JES News release 9 Nov 10: Q310 Results

SGX-LISTED JES INTERNATIONAL 3Q2010 NET PROFIT SOARS TO RMB 22.5 MILLION from RMB1.6 MILLION; ORDERBOOK REACHES US$ 900 MILLION FOR DELIVERY UP TO FY2012

- Revenue rose 113.7% to RMB 641.0 million on contributions from new yard completed in mid-2010
- Total of 35 vessels for delivery up to FY2012
- FY2010 financial performance to exceed FY2009

*Based on weighted average number of ordinary shares of 1,166,028,000
**As at 31 Dec 2009


SINGAPORE, 9 November 2010 – JES International Holdings Limited (“JES” or the “Group”) (JES 国际控股有限公司), a major PRC shipbuilder, said today that its net attributable profit for the July- September 2010 (“3Q2010”) soared to RMB 22.5 million from RMB 1.6 million in 3Q2009.

Singapore Exchange Mainboard-listed JES, with capabilities to build a wide range of vessels, said profit surge was achieved on the back of a 113.7% increase in revenue to RMB 641.0 million in 3Q2010 from RMB 300.0 million in 3Q2009, mainly due to more RMB (Million) 3Q2010 3Q2009 Change (%) vessels in construction, with the increased capacities coming from the recently completed new yard facilities.

In 3Q2010, the Group delivered two 37,500 deadweight tonnes (“DWT”) bulk carriers and one 79,800 DWT bulk carrier, as compared to 3Q2009 where shipbuilding operations were affected by slower production progress and delays in vessel deliveries.

JES reported gross profit margin of approximately 9.0% in 3Q2010. Earnings per share rose to 1.93 RMB cents from 0.14 RMB cent for 3Q2009 (based on weighted average of 1,166,028,000 shares). Net asset value per share as at 30 September 2010 rose to 140.8 RMB cents from 138.6 RMB cents as at 31 December 2009.

For the nine months ended 30 September 2010 (“9M2010”), the Group recorded revenue and net attributable profit of RMB 1.5 billion and RMB 27.0 million, respectively, compared to RMB 980.1 million and a loss of RMB 43.9 million, respectively, in 9M2009.

JES’s Chairman and Chief Executive Officer Mr. Jin Xin said, “The completion of our new yard has increased JES’s capabilities and enhanced our reach to a wider market.

Our improved performance in 3Q2010 strengthens the reputation of JES as one of the PRC’s largest non-state-owned shipbuilders and underscores our sales and marketing efforts which led to securing business within a competitive business environment.”

The Group continues to maintain prudent financial policies to ensure sustainable growth.

As at 30 September 2010, the Group held cash and cash equivalents of approximately RMB 775.0 million, with short-term borrowings of RMB 256.1 million and no long-term borrowings.
Orderbook Updates To-date in FY2010, the Group has successfully contracted 24 new vessels, bringing its total orderbook as at 30 September 2010 to a total of 35 vessels valued at approximately US$900 million. These orders, which will be constructed at both the Group’s old and new yards, will be progressively delivered over the next 24 months.

Outlook

“In the near term we seek to secure new orders to fully utilize our expanded production facilities. With capabilities now that we have competed our new yard, we plan to expand our portfolio to include more sophisticated vessels such as Floating Oil Production, Storage and Offloading (“FPSO)” units and ocean engineering vessels. Over the medium to longer term we plan to penetrate the offshore equipment sector to produce oil rigs,” Mr Jin said.

The Group has commenced prospective discussions with potential business partners in this area and will announce any such development as it arises.

While economic conditions have improved significantly, the Group remains cautiously optimistic about the long-term operating outlook of the global economy and shipbuilding industry. As such, the Group will continue to actively monitor market developments to ensure the sustainability of its future earnings.

In view of the above factors and barring unforeseen circumstances, the Group remains confident that its financial performance for FY2010 will exceed FY2009.

~ Ends ~

Issued on behalf of JES International Holdings Limited by WeR1 Consultants Pte Ltd

About JES International Holdings Limited

JES is a major PRC shipbuilding group with production facilities capable of producing different types of vessels, including non-standard vessels. Its principal products include:

• Bulk Carriers
• Crude oil tankers
• Containerships
• Ocean engineering vessels

The Group’s customers include major shipowners based in Europe, Canada and Asia, including the PRC.

The Group’s shipyard is located at Shiwei Port, Jingjiang City in Jiangsu Province, PRC
and features a 1 km-long coastline with access to deep water and stable currents. The
facilities stretch over a gross land area of approximately 467,000 sq.m. The existing
yard facilities include two slipways equipped with gantry cranes, two outfitting wharfs, a
hull and section steel shop, a sub-assembly shop, a block assembly shop, a metal
treatment shop, two paint shops, a pipe shop and an electrical shop that cover every
stage of the shipbuilding process.

In 2010, the Group completed the construction of its new yard facility located on the land
adjacent to its existing yard. The new yard consists of a 400m by 140m wide dry dock, a
steel hull structure shop, one 1,200 tonne and two 400 tonne gantry cranes, auxiliary
facilities and other lifting equipment. With the addition of the new yard, JES is now
equipped with the additional capacity to concurrently construct three bulk carriers of up
to 176,000 DWT each or two crude oil tankers of up to 300,000 DWT each or very large
ocean engineering vessels and offshore equipment such as oil rigs.