JES International seeks capital boost

Four new investors, Merlion Capital, YA Global Master SPV, Lee Loi Sing and Yin Xiangdong, have agreed to subscribe for the shares at SGD0.14 each, representing a 10% discount to the weighted average price for trades done on the Singapore Exchange on 27 February.

JES said the subscription shares represent approximately 9.43% of the total number of issued shares in the company.

“The placement will help strengthen the capital base of the company, fund the growth and expansion of business and for working capital requirements,” JES said.

In the financial year ended 31 December 2013, JES posted a net loss of RMB522.19m ($85m), widening from a loss of RMB122.33m in 2012.

Revenue also dropped 78.6% year-on-year to RMB542.89m due mainly to slower production activities, lower earnings for a number of vessels due to lower contract prices adjusted, and reversal of revenue for one contract cancellation in the third quarter of 2013.

“The group is endeavoring to improve its product mix over time while remains focus on selected design/model of vessels to achieve reasonable economies of scale,” JES said.