Jes International Holdings Limited Fy2008 Press Release

JES FY08 Results Press Release

Shipbuilder JES Posts 8.4% Increase in FY08 Revenue to RMB 1.62 Billion • Revenue increased as Group built larger vessels with higher contract prices • Net profit decreased 78.9% to RMB 47.5 million on higher production costs and depreciation of US dollar against RMB • Stimulus plan approved by PRC government expected to boost shipbuilding industry Singapore, 27 February 2009 – JES International Holdings Limited (“JES” or the “Group”) (JES

国际控股有限公司 ), a major PRC shipbuilder, announced

today that its revenue for the financial year ended 31 December 2008 (“FY08”) rose 8.4% to RMB 1.62 billion from RMB 1.49 billion in FY07 on increased contributions from the production of larger vessels with higher contract prices. The Singapore Exchange Mainboard-listed company said that despite higher revenue, gross profit fell 39.1% to RMB 191.0 million in FY08 due to increased cost of production, mainly from higher material costs and increased outsourced work. Correspondingly, gross profit margin in FY08 declined to 11.8% from 21.0% in FY07. Net profit decreased 78.9% to RMB 47.5 million in FY08, which was affected by RMB 69.5 million exchange losses recognised in FY08 due to the depreciation of the US dollar against the Renminbi.

Revenue for the October - December quarter (“4Q08”) increased 10.3% to RMB 565.1 million from RMB 512.5 million in 4Q07 as the Group continued to build larger vessels with higher contract prices. JES recorded a net loss of RMB 44.0 million in 4Q08 mainly due to higher production costs. In line with the Group’s strategic initiative to focus on higher-margin vessels, construction of bulk carriers accounted for 90.4% of revenue in FY08 compared to 76.7% for FY07. Contribution from container ships which provided lower margins fell to 8.6% in FY08 compared to 21.7% in FY07. In geographical terms, revenue from Europe (mainly from Greece and Croatia) contributed 68.4% while Canada contributed 10.8% for FY08 compared to 64.9% and 12.5%, respectively, in FY07. Asia’s revenue contribution in FY08 fell to 20.8%, compared to 22.6% in FY07. As at 31 December 2008, the Group’s cash and cash equivalents stood at RMB 737.6 million (approximately S$ 155.2 million), mainly from its IPO proceeds, which are primarily being used for the construction of its new yard. Earnings per share was 4.08 RMB cents for FY08 (based on fully diluted and adjusted weighted average share base of 1,165,486,175) compared to 19.66 RMB cents for FY07 (for better comparative, computed based on number of ordinary shares in issue, from the IPO date to end of FY2007 of 1,144,054,000). Net tangible assets per share rose to 147.03 RMB cents as at 31 December 2008 (based on number of ordinary shares in issue as at end of FY2008 of 1,166,028,000) from 143.49 RMB cents as at 31 December 2007 (based on number of ordinary shares in issue as at end of FY2007 of 1,144,054,000).

金鑫), said, “The global

JES Chairman and Chief Executive Officer, Mr. Jin Xin (

financial crisis has constrained financing for new shipbuilding, leading to a

slowdown in newbuild orders and occurrence of cancellations across the shipbuilding industry. In addition, we have also begun to see renegotiations for lower contract prices. However, we believe that we will be in a stronger position with our additional capacity coming on stream from 2Q09. Besides, the shipbuilding stimulus plan approved by the PRC government on 11 February 2009 is expected to have positive effects on the shipbuilding industry.” “Recent statistics released by the China Association of the National Shipbuilding Industry ranked JES amongst the top ten shipbuilders in the PRC in terms of new orders secured for 2008*.” He added. In FY08, JES secured orders for two 175,800 deadweight tonnes (“DWT”) bulk carriers, four 79,800 DWT bulk carriers and an 85,000 long tonne deadweight crude oil tanker with total contract value of US$407.5 million. On 16 January 2009, JES announced that it received cancellations for six smaller 37,500 DWT bulk carriers valued at US$160.0 million. In addition, delivery dates for another six bulk carriers will be delayed between two to four months. JES delivered seven vessels in 2008 and its order book as at 31 December 2008 stood at US$ 1.19 billion. As at end FY08, JES was building bulk carriers of 79,800 DWT, 53,800 DWT, 37,500 DWT for its customers from Greece, Croatia and South Korea. * http://www.cansi.org.cn/cansi_jjyx/85111.htm

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

JES’s order book as at 31 December 2008 amounted to approximately US$ 1.19 billion, for 39 vessels to be delivered from beginning 2009 until 2012. 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 plans to increase 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: Mr. Tin It Phong Chief Financial Officer JES International Holdings Limited 81 Anson Road, Suite 8.17, Singapore 079908 Tel: +65 6500 6325 Fax: +65 6500 6357 Email: [email protected]

Issued on behalf of the Group by: WeR1 Consultants Pte Ltd 29 Scotts Road Singapore 228224 Tel: +65 6737 4844 Fax: +65 6737 4944 Eric Wong Email: [email protected]