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Wednesday, 30 November 2016, 10:19 HKT/SGT
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Source: Great Harvest Maeta Group Holdings Limited
Great Harvest Announces 2016 Interim Results
Maintaining Prudent operational strategy; Seeking for potential opportunities

HONG KONG, Nov 30, 2016 - (ACN Newswire) - Great Harvest Maeta Group Holdings Limited ("Great Harvest", the "Group"; stock code : 3683.HK) is pleased to announce the unaudited interim results of the Company for the six months ended 30 September 2016 (the "period under review") today.

The dry bulk marine transportation industry has been stagnant in 2016, which is attributable to the oversupply of dry bulk vessels and the minor growth recorded in the demand for dry bulk marine transportation. The contradiction of demand-supply imbalance of dry bulk vessels remained unresolved, which resulted in the depressed freight rate. The dry bulk marine transportation industry will have a relatively longer period of adjustment. Given the bleak economic growth, the growth rate of demand in marine transportation is near zero. In addition, the new policies and regulations promulgated in various areas around the world further pushed up the operating and management costs of vessels, resulted with a more severe operation environment of the dry bulk marine transportation industry.

In the period under review, revenue of the Group decreased from about US$4.5 million to about US$3.8million as compared to the same period last year, representing a decrease of 15.9%. The average daily TCE of the Group's fleet decreased from approximately US$6,000 to approximately US$5,000 as compared to the same period last year. The reasons for the decline were that (i) the fright rate of dry bulk cargoes in the spot market was lower than that of the corresponding period last year, and (ii) the daily charter rate of 90,000 ton post-panamax vessel(s) among the Group's fleet was lower than that of standard vessels. Gross loss of the Group decrease from about US$2.7million for the six months ended 30 September 2015 to US$ 1million for the six months ended 30 September 2016, representing a difference of approximately of 1.7million. The Gross loss margin improved from approximately 60.2% for the six months ended 30 September 2015 to 26% for the six months ended 30 September 2016.

For the six months ended 30 September 2016, the Company's vessels were under sound operation. The size of the Group's fleet has a total carrying capacity of 319,923 dwt, and the average age of the fleet is 10 years. The fleet maintained a high operational level with an occupancy rate of 99.3% during the period under review. Besides, the Company's fleet achieved a record of safe operation with zero adverse incident, and the Company was able to exert stringent control over costs and expenses, the management expenses of vessels were also maintained within budget.

On 10 May 2016, the Group completed the acquisition of two parcels of land located at Meidian Slope, Hongqi Town, Qiongshan District, Haikou, Hainan Province, the PRC. According to the preliminary development proposal, the development of the lands will comprise (i) a trading center and exhibition facilities for trading in tree seedlings and other nursery stocks; (ii) serviced apartments; and (iii) office, retail, car parking and other ancillary facilities.

Looking ahead, it is pessimistic about the outlook of the dry bulk marine transportation industry since there will be no substantial change to the current imbalance in demand and supply. The Group will maintain a prudent operational strategy and keep the management of daily operation well. In addition, to diversify the sources of income, the Group will continue seeking for new development opportunities; positively expand to business other than marine transportation. As there is massive increase in the PRC's flower and plant market in the past five years, the Group acquired two parcels of lands in Hainan province, and actively explores the land and relative business.

Mr. Yan Kim Po, the chairman of Great Harvest Maeta Group Holdings Limited, concludes that the Company acquired two parcels of lands in Hainan province to expand the land development business actively. The acquisition not only helps to diversify the Group's business and increase the Group's income stream, but also brings a long term and stable income to improve the Group's financial performance. In the field of the dry bulk marine transportation, the Group will maintain a prudent operational strategy, strive to improve the transportation services for the customers, to charter to reliable and high-credit customers at a better rate so as to create higher operational income. Meanwhile, the Company will also strictly control the operational expenses and reduce all unnecessary expenses. We will diversify the income stream and improve our financial condition to generate more valuable and fruitful returns to our shareholders."

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; property investment and development and money lending business as well. For the 6 months ended 30 September 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 charter-out percentage at approximately 99.3%.



Nov 30, 2016 10:19 HKT/SGT
Topic: Press release summary
Sectors: Daily Finance, Daily News
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