Jinhui Shipping & Transportation Ltd.

Q2 2026 revenue was USD 36 million, EBITDA was USD 17 million, net profit was USD 5 million, and basic EPS was USD 0.048. First-half 2026 revenue was USD 69 million, EBITDA was USD 34 million, net profit was USD 10 million, and basic EPS was USD 0.088. Q2 average daily TCE was USD 18,015, up 30% versus Q2 2025; first-half average TCE was USD 17,150, also up 30% year over year. Shipping-related expense declined to USD 14.9 million, daily running costs fell to USD 5,407 per day from USD 6,719, and finance costs declined to USD 1.8 million from USD 2.1 million. The company ended June with total secured borrowings of USD 98 million, total debt of USD 98.3 million, gearing of 7%, current ratio of 3.56:1, total assets of about USD 529 million, total equity of USD 383.6 million, and available liquidity of USD 70.6 million. CapEx in Q2 was USD 11.8 million, and the group repaid about USD 10 million of bank loan and other borrowings during the quarter. No explicit next-quarter or full-year revenue/EPS guidance was given; management said it expects geopolitical uncertainty and regionalization trends to continue, which it thinks support a firm freight environment, while leverage should rise as newbuildings join the fleet.

The lead executive said the operating backdrop remains volatile geopolitically, but that regionalization and changing trade patterns have helped keep freight rates firm despite new vessels entering the market. He emphasized that Jinhui will continue opportunistic fleet renewal while preserving a robust balance sheet and low gearing to retain flexibility for future opportunities. His tone was cautiously upbeat and focused on discipline, liquidity, and fleet optimization rather than aggressive growth.

The financial commentary centered on improved operating performance and lower costs: shipping-related expense fell by USD 7.96 million to USD 14.9 million, daily running costs dropped 20% to USD 5,407, and finance costs eased to USD 1.8 million as market rates and borrowings declined. He also highlighted capital spending of USD 11.8 million, mainly for newbuilding installments and drydocking, and said the group repaid about USD 10 million in borrowings during the quarter. Balance sheet metrics remained conservative with total debt of USD 98.3 million, gearing of 7%, liquidity of USD 70.6 million, and a current ratio of 3.56:1.

Management addressed why the company is using sale-and-leaseback financing instead of traditional shipping mortgages, saying bank lending has become scarcer, shorter-dated, and less attractive for maintaining a healthy maturity profile. On capital allocation, management said it understands the appeal of share buybacks at a discount to NAV but prefers to keep dry powder for opportunistic vessel renewal and earn income on liquidity through fixed coupon notes. It also said it has not decided whether older 2007-built vessels will go through special survey or be sold, estimating a special survey could take 4 to 6 weeks, and noted that the Shanghai Phoenix property situation remains very weak with no clear near-term recovery.