Jes International 1h09 Results

JES 1H09 Results Press Release

SGX-LISTED SHIPBUILDER JES REVERSES FROM LOSSES TO POST SEQUENTIAL RISE IN 2Q2009 NET PROFIT OF RMB 7.14 MILLION DESPITE CHALLENGING OPERATING ENVIRONMENT • 2Q09 y-o-y revenue rises 6% to RMB 464.7 million from RMB 438.3 million in 2Q08 on fresh contributions from the construction of two oil tankers • Recorded net profit attributable to equity holders of RMB7.14 in 2Q2009 million, reversing losses of RMB 52.6 million in 1Q2009 • Successfully delivered three new vessels in 1H09; confirmed orders for 32 new vessels will be progressively delivered from 2009 to 2012 Singapore, 13 August 2009 – JES International Holdings Limited (“JES” or the “Group”) (JES

国际控股有限公司), a major PRC shipbuilding group capable of producing different

types of vessels, announced today that its net attributable profit for the April-June quarter (“2Q09”) rose to RMB 7.14 million, reversing a loss of RMB 52.6 million in 1Q09 despite a challenging operating environment. Revenue for the period increased 115.6% to RMB 464.7 million from RMB 215.5 million sequentially over the comparative quarters, as the Singapore Exchange Mainboardlisted shipbuilder commenced construction of two 80,500 deadweight tonnes (“DWT”) oil tankers for Pertamina of Indonesia. 2Q09 revenue from European customers such as Greece and Croatia continued to dominate growth, contributing 56.3%, followed by other Asian countries such as South Korea, which contributed 41.7%. In terms of product types, the higher-value bulk carriers contributed 88.7% and oil tankers contributed 9.9%. In the first half of FY2009 (“1H09”), JES delivered one 30,000 DWT, one 53,800 DWT and one 80,300 DWT bulk carrier.

Gross profit increased 23.8% to RMB 25.1 million in 2Q09 from RMB 20.3 million in 1Q09. Gross profit recorded in 2Q09 would have been higher if not for higher production costs, partly attributed to higher cost of materials purchased in the previous year. Other operating expenses decreased to RMB 5.2 million in 2Q09 from RMB 50.9 million in 1Q2009 mainly due to the decrease in net foreign exchange losses. On a half-year basis, JES recorded a net loss of RMB 45.5 million on revenue of RMB 680.2 million for 1H09, compared to a net profit of RMB 52.2 million and revenue of RMB642.0 million in 1H08. This was due to higher costs of production and raw materials. Earnings per share was 0.61 RMB cent for 2Q09 (based on weighted average share base of 1,166,028,000) compared to earnings per share of 1.90 RMB cents for 2Q08 (based on weighted average share base of 1,166,028,000). Net tangible assets per share fell to 142.37 RMB cents as at 30 June 2009 (based on a share base of 1,166,028,000) from 147.03 RMB cents as at 31 December 2008 (based on share base of 1,166,028,000). Despite operating in a challenging environment, the Group will continue to gain leverage from its strong cash position to ensure sustainable development of the Group. As at 30 June 2009, the Group remained in a healthy net cash position with cash and cash equivalents of RMB632.1 million (approximately S$134.3 million), short term bank borrowings of RMB20.0 million and no long term borrowings. Commenting on the Group’s performance, JES Chairman and Chief Executive Officer Mr. Jin Xin said, “Weaknesses in the global financial markets and volatility in key global shipping indices for the first half of FY2009 will continue to impact the near-term performance of the shipping industry. While the PRC domestic economy has shown preliminary signs of improvement, conditions for a recovery of the shipping sector remain unclear. This has caused ship owners to be cautious about committing to new orders in the near term. However, the Group remains confident about the long-term prospects of the industry and has set up offices in Hong Kong and Singapore to augment our existing sales and marketing efforts beyond the PRC as well as to keep the Group abreast of the latest developments in the shipbuilding industry.”

“To further enhance the performance of the Group, we will actively carry out cost containment measures such as the bulk buying of raw materials to mitigate against rising prices. Revenue from the new and significantly larger yard is also expected to accrue following its completion which is expected at the end of FY2009,” added Mr Jin. ##Ends##

About JES International Holdings Limited JES is a major PRC shipbuilding group with production facilities capable of producing different types of vessels, including non-standard vessels. Its principal products include: •

Bulk Carriers

•

Crude oil tankers

•

Containerships

•

Ocean engineering vessels

The Group’s customers include major shipowners based in Europe, Canada and Asia, including the PRC. The Group’s shipyard is located at Shiwei Port, Jingjiang City in Jiangsu Province, PRC and features a 720m long coastline with access to deep water and stable currents. The facilities stretch over a gross land area of approximately 167,000 sq.m., including two slipways equipped with gantry cranes, two outfitting wharfs, a hull and section steel shop, a sub-assembly shop, a block assembly shop, a metal treatment shop, two paint shops, a pipe shop and an electrical shop that cover every stage of the shipbuilding process. JES is in the course of increasing its production capacity by expanding its shipyard on the land adjacent to its existing yard through the construction of a 400m by 140m wide dry dock, a steel hull structure shop with an area approximately 100,000sq.m. and auxiliary facilities, one 1,200 tonne and two 400 tonne gantry cranes and other lifting equipment.

Upon the completion of the new yard by end 2009, JES will have additional capacity to concurrently construct three bulk carriers of up to 176,000 DWT each or two crude oil tankers of up to 300,000 DWT each or very large ocean engineering vessels and offshore equipment such as oil rigs. Issued on behalf of JES International Holdings Limited by WeR1 Consultants Pte Ltd For more information, please contact: Issued on behalf of the Group by: Mr. Tin It Phong Chief Financial Officer WeR1 Consultants Pte Ltd JES International Holdings Limited 29 Scotts Road Singapore 228224 Tel: +65 6737 4844 Email: [email protected] Fax: +65 6737 4944