JINHUI HOLDINGS (00137) announced that its indirect subsidiaries, the first buyer (Jinlang Marine Inc.) and the second buyer (Jinyu Marine Inc.), in which the company holds approximately 55.69% interest, have entered into separate shipbuilding contracts with the seller (Sumec Shipbuilding Co., Ltd. and its shipyard, Xindayang Shipbuilding Co., Ltd.) on February 11, 2026. Under the terms of the agreements, the seller will construct and sell two bulk carriers, each with a deadweight tonnage of 64,100 metric tons, for a price of $34 million per vessel (approximately HK$265 million). The first vessel is scheduled for delivery by May 15, 2029, and the second by July 31, 2029. The total contract value for both ships amounts to $68 million (approximately HK$530 million). The two shipbuilding contracts are independent and not conditional upon each other, having been negotiated based on identical vessel specifications.
The principal business of the group is international ship leasing and vessel ownership. The acquisition of the two new bulk carriers aligns with the group's ongoing strategy to modernize its fleet by replacing older vessels with larger, higher-quality, and more efficient ships. The availability of modern, young vessels on the secondhand market is subject to significant fluctuations. Currently, there is a lack of suitable secondhand vessels that meet the required specifications, offer favorable delivery timelines, and are available at reasonable prices. After evaluating recent market transactions for comparable vessels, the decision was made to order new ships that comply with the latest maritime regulations and incorporate specialized designs.
Compared to other bulk carriers currently operated by the group, the new vessels are expected to deliver superior fuel and operational efficiency while adhering to the most recent environmental standards in the shipping industry. This move supports the company's long-term objective of maintaining a young and modern fleet to better serve its clients and meet specific demands of freight trade and destination routes. Upon completion of the acquisitions, the vessels will be leased to third parties for the transportation of dry bulk commodities, generating recurring freight and charter income for the group.
The board of directors believes that this is an opportune time to further expand the fleet size to increase the group's operating revenue. The group currently operates a fleet of 21 vessels, comprising 18 owned ships and 3 leased vessels, with a total carrying capacity of approximately 1.7 million metric tons. Two of the owned vessels have been arranged under sale and leaseback agreements.