In addition, the group says it intends to optimise its overall investment returns through “disciplined asset selection” and “prudent credit risk management”.
The group explains that it is able to acquire newbuilds of up to 20% below prevailing first-tier market prices by leveraging its connections with second- and third-tier Chinese shipyards and by procuring major equipment and in-house technical oversight to ensure quality control.
The newbuilds are then pre-sold to new buyers for capital gains, if the investment return targets are met. Alternatively, these will be chartered for recurring income.
The strategy is also used for existing vessels under the group’s maritime portfolio.
See also: Men with a vision
“The fundamental outlook for the maritime industry remains resilient, underpinned by structural shifts in trade dynamics,” says Ren Yuanlin, executive chairman and CEO. “We are observing a significant ‘tonnage-mile’ effect as geopolitical tensions force vessels to navigate longer, more complex routes, thereby limiting the capacity of global shipping.”
“The contraction in constrained shipyard capacity, evolving maritime conditions and sustained demand from global trade flows have necessitated a vital fleet renewal cycle to maintain the seamless flow of international commerce, providing a highly favourable environment for our maritime asset portfolio,” he adds.
The lease agreements are expected to contribute positively to the group’s financial performance throughout the duration of these contracts.
Shares in Yangzijiang Maritime closed 3.5 cents higher or 5.65% up at 65.5 cents on April 14.
