About JINHUI HOLDINGS Company

The Company was incorporated as a limited company on April 23, 1991 in Hong Kong, China, and listed on the Hong Kong Stock Exchange on December 6, 1991 (stock code: 137). It is a holding company for a number of ship-owning and ship-leasing subsidiaries. Since 1992, the company began diversifying its business, such as trading and investing in various industries in China. After the restructuring in June 1994, Jinhui Shipping and Transportation Limited became a direct holding company for the Group's shipping business. To attract international attention to Jinhui Shipping, its shares have been listed on the Oslo Stock Exchange in Norway since October 1994 (stock code: JIN). tactics The Group's fleet is mainly composed of super Darling portable ships. This type of ship is a larger and more efficient Darling portable ship design, and the demand for this type of ship from customers around the world is increasing day by day. The Group will focus on taking wise and decisive measures to maintain a stable financial position and moderate leverage efficiency, and not rule out reducing the size of the fleet so that we can further focus on prudence and stability as our core goals in the future, overcome the current storm, and seek to become one of the preferred ship suppliers for customers. On the commercial side, our strategy is to maintain a flexible ship leasing policy in order to achieve the best balance between long-term chartering agreements, which can bring in strong cash inflows, and spot contracts that allow the Group to take advantage of future rent increases. We will also further strengthen our risk management efforts with the aim of reducing the potential risk of counterparties. Shipping business The Group operates its global shipping business through Jinhui Shipping. Jinhui Shipping is a subsidiary of the Company holding approximately 55.69% interest as of the date of this report. The Group's shipping business began in the mid-1980s and mainly operates in the form of global leasing of dry bulk vessels. The Group has formulated a prudent and perfect shipping management method to link suppliers and end users around the world. The Group's primary task is to understand the actual needs of customers and to select suitable vessels to carry bulk goods in the form of air charters or term leases. The Group operates a modern dry bulk cargo fleet, which is used to carry cargo or to be leased to other shipping operators. The choice of the two is expected to bring high economic benefits to the Group. The key to the success of a ship leasing business is time, performance and relationships. Charterers should fully understand their customers and suppliers and establish mutual trust and respect. The Group has always performed well in this important area, and has been able to strengthen contractual relationships and maintain a reasonable business volume even during difficult times of economic recession. The Group's policy has always been to comply with all environmental rules and regulations applicable to its shipping operations and its daily working environment to avoid the release of toxic liquids into the environment. The Group's self-owned vessels are properly maintained, and the Group also attaches great importance to compliance with safety and environmental laws and regulations for its business, including (but not limited to) ISM rules, ISPS rules, MARPOL conventions, and other applicable rules under IMO regulations. The Group ensures that all crew members working on ships have been trained and certified in accordance with the STCW Convention. The Group's self-owned vessels are also subject to the laws, regulations and rules of each country and the port where the ship docks. The Group has put in place policies and procedures to ensure compliance with such laws, regulations and rules. As of December 31, 2018, the Group owned 19 self-built vessels and employed 421 crew members on board.