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YUJIN INTERNATIONAL LTD

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

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

                               Unaudited Interim Results for the Six months Ended 30 June 2009

The board of Yujin, an owner and operator of short range tankers operating in the Asia Pacific region, is pleased to announce its unaudited interim results for the six months ended 30th June 2009.

Highlights

• Shipping revenue increased by 36% to US$6.87 million (2008: US$5.07 million)

• Total revenue, which included marine fuel oil sales, was US$7.89 million (2008: US$9.44 million). 

• Operating profit was US$849,000 (2008: US$1,660). The decrease is due to the cost of investing in the regional charter business and higher crewing costs.

• Finance expenses remained modest helped by the low interest rates.

Mr. Lee Keen Whye, Non Executive Chairman, commenting on the interim financial statements, said: 'The results for the first half of 2009 are positive as we have achieved our objectives of maintaining our business in the bunker tanker segment while building a regional chartering business. It was unfortunate that Arcturus had the fire incident in May when the demand for its services was high. That would have contributed significantly to the profits of the Group during the period. Now that it has resumed operations, we look forward to its contribution towards the Group's revenue and profits in the coming months. Yujin will continue to grow its regional chartering business. Another two tankers are deployed to this business segment. It will leverage on this by chartering-in additional third party ships to provide the necessary tonnages to service its customers.'

For further information please contact:

Yujin International Ltd.                                      Tel: 00 (65) 6226 2963

Bernard LIM 

Keen Whye LEE 

Or visit www.yujininternational.com

Seymour Pierce Limited                                     Tel: 020 7107 8000
Nicola Marrin
Catherine Leftley

  Chairman's Statement

I am pleased to announce the interim results of Yujin International Ltd for the six months ended 30 June 2009. During that period, Yujin grew its shipping revenue by 36% to US$6.87 million (2008: US$5.07 million). These revenues did not include marine fuel oil sales which were US$1.02 million in the six months to June 2009 and US$4.38 million in the corresponding period in 2008. These sales are carried out as an additional service to Yujin's selected customers at a small margin above cost to cover its administrative expenses.

A summary of the Group's unaudited revenue and operating profit for the six months ended 30 June 2009 and for the corresponding period in 2008 is presented below:

US$'000	Revenue				Operating profit / (loss)
	2009	2008	Change		2009	2008	Change
Bunker tankers	3,733	3,897	(164)		1,445	1,983	(538)
Regional tankers	2,639	772	1,867		(692)	(443)	(249)
Others	498	396	102		96	120	(24)
Shipping revenue	6,870	5,065	1,805		849	1,660	(811)
Marine fuel oil	1,018	4,375	(3,357)		-	-	-
Total revenue	7,888	9,440	(1,552)		849	1,660	(811)

Operational update

Bunker tanker revenue is generated by Yujin's four owned tankers which are on term charter. One ship is committed until February 2010 and the other three to either April or May 2011. The charter contracts are in Singapore dollars and their revenue, which Yujin reports in US Dollars, is subjected to currency exchange fluctuations.

 

Operating profit fell in the first half of 2009 due mainly to 1) inflation related to crewing costs due to tight supply and 2) amortization charge arising from dry-docking expenses. Yujin does not expect the crewing cost to continue escalating due to the easing of manpower supply. Dry docking, which occurs twice every five years or about every 30 months, is a compliance requirement. These costs are amortised over 30 months and are expected to taper off once the cycles of dry docking are achieved.

Yujin has no plan at this time to add to the four tankers deployed to this business segment.

Regional tankers revenue has risen to 38% (2008: 15%) of total shipping revenue in the six months to 30 June 2009. Yujin began the period with two regional tankers, viz.  Team Bee, owned by Yujin, and Heng Zhou, a third party owned Chemical tanker chartered-in in Q3/Q4 2008. Yujin's Arcturus, a bitumen tanker, was added in February 2009 increasing its tonnage available for regional charter to 16,325 dwt. Yujin's strategy is to operate a mix of owned as well as chartered-in tonnage. Yujin currently has contracted for two more tankers to be built, as announced in March 2009. These new buildings are planned to be deployed to this business segment upon delivery at the end of 2010, although they have the flexibility to be deployed as bunker tankers as well. 

Chartered-in tankers include Bliss (4600 dwt) a third party owned tanker, chartered-in in Q2 2008 and Heng Zhou, another third party owned tanker, chartered-in in Q3/Q4 2008 (6,580 dwt). Bliss has since been returned to its owner. Heng Zhou too was returned in August 2009 and replaced with a larger tanker, Intan Premier  (11,500 dwt) in September 2009. 

Yujin will continue to develop and invest in this regional chartering business to complement its bunker tankers operations. Newly constructed owned ships, such as Arcturus, incur start-up and running-in costs additional to normal operating costs, in the initial stages of deployment to operations upon delivery from the shipyard. It was unfortunate that a fire incident occurred on Arcturus as reported on 22 May 2009, three months after delivery. During the period of repair Yujin retained the crew of Arcturus. The profitability of this business segment was therefore significantly affected by these events. Arcturus' repair has since been completed and operations have resumed in September 2009.

Ship managements and others. Yujin manages 16 ships, of which 10 are third party owned. Other income comprised mainly agency and professional fee income. Ship management is an important activity as it keeps the Company abreast on the latest technical and shipping requirements associated with short range tankers. It also helps Yujin focus on operational efficiency and cost management. Currently, Yujin may grow this business segment should the availability of officers and crew continues to improve.

Current trading and outlook. In view of the global economic downturn including its adverse impact on the shipping industry during the reporting period (1H 2009), the directors are pleased with the performance of the Group. It has stuck to its strategy of growing the regional chartering business to complement the bunker tanker chartering business without sacrificing too much profitability. 2H 2009 continues to be difficult, but there are initial signs that an upturn in the economy is happening. Yujin hopes to make sufficient headway in the regional chartering business to reap the rewards that would come when the economy recovers.

LEE Keen Whye

Non Executive Chairman

29 September, 2009

  

Consolidated Statement of Comprehensive Income
Unaudited interim results for the six months ended 30 June 2009
		Unaudited	Unaudited, as restated	Audited
	Note	Six months to 30 June 2009	Six months to 30 June 2008	Year ended 31 December 2008
		US$'000	US$'000	US$'000
Revenue		7,888	9,440	18,360
- Shipping Activities		6,870	5,065	11,840
- Marine Fuel oil Sales		1,018	4,375	6,520
Cost of sales		(5,331)	(5,946)	(9,314)
Gross profit		2,557	3,494	9,046
Operating and administrative expenses		(1,708)	(1,834)	(5,010)
Operating profit		849	1,660	4,036
Financial expenses		(178)	(184)	(388)
Share of profit of associate		-	-	3
Profit before tax		671	1,476	3,651
Taxation	(3)	(74)	(169)	(418)
Profit for the period		597	1,307	3,233
Other comprehensive income
Exchange differences in translating foreign currency operations		252	(643)	(108)
Other comprehensive income for the period, net of tax		252	(643)	(108)
Total comprehensive income for the period		849	664	3,125
Profit / (loss) attributable to:
Owners of the parent		597	1,307	3,235
Non-controlling interests		-	-	(2)
		597	1,307	3,233
Total comprehensive income / (loss) attributable to:
Owners of the parent		849	664	3,123
Non-controlling interest		-	-	(2)
		849	664	3,125
Earnings per share (US$) Basic	(4)	0.02	0.26	0.65
Diluted (based on 30,000,010 shares)	(4)	0.02	0.04	0.11

  

Consolidated Statement of Financial Position
Unaudited interim results at 30 June 2009
		Unaudited	Unaudited, as restated	Audited
		As at 30 June 2009	As at 30 June 2008	As at 31 December 2008
		US$'000	US$'000	US$'000
ASSETS
Non-current assets
Property, plant and equipment		30,601	26,424	30,238
Investments in associated company		-	36	-
Deferred tax assets		654	654	654
		31,255	27,114	30,892
Current assets
Trade debtors		633	796	280
Other debtors		452	-	16
Deposit and prepayments		5,701	1,500	1,958
Cash and cash equivalents		739	643	721
		7,525	2,939	2,975
Total assets		38,780	30,053	33,867
EQUITY AND LIABILITIES
Equity attributable to equity holders of the parent
Share capital		3,318	3,217	3,318
Retained profits		8,516	7,421	7,919
Translation reserve		640	(46)	388
		12,474	10,592	11,625
Minority interest		91	93	91
		12,565	10,685	11,716
Non current liabilities:
Term loan (secured)		16,511	10,938	11,800
Loan from holding and related companies		687	-	687
Deferred tax liabilities		2,638	2,317	2,563
		19,836	13,255	15,050
Current liabilities
Trade and other creditors		2,272	2,012	2,993
Term loan (secured)		3,947	3,947	3,947
Income tax payable		160	154	161
		6,379	6,113	7,101
Total equity and liabilities		38,780	30,053	33,867

Consolidated cash flow statements
Unaudited interim results for the six months ended 30 June 2009
		Unaudited	Unaudited, as restated	Audited
		Six months to 30 June 2009	Six months to 30 June 2008	Year ended  31 December 2008
		US$'000	US$'000	US$'000
Cash flows from operating activities
Net profit before tax		671	1,476	3,651
Adjustment for :
Translation reserve		250	(188)	(174)
Bank loan interest		178	184	389
Fixed assets written off		-	-	2
Depreciation		1,227	793	1,803
Interest received		(8)	-	(19)
Share of profit of an associated company		-	-	(3)
		1,647	789	1,998
Operating profit before working capital changes		2,318	2,265	5,649
Increase in deposits and prepayments		(3,742)	(1,245)	(1,688)
Decrease / (increase) in trade debtors		(353)	(314)	190
Increase in other debtors		(436)	-	(4)
Increase/(decrease) in trade and other creditors		(721)	210	1,120
		(5,252)	(1,349)	(382)
Cash generated from/(absorbed by) operations		(2,934)	916	5,267
Income tax paid		-	-	(4)
Net cash generated from/(absorbed by) operating activities		(2,934)	916	5,263
				(5,294)
Cash flows from/(to) investing activities
Purchase of property, plant and equipment		(1,589)	(15,580)
Interest received		8	-	19
Net cash used in investing activities		(1,581)	(15,580)	(5,275)
Cash flows from/(to) financing activities
Dividends paid		-	-	(1,430)
Bank loans received		7,065	12,025	-
Payment of term loan interest		(178)	(184)	(389)
Payment of term loan financing		(2,354)	(1,238)	(2,839)
Loans from holding and related companies		-	-	687
Net cash used in financing activities		4,533	10,603	(3,971)
Net (decrease)/increase in cash and cash equivalents		18	(4,061)	(3,983)
Cash and cash equivalents at beginning of period		721	4,704	4,704
Cash and cash equivalents at end of period		739	643	721

Unaudited
	Share capital	Translation reserve	Retained profits	Minority interest	Total
	US$'000	US$'000	US$'000	US$'000	US$'000
As at 1 January 2008	3,318	496	6,114	93	10,021
Dividend paid	-	-	(1,430)	-	(1,430)
Total comprehensive income for the period	-	(108)	3,235	(2)	3,125
Balance as at 31 December 2008	3,318	388	7,919	91	11,716
Total comprehensive income for the period	-	252	597	-	849
Balance as at 30 June 2009	3,318	640	8,516	91	12,565
Period ended 30 June 2008
	Share capital	Translation reserve	Retained profits	Minority interest	Total
	US$'000	US$'000	US$'000	US$'000	US$'000
As at 1 January 2008, as previously stated	3,318	490	7,645	93	11,546
Prior year adjustment (note 6)	-	6	(1,531)	-	(1,525)
As at 1 January 2008, as restated	3,318	496	6,114	93	10,021
Translation movement	(101)	101	-	-	-
Total comprehensive income for the period	-	(643)	1,307	-	664
Balance as at 30 June 2008	3,217	(46)	7,421	93	10,685

NOTES TO THE INTERIM FINANCIAL INFORMATION

 

 

The Group is the owner and charterer of a fleet of short range tankers, operating in the Asia Pacific region.

Yujin International Ltd, company registration No. 200414709R, is a limited liability company, incorporated and domiciled in Singapore.

The registered office of the Company is 79 Robinson Road, #03-12, CPF Building, Singapore 068897.

The Company was admitted to the AIM market of the London Stock Exchange on 10th February, 2009.

Copies of this interim financial information is available on the Company's website  www.yujininternational.com 

 

 

The consolidated interim financial information of the Group for the six months ended June 2009 and the comparative numbers, unless indicated, are unaudited and do not comprise statutory accounts within the provisions of the Singapore Companies Act, Chapter 50.

The results for the year ended 31 December 2008 have been extracted from the financial statements for Yujin International Ltd for the year ended 31 December 2008 which are prepared under International Financial Reporting Standards. The interim financial information should be read in conjunction with the annual financial statements for the year ended 31 December 2008.

The accounting policies, presentation and methods of computation have been followed in this unaudited interim financial information as were applied in the preparation of the Group's annual financial statements for the year ended 31 December 2008, except for the impact of the adoption of the Standards and Interpretations described below:

IFRS 8 - Operating Segments (effective for annual periods beginning on or after 1 January 2009)

IFRS 8 is a disclosure Standard that has resulted in a re-designation of the Group's reportable segments (see note 8), but has had no impact on the reported results or financial position of the Group.

IAS 1 (revised 2007) - Presentation of Financial Statements (effective for annual periods beginning on or after 1 January 2009)

The revised Standard has introduced a number of terminology changes (including revised titles for the financial statements) and has resulted in a number of changes in presentation and disclosure. However, the revised standard has had no impact on the reported results or financial position of the Group.

The interim financial information for the six months ended 30 June 2009 was approved by the directors on 29 September 2009.

3. Taxation

 

The tax charge for the six months period to 30 June 2009 is estimated at US$74,000 (2008: US$169,000) or 11% (2008: 11%), which is the estimated effective rate of tax.

4. Earnings per share

The basic and diluted earnings per share in each period 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: US$ 597,000 (2008: US$ 1,307,000).  

Weighted average number of ordinary shares in issue for the purpose of calculating basic earnings per share: 30,000,010 (2008: 5,000,010)

Basic profit per share: US$ 0.02 (2008: US$ 0.26)

Diluted

Profit attributable to equity holders of the company: US$ 597,000 (2008: US$ 1,307,000).

Weighted average number of ordinary shares in issue for the purpose of calculating diluted earnings per share: 30,000,010 (2008: 30,000,010)

Diluted profit per share: US$ 0.02 (2008: US$ 0.04)

5.    Dividend

No dividend has been declared or paid in this interim period.

6.    Prior year adjustment

As disclosed in the 2008 financial statements, the Company has reassessed its policy on, and basis of deriving accounting estimates in relation to, the treatment of deferred tax assets arising on capital allowances and other tax losses in the year ended 31 December 2008. As a consequence of this reassessment, a material adjustment has been recognised in this financial information in relation to prior periods.

The effect of this change has been to increase the tax charge and decrease profit for the 6 month period ended 30 June 2008 by US$ 139,000. This change has reduced net assets by US$ 1,525,000 as at 1 January 2008 and by US$ 1,664,000 as at 30 June 2008.

7.    Operating segment

IFRS 8 is a disclosure standard that has resulted in re-designation of the Group's reportable segments but has no impact on the reportable results or financial position of the Group. The Group has adopted IFRS 8 Operating Segments with effect from 1 January 2009. IFRS 8 requires operating segments to be identified on the basis of internal reports about components of the Group that are regularly reviewed by the chief operating decision makers as defined in IFRS 8, in order to allocate resources to the segment and to assess its performance. The primary format is based upon the Group's management and internal reporting structure which reflects the statutory subsidiaries of the Group. Segment results constitute items directly attributable to the business. Certain centrally funded costs are allocated to the business segments to arrive at operating profits or losses. Following the adoption of IFRS 8, the identification of the Group's reportable segments are as follows:

• Bunker tanker chartering

• Regional tanker chartering

• Ship management and other related shipping activities.

The Group occasionally trades in marine fuel oil. This activity does not have a significant impact on the Company's profitability as the trades are done on cost plus a thin margin to cover administrative costs associated with the trades. The aggregate amount of the marine fuel oil trade is disclosed in the financial statements. The Company does not consider this to be a core business segment activity. It is carried out as an additional service to support selected customers.

The unaudited segmented revenue and their corresponding operating profit and loss are presented below.

Segments	Revenue				Operating profit / (loss)
US$'000	6 months ended 30 Jun 09	6 months ended 30 Jun 08	Year ended 31 Dec 08		6 months ended 30 Jun 09	6 months ended 30 Jun 08	Year ended 31 Dec 08
Bunker tankers	3,733	3,897	7,878		1,445	1,983	3,989
Regional tankers	2,639	772	2,891		(692)	(502)	(115)
Others	498	396	1,071		96	120	162
Shipping activities	6,870	5,065	11,840		849	1,601	4,036
Marine fuel oil	1,018	4,375	6,520		-	-	-
Total	7,888	9,440	18,360		849	1,601	4,036

  

Assets and liabilities of the various segments as at 30 June 2009 are as follows:

Segments	As at 30 June 2009
US$'000	Total Assets	Total Liabilities
Bunker tankers	18,504	10,558
Regional tankers	24,097	25,073
Others	(3,821)	(9,416)
Group	38,780	26,215

The negative assets and liabilities in the other segments are due to funding by the holding and related companies

ENDIOEIIFEDAIIIVIA