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Yujin International (YUJ)

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Tuesday 12 June, 2012

Yujin International

Final Results & Notice of AGM

RNS Number : 2152F
Yujin International Ltd
12 June 2012
 



YUJIN INTERNATIONAL LTD.

("Yujin", the "Company" or "the Group")

Final results and Notice of AGM

 

Yujin, an owner and operator of a fleet of short range tankers, providing logistics and ship management services to customers in the chemical and oil industry in the Asia Pacific Region, announces herewith its audited final results in respect of the year ended 31 December 2011.

 

The Company also gives notice that the Annual General Meeting will be held at 400 Orchard Road, #20-05 Orchard Towers, Singapore 238875at 5.00 PM, Singapore time,on 27 June 2012.

 

The notice convening the Annual General Meeting, together with the annual report and accounts of the Company for the year ended 31 December 2011 (the "Annual Report") and the form of proxy for use at the AGM, are being posted to shareholders and are available on the Company's website www.yujininternational.com.

 

The notes to this announcement contain additional information which has been extracted from the Annual Report. This announcement should be read in conjunction with, and not as a substitute for, reading the full Annual Report.

 

 

Highlights

v Consolidated net revenue improved slightly to USD 18.0 million as compared to USD 15.6 million in 2010. Despite rising fuel cost and over supply of vessels in the market, management has been able to maneuver in a niche market to optimise freight rates for its regional tankers.

 

v Yujin's operating profit declined 33% to USD 1.2 million from USD 1.8 million in 2010 despite the growth in revenue. A weakening United States Dollar from the average of 1.3608 in year 2010 to 1.2492 in year 2011 has also contributed to the increase in cost.

 

v Yujin Group owned and operated a fleet of six vessels, with total tonnage at 27,281. Yujin posted a revaluation surplus of USD 2.6 million to its reserves for its bunker tankers while its regional tankers suffered an impairment loss of USD 9.9 million of which USD 5.7 million which was posted to Statement of Comprehensive Income.

 

v Three out of the four bunkers tankers' contracts were renewed for another 12 months with the current charterers, at the same rate as the previous year. The fourth tanker's renewal contract is under negotiation and will be finalised after it has completed regulatory dry docking.

 

v As previously announced, Yujin had contracted to build two new chemical tankers with a shipyard in China.  One of the newbuilds was delayed significantly and ultimately the shipyard failed to make delivery prior to the deadline of 31 March 2012. The Board of Yujin has taken professional advice in this matter and is now preparing the necessary formalities to reach a resolution on the terms of the contract cancellation.   A further announcement will be made in due course.

 

v The directors do not recommend a dividend be paid for the year ended 31 December 2011.

 

 

For further information please contact:

Yujin International Ltd                                         Tel: + (65) 6226 2963

Pris Peh

Keen Whye Lee

 

www.yujininternational.com

 

Seymour Pierce Limited                                     Tel: 020 7107 8000

Catherine Leftley

 

NB : The currency used in this announcement is US Dollars unless otherwise indicated.

 

 



 

Chairman's Statement

 

Yujin, an owner and operator of a fleet of short range tankers, providing logistics and ship management services to customers in the chemical and oil industry in the Asia Pacific Region, announces herewith its audited non-statutory annual results in respect of the year ended 31 December 2011 for the purpose of reporting to its shareholders.

 

Yujin has continued to leverage on strong relationships with our esteemed customers in order to maintain the top line in this challenging environment.  This strategy has largely succeeded. Revenue from continuing operations grew 11% to USD 15.9 million as compared to USD 14.4 million last year. Despite the revenue growth, operating profit fell to USD 1.2 million as a result of higher fuel cost as well as higher repair and maintenance costs.

 


Revenue


Operating profit


2011

2010


2011

2010

External customers

 USD '000

 USD '000


 USD '000

 USD '000







Bunker tankers

      8,189

      7,377


      2,403

      2,451

Regional tankers

      6,611

      5,981


     (1,380)

       (938)

Ship management and other income

      1,121

        994


        171

        266

Continuing operations

    15,921

    14,352


      1,194

      1,779

Bunker trade (non core activity)

      2,045

      1,285


           -  

           -  


    17,966

    15,637


      1,194

      1,779

 

 

 

Comments on the performance of each operating segment:

 

Bunker tankers

 

Yujin own and manage four bunker tankers with a combined tonnage of 17,284 DWT. All four tankers are on time charter and three out of the four tankers had their contracts renewed for another 12 months through the first half of 2013.

 

Revenue has been stable, the increase to USD 8.2 million from USD 7.4 million in year 2010 is due to further weakening of the United States Dollar against the Singapore Dollar.  Operating profit dropped slightly as higher repair and maintenance costs were incurred to ensure operational efficiency.

 

Regional tankers

 

Yujin owns two foreign going vessels; MT Team Bee, a chemical tanker of 4,998 DWT and MT Arcturus, a bitumen tanker of 4,999 DWT.  These two vessels are deployed in the spot market to secure higher charter rates as compared to term contracts.

 

 

Although revenue improved slightly to USD 6.6 million as compared to USD 6.0 million last year, increased fuel costs, coupled with higher repair and maintenance costs saw operating loss increase to USD 1.4 million.

 

Following a review of the activities of the Group, a decision was reached to dispose of one of the vessels. This exercise has resulted in an impairment charge of approximately USD 5.7 million in the year ended 31 December 2011 which reflects the current deteriorated market condition.

 

Ship management and other income

 

Yujin, through its wholly owned subsidiary, JR Orion Services Pte Ltd, managed 17 ships throughout 2011.  The group's fleet is managed by JR Orion and this segment has been stable.

 

New tankers

 

As previously announced Yujin had contracted to build two new chemical tankers of 5,500 DWT each with a shipyard in China.  The expected delivery date for the first vessel was 31st March 2012 and the ship was not delivered.  Yujin has to claim back payments made to the shipyard amounting to USD 6.7 million through arbitration procedures.  The lawyers have advised that the arbitration process will take time and expect it to be settled in 2013.

 

The expected delivery date of the second vessel is 30th June 2012. Further announcements will be made in due course.

 

Dividend

 

The Board will not recommend any dividends to be made in respect of the year ended 31 December 2011.

 

Summary

 

The shipping markets remain very difficult.  Freight rates in many sectors have been weak reflecting a continued demand/supply imbalance and fuel costs remain high.  If conditions for freight rates and fuel costs do not improve, the environment in which the Group operates will remain challenging with a consequent negative effect on financial performance.

 

 

Lee Keen Whye

Chairman

Yujin International Ltd.

11 June 2012

 

 



Yujin International Ltd.

Consolidated Statement of Comprehensive Income

for the year ended 31 December 2011

 

 

 





Audited


Audited



Note


2011


2010





USD


USD

Revenue



  17,648,319


  15,119,804

Other income



       317,345


       516,770





  17,965,664


  15,636,574

Costs and expenses







Cost of sales



  10,270,245


    8,228,812


Bad debts written off



        19,978


               -  


Depreciation

2


    3,842,994


    3,103,112


Directors' fees



       104,708


        93,560


Directors' salary



       634,888


       621,339


Staff costs



    1,213,879


    1,031,639


Other operating expenses



       685,242


       778,739





 (16,771,934)


 (13,857,201)

Profit from operations



    1,193,730


    1,779,373

Non-operating expenses







Impairment loss on property, plant and equipment

2


   (5,675,870)


               -  


Write off of deposit



      (713,869)


               -  

Finance costs



      (641,183)


   (1,252,947)

(Loss)/Profit before tax



   (5,837,192)


       526,426

Income tax income/(expense)

4


      (298,575)


      (440,995)

(LOSS)/PROFIT FOR THE YEAR



   (6,135,767)


        85,431

 



Yujin International Ltd.

Consolidated Statement of Comprehensive Income (continued)

for the year ended 31 December 2011

 





Audited


Audited



Note


2011


2010





USD


USD

Other comprehensive income







Foreign currency translation differences for subsidiaries


          7,822


    1,359,691


Revaluation of property, plant and equipment

2


   (1,653,968)


    9,261,917

Other comprehensive income for the year, net of tax



   (1,646,146)


  10,621,608

TOTAL COMPREHENSIVE INCOME/(LOSS) FOR THE YEAR

   (7,781,913)


  10,707,039

Attributable to :







Equity holders of the company



   (6,557,383)


    8,985,413


Non-controlling interests



   (1,224,530)


    1,721,626

Total comprehensive income/(loss) for the year



   (7,781,913)


  10,707,039

Attributable to :







Equity holders of the company



   (5,962,409)


        48,028


Non-controlling interests



      (173,358)


        37,403

Profit/(loss) for the year



   (6,135,767)


        85,431

Earnings per share







Basic (in USD)



         (0.200)


          0.002


Diluted (in USD)



         (0.200)


          0.002



Yujin International Ltd.

Consolidated Statement of Financial Position as at 31 December 2011

 

 

 





Audited


Audited



Note


2011


2010

ASSETS



USD


USD








Non-current assets







Property, plant and equipment

2


 40,947,597


 48,244,580


Deferred tax

6


   1,165,057


   1,481,400





 42,112,654


 49,725,980

Current assets







Trade and other receivables



   1,654,015


   2,792,019


Amount receivable from a related company



       47,485


       47,585


Cash and cash equivalents

3


      295,624


      753,552





   1,997,124


   3,593,156








Total assets



 44,109,778


 53,319,136



 

Yujin International Ltd.

Consolidated Statement of Financial Position as at 31 December 2011 (continued)

 

 

 





Audited


Audited



Note


2011


2010





USD


USD








Equity attributable to equity holders of the Company





Share capital



   3,317,897


   3,317,897


Revaluation reserve



   6,974,898


   7,577,694


Currency translation reserve



   2,008,308


   2,010,978


Retained earnings



   1,800,028


   7,751,945





 14,101,131


 20,658,514

Non-controlling interests



      497,927


   1,722,457

Total equity



 14,599,058


 22,380,971








Non-current liabilities







Loans from related companies



      923,574


      774,413


Term loan (secured)

5


 14,449,056


 15,483,480


Deferred tax

6


   4,097,289


   4,109,105





 19,469,919


 20,366,998

Current liabilities







Trade and other payables



   4,020,994


   5,153,653


Amount payable from a related company



      111,707


       18,657


Term loan (secured)

5


   5,442,305


   5,398,857


Bank overdraft (secured)

3


      465,795


              -  


Income tax payable



              -  


              -  





 10,040,801


 10,571,167








Total liabilities



 29,510,720


 30,938,165








Total equity and liabilities



 44,109,778


 53,319,136


Yujin International Ltd.

Consolidated Statement of Changes in Equity

for the year ended 31 December 2011



Share

Translation

Revaluation

Retained

Total attributable to equity holders

Non-controlling

Total



capital

reserve

reserve

earnings

of the Company

 interests

equity



USD

USD

USD

USD

USD

USD

USD










Balance at 31 December 2009

 3,317,897

     651,287

               -  

  7,703,917

          11,673,101

           831

 11,673,932

Total comprehensive income/(loss) for the year







Profit for the year

            -  

              -  

               -  

       48,028

                48,028

       37,403

       85,431

Other comprehensive income :









Revaluation of property, plant and equipment

            -  

              -  

    7,577,694

             -  

            7,577,694

  1,684,223

   9,261,917


Currency translation differences

            -  

   1,359,691

               -  

             -  

            1,359,691

             -  

   1,359,691

Total comprehensive income

            -  

   1,359,691

    7,577,694

       48,028

            8,985,413

  1,721,626

 10,707,039

Balance at 31 December 2010

 3,317,897

   2,010,978

    7,577,694

  7,751,945

          20,658,514

  1,722,457

 22,380,971

Total comprehensive income/(loss) for the year







Loss for the year

            -  

              -  

               -  

 (5,962,409)

           (5,962,409)

    (173,358)

  (6,135,767)

Other comprehensive income :









Revaluation of property, plant and equipment

            -  

              -  

      (602,796)

             -  

              (602,796)

 (1,051,172)

  (1,653,968)


Currency translation differences

            -  

        (2,670)

               -  

       10,492

                  7,822

             -  

         7,822

Total comprehensive income

            -  

        (2,670)

      (602,796)

 (5,951,917)

           (6,557,383)

 (1,224,530)

  (7,781,913)

Balance at 31 December 2011

 3,317,897

   2,008,308

    6,974,898

  1,800,028

     497,927

 14,599,058


Yujin International Ltd.

Consolidated Statement of Cash flow

for the year ended 31 December 2011





Audited


Audited



Note


2011


2010





USD


USD

Cash flows from operating activities







Profit/(loss) before taxation



  (5,837,192)


     526,426

Adjustments for:







Bank loan interest



     430,592


     648,883


Bad debts written off



       19,978


             -  


Property, plant and equipment written off



              -  


        9,455


Impairment loss on property, plant and equipment



   5,675,870


             -  


Depreciation

2


   3,842,994


  3,103,112


Write off of deposit



     713,869


             -  


Interest received



              -  


             -  





 10,683,303


  3,761,450

Operating profit before working capital changes



   4,846,111


  4,287,876


Decrease/(Increase) in trade and other receivables



   1,118,026


    (469,826)


(Decrease)/Increase in trade and other payables



  (1,132,659)


  1,954,678





      (14,633)


  1,484,852

Cash generated from/(used in) operations



   4,831,478


  5,772,728


Income tax paid



              -  


             -  

Net cash flows from operating activities



   4,831,478


  5,772,728

Cash flows from investing activities







Purchase of property, plant and equipment

2


    (469,660)


 (3,348,337)


Interest received



              -  


             -  

Net cash flows from/(used in) investing activities



    (469,660)


 (3,348,337)

Cash flows from financing activities







Payment of term loan interest



    (430,592)


    (648,883)


Payment of term loan financing



  (4,339,736)


 (4,681,637)


Loan from related party



     149,161


             -  


Amount payable to a related company



    (128,280)


       33,741


Proceeds from term loan



              -  


  3,037,897

Net cash flows from/(used in) financing activities



  (4,749,447)


 (2,258,882)

Net increase/(decrease) in cash and cash equivalents



    (387,629)


     165,509

Cash and cash equivalents at beginning of year



     753,552


       86,763

Effect of exchange rate changes



    (536,094)


     501,280

Cash and cash equivalents at end of year

3


    (170,171)


     753,552



Yujin International Ltd.

Notes to the financial information

for the year ended 31 December 2011

 

1.   Basis of preparation

                                   

The financial information has been prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board ("IFRS's") and using accounting policies which are consistent with those adopted in the non-statutory financial statements for the year ended 31 December 2011.

 

The financial information set out in this announcement does not constitute the Company's non-statutory financial statements for the year ended 31 December 2011, but it is derived from those non-statutory financial statements.

 

Whilst the financial information included in these full year results has been prepared in accordance with IFRS, this announcement itself does not contain sufficient information to comply with IFRS. A copy of the non-statutory financial statements prepared under IFRS for the year ended 31 December 2011 will be issued prior to the Company's Annual General Meeting. The announcement was approved on 12 June 2012.

 

The company's current auditors have reported on the non-statutory financial statement for the year ended 31 December 2011, their report was unqualified.

 

The directors do not propose a dividend in respect of the year ended 31 December 2011 (2010: Nil).

 

Going Concern

 

These non-statutory financial statements are prepared on a going concern basis which the directors believe to be appropriate for the reasons given below and also on note 2(b) to the non-statutory financial statements.

 

The directors have prepared cash flow projections for the next 12 months from the date of signing these non-statutory financial statements. On the basis of the cash flow projections, the directors are of the opinion that, aside from the cash flows generated from ongoing operating activities, the Group will need to find other sources of funding in order to generate additional financial resources over the next twelve months from the date of signing these non-statutory financial statements to enable the Group to meet its planned commitments. This is most likely to be through cash flows arising on investing or financing activities. The directors believe that they will be able to raise the required funds.



 

2.   Fixed Assets

 


Office

Office

Office

Computer


Vessels under


Group - 2011

Equipment

Furniture

Renovation

Software

Vessels

Construction

Total


USD

USD

USD

USD

USD

USD

USD

Cost or Valuation








Balance at beginning of year:







   At cost

       10,253

   30,482

       41,633

     62,631

                     -  

        8,637,252

      8,782,251

   At valuation

                -  

            -  

                 -  

              -  

   49,789,710

                       -  

   49,789,710


       10,253

   30,482

       41,633

     62,631

   49,789,710

        8,637,252

   58,571,961

 - Additions

                -  

            -  

                 -  

       3,701

         231,823

        3,606,446

      3,841,970

 - Disposals

                -  

            -  

                 -  

      (1,775)

                     -  

                       -  

            (1,775)

 - Adjustments

                -  

            -  

                 -  

              -  

          (28,024)

                       -  

          (28,024)

 - Revaluation surplus

                -  

            -  

                 -  

              -  

    (1,653,968)

                       -  

    (1,653,968)

 - Elimination on revaluation

                -  

            -  

                 -  

              -  

  (16,487,718)

                       -  

  (16,487,718)

 - Net exchange difference

             (21)

         826

          2,148

           (64)

           63,898

                       -  

           66,787

Balance at end of year

       10,232

   31,308

       43,781

     64,493

   31,915,721

     12,243,698

   44,309,233









Accumulated depreciation







   and impairment








Balance at beginning of year:

         7,620

   11,968

          9,531

     60,989

   10,237,273

                       -  

   10,327,381

 - Charge for current year

         1,822

     6,418

       15,117

       3,253

      3,816,384

                       -  

      3,842,994

 - Impairment loss

                -  

            -  

                 -  

              -  

      5,675,870

                       -  

      5,675,870

 - Disposals

                -  

            -  

                 -  

      (1,839)

                     -  

                       -  

            (1,839)

 - Elimination on revaluation

                -  

            -  

                 -  

              -  

  (16,487,718)

                       -  

  (16,487,718)

 - Net exchange difference

               (5)

         150

        (1,747)

      (1,641)

              8,191

                       -  

              4,949

Balance at end of year

         9,437

   18,536

       22,901

     60,762

      3,250,000

                       -  

      3,361,636









Net Book Value








At end of year

            795

   12,772

       20,880

       3,731

   28,665,721

     12,243,698

   40,947,597

At beginning of year

         2,633

   18,514

       32,102

       1,642

   39,552,437

        8,637,252

   48,244,580

 

 

During the year, the Group acquired property, plant and equipment with an aggregate cost of USD 3,841,970 (2010: USD 8,074,657) of which USD 3,150,880 (2010: USD 4,726,320) was acquired by means of term loan facilities. Cash payments of USD 469,660 (2010: USD 3,348,337) were made for purchase of property, plant and equipment.



 

2.   Fixed Assets (continued)

 

During the year, the Group had revalued the six operating vessels based on the valuation reports verified by a firm of independent professional valuers, on an open market basis.  The cumulative valuation deficit amounting to USD 1,653,968 (surplus in 2010: USD 9,261,917) has been transferred to the revaluation reserves of the Group.

 

The carrying amount of the vessels would have been USD 23,488,073 (2010: USD 30,290,520) had the vessel been carried at cost less accumulated depreciation and impairment loss.  

 

The Group's vessels and vessels under construction are mortgaged to the bank to obtain term loan facility.

 

The Company acquired property, plant and equipment with an aggregate cost of USD 3,606,445 (2010: USD 5,285,252) of which USD 3,150,880 (2010: USD 4,726,320) was acquired by means of term loan facilities. Cash payments of USD 455,566 (2010: USD 558,932) were made for purchase of property, plant and equipment.

 

The "vessels under construction" represent progress payments for two ships under construction.  The final sum is expected to be between USD 10 million to USD 20 million.  The Company expects to take delivery of these two ships in 2012.  No interest has been capitalised during the year.

The Group had expected to take delivery of the first of the two vessels by 31 March 2012, however, the yard was unable to make delivery of the ship by that deadline. Managementhas started the necessary formalities associated with cancelling this contract including notifying the sellers and their guarantors of this.

Following a review of the Group's operating requirements and financial position a decision was made to dispose of one of the vessels used for operations at a lower expected realisable value. As a result of this, an impairment of USD 5,675,870 has been recognised in these financial statements.



 

 

3.   Cash and cash equivalents

        

Cash and cash equivalents consist of cash on hand and with banks as follows:

 

        


Group


Company



2011

2010

2011

2010


USD

USD

USD

USD

Cash on hand

     1,343

     5,850

            1

            1

Cash at bank

  294,281

  747,702

    13,877

  229,658

Balance per Statement of Financial Position

  295,624

  753,552

    13,878

  229,659

Bank overdraft (secured)

 (465,795)

          -  

          -  

          -  

Balance as per Statement of Cash Flows

 (170,171)

  753,552

    13,878

  229,659

 

         The bank overdraft is secured by:

        

(i)      A second legal mortgage on 4 of the Group's vessels (note 5) and

 

(ii)      Joint and several guarantees from the Company's directors.

 

 

4.   Taxation on profit from ordinary activities

 

        


Group


Company


2011

2010


2011

2010


USD

USD


USD

USD







Balance at the beginning of year

           -  

     21,493


          -  

    21,405

Add: Current year provision

           -  

           -  


          -  

          -  

Less: Over-provision in prior year

        (288)

    (21,405)


          -  

   (21,405)

Less: Translation difference

           -  

          (88)


          -  

          -  


        (288)

           -  


          -  

          -  

Less: Payments

           -  

           -  


          -  

          -  

Add: Tax refund

         288

           -  


          -  

          -  

Balance at the end of year

           -  

           -  


          -  

          -  

 

 

The income tax expense varied from the amount of income tax expense determined by applying the Singapore income tax rate of 17% (2010: 17%) to estimated chargeable income as a result of the following differences:

 

        



 

4.   Taxation on profit from ordinary activities (continued)

 

 

        




Group




2011

2010




USD

USD

Profit/(loss) for the year


   (6,135,767)

       85,431

Total income tax (income)/expense


      298,575

      440,995

Profit/(loss) before tax


   (5,837,192)

      526,426






Income tax expenses at statutory rate


     (992,323)

       89,492

Translation differences


         (4,775)

       53,279

Non-deductible items


    2,038,401

      693,504

Non-taxable items


       (80,133)

              -  

Utilisation of tax losses/capital allowances


     (180,111)

     (332,792)

Under/(over) provision in prior year


            (288)

       21,405

Tax exempt income


     (103,769)

      (95,572)

Current year losses for which no deferred





 tax asset was recognised


        23,359

      206,158

Group relief to be utilised


     (700,649)

     (614,069)

Deferred tax movement


      298,863

     (462,400)

Total income tax expense


      298,575

     (440,995)

 



 

5.   Term Loan

 


Group


2011

2010


USD

USD




Within one year

        5,442,305

        5,398,857




Due within 2 to 5 years

      14,449,056

      15,189,775

Due after 5 years

                   -  

          293,705


      14,449,056

      15,483,480





      19,891,361

      20,882,337

Term loans



 - secured

      19,891,361

      20,346,530

 - unsecured

                   -  

          535,807


      19,891,361

      20,882,337

 

 

(i)      The term loans are secured by:

         -  A first priority legal mortgage on the Group's vessels;

         -  An assignment of all rights, earnings and benefits of the vessel (on a notification basis) in a form acceptable to the bank;

         -  The assignment of insurance policies covering Hull and Machinery, War Risks, Mortgagee Interest and Protection and Indemnity in respect of the vessel, in a form acceptable to the bank;      

         -  Joint and several guarantee from the Company's directors; and

         -  Corporate guarantee from the holding company and certain subsidiaries.

 

(ii)      The loans are repayable in 60 monthly installments from the date of last draw down after the completed vessel has been delivered.   Effective interest varies from 1.94% to 3.89% (2010: 1.29% to 3.92% per annum. Interests are charged and paid monthly.

 



 

6.   Deferred Tax

 

 

 


Group


2011

2010


USD

USD

Deferred tax liabilities:



Opening balance

     4,109,105

        2,980,328

Translation difference

      5,664

           157,965

Temporary differences movement

      (17,480)

           970,812

Closing balance

     4,097,289

        4,109,105




Deferred tax assets:



Opening balance

     1,481,400

           972,988

Translation difference

                    -  

                    -  

Temporary differences movement

      (316,343)

           508,412

Closing balance

      1,165,057

        1,481,400

 

 

Deferred tax liability refers to the difference between the net book value of the vessels and their tax written down values. Deferred tax asset relates to excess capital allowances claimed for the vessels and has been recognized to the extent that it is probable that the unused capital allowances claimed will be subsequently utilised.

 

 

7.   Earnings per share

 

The calculation of basic earnings per share and diluted earnings per share at 31 December 2011 was based on the profit/(loss) attributable to ordinary shareholders of USD 5,962,409 loss  (2010: USD 48,028 profit) and a weighted average number of ordinary shares, calculated as follows:

 

 

Basic

Profit attributable to equity holders of the company USD 5,962,409 loss (2010:USD 48,028 profit). Weighted averaged number of ordinary shares in issue for the purpose of calculating basic EPS: 30,000,010 (2010: 30,000,010).

Basic EPS USD (0.20) (2010: USD 0.002).

 

 

Diluted

Profit attributable to equity holders of the company USD 5,962,409 loss (2010:USD 48,028 profit). Weighted averaged number of ordinary shares in issue for the purpose of calculating basic EPS: 30,000,010 (2010: 30,000,010).

Diluted EPS USD (0.20) (2010: USD 0.002).

 

 

 

 

 

 

8.   Share capital

 

           


Group and Company


2011


2010


USD


USD

Fully paid ordinary shares with no par value:




Balance at beginning of year

     3,317,897


    3,317,897

Issued during year

                 -  


                -  

Balance at end of year

     3,317,897


    3,317,897





Number of shares

    30,000,010


   30,000,010

 

The Company had 30,000,010 ordinary shares in issue as at 31 December 2011 (2010: 30,000,010).

 

(a)  The Companies Act Chapter 50 of Singapore abolished the concept of authorized share capital and the Company is not constrained by an authorized share capital in the memorandum of association of the Company.

 

(b)  The holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one vote per share at meetings of the company.  All shares rank equally with regard to the Company's residual assets.

 

               At 31 December 2011, the Company has no Share Option Scheme.

 

 

9.   Segment reporting

 

For management purposes, the Group is organised into operating segments based on the type of customers served and has three segments plus a non-core activity which is being done on an ad-hoc basis as follows:

 

(a)     Bunker tankers: Our customers are principally bunker traders operating in the port of Singapore. These traders charter the Group's ships to supply bunker fuel to ships calling at the port.

 

(b)     Regional tankers: Yujin customers are manufacturers and traders of chemicals, including bitumen and vegetable oils, mainly palm oils. Yujin provides logistics support to these customers by transporting their products mainly within the Asia Pacific region.

 

(c)     Ship management and other related activities: The Group, through it ship management company JR Orion Services Pte. Ltd, provides crew and technical management as well as ancillary services to ship owners.

 

(d)     Bunker trade: Yujin is allocated an amount of bunker fuel by suppliers for its own use. Yujin occasionally sells off any excess over its own requirements. This non-core activity is being done at the request of customers on ad hoc basis.  

 



 

 


Revenue


Operating profit


2011

2010


2011

2010

External customers

 USD '000

 USD '000


 USD '000

 USD '000







Bunker tankers

      8,189

      7,377


      2,403

      2,451

Regional tankers

      6,611

      5,981


     (1,380)

       (938)

Ship management and other income

      1,121

        994


        171

        266

Continuing operations

    15,921

    14,352


      1,194

      1,779

Bunker trade (non core activity)

      2,045

      1,285


           -  

           -  


    17,966

    15,637


      1,194

      1,779

 

The chief operating decision making of Yujin lies with Yujin Group Joint Managing Director, Captain Joseph Ting Siew Chiong and Captain Liew Chin Chye. With both their extensive shipping experience and contacts, the Group has been able to operate effectively in selected niche market.

 

 

10.  Subsequent events

 

Due to the non-delivery of a Vessel which was scheduled to be on 31 March 2012, the Company has commenced an Arbitration proceeding to rescind the construction contract in April 2012.

 

The "vessels under construction" represent progress payments for two ships under construction.  The amount paid for the first vessel totals to USD 6,963,274 and no interest has been capitalised during the year.

 

In view of the current economic uncertainty and depressing chemical/product freight rates, the Board is looking at various alternatives. As there are no synergies and economies of scale to operate/trade one or two chemical/product vessels, the Board is considering the sale of its only chemical/product tanker. Currently, management is working with various brokers and negotiating with a third party to conclude the sale.

 

 

11.  Availability of this announcement

Copies of this announcement will be available from the Company's registered office, at 400 Orchard Road, #20-05 Orchard Towers, Singapore 238875 and on the Company's website, www.yujininternational.com .

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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