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| Maintain Prudent Operating Strategies, Seize New Development Opportunities |
HONG KONG, July 1, 2016 - (ACN Newswire) - Great Harvest Maeta Group Holdings Limited ("Great Harvest", the "Company"; stock code : 3683.HK) announces its annual results for the year ended 31 March 2016 ("FY2016") today.
For the year ended 31 March 2016, the Baltic Dry Index continuously broke the record of its lowest level. Although there was rebounded in freight rate that The Baltic Dry Index once hit its yearly high of 1,222 points, this only reflected the increasing volatility in the freight market with the spot freight rate still hovering at low levels. Given the slow global economic growth, there was zero increase in demand for marine transportation of dry bulk cargoes in 2015, which intensified the contradiction of demand-supply imbalance of dry bulk vessels.
As at 31 March 2016, the Group's fleet comprised four panamax dry bulk vessels, namely GH FORTUNE, GH POWER, GH GLORY and GH HARMONY, with a total carrying capacity of approximately 319,923 dwt.
For the year ended 31 March 2016, the revenue of the Group decrease from approximately US$15.2 million to approximately US$9.1 million, representing a decrease of 39.9%. This was mainly attributable to the decrease in average daily time charter equivalent ("Daily TCE") of the Group's fleet and the handover of a vessel of the Group. The Group recorded gross loss of approximately US$5.9 million for the year ended 31 March 2016 as compared with gross loss of approximately US$6.7 million for the year ended 31 March 2015. The gross margin for the year ended 31 March 2016 is -64.2%, it's mainly due to the decrease in average Daily TCE of the Group's fleet.
Mr. Yan Kim Po, the chairman of Great Harvest Maeta Group Holdings Limited, said, "Although 2015 was a very difficult year for the dry bulk marine transportation industry, the Group's vessels were under sound operation in the year ended 31 March 2016. The Group's fleet achieved a record of safe operation with zero adverse incident, and all vessels were operating in the spot market in 2016. The Group was able to exert stringent control over costs and expenses in the course of vessel management and strived to minimise voyage expenses to maintain the management expenses of the vessels within budget.
In order to diversify the income streams of the Group, the Group commenced the money lending business through one of the subsidiaries of the Group.
Moreover, the Group also acquired two parcels of land located in Haikou of the PRC. The development of the Land will comprise (i) a trading centre and exhibition facilities for trading in tress seedlings and other nursery stocks; (ii) services apartments; and (iii) office, retail, car parking and other ancillary facilities.
The PRC's flower and plant market had grown substantially in the past five years. The purchased land is located in Hongqi Townof Haikou, Hainan Province, which is regarded as one of the national core development towns according to the 12th five-year plan of the PRC government. Hongqi Town will be developed into a key tourist spot, comprise of a hi-technology business zone for plantation of tropical flowers and tree saplings, a floral exhibition theme park; and areas for hotel and conference facilities. We do believe that the acquisition not only diversifies the Group's business and increase the Group's income streams, but also brings a long term and stable income to improve the Group's financial performance. "
Looking ahead, Mr. Yan concluded "Given the depressed spot freight market, the Group will maintain its prudent operating strategies by enhancing the daily management of vessels, providing better transportation services to customers and seeking for more reputable and reliable charterers at higher rates, thus generating more operational revenue for the Group. Meanwhile, the Group will strictly control operating costs and reduce all unnecessary expenses. Apart from the new business of money lending and the development of two parcels of the land in Haikou, the Group continues to identify new development opportunities and/or expand its scope of business and diversify its income streams by expanding more operations other than the shipping business."
Great Harvest Maeta Group Holdings Limited
The Company is principally engaged in chartering out its own dry bulk vessels, providing quality shipping service to customers worldwide and money lending. For the year ended 31 March 2016, the Company's fleet size is 319,923 dwt, including 4 panamax dry bulk vessels, which are GH FORTUNE,GH POWER,GH GLORY and GH HARMONY, the average age of the Company's fleet is 10 years with the fleet occupancy rate at approximately 97.74%.
Topic: Press release summary
Source: Great Harvest Maeta Group Holdings Limited
Sectors: Daily Finance, Daily News
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From the Asia Corporate News Network
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