TradeWinds

 

Ren YuanLin is chairman and CEO of Yangzijiang Financial Holding.Photo: Aurelien Foucault

 

Yangzijiang Financial orders up to six bulkers as it shifts focus from tanker space

Singapore-listed company moves on bulker series after choosing Chinese shipbuilder

 

10 April 2025 21:31 GMT Updated 11 April 2025 6:29 GMT

By Irene Ang in Singapore 

Yangzijiang Financial Holding has confirmed a shift in focus from tankers to bulkers with its latest investment.

 

Shipbuilding sources said the Singapore-listed company has commissioned Jingjiang Nanyang Shipbuilding to construct up to six 40,000-dwt handysizes.

 

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The deal includes four firm vessels with an option for two additional ships, with Yangzijiang Financial reportedly paying slightly less than $30m per ship.

 

The newbuildings are for delivery between 2027 and 2028.

 

Last month, TradeWinds reported that Yangzijiang Financial was working with a Hong Kong-based company to order four 40,000-dwt handysizes at the same price level.

 

At that time, the shipbuilder had not been identified, as the partners had yet to select a shipyard.

 

The identity of the Hong Kong partner remains undisclosed, but sources suggest it is a dry bulk player specialising in handysize tonnage.

 

&ldquo They [Yangzijiang Financial and Hong Kong partner] are on the same project,&rdquo said one shipbuilding player. &ldquo They have finally decided on the shipyard and inked the newbuilding contract.&rdquo

 

With the latest bulkers order, Jingjiang Nanyang has increased its orderbook to 12 newbuildings &mdash with the other eight vessels being MR tankers.

 

Yangzijiang Financial booked four of the 50,000-dwt product carriers early this year and the other four last month. It also holds an option of two ships at the shipyard.

 

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Sources said the tankers are fully owned by Yangzijiang Financial, but the investment company is open to other entities taking stakes.

 

The product tankers, each featuring 12 cargo and two slop tanks, were said to cost less than $45m each.

 

Jingjiang Nanyang is scheduled to deliver the octet between 2026 and 2028.

 

Yangzijiang Financial also has a dozen tankers being built at Chinese shipyards. These newbuildings were ordered in partnership with foreign shipping companies.

 

Jointly with an unnamed UK-based shipowner, it is building four 50,000-dwt product/chemical tankers at Penglai Zhongbai Jinglu Ship Industry.

 

Partnering with another Hong Kong-based company, it has four 25,900-dwt stainless steel chemical tankers on order at New Jiangzhou Shipbuilding for delivery in 2026 and 2027.

 

Yangzijiang Financial spun off from Singapore-listed Yangzijiang Shipbuilding in April 2022.

 

The investment holding company is led by shipbuilding veteran Ren Yuanlin, the former boss of the shipyard.

 

Ren is shifting his investment house&rsquo s focus from the Chinese real-estate market to shipowning, driven by his bullish outlook on the maritime industry.

 

He sees opportunities in the sector, fuelled by stricter environmental regulations and growing demand for alternative financing solutions.(Copyright)

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Extracted from the supplement:- If any of the Events has occurred and has not been waived when and as required to be waived, the SPA may be terminated by the relevant Purchaser by notice to the Company at any time at or prior ... etc

 

Note that the SPA does provide the option for the issuer and strategic investors to seek or to give waiver in the event if such MAE events do occur. If the strategic investors are still keen to invest, they will probably give waiver with a new lower placement price at a discount to the prevailing market price.

 

Someone mentioned that the strategic investors could be buying the shares much cheaper now from the market. I do not think so. 

 

Buying the TS shares comes with a package of 3 senior insiders to advise/manage the investment, buying from the market means the strategic investors are on their own. I will buy the TS shares with the insiders package if I have $130m to burn. 

 

If i were to be the rich strategic investor, the 2 key questions now in my mind are : 

1) do I as a strategic investor still want to invest ? 

2) if so, at how much discount to the prevailing market price ?

 

YFH MF/MS operates globally and currently covering SG, UK, Europe, US, HK, S Korea, UAE and India (Page 13, FY24 powerpoint). US is just one area affected by port fees and tariffs. The US drama is not likely a deal breaker to the TS placement, the share price fallen below 0.675 is. 

 

Now with US reversing the port fees, the deal could really still be alive, pending probably with a new mutually agreed placement price.

 

The above are my thoughts. Doesn' t matter if you do not agree, just ignore.