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YUJIN INTERNATIONAL LTD

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

Preliminary Unaudited Annual results, Trading Update and Notice of AGM

NB: The currency used in this report is in US$ unless otherwise indicated.

9 June 2009

Yujin, an owner and operator of small range tankers (tankers below 10,000 DWT) in the Asia Pacific region, providing logistics solutions to customers in the chemical and oil industry, is pleased to announce its preliminary unaudited annual results in respect of the year ended 31 December 2008.

Highlights

• Admission to AIM February 2009

• Total revenue increased by 72.5 % to $18.36 million (2007: $10.64 million). 

• Ship chartering revenue grew 26.2% to $9.29 million (2007: $7.36 million).

• Net profit before tax slightly down by 2.7% to $3.65 million (2007: $3.75 million) as a result of start up costs associated with Yujin's entry into the regional chartering business.

• Net profit after tax up 2.5% to $3.23 million (2007: $3.15 million).

• Cash flows from operating activities, 2.4% higher at $5.95 million (2007: $5.81 million).

• Tonnage available for charter increased by 67% from 17,260 DWT on 1 January 2008 to 28,841 DWT at the end of 2008. The addition of MT Arcturus in February 2009, brought the current tonnage to 33,840 DWT.

• Fixed assets grew by 128% to $30.24 million (2007: $13.25 million)

• AGM to be held on 26 June 2009 at the Company's registered office

  Financial Highlights

		2008	2007	Change
		USD	USD
Revenue:
	Ship chartering revenue	9,294,901	7,362,959	26.2%
	Ship management and other operating income	1,000,447	960,828	4.1%
	Sale of fuel oils and other goods	8,065,008	2,320,223	247.6%
		18,360,356	10,644,010	72.5%
Gross Profit		9,045,954	6,893,978	31.2%
EBITDA		5,840,120	5,324,182	9.7%
Net profit after tax		3,233,140	3,145,712	(2.8)%
Earnings per share (basic, in cents)		65	63
Earnings per share (diluted, in cents)		11	10	(10.0)%
NTA (Net Tangible Assets)		12,402,813	10,020,468	23.8%
NTA per share (cents)		41.34	167.00
NTA per share (on 30,000,010 shares, in cents)		41.34	33.40	23.8%
Weighted average number of shares in issue		30,000,010	6,000,002

Lee Keen Whye, Chairman, commented:

'Yujin operates in a niche of the shipping sector that has so far escaped the brunt of the global financial crisis. As such, we are very pleased to be able to announce continued growth in shipping revenue, maintaining net operating income for the year ended 31 December 2008.

We are confident about future prospects and are targeting turnover growth, earnings enhancement and cash generation both within our core business of chartering vessels to the bunker industry and by investing in the provision of regional transportation solutions to the chemical and oil industry.'

Chairman's Statement

The Board of Yujin International Ltd ('the Company' or 'Yujin' or 'the Group') is pleased to announce Yujin's first annual results since the Company achieved admission to AIM in February 2009. Considering the severe impact the financial crisis is having on the shipping industry as a whole, we consider Yujin to be fortunate in that it operates in a niche that has so far escaped the brunt of the global financial crisis. As such, we are very pleased to be able to announce continued growth in shipping revenue, maintaining net operating income for the year ending 31 December 2008. 

Review of 2008

2008 was, for many, an unforgettable year. It will be remembered as the year of the Beijing Olympics and the year when the global financial turndown and onset of financial and economic malaise brought the possibility of a worldwide recession one step closer.

For the Board of Yujin, 2008 will also be remembered as the year the Company began the process to have its shares quoted on the AIM Market of the London Stock Exchange and, on 9 February 2009, Yujin made its debut on AIM with 30,000,010 shares priced at 33 pence each, and a market capitalisation of GBP 9.9 million.

The board believes that, as anticipated, the AIM listing has already raised the Company's profile and that it continues to enhance Yujin's reputation and credibility with customers, suppliers and employees.

During 2008, the majority of Yujin's shipping revenue was derived from its ships deployed to serve the bunker industry, with four of the Group's six owned tankers being deployed in this sector, accounting for approximately 80 to 85% of its shipping activities revenue. These tankers operate in the port limits of Singapore, the world's busiest bunker port by volume. Bunker sales for 2008 in Singapore were 34.9 million tonnes. The second busiest bunker port is Fujairah which, at a reported approximately 19 million tonnes of bunker sales, is about 54.4% of Singapore's volume; the third busiest is Rotterdam with 13 million tonnes (37.2% of Singapore's volume) of sales in 2008. Yujin's growth in shipping revenue in 2008 was driven mainly by the strong growth in bunker trading in Singapore. 

In 2008, the Company started to grow its revenue outside the bunkering sector: two ships, MT Team Bee and MT Arcturus, which the Group acquired in mid 2008 and Q1 2009 respectively, have been deployed to earn freight revenue on the spot market, providing transportation solutions for customers in the chemical and oil industry, in particular for the shipment of palm oil, bitumen and related liquid products within the Asia Pacific region. Yujin also chartered in a third party owned ship, Heng Zhou, in late 2008. This additional stream of revenue is intended to help Yujin diversify its dependence on bunkering and the Board plans to grow this side of the business whilst maintaining its bunkering activities.

Current Trading

Bunker sales in Singapore continued on a strong note in Q1 2009 at 8.82 million tonnes, annualising to 35.3 million tonnes, although the Board expects bunker sales to soften in Q2 2009 and to remain weak into Q3 2009. However, with Yujin's substantial knowledge and experience of operating bunker ships in the Singapore harbour, the Company will endeavour to maintain its revenue in this sector. Three of its four bunker ships are on term charter till May 2011. The fourth bunker ship, Gallant, which was contracted for a one year fix term rate, will be available for re-chartering in August 2009.

Further to the announcement on 25th of March, 2009, the shipyard in China has now provided the necessary performance bonds/refund guarantees and accordingly, the first new term loan from DBS Bank has now been drawn down, and work on the construction of the first two new IMO II chemical tankers has commenced. The Board expects delivery of these vessels in Q4 2010 or Q1 2011. 

On 22nd of May 2009, we announced that MT Arcturus had suffered a fire onboard but that there had been no casualties or environmental pollution. The ship has been re-activated and has sailed under its own power, to Guangzhou in China for the necessary repairs. The repairs should take approximately 2 months, following which, it will once again be chartered out in the spot market. 

The Directors expect 2009 to be a challenging year for Yujin. Whilst the Board intends to maintain and indeed grow revenues as outlined above, significant start up costs will be incurred by the new ships that the Group acquires. The new ships will initially also not operate at the desired utilization rate for some months.  The Board believes that in the longer term, this investment to diversify the revenue stream into the regional trade will be extremely worthwhile. 

Financial Review

Despite the adverse economic climate in the second half of 2008, the directors of Yujin are pleased to announce the reaching of a new record level of revenues in 2008. Yujin's main shipping revenues, which are derived from the bunkering sector of Singapore, remained strong throughout 2008. Total revenues reached US$18.36 million in 2008 a growth in revenue of 72% (2007: $10.64 million). Revenue from shipping activities grew by 26% to $9.30 million (2007: $7.36 million). The growth in this area came from a new revenue stream being developed by the Group to complement its current main revenue stream derived from charter hire into the bunkering sector, which made up more than 80% of it shipping revenue. Yujin will attempt to maintain its revenue from the bunker sector, whilst growing the new revenue stream in the regional tanker charter business.

The increase in cost of sales in 2008 compared with 2007 was due to the higher sale of fuel oil. Other operating expenses increase is attributed to start up costs and fuel oil required to operate the new ships deployed to the regional charter business.

Operational cash flow before working capital changes in 2008 improved to $6.34 million from $5.37 million in 2007. This was sufficient to cover the loan interest and principal repayments by 1.96 times in 2008 (2007: 2.23 times). The Company will continue to monitor it gearing ratios and its ability to service its debts closely and with prudence.

To conserve reserves as a buffer against potential financial difficulties that may surface in the current economic situation, the Board will not be recommending any dividends to be made in 2009.

Summary

The board of Yujin is confident about future prospects and we are targeting turnover growth, earnings enhancement and cash generation both within our core business of chartering vessels to the bunker industry and by investing in the provision of regional transportation solutions to the chemical and oil industry.

Lee Keen Whye

Chairman

Yujin International Limited

9 June 2009 

For further information please contact:

Yujin International Ltd                  Tel: + (65) 6226 2963

Bernard Lim

Keen Whye Lee                        

www.yujininternational.com 

Seymour Pierce Limited               Tel: 020 7107 8000

Nicola Marrin

Catherine Leftley

Annual General Meeting ('AGM') and Posting of Annual Report

The AGM will be held on 26 June 2009 at 10.00 at the Company's registered office: 79 Robinson Road, #03-12, CPF Building, Singapore 068897. The Notice of AGM will be sent to shareholders together with a copy of the Annual Report and Accounts.

Yujin International Ltd
Consolidated Balance Sheet as at 31 December 2008			Unaudited	Audited (restated)
			2008	2007
Assets			USD	USD
Non-current assets
	Property, plant and equipment		30,238,553	13,254,048
	Investment in associated company		-	37,582
	Deferred tax		653,896	780,246
			30,892,449	14,071,876
Current assets
	Trade debtors		280,022	469,632
	Other debtors		15,934	11,921
	Deposits and prepayments		1,958,209	270,695
	Cash and cash equivalents		720,882	4,703,800
			2,975,047	5,456,048
Total assets			33,867,496	19,527,924
Equity and Liabilities
Capital and reserves
	Share capital		3,317,897	3,317,897
	Retained profits		7,919,408	6,114,190
	Translation reserve		1,074,624	495,731
	Minority interest		90,884	92,650
			12,402,813	10,020,468
Non-current liabilities
	Term loan (secured)		11,799,616	3,111,219
	Deferred tax		2,563,593	2,304,122
			14,363,209	5,415,341
Current liabilities
	Trade and other creditors		2,992,931	1,872,740
	Term loan (secured)		3,947,054	2,090,275
	Income tax payable		161,489	129,100
			7,101,474	4,092,115
Total equity and liabilities			33,867,496	19,527,924

Consolidated Income Statement as at 31 December 2008 Unaudited Audited (restated) 2008 2007 USD USD Revenue: Sale of fuel oils and other goods   8,065,008    2,320,223  Shipping services   9,294,901    7,362,959  Other operating income    1,000,447    960,828    18,360,356    10,644,010  Cost and expenses Cost of sales   (9,314,402)   (3,750,032) Commission expense   -     (1,104) Preliminary expenses   -     (2,442) Agency fee   -     (28,073) Depreciation   (1,803,370)   (1,270,619) Directors' fees and bonus   (28,873)   (60,374) Staff costs   (1,365,423)   (912,286) Other operating expenses   (1,811,538)   (565,517)   (14,323,606)   (6,590,447) Profit from operations   4,036,750    4,053,402  Finance costs   (388,548)   (313,176) Share of profit of an associated company   3,325    14,555      Profit before tax   3,651,527    3,754,942  Income tax expense   (418,387)   (609,230) Net profit after tax   3,233,140    3,145,712 Attributable to: Equity holders of the parent   3,234,906    3,139,034 Minority interest   (1,766) 6,678   3,233,140    3,145,712  Earnings per share  Basic 0.65 0.63 Diluted 0.11 0.10
Consolidated Statement of Changes in Equity as at 31 December 2008 Share Retained Translation Minority capital profits reserve interest Total USD USD USD USD USD Balance at 31 December 2006 - Audited   3,317,897     3,969,000     189,796    -     7,476,693  Prior year adjustment - (973,414) - - (973,414) Balance at 31 December 2006 - Audited (restated)   3,317,897     2,995,586     189,796    -      6,503,279  Acquisition of interest in subsidiary company   -     (3,017)   -     -     (3,017) Acquisition of interest in subsidiary company of minority interest   -     -     -     85,972    85,972  Dividends paid   -     (17,413)   -     -     (17,413) Translation reserve    -    -      305,935    -      305,935  Net profit for the year    -     3,139,034    -     6,678    3,145,712  Balance at 31 December 2007 -Audited (restated)   3,317,897     6,114,190     495,731    92,853     10,020,468  Dividends paid   -     (1,429,688)   -     -     (1,429,688) Translation reserve   -     -     578,893    -     578,893  Net profit for the year    -     3,234,906    -     (1,766)   3,233,140  Balance at 31 December 2008 - Unaudited   3,317,897     7,919,408     1,074,624     90,884    12,402,813

Consolidated Cash Flow as at 31 December 2008
			Unaudited	Audited
			2008	2007
			USD	USD
Cash flows from operating activities
	Net profit before tax		3,651,527	3,754,941
	Adjustment for :
		Translation reserve	512,419	100,174
		Bank loan interest	388,548	313,176
		Fixed assets written off	2,299	1,029
		Depreciation	1,803,370	1,270,619
		Interest received	(18,995)	(56,291)
		Share of profit of an associated company	(3,325)	(14,716)
	Operating profit before working capital changes		6,335,843	5,368,932
		Increase in deposits and prepayments	(1,687,514)	(93,909)
		Decrease/(increase) in trade and other debtors	189,610	(397,275)
		(Increase)/decrease in trade and other debtors	(4,013)	7,441
		Increase in trade and other creditors	1,120,191	926,605
		Decrease in amount owing to directors	-	(1)
	Cash generated from operations		5,954,117	5,811,793
		Income tax paid	(3,620)	-
	Net cash generated from operating activities		5,950,497	5,811,793
Cash flows from/(to) investing activities
		Purchase of property, plant and equipment	(5,294,350)	(520,782)
		Interest received	18,995	56,291
		Acquisition of interest in subsidiary company	-	(3,017)
		Acquisition of interest in subsidiary company of minority interest	-	85,972
	Net cash used in investing activities		(5,275,355)	(381,536)
Cash flows to financing activities
		Dividends paid	(1,429,688)	(17,413)
		Payment of term loan interest	(388,548)	(322,701)
		Payment of term loan financing	(2,839,824)	(2,090,274)
	Net cash used in financing activities		(4,658,060)	(2,430,388)
Net (decrease)/increase in cash and cash equivalents			(3,982,918)	2,999,869
Cash and cash equivalents at beginning of year			4,703,800	1,703,931
Cash and cash equivalents at end of year			720,882	4,703,800

Notes to the financial information

For the year ended 31 December 2008

1. Basis of preparation

The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards and using the accounting policies which, other than disclosed in note 5 below, are consistent with those applied in the Company's AIM admission document published on 10 February 2009 ('the AIM admission document') and which is available on the Company's website at www.yujininternational.com

The Company expects to publish its non-statutory Annual Report and full non-statutory financial statements for the year ended 31 December 2008 that comply with IFRS. The announcement has been agreed with the non-statutory auditors. Whilst the non-statutory auditors have not yet reported on the non-statutory financial statements for the year ended 31 December 2008, they anticipate issuing an unqualified report. 

The financial information for the year ended 31 December 2007 is derived from the financial statements for that year, as included in the AIM admission document. The Company's auditors have reported on the 2007 financial statements in the AIM admission document; the report was unqualified. 

The financial information set out in this announcement was approved by the Board on 9 June 2009.

The Directors do not recommend the payment of a dividend.

The full financial statements will be included in the Group's annual report. Additional copies will be available our website, www.yujininternational.com.  

2.  Segmental reporting

The directors consider that the Group's activities represent a single class of business and a single geographical class as all activities are undertaken in Singapore. 

3. Taxation on profit from ordinary activities

	Unaudited	Audited (restated)
	2008	2007
	USD	USD
Current year income tax	140,384	58,768
Over-provision in prior year	(107,818)	-
	32,566	58,768
Deferred tax	385,821	550,462
	418,387	609,230

 

The income tax expense varied from the amount of income tax expense determined by applying the Singapore income tax rate of 18% (2007: 18%) to estimated chargeable income as a result of the following differences:

Current tax change
	Unaudited	Audited
	2008	2007
	USD	USD
Income tax expense at statutory rate	720,218	671,549
Non-allowable items	330,956	226,384
Non-taxable items	(658)	(507)
Unabsorbed capital allowances utilized	(854,906)	(814,329)
Over-provision in prior year	(107,818)	-
Tax exemption	(55,226)	(24,973)
Total income tax expense	32,566	58,124

 

4. Earnings per share

The basic and diluted earnings per share in each year are calculated by reference to the earning attributable to ordinary shareholders divided by the weighted average number of shares in issue as follows:

Basic

Profit attributable to equity holders of the Company: USD 3,234,906 (2007:USD 3,139,034)

Weighted average number of ordinary shares in issue for the purpose of calculating basic earnings per share:  5,000,010 (2007: 5,000,010)

Basic profit per share: USD 0.65 (2007: USD 0.63) 

Diluted

Profit attributable to equity holders of the company: USD 3,234,906 (2007:USD 3,139,034)

Weighted average number of ordinary shares in issue for the purpose of calculating diluted earnings per share:  30,000,010 (2007: 30,000,010)

Basic profit per share: USD 0.11 (2007: USD 0.10) 

5. Prior year adjustment

The Company has reassessed the policy for deferred tax assets arising on capital allowances and other tax losses. In this respect, a prior year adjustment has been recognised in this financial information.

The effect of this change has been to increase the tax charge and decrease profit for the year ended 31 December 2007 by USD550,462. This has reduced net assets by USD973,414 as at 1 January 2007 and by USD1,523,876 as at 31 December 2007.

6. Share capital

						Group and Company
						Unaudited	Audited
						2008	2009
						USD	USD
Issued and fully paid
Balance at beginning of year						3,317,897	3,317,897
Current year						-	-
Balance at end of year						3,317,897	3,317,897
Comprised of the following:-
(i) Ordinary shares
Balance at beginning of year						691,230	691,230
Current year						2,626,667	-
Balance at end of year						3,317,897	691,230
(ii) Preference Shares
Balance at beginning of year						2,626,667	2,626,667
Current year						(2,626,667)	-
Balance at end of year						-	2,626,667

(a)    During 2008, all 5,000,000 issued redeemable preference shares of the Company were converted into ordinary shares at a conversion ratio of one preference share to one ordinary share on 31 December 2008.

(b)    On 10 February 2009, the issued share capital of the Company was subdivided in such manner so that every one ordinary share was divided into five ordinary shares and the issued 6,000,002 ordinary shares of the Company were in aggregate subdivided into 30,000,010 ordinary shares.

7. Post balance sheet event

In May 2009, one of the six ships in the Group, MT Arcturus (Arcturus), reported a fire incident. The ship has since been re-activated and has sailed, under its own power, to Guangzhou in China for the necessary repairs. The repairs should take approximately two months, following which, it will once again be chartered out in the spot market.

- End -

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