | 2023 | |
US$’000 | US$’000 | |
At 1 January | 29,139 | 29,337 |
Additions | 27,881 | – |
Lease remeasurement | (8,526) | 3,257 |
Interest expense (included in finance costs) | 1,317 | 1,424 |
Repayments of lease liabilities | (17,426) | (4,879) |
At 31 December | 32,385 | 29,139 |
| The lease liabilities were repayable as follows: | 2024 | 2023 |
US$’000 | US$’000 | |
Within one year | 18,692 | 5,061 |
After one year but within two years | 5,028 | 5,272 |
After two years but within five years | 8,665 | 17,284 |
After five years | – | 1,522 |
13,693 | 24,078 | |
32,385 | 29,139 |
JINHUI SHIPPING AND TRANSPORTATION LIMITED
117
ANNUAL REPORT 2024
Notes to the Consolidated Financial Statements
Year ended 31 December 2024
19. RIGHT-OF-USE ASSETS AND LEASE LIABILITIES
(Continued)
During the year, the total cash outflow for the lease was US$39,232,000 (2023: US$4,879,000).
At the reporting date, the Group operated four long-term chartered-in vessels, three of them were with remaining
| lease term of more than twelve months. In accordance with IFRS 16 and HKFRS 16 Leases, the Group recognized |
| the right-of-use assets which is calculated with the present value of total minimum hire payment at the inception |
| of the lease terms of the charterparties and corresponding lease liabilities was also recognized in the consolidated |
| statement of financial position upon their deliveries of the vessels. |
In 2022, the Group entered into a charterparty with a third party in respect of leasing of a Panamax of deadweight
84,484 metric tonnes, built in year 2022 for a term of seven years and the vessel was delivered to the Group in
June 2022.
Additions to right-of-use assets during the year 2024 were mainly attributable to three long-time inward time
charters where vessels have been delivered to the Group during the year.
(i) A Panamax of deadweight 81,842 metric tonnes, built in 2021 for a term of minimum twenty-two months
and the vessel was delivered to the Group in January 2024.
(ii) An Ultramax of deadweight 61,452 metric tonnes, built in year 2016 for a term of minimum twenty-two
months and the vessel was delivered to the Group in late April 2024.
(iii) An Ultramax of deadweight 61,473 metric tonnes, built in year 2016 for a term of minimum twenty months
and the vessel was delivered to the Group in May 2024.
At the reporting date, a reversal of impairment assessment of right-of-use assets was performed and a reversal
of impairment loss of US$4,591,000 (2023: impairment loss of US$5,693,000) was recognized as at 31 December
2024. The reversal of impairment loss on right-of-use assets is non-cash in nature and does not have impact on
the operating cash flows of the Group. The carrying amount of right-of-use assets mainly comprised of leased
vessels of US$29,967,000 (2023: US$21,095,000).
Details of the events that led to the recognition of the reversal of impairment loss, reversal of impairment indicators,
key assumptions applied in the value in use calculation and recoverable amounts of right-of-use assets and the
sensitivity analysis are provided in note 5 and note 10(b).
118
JINHUI SHIPPING AND TRANSPORTATION LIMITED
ANNUAL REPORT 2024
Notes to the Consolidated Financial Statements
Year ended 31 December 2024
20. INVESTMENT PROPERTIES
2024 | 2023 | |
US$’000 | US$’000 | |
At 1 January | 25,259 | 27,210 |
Reclassification from leasehold land and buildings | – | 383 |
Change in fair value | (4,386) | (2,334) |
At 31 December | 20,873 | 25,259 |
The Group’s investment properties were stated at fair value and comprised of premises and car parks held under
operating leases to earn rentals or held for capital appreciation, or both. These premises and car parks are held
under long term leases.
At the reporting date, the fair values of the Group’s investment properties were determined by Centaline Surveyors
Limited, an independent qualified professional valuer, on direct comparison approach on annually basis with
reference to comparable transactions available in the relevant locality. In estimating the fair value of investment
properties, the highest and best use of the properties is their current use.
The fair value measurement of these investment properties was categorized as Level 3 of the three-level fair
value hierarchy as defined under IFRS 13 and HKFRS 13 and there was no transfer among the three levels of
the fair value hierarchy during the year.
JINHUI SHIPPING AND TRANSPORTATION LIMITED
119
ANNUAL REPORT 2024
Notes to the Consolidated Financial Statements
Year ended 31 December 2024
20. INVESTMENT PROPERTIES
(Continued)
Details of the Group’s investment properties and information about the determination of the fair values of these
investment properties, in particular the valuation techniques, significant unobservable inputs and category of
the fair value hierarchy are disclosed as below:
| Fair value | Valuation | Significant | Range of | Relationship of significant | ||
| Properties | hierarchy | technique | unobservable inputs | unobservable inputs | unobservable inputs to fair value | |
2024 | 2023 | |||||
Premises | Level 3 | Direct | Market unit sale rate per | US$1,800 – | US$2,000 – | An increase in percentage of market |
| comparison | square feet, after taking | US$3,100 | US$3,500 | unit sale rate per square feet would | ||
| method | into account the age, | per square feet | per square feet | result in an increase in fair value | ||
| location and individual | measurement of the premises by | |||||
| factors such as size, view, | the same percentage increase, and | |||||
| floor level and quality of | vice versa | |||||
| building | ||||||
Car parks | Level 3 | Direct | Market unit sale rate per | US$369,000 – | US$381,000 – | An increase in percentage of market |
| comparison | car park | US$487,000 | US$769,000 | unit sale rate per car park would | ||
| method | per car park | per car park | result in an increase in fair value | |||
| measurement of the car park by | ||||||
| the same percentage increase, and | ||||||
| vice versa |
120
JINHUI SHIPPING AND TRANSPORTATION LIMITED
ANNUAL REPORT 2024
Notes to the Consolidated Financial Statements
Year ended 31 December 2024
21. FINANCIAL ASSETS AT FAIR VALUE THROUGH OCI
2024 | 2023 | |
US$’000 | US$’000 | |
| Unlisted equity investments | ||
| Co-investment in a property project | ||
At 1 January | 7,259 | 9,396 |
Change in fair value 1 | (2,311) | (2,137) |
4,948 | 7,259 | |
| Unlisted club membership | ||
At 1 January | 432 | 444 |
Change in fair value 2 | (14) | (12) |
418 | 432 | |
5,366 | 7,691 |
Notes:
1. Items that will not be reclassified to profit or loss.
2.
Items that may be reclassified subsequently to profit or loss.
JINHUI SHIPPING AND TRANSPORTATION LIMITED
121
ANNUAL REPORT 2024
Notes to the Consolidated Financial Statements
Year ended 31 December 2024
21. FINANCIAL ASSETS AT FAIR VALUE THROUGH OCI
(Continued)
Unlisted equity investments
In 2018, the Group entered into the co-investment documents to co-invest in a property project in Tower A of
One Financial Street Center, Jing’an Central Business District, Shanghai, the PRC (the “Co-investment”), pursuant
to which the Group is committed to acquire non-voting participating class A shares of Dual Bliss Limited of
US$10,000,000. Dual Bliss Limited is one of the investors of the Co-investment.
The Investment Manager of the Co-investment, Phoenix Property Investors Limited, reported an estimated loss of
US$2,311,000 (2023: US$2,137,000) on the fair value of equity instruments for the year ended 31 December 2024,
mainly arising from the financing costs incurred for the shareholder loans. The reported loss on the Co-investment
was recognized by the Group as a change in fair value of financial assets at fair value through OCI and was included
in other comprehensive loss in the consolidated statement of profit or loss and other comprehensive income.
As at the reporting date, the estimated carrying amount of the unlisted equity investments was US$4,948,000
(2023: US$7,259,000) whereas the loan receivable arise from Co-investment (note 23), together with the interest
accrued thereon was US$2,459,000 (2023: US$2,138,000). The Group will closely monitor the performance of the
Co-investment and will assess impairment allowances where appropriate.
There is no quoted market price in active market for unlisted equity investments. Transactions in such investments
do not occur on a regular basis. The Group uses its net asset value (representing the fair value of the equity
instruments reported by Phoenix Property Investors Limited, the Investment Manager) to determine its fair value
as the Group determined that this is the fair price at which shareholders subscribe and redeem the investments
or determined its fair value with generally accepted pricing models.
The fair value measurement of unlisted equity investments was categorized as Level 3 of the three-level fair
value hierarchy as defined under IFRS 13 and HKFRS 13 and there was no transfer among the three levels of
the fair value hierarchy during the year.
Unlisted club membership
The investment in club membership is stated at fair values which is determined directly by reference to published
price quotations in active markets and were categorized as Level 1 of the three-level fair value hierarchy as
defined under IFRS 13 and HKFRS 13 and there was no transfer among the three levels of the fair value hierarchy
during the year.
22. INVENTORIES
Inventories consisted of bunker stock and ship stores on the Group’s vessels. At the reporting date, these
inventories were carried at cost.
122
JINHUI SHIPPING AND TRANSPORTATION LIMITED
ANNUAL REPORT 2024
Notes to the Consolidated Financial Statements
Year ended 31 December 2024
23. LOAN RECEIVABLES
2024 | 2023 | |
US$’000 | US$’000 | |
At 1 January | 1,577 | 1,342 |
Gross new loan originated | – | 235 |
Provision of individual impairment | – | – |
Loan receivables, net of provision | 1,577 | 1,577 |
A wholly owned subsidiary of the Company (the “Co-Investor”) together with other co-investors signed an
unsecured subordinated shareholder loan agreement with Triple Smart Limited, a special purpose vehicle invested
by Dual Bliss Limited, for the purposes of funding the operating expenditure of the Co-investment (as mentioned
in note 21) in 2021. A maximum amount of US$1,577,000 (2023: US$1,577,000) was agreed and provided as at
the reporting date. The loan receivables are unsecured and denominated in United States Dollars and has no
repayment terms.
At the reporting date, the loan receivables have been reviewed by management to assess impairment allowances
which are based on the evaluation of current creditworthiness, collection statistics and the net asset value of the
Co-investment, and are not considered as impaired. The carrying amount of the loan receivables is considered
to be a reasonable approximation of its fair value.
24. TRADE AND OTHER RECEIVABLES
2024 | 2023 | |
US$’000 | US$’000 | |
Trade receivables | 1,093 | 1,000 |
Prepayments | 6,740 | 2,478 |
Rental and other deposits | 66 | 54 |
Tax recoverable | – | 21 |
Other receivables | 8,086 | 14,536 |
14,892 | 17,089 | |
15,985 | 18,089 |
JINHUI SHIPPING AND TRANSPORTATION LIMITED
123
ANNUAL REPORT 2024
Notes to the Consolidated Financial Statements
Year ended 31 December 2024
24. TRADE AND OTHER RECEIVABLES
(Continued)
Management has a credit policy in place for approving the credit limits to charterers and the exposures to credit
risk are monitored such that any outstanding trade receivables are reviewed and followed up on an ongoing basis.
Credit evaluations including assessing the customer’s creditworthiness and financial standing are performed on
customers requiring a credit over certain amount.
The credit terms given to charterers vary from 15 to 60 days according to the types of vessels’ employment.
The carrying amounts of trade and other receivables are considered to be a reasonable approximation of their
fair values due to their short term maturities.
The aging analysis of trade receivables (net of impairment loss) that are past due at the reporting date but not
individually considered to be impaired is included in the following analysis:
2024 | 2023 | |
US$’000 | US$’000 | |
Neither past due nor impaired | 216 | 238 |
| Past due but not impaired | ||
Within three months past due | 698 | 602 |
Over three months but within six months past due | 147 | 133 |
Over six months but within twelve months past due | 32 | 27 |
877 | 762 | |
1,093 | 1,000 |
124
JINHUI SHIPPING AND TRANSPORTATION LIMITED
ANNUAL REPORT 2024
Notes to the Consolidated Financial Statements
Year ended 31 December 2024
24. TRADE AND OTHER RECEIVABLES
(Continued)
The movement for impairment loss on trade and other receivables is as follows:
2024 | 2023 | |
US$’000 | US$’000 | |
At 1 January | 4,362 | 5,721 |
Impairment loss recognized | – | 405 |
Reversal of impairment loss | (1,848) | (1,679) |
Written off as uncollectible | (2,351) | (85) |
At 31 December | 163 | 4,362 |
For trade receivables, the Group applies a simplified approach in calculating ECL and recognizes a loss allowance
based on lifetime ECL at each reporting date. In calculating the ECL, the Group has established a provision matrix
that is based on its historical credit loss experience and external indicators, adjusted for forward-looking factors
specific to the debtors and the economic environment.
For other receivables, the Group measures the loss allowance for other receivables equal to 12-month ECL,
unless when there has been a significant increase in credit risk since initial recognition, the Group recognizes
lifetime ECL. The assessment of whether lifetime ECL should be recognized is based on significant increase in
the likelihood or risk of default occurring since initial recognition.
At the reporting date, the Group had determined trade receivables of US$163,000 (2023: US$4,362,000) as impaired.
No impairment loss on other receivables was provided as at 31 December 2024 and 2023.
JINHUI SHIPPING AND TRANSPORTATION LIMITED
125
ANNUAL REPORT 2024
Notes to the Consolidated Financial Statements
Year ended 31 December 2024
25. FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS
2024 | 2023 | |
US$’000 | US$’000 | |
| Held for trading | ||
Listed equity securities | 17,903 | 21,491 |
Listed debt securities | – | 577 |
Unlisted debt securities | – | 295 |
17,903 | 22,363 | |
| Designated as such upon initial recognition | ||
Investment funds | 2,702 | 1,731 |
20,605 | 24,094 |
At the reporting date, the fair value measurements of listed equity securities and listed debt securities were
determined by reference to their quoted bid prices in active markets and were categorized as Level 1 and the fair
value measurements of unlisted debt securities and investment funds represented the quoted market prices on
the underlying investments provided by financial institutions and were categorized as Level 2 of the three-level
fair value hierarchy as defined under IFRS 13 and HKFRS 13. There was no transfer among the three levels of
the fair value hierarchy during the year.
26. AMOUNT DUE TO HOLDING COMPANY
Amount due to holding company is unsecured, interest-free and repayable on demand. The carrying amount of
the amount due is considered to be a reasonable approximation of its fair value.
126
JINHUI SHIPPING AND TRANSPORTATION LIMITED
ANNUAL REPORT 2024
Notes to the Consolidated Financial Statements
Year ended 31 December 2024
27. SHARE CAPITAL
2024 | 2023 | |||
| Number of | Number of | |||
| ordinary shares | ordinary shares | |||
of US$0.05 each | Amount | of US$0.05 each | Amount | |
US$’000 | US$’000 | |||
| Authorized: | ||||
At 1 January and 31 December | 800,000,000 | 40,000 | 800,000,000 | 40,000 |
| Issued and fully paid: | ||||
At 1 January and 31 December | 109,258,943 | 5,463 | 109,258,943 | 5,463 |
At the reporting date, the Company had 2,018 (2023: 2,177) shareholders. Pursuant to the record registered on
the Norwegian Registry of Securities, the major shareholders holding more than 1% of the outstanding shares
at the reporting date were as follows:
| Percentage of | |
| Shareholder’s name | total issued capital |
Jinhui Holdings Company Limited* | 40.81% |
BNP Paribas* | 24.35% |
Nordnet Bank AB | 4.94% |
JPMorgan Chase Bank, N.A., London | 2.16% |
Citibank, N.A. | 1.96% |
Willumsen Thor Inge | 1.79% |
Kvam, Jan Arvid | 1.08% |
Finnbergåsen Eiendom AS | 1.04% |
| 78.13% |
* BNP Paribas held 16,252,990 shares of the Company in custodian for Jinhui Holdings Company Limited as at 31 December
2024 and hence Jinhui Holdings Company Limited had approximately 55.69% beneficial interests in the Company.
JINHUI SHIPPING AND TRANSPORTATION LIMITED
127
ANNUAL REPORT 2024
Notes to the Consolidated Financial Statements
Year ended 31 December 2024
28. RESERVES
Details of movements in reserves of the Group are set out in the “Consolidated Statement of Changes in Equity”
on page 78.
Share premium
The application of the share premium account is governed by Section 40(2) of the Companies Act 1981 of Bermuda.
Capital redemption reserve
Capital redemption reserve represents the par value of the repurchased and cancelled shares.
Contributed surplus
Contributed surplus will be dealt with in accordance with Section 54 of the Companies Act 1981 of Bermuda.
Revaluation reserve
Revaluation reserve represents the revaluation surplus between the carrying amount of the leasehold land and
building which is owner-occupied and the fair value of that property at the date of reclassification to investment
properties.
Reserve for financial assets at fair value through OCI
Reserve for financial assets at fair value through OCI represents the changes in fair value of financial assets
at fair value through OCI. As at 31 December 2024, the reserve for financial assets at fair value through OCI
consists of recycling and non-recycling portion amounting to income of US$80,000 (2023: US$94,000) and loss
of US$4,699,000 (2023: US$2,388,000) respectively.
128
JINHUI SHIPPING AND TRANSPORTATION LIMITED
ANNUAL REPORT 2024
Notes to the Consolidated Financial Statements
Year ended 31 December 2024
29. SECURED BANK LOANS
The maturity of secured bank loans is as follows:
2024 | 2023 | |
US$’000 | US$’000 | |
Within one year | 8,287 | 32,497 |
In the second year | 8,844 | 55,670 |
In the third to fifth year | 80,863 | – |
Total secured bank loans | 97,994 | 88,167 |
Less: Amount repayable within one year | (8,287) | (32,497) |
Amount repayable after one year | 89,707 | 55,670 |
During the year, the Group had drawn new secured bank loans of US$65,338,000 (2023: US$57,696,000) and
repaid US$55,511,000 (2023: US$52,367,000).
At the reporting date, secured bank loans represented revolving loans, term loans and property mortgage loans
that were denominated in Hong Kong Dollars. All secured bank loans were committed on floating rate basis
ranging from 6.57% to 6.59% (2023: 4.25% to 7.58%) per annum. These loans are secured by certain of the
Group’s assets as disclosed in note 35.
The carrying amount of the secured bank loans is considered to be a reasonable approximation of its fair value.
JINHUI SHIPPING AND TRANSPORTATION LIMITED
129
ANNUAL REPORT 2024
Notes to the Consolidated Financial Statements
Year ended 31 December 2024
30. TRADE AND OTHER PAYABLES
2024 | 2023 | |
US$’000 | US$’000 | |
Trade payables | 820 | 133 |
Accrued charges | 4,756 | 2,830 |
| Other payables | ||
Payables related to vessel running cost and ship operating expenses | 11,526 | 9,104 |
Hire receipt in advance | 2,733 | 2,607 |
Loan interest payables | 71 | 166 |
Accrued employee benefits | 1,952 | 1,203 |
Others | 172 | 178 |
16,454 | 13,258 | |
22,030 | 16,221 |
The carrying amounts of trade and other payables are considered to be a reasonable approximation of their fair
values.
130
JINHUI SHIPPING AND TRANSPORTATION LIMITED
ANNUAL REPORT 2024
Notes to the Consolidated Financial Statements
Year ended 31 December 2024
31. NOTES TO THE CONSOLIDATED STATEMENT OF CASH FLOWS
2024 | 2023 | |
US$’000 | US$’000 | |
Profit (Loss) before taxation | 24,005 | (55,056) |
| Adjustments for: | ||
Depreciation and amortization | 44,189 | 36,994 |
Interest income | (834) | (819) |
Interest expenses | 6,092 | 6,234 |
Dividend income | (1,173) | (1,171) |
Impairment loss (Reversal of impairment loss) on owned vessels and right-of-use assets | (6,533) | 19,704 |
Reversal of impairment loss on trade and other receivables, net | (1,848) | (1,274) |
Change in fair value of investment properties | 4,386 | 2,334 |
Gain on disposal of property, plant and equipment, other than owned vessels | (15) | – |
Loss on write-off of property, plant and equipment | 1 | 3 |
Net loss on disposal of assets held for sale | 9 | – |
Net loss on disposal of owned vessels | – | 880 |
Impairment loss on assets held for sale | – | 1,288 |
Cash generated from operations before changes in working capital | 68,279 | 9,117 |
| Changes in working capital: | ||
Inventories | (1,326) | 1,610 |
Loan receivables | – | (235) |
Trade and other receivables | 4,229 | 3,582 |
Financial assets at fair value through profit or loss | 3,489 | 5,133 |
Trade and other payables | 5,904 | 1,395 |
Amount due to holding company | 7 | 9 |
Changes in working capital | 12,303 | 11,494 |
Cash generated from operations | 80,582 | 20,611 |
JINHUI SHIPPING AND TRANSPORTATION LIMITED
131
ANNUAL REPORT 2024
Notes to the Consolidated Financial Statements
Year ended 31 December 2024
32. RECONCILIATION OF LIABILITIES ARISING FROM FINANCING ACTIVITIES
The changes in the Group’s liabilities arising from financing activities are classified as follows:
| Vessel | Other | |||
| mortgage | secured | Lease | ||
| loans | bank loans | liabilities | Total | |
US$’000 | US$’000 | US$’000 | US$’000 | |
At 1 January 2023 | 26,469 | 56,369 | 29,337 | 112,175 |
| Cash flows: | ||||
Drawdown of loans | – | 57,696 | – | 57,696 |
Repayment of loans | (9,964) | (42,403) | – | (52,367) |
Repayment of lease liabilities | – | – | (4,879) | (4,879) |
| Non-cash: | ||||
Lease remeasurement | – | – | 3,257 | 3,257 |
Interest expense on lease liabilities | – | – | 1,424 | 1,424 |
At 31 December 2023 | 16,505 | 71,662 | 29,139 | 117,306 |
At 1 January 2024 | 16,505 | 71,662 | 29,139 | 117,306 |
| Cash flows: | ||||
Drawdown of loans | – | 65,338 | – | 65,338 |
Repayment of loans | (16,505) | (39,006) | – | (55,511) |
Repayment of lease liabilities | – | – | (17,426) | (17,426) |
| Non-cash: | ||||
New lease | – | – | 27,881 | 27,881 |
Lease remeasurement | – | – | (8,526) | (8,526) |
Interest expense on lease liabilities | – | – | 1,317 | 1,317 |
At 31 December 2024 | – | 97,994 | 32,385 | 130,379 |
132
JINHUI SHIPPING AND TRANSPORTATION LIMITED
ANNUAL REPORT 2024
Notes to the Consolidated Financial Statements
Year ended 31 December 2024
33. DEFERRED TAXATION
At the reporting date, deferred tax assets have not been recognized in respect of tax losses of US$358,038,000
(2023: US$341,631,000).
Deferred tax assets have not been recognized in respect of tax losses because it is not probable that future
taxable profit will be available against which the unused tax losses can be utilized. Such tax losses do not expire
under current tax legislation.
34. FUTURE OPERATING LEASE ARRANGEMENTS
(a) Where the Group is the lessee
At the reporting date, the Group had future minimum lease payment which was payable within one
year in amount of US$7,116,000 under non-cancellable operating leases on time charter hire. No such
obligations were reported as at 2023.
(b)
Where the Group is the lessor
At the reporting date, the Group had future minimum lease income receivables under non-cancellable
operating leases as follows:
2024 | 2023 | |
US$’000 | US$’000 | |
| Within one year: | ||
Premises | 39 | 51 |
Owned vessels | 45,877 | 8,375 |
Chartered-in vessels | 5,417 | 10,168 |
51,333 | 18,594 | |
| In the second to fifth year: | ||
Owned vessels | 63,269 | – |
Chartered-in vessels | 6,415 | – |
69,684 | – | |
121,017 | 18,594 |
JINHUI SHIPPING AND TRANSPORTATION LIMITED
133
ANNUAL REPORT 2024
Notes to the Consolidated Financial Statements
Year ended 31 December 2024
35. PLEDGE OF ASSETS
At the reporting date, the Group had certain credit facilities which were secured by the followings:
(a) Legal charges on the Group’s property, plant and equipment (note 18) with an aggregate net book value
of US$252,113,000 (2023: US$220,591,000) and investment properties (note 20) with an aggregate carrying
amount of US$17,301,000 (2023: US$20,653,000);
(b) Financial assets at fair value through profit or loss of US$6,994,000 (2023: US$12,564,000);
(c) Deposits totaling US$329,000 (2023: US$359,000) of the Group placed with banks; and
(d) Assignment of fifteen (2023: fourteen) subsidiaries’ income in favour of banks.
In addition, no (2023: six) shares of ship owning subsidiaries were pledged to banks for vessel mortgage loans.
134
JINHUI SHIPPING AND TRANSPORTATION LIMITED
ANNUAL REPORT 2024
Notes to the Consolidated Financial Statements
Year ended 31 December 2024
36. CAPITAL EXPENDITURE COMMITMENTS
Capital expenditures
During the year, the Group incurred capital expenditure of US$94,698,000 (2023: US$24,220,000) on additions
of motor vessels and capitalized drydockings and US$397,000 (2023: US$113,000) on other property, plant and
equipment.
Capital commitments
During the year, the Group entered into two shipbuilding contracts for the construction of two newbuildings,
each at a consideration of US$34,000,000 of deadweight 63,500 metric tonnes, to be delivered in 2026 and 2027
respectively. As at the reporting date, the capital expenditure commitments contracted by the Group but not
provided for was US$68,000,000 (2023: nil).
The Group further entered into a charterparty in respect of leasing of a Capesize of deadweight 207,672 metric
tonnes, built in year 2017, for a term of minimum thirty-three months; the vessel was delivered to the Group in
January 2025. The right-of-use assets of approximately US$26,640,000 will be recognized on the date of delivery
of the vessel. As at the reporting date, the capital expenditure commitments contracted by the Group but not
provided for was approximately US$26,640,000 (2023: nil).
During the year, the Group entered into an agreement for the acquisition of an Ultramax of deadweight 61,441
metric tonnes, built in year 2017, at a purchase price of US$24,520,000, was delivered to the Group in January 2025.
As at the reporting date, a deposit of US$2,452,000 for the vessel was paid, the capital expenditure commitments
contracted by the Group but not provided for, net of deposits paid, was approximately US$22,068,000 (2023: nil).
In 2018, the Group entered into the co-investment documents to co-invest in a property project in Tower A of
One Financial Street Center, Jing’an Central Business District, Shanghai, the PRC, pursuant to which the Group
is committed to acquire non-voting participating class A shares of Dual Bliss Limited of US$10,000,000. Dual
Bliss Limited is one of the investors of the Co-investment. As at the reporting date, the capital expenditure
commitments contracted by the Group but not provided for was US$372,000 (2023: US$372,000).
As at the reporting date, the total amount of capital expenditure commitments contracted by the Group but not
provided for, net of deposits paid, was US$117,080,000 (2023: US$372,000).
Save as disclosed above, there was no other significant capital expenditure commitment contracted by the Group
but not provided for as at the reporting date.
JINHUI SHIPPING AND TRANSPORTATION LIMITED
135
ANNUAL REPORT 2024
Notes to the Consolidated Financial Statements
Year ended 31 December 2024
37. RELATED PARTY TRANSACTIONS
Save as disclosed elsewhere in these consolidated financial statements, during the year, the Group had the
following related party transactions:
(a) Receipt of an administrative fee of US$253,000 (2023: US$252,000) from Jinhui Holdings;
(b) Lease payment of US$17,000 (2023: US$17,000) under a short term lease to a fellow subsidiary; and
(c) Compensation of key management personnel as follows:
2024 | 2023 | |
US$’000 | US$’000 | |
Salaries and other benefits | 9,265 | 8,692 |
Contributions to retirement benefits schemes | 446 | 446 |
9,711 | 9,138 |
Other payables included accrued employee benefits payables to directors and executive personnel of
US$1,463,000 (2023: US$899,000). There is no other balance or transaction related to connected party or
any director and executive personnel and substantial shareholder of the Group.
136
JINHUI SHIPPING AND TRANSPORTATION LIMITED
ANNUAL REPORT 2024
Notes to the Consolidated Financial Statements
Year ended 31 December 2024
38. EVENTS AFTER THE REPORTING DATE
Regarding the legal proceedings between the subsidiaries of the Company and Parakou Shipping Pte Limited
(“Parakou Shipping”) in London and Hong Kong in relation to the non-performance of a charterparty, Galsworthy
Limited, a subsidiary of the Company, and Parakou Shipping had reached an agreement to settle the legal action,
and the Group received a sum of SGD27.6 million, a total of approximately US$20.3 million in January 2025.
39. FINANCIAL RISK MANAGEMENT AND POLICIES
The Group is exposed to financial risks through its use of financial instruments which arise from its business
activities. The financial risks include market risk (mainly comprise of interest rate risk, foreign currency risk and
price risk), credit risk and liquidity risk. The management manages and monitors the financial risk exposures to
ensure appropriate measures are implemented on a timely and effective manner. These policies have been in
place for years and are considered to be effective.
JINHUI SHIPPING AND TRANSPORTATION LIMITED
137
ANNUAL REPORT 2024
Notes to the Consolidated Financial Statements
Year ended 31 December 2024
39. FINANCIAL RISK MANAGEMENT AND POLICIES
(Continued)
2024 | 2023 | |
US$’000 | US$’000 | |
| Financial assets | ||
| Financial assets at fair value through OCI | ||
Unlisted equity investments | 4,948 | 7,259 |
Unlisted club membership | 418 | 432 |
5,366 | 7,691 | |
| Financial assets at fair value through profit or loss | ||
Listed equity securities | 17,903 | 21,491 |
Listed debt securities | – | 577 |
Unlisted debt securities | – | 295 |
Investment funds | 2,702 | 1,731 |
20,605 | 24,094 | |
| Financial assets at amortized cost | ||
Trade and other receivables | 9,245 | 15,590 |
Loan receivables | 1,577 | 1,577 |
Pledged deposits | 329 | 359 |
Bank balances and cash | 23,005 | 40,250 |
34,156 | 57,776 | |
60,127 | 89,561 | |
| Financial liabilities | ||
| Financial liabilities at amortized cost | ||
Trade and other payables | 19,293 | 13,606 |
Amount due to holding company | 183 | 176 |
Secured bank loans | 97,994 | 88,167 |
Lease liabilities | 32,385 | 29,139 |
149,855 | 131,088 |
138
JINHUI SHIPPING AND TRANSPORTATION LIMITED
ANNUAL REPORT 2024
Notes to the Consolidated Financial Statements
Year ended 31 December 2024
39. FINANCIAL RISK MANAGEMENT AND POLICIES
(Continued)
JINHUI SHIPPING AND TRANSPORTATION LIMITED
139
ANNUAL REPORT 2024
Notes to the Consolidated Financial Statements
Year ended 31 December 2024
39. FINANCIAL RISK MANAGEMENT AND POLICIES
(Continued)
140
JINHUI SHIPPING AND TRANSPORTATION LIMITED
ANNUAL REPORT 2024
Notes to the Consolidated Financial Statements
Year ended 31 December 2024
39. FINANCIAL RISK MANAGEMENT AND POLICIES
(Continued)
JINHUI SHIPPING AND TRANSPORTATION LIMITED
141
ANNUAL REPORT 2024
Notes to the Consolidated Financial Statements
Year ended 31 December 2024
39. FINANCIAL RISK MANAGEMENT AND POLICIES
(Continued)
142
JINHUI SHIPPING AND TRANSPORTATION LIMITED
ANNUAL REPORT 2024
Notes to the Consolidated Financial Statements
Year ended 31 December 2024
39. FINANCIAL RISK MANAGEMENT AND POLICIES
(Continued)
(e) Credit risk
(Continued)
Exposures to credit risk and the Group’s risk management policies
(Continued)
| Over | Over | |||||
| 3 months | 6 months | |||||
| Within | but within | but within | Over | |||
| 3 months | 6 months | 12 months | 12 months | |||
| Current | past due | past due | past due | past due | Total | |
US$’000 | US$’000 | US$’000 | US$’000 | US$’000 | US$’000 | |
| 2024 | ||||||
| Trade receivables | ||||||
– gross carrying amount | 216 | 698 | 147 | 32 | 163 | 1,256 |
Lifetime ECL | – | – | – | – | 163 | 163 |
ECL rate | 0% | 0% | 0% | 0% | 100% | |
| 2023 | ||||||
| Trade receivables | ||||||
– gross carrying amount | 238 | 602 | 133 | 27 | 4,362 | 5,362 |
Lifetime ECL | – | – | – | – | 4,362 | 4,362 |
ECL rate | 0% | 0% | 0% | 0% | 100% |
JINHUI SHIPPING AND TRANSPORTATION LIMITED
143
ANNUAL REPORT 2024
Notes to the Consolidated Financial Statements
Year ended 31 December 2024
39. FINANCIAL RISK MANAGEMENT AND POLICIES
(Continued)
(e) Credit risk
(Continued)
Exposures to credit risk and the Group’s risk management policies
(Continued)
144
JINHUI SHIPPING AND TRANSPORTATION LIMITED
ANNUAL REPORT 2024
Notes to the Consolidated Financial Statements
Year ended 31 December 2024
39. FINANCIAL RISK MANAGEMENT AND POLICIES
(Continued)
| Total | ||||||
| Within | In the | In the third | After the | undiscounted | Carrying | |
| one year | second year | to fifth year | fifth year | amount | amount | |
US$’000 | US$’000 | US$’000 | US$’000 | US$’000 | US$’000 | |
| 2024 | ||||||
Trade and other payables | 19,293 | – | – | – | 19,293 | 19,293 |
Amount due to holding company | 183 | – | – | – | 183 | 183 |
Secured bank loans | 14,486 | 14,485 | 85,532 | – | 114,503 | 97,994 |
Lease liabilities | 19,873 | 5,485 | 9,088 | – | 34,446 | 32,385 |
53,835 | 19,970 | 94,620 | – | 168,425 | 149,855 | |
| 2023 | ||||||
Trade and other payables | 13,606 | – | – | – | 13,606 | 13,606 |
Amount due to holding company | 176 | – | – | – | 176 | 176 |
Secured bank loans | 38,443 | 59,035 | – | – | 97,478 | 88,167 |
Lease liabilities | 6,218 | 6,201 | 18,621 | 1,529 | 32,569 | 29,139 |
58,443 | 65,236 | 18,621 | 1,529 | 143,829 | 131,088 |
JINHUI SHIPPING AND TRANSPORTATION LIMITED
145
ANNUAL REPORT 2024
Notes to the Consolidated Financial Statements
Year ended 31 December 2024
40. CAPITAL MANAGEMENT
The Group’s capital management objectives are:
(a) to ensure the Group’s ability to continue as a going concern;
(b) to provide adequate returns for shareholders;
(c) to maintain an optimal capital structure to reduce the cost of capital; and
(d) to support the Group’s stability and sustainable growth.
The Group’s capital management strategies are to rely on internal resources and interest-bearing borrowings to
finance the capital expenditures. The management may make adjustments to its capital structure in the light of
changes in economic conditions, recent market values of the Group’s assets as well as the risk characteristics
of the underlying assets through adjusting the amount of dividends paid to shareholders, issuing new shares
or selling assets to reduce debts.
The Group monitors capital structure on the basis of the gearing ratio. This ratio is calculated as net debts (total
interest-bearing debts net of equity and debt securities, bank balances and cash) over total equity. The gearing
ratio of the Group at the reporting date is calculated as follows:
2024 | 2023 | |
US$’000 | US$’000 | |
Secured bank loans repayable within one year | 8,287 | 32,497 |
Secured bank loans repayable after one year | 89,707 | 55,670 |
Total secured bank loans | 97,994 | 88,167 |
Less: Equity and debt securities | (17,903) | (22,363) |
Less: Bank balances and cash | (23,005) | (40,250) |
Net debts | 57,086 | 25,554 |
Total equity | 371,610 | 349,930 |
Gearing ratio | 15% | 7% |
146
JINHUI SHIPPING AND TRANSPORTATION LIMITED
ANNUAL REPORT 2024
Notes to the Consolidated Financial Statements
Year ended 31 December 2024
41. STATEMENT OF FINANCIAL POSITION AND STATEMENT OF CHANGES IN EQUITY OF
THE COMPANY
(a) Statement of financial position of the Company
2024 2023
US$’000 US$’000
ASSETS
Non-current assets
Investment in subsidiaries 8,723 8,723
Current assets
Amount due from subsidiaries 318,606 278,322
Bank balances and cash 33 50
318,639 278,372
Total assets 327,362 287,095
EQUITY AND LIABILITIES
Capital and reserves
Issued capital 5,463 5,463
Reserves 320,395 280,861
Total equity 325,858 286,324
Current liabilities
Other payables 818 90
Amount due to subsidiaries 503 505
Amount due to holding company 183 176
1,504 771
Total equity and liabilities 327,362 287,095
JINHUI SHIPPING AND TRANSPORTATION LIMITED
147
ANNUAL REPORT 2024
Notes to the Consolidated Financial Statements
Year ended 31 December 2024
41. STATEMENT OF FINANCIAL POSITION AND STATEMENT OF CHANGES IN EQUITY OF
THE COMPANY
(Continued)
(b) Statement of changes in equity of the Company
Issued
capital
Share
premium
Capital
redemption
reserve
Contributed
surplus
Retained
profits
Total
equity
US$’000 US$’000 US$’000 US$’000 US$’000 US$’000
At 1 January 2023 5,463 95,585 719 16,297 196,747 314,811
Loss and total comprehensive
loss for the year – – – – (24,117) (24,117)
2022 final dividend paid – – – – (4,370) (4,370)
At 31 December 2023 5,463 95,585 719 16,297 168,260 286,324
At 1 January 2024 5,463 95,585 719 16,297 168,260 286,324
Profit and total comprehensive
income for the year – – – – 39,534 39,534
At 31 December 2024 5,463 95,585 719 16,297 207,794 325,858
148
JINHUI SHIPPING AND TRANSPORTATION LIMITED
ANNUAL REPORT 2024
Notes to the Consolidated Financial Statements
Year ended 31 December 2024
42. PRINCIPAL SUBSIDIARIES
| Issued and | Attributable | Attributable | ||||
| paid-up capital / | equity interest | equity interest | Principal | Place of | ||
| Name | registered capital | at 31/12/2024 | at 31/12/2023 | activities | operation | |
| Incorporated in Bermuda | ||||||
# | Jinhui MetCoke Limited | 12,000 ordinary shares | 100% | 100% | Investment | Worldwide |
| of US$1 each | holding | |||||
| Incorporated in the British Virgin Islands | ||||||
Advance Rich Limited | 1 share | 100% | 100% | Investment | Worldwide | |
| of US$1 each | ||||||
Atwell Enterprises Limited | 1 share | 100% | 100% | Ship chartering | Worldwide | |
| of US$1 each | ||||||
Elstead Limited | 100 shares | 100% | 100% | Ship chartering | Worldwide | |
| of US$1 each | ||||||
# | Jin Hui Shipping Inc. | 50,000 shares | 100% | 100% | Investment | Worldwide |
| of US$1 each | holding | |||||
# | Jinhui Investments Limited | 1 share | 100% | 100% | Investment | Worldwide |
| of US$1 each | holding | |||||
Timeplus Limited | 1,000 shares | 100% | 100% | Ship chartering | Worldwide | |
| of US$1 each | ||||||
Wokefield Enterprises Limited | 1 share | 100% | 100% | Ship chartering | Worldwide | |
| of US$1 each |
JINHUI SHIPPING AND TRANSPORTATION LIMITED
149
ANNUAL REPORT 2024
Notes to the Consolidated Financial Statements
Year ended 31 December 2024
| Issued and | Attributable | Attributable | |||
| paid-up capital / | equity interest | equity interest | Principal | Place of | |
| Name | registered capital | at 31/12/2024 | at 31/12/2023 | activities | operation |
| Incorporated in Hong Kong | |||||
Best Flame International Limited | HK$2 divided into | 100% | 100% | Property | Hong Kong |
| 2 ordinary shares | investment | ||||
Fair Fait International Limited | HK$2 divided into | 100% | 100% | Property | Hong Kong |
| 2 ordinary shares | investment | ||||
Goldbeam International Limited | HK$5,000,000 | 100% | 100% | Ship | Hong Kong |
| divided into | management | ||||
| 5,000,000 | services, | ||||
| ordinary shares | shipping | ||||
| agent and | |||||
| investment | |||||
Good Sunshine Limited | HK$1 divided into | 100% | 100% | Property | Hong Kong |
| 1 ordinary share | investment | ||||
| Jinhui Finance (Hong Kong) | HK$10,000 divided into | 100% | 100% | Money | Hong Kong |
| Limited | 10,000 ordinary shares | lending | |||
Leadford Industries Limited | HK$2 divided into | 100% | 100% | Property | Hong Kong |
| 2 ordinary shares | investment | ||||
Monocosmic Limited | HK$10,000 divided into | 100% | 100% | Property | Hong Kong |
| 10,000 ordinary shares | investment | ||||
| Noble Talent Development | HK$1 divided into | 100% | 100% | Property | Hong Kong |
| Limited | 1 ordinary share | investment | |||
Ringo Star Company Limited | HK$2 divided into | 100% | 100% | Property | Hong Kong |
| 2 ordinary shares | investment | ||||
Union Gold Limited | HK$1 divided into | 100% | 100% | Property | Hong Kong |
| 1 ordinary share | investment |
42. PRINCIPAL SUBSIDIARIES
(Continued)
150
JINHUI SHIPPING AND TRANSPORTATION LIMITED
ANNUAL REPORT 2024
Notes to the Consolidated Financial Statements
Year ended 31 December 2024
| Issued and | Attributable | Attributable | |||
| paid-up capital / | equity interest | equity interest | Principal | Place of | |
| Name | registered capital | at 31/12/2024 | at 31/12/2023 | activities | operation |
| Incorporated in the Republic of Liberia | |||||
Galsworthy Limited | 1 registered share | 100% | 100% | Ship chartering | Worldwide |
| of US$1 each | |||||
Goldbeam Shipping Inc. | 100 registered shares | 100% | 100% | Ship chartering | Worldwide |
| of US$1 each | |||||
Paxton Enterprises Limited | 500 registered shares | 100% | 100% | Ship chartering | Worldwide |
| of US$1 each | |||||
Sompol Trading Limited | 10 registered shares | 100% | 100% | Ship chartering | Worldwide |
| of US$1 each | |||||
Wonder Enterprises Ltd. | 500 registered shares | 100% | 100% | Ship chartering | Worldwide |
| of US$1 each | |||||
| Incorporated in the Republic of Panama | |||||
Jinan Marine Inc. | 2 common shares | 100% | 100% | Ship owning | Worldwide |
| of US$1 each | |||||
Jinao Marine Inc. | 2 common shares | 100% | 100% | Ship owning | Worldwide |
| of US$1 each | |||||
Jinbi Marine Inc. | 2 common shares | 100% | 100% | Ship owning | Worldwide |
| of US$1 each | |||||
Jinchao Marine Inc. | 2 common shares | 100% | 100% | Ship owning | Worldwide |
| of US$1 each | |||||
Jincheng Maritime Inc. | 2 common shares | 100% | 100% | Ship owning | Worldwide |
| of US$1 each | |||||
Jingang Marine Inc. | 2 common shares | 100% | 100% | Ship owning | Worldwide |
| of US$1 each |
42. PRINCIPAL SUBSIDIARIES
(Continued)
JINHUI SHIPPING AND TRANSPORTATION LIMITED
151
ANNUAL REPORT 2024
Notes to the Consolidated Financial Statements
Year ended 31 December 2024
| Issued and | Attributable | Attributable | |||
| paid-up capital / | equity interest | equity interest | Principal | Place of | |
| Name | registered capital | at 31/12/2024 | at 31/12/2023 | activities | operation |
Incorporated in the Republic of Panama (Continued) | |||||
Jinheng Marine Inc. | 2 common shares | 100% | 100% | Ship owning | Worldwide |
| of US$1 each | |||||
Jinhong Marine Inc. | 2 common shares | 100% | 100% | Ship owning | Worldwide |
| of US$1 each | |||||
Jinhui Marine Inc. | 2 common shares | 100% | 100% | Ship chartering | Worldwide |
| of US$1 each | |||||
Jinji Marine Inc. | 2 common shares | 100% | 100% | Ship owning | Worldwide |
| of US$1 each | |||||
Jinjun Marine Inc. | 2 common shares | 100% | 100% | Ship owning | Worldwide |
| of US$1 each | |||||
Jinli Marine Inc. | 2 common shares | 100% | 100% | Ship owning | Worldwide |
| of US$1 each | |||||
Jinmao Marine Inc. | 2 common shares | 100% | 100% | Ship owning | Worldwide |
| of US$1 each | |||||
Jinmei Marine Inc. | 2 registered shares | 100% | 100% | Ship owning | Worldwide |
| of US$1 each | |||||
Jinping Marine Inc. | 2 common shares | 100% | 100% | Ship owning | Worldwide |
| of US$1 each | |||||
Jinrong Marine Inc. | 2 common shares | 100% | 100% | Ship owning | Worldwide |
| of US$1 each | |||||
Jinrui Marine Inc. | 2 common shares | 100% | 100% | Ship owning | Worldwide |
| of US$1 each |
42. PRINCIPAL SUBSIDIARIES
(Continued)
152
JINHUI SHIPPING AND TRANSPORTATION LIMITED
ANNUAL REPORT 2024
Notes to the Consolidated Financial Statements
Year ended 31 December 2024
| Issued and | Attributable | Attributable | |||
| paid-up capital / | equity interest | equity interest | Principal | Place of | |
| Name | registered capital | at 31/12/2024 | at 31/12/2023 | activities | operation |
Incorporated in the Republic of Panama (Continued) | |||||
Jinshun Shipping Inc. | 2 common shares | 100% | 100% | Ship owning | Worldwide |
| of US$1 each | |||||
Jinsui Marine Inc. | 2 common shares | 100% | 100% | Ship owning | Worldwide |
| of US$1 each | |||||
Jintong Marine Inc. | 2 common shares | 100% | 100% | Ship owning | Worldwide |
| of US$1 each | |||||
Jinwan Marine Inc. | 2 common shares | 100% | 100% | Ship owning | Worldwide |
| of US$1 each | |||||
Jinxiang Marine Inc. | 2 common shares | 100% | 100% | Ship owning | Worldwide |
| of US$1 each | |||||
Jinxing Marine Inc. | 2 common shares | 100% | 100% | Ship owning | Worldwide |
| of US$1 each | |||||
Jinyi Shipping Inc. | 2 common shares | 100% | 100% | Ship owning | Worldwide |
| of US$1 each | |||||
Jinyuan Marine Inc. | 2 common shares | 100% | 100% | Ship owning | Worldwide |
| of US$1 each | |||||
Jinyue Marine Inc. | 2 common shares | 100% | 100% | Ship owning | Worldwide |
| of US$1 each | |||||
Rimpacific Navigation Inc. | 2 common shares | 100% | 100% | Ship chartering | Worldwide |
| of US$1 each |
# These are direct subsidiaries of the Company. All other companies are indirect subsidiaries.
42. PRINCIPAL SUBSIDIARIES
(Continued)
JINHUI SHIPPING AND TRANSPORTATION LIMITED
153
ANNUAL REPORT 2024
Glossary
This glossary contains the abbreviations and main terms used in the 2024 annual report.
Abbreviations / Main terms Meanings in the annual report
Board Board of Directors;
BWTS Ballast Water Treatment System;
Chairman Chairman of the Board;
China / PRC The People’s Republic of China;
CII Carbon Intensity Indicator;
Company / Jinhui Shipping Jinhui Shipping and Transportation Limited, a limited liability company
incorporated in Bermuda and an approximately 55.69% owned subsidiary of
Jinhui Holdings as at 31 December 2024, whose shares are listed on the Oslo
Stock Exchange (Oslo Børs) (stock code: JIN);
Company Code
A set of code adopted by the Company, which sets out the corporate standards
and practices used by the Group;
Director(s) Director(s) of the Company;
DWT Deadweight tonnage;
ECL Expected credit loss;
EEDI Energy Efficiency Design Index;
EEOI Energy Efficiency Operational Indicator;
EEXI Energy Efficiency Existing Ship Index:
ETS Emissions Trading System;
Euronext Securities Oslo the Norwegian Central Securities Depository, formerly known as Verdipapirsentralen
ASA (VPS);
154
JINHUI SHIPPING AND TRANSPORTATION LIMITED
ANNUAL REPORT 2024
Glossary
Abbreviations / Main terms Meanings in the annual report
GHG Greenhouse Gas;
Group Company and its subsidiaries;
HKAS Hong Kong Accounting Standards;
HKFRS Hong Kong Financial Reporting Standards;
HKICPA Hong Kong Institute of Certified Public Accountants;
Hong Kong The Hong Kong Special Administrative Region of the PRC;
IAS International Accounting Standards;
IASB The International Accounting Standards Board;
IFRS IFRS Accounting Standards;
IMO The International Maritime Organization;
ISM Code The International Safety Management Code;
ISPS Code The International Ship and Port Facility Security Code;
Jinhui Holdings Jinhui Holdings Company Limited, a company incorporated in Hong Kong,
whose shares are listed on the Hong Kong Stock Exchange (stock code: 137);
LSP Long service payment;
MARPOL The International Convention for the Prevention of Pollution from Ships;
MPF Mandatory provident fund;
Nordea Bank Nordea Bank Abp, Filial i Norge;
Norwegian Code of Practice The Norwegian Code of Practice for Corporate Governance issued by the
Norwegian Corporate Governance Board;
JINHUI SHIPPING AND TRANSPORTATION LIMITED
155
ANNUAL REPORT 2024
Glossary
Abbreviations / Main terms Meanings in the annual report
Shareholder(s) Shareholder(s) of the Company;
SEEMP Ship Energy Efficiency Management Plan;
STCW Convention The International Convention on Standards of Training, Certification and
Watchkeeping for Seafarers;
VAT Value added tax;
HK$ Hong Kong Dollars, the lawful currency of Hong Kong;
SGD Singapore Dollars, the lawful currency of Singapore; and
US$ United States Dollars, the lawful currency of the United States of America.
JINHUI SHIPPING
AND TRANSPORTATION LIMITED
2024
ANNUAL REPORT