Net loss in the six months ended 30 June 2015 was at $7.93m, widening from the loss of $2.59m in the previous corresponding period.
Revenue from January to June this year dropped by 43.5% year-on-year to $42.41m due mainly to falling market freight rates, coupled with decrease freight income when less voyage charters were engaged in the second quarter.
In the second quarter, Jinhui recorded a loss of $12.61m as against a profit of $608,000 in the same period of last year.
Jinhui said the dry bulk shipping market was “extremely challenging in early 2015” due to the sharp decline in China’s dry bulk commodities importing activities, putting severe price pressure to the weak and fragile shipping market.
“With increasing demolitions and slowing new tonnage supply, the market sentiment improved slightly in the second quarter. However, the slowdown of dry bulk commodities import demand from the emerging countries, particularly China, and the oversupply of tonnage remained as key hurdles to the long-awaited cyclical upturn in the market,” Jinhui observed.
On a positive note, the newbuilding order frenzy has significantly slowed down. The lower oil price has also proven that the eco-ship investment story is not so attractive afterall for bulkers, Jinhui said.
“We remain cautiously positive with the longer term market given the long term import requirement from China and Asian countries will experience positive growth,” it added.
As at 26 August 2015, the group operated 36 bulk carriers comprising mostly supramax and handymax ships.
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