" The shipbuilding industry has been in a downturn for some time now, and we believe that we have hit the trough as we recently saw signs of renewed activity within the industry. As such, we have been actively engaging interested ship owners in the hopes of winning new orders for the Group in the near term. Although we are by no means unaffected, I am pleased to report that Yangzijiang’s performance has remained relatively strong. The Group has managed to brace itself from the brunt of the downturn by identifying industry cycles ahead of time, and developing strategies to counter any negative headwinds. The current down cycle has spurred the Group to strengthen our business model by establishing diversified revenue streams which includes ship breaking, ship repair, and an offshore segment.

While we devote time and effort on building up these segments to complement our core business of shipbuilding, we have remained vigilant to developments in the shipping and shipbuilding industry. Increasingly, we have noted heightened interests and enquiries for eco-ships. We believe this trend developed as shipping companies endeavor to adapt to an increasingly difficult operating environment. Apart from lower emissions which will fulfill the stricter requirements of regulatory bodies, eco-ships benefit companies in significant cost savings through a change in vessel design and fuel efficiency. In this operating climate, these cost savings will be imperative to ship owners due to its direct impact on the bottom line.

The Group has a range of vessels which fall into the eco-ship category, including the 4,800 TEU and 10,000 TEU containerships, as well dry bulk carriers from 34,000 DWT to 82,000 DWT. With an established track record, I believe that the Group will benefit from this trend as we make continuous improvements on our technology and quality of vessels.