The placement of 330m warrants is a good thing. By issue the warrants the YZJ can generate S$18.15m for working capital and the said warrants will not be listed & quoted on SGX. The exercise price is around $1.50. I see no reasons why people so panic to dispose of the share immediately after the announcement is made. If the share price has reach $1.50 for those vested you will have make good profit if you have bought YZJ before the announcement or recently.

One question to ask is that who is going to pay $18m for the right if the party doesn’t have a confidence that the share price will hit higher than 1.50 latest by 29 Apr 2016. $18m is not small money.

Looking at monthly chart it seems consolidating for almost 10 months and believes it is bottoming now and good for accumulation.

Both MACD & Stochastic have turning up and once price crossed over 0.98 & 1.005 in extension then the ST we should able to see to close the falling window 1.085 in next two weeks.

The YZJ has proposed 5 cents dividend and the yield is good.

Have vested.

 

Both MACD & Stochastic have turning up and once the share price has crossed over 0.98 & 1.005 then the ST we should able to see to close the falling window 1.085 in next two weeks.

Looking at monthly chart it seems that YZJ has consolidating for almost 10 months and is bottoming.

The YZJ has proposed 5 cents dividend resulted Yield not bad.

Good time for accumulation.

Have vested.

 

These held-to-maturity financial products are investments in banking products offered by Chinese banks and trust companies and are used to finance Chinese corporations and entities in diverse sectors, such as real estate projects, manufacturing companies and local government projects.

 

Such products yielded an average return of about 10% to 15% a year. Relative to this, cost of borrowing is at 5% for Rmb and 2% to 3% for USD.

 

.

 

Depending on how the prospective yields of held-to-maturity investments change relative to the cost

 

of borrowing, YZJ management do not rule out the possibility of deploying funds from their held-to-maturity investment portfolio   to fund their   working requirements as they expand their shipbuilding ctivities.

 

All of these investments are secured against various collaterals such as listed shares, land titles and guarantees. The Group’s policy is to insist that the collateral to debt coverage ratio to be no less than 2 times and the collaterals have to be unencumbered. The Group has not experienced any default of such investments since it started investing in these products in 2008.

 

The carrying amount of these assets is reduced through the use of an impairment allowance account which is calculated as the difference between the carrying amount and the present value of estimated future cash flows, discounted at the original effective interest rate. When the asset becomes uncollectible, it is written off against the allowance account. Subsequent recoveries of amounts previously written off are recognised against the same line item in profit or loss.

 

The allowance for impairment loss account is reduced through profit or loss in a subsequent period when the amount of impairment loss decreases and the related decrease can be objectively measured. The carrying amount of the asset previously impaired is increased to the extent that the new carrying amount does not exceed the amortised cost had no impairment been recognised in prior periods.

 

The Group follows the guidance of FRS 39 in determining when the financial assets, held-to-maturity are considered impaired. Significant financial difficulties of the counterparty, probability that the counterparty will enter bankruptcy, and default or significant delay in payment are objective evidence that these financial assets, held-to-maturity is impaired. Allowance for impairment was provided based on   management’s assessment of the credit history of its counter-parties, and that of the market conditions. Refer to Note 35(b) of 2011 Annual Report on the credit risk information in relation to these financial assets.

 

Other gains/(losses) - net 其 他 利 益 /(損 失 ) - 淨 值

Net other gains, which comprises mainly foreign exchange related gains/ (loss) and impairment provision for

HTM investments, recorded a loss of RMB21.3 million in 4Q 2012 from loss of RMB107.4 million in 4Q 2011.

The recorded net loss of RMB21.3 million mainly due to additional of RMB99.2 million impairment provisions

made for HTM Investment at end of 2012. As at 31 December 2012, the provision is RMB 653.3 million.

其 他 利 益 主 要 包 括 外 匯 相 關 損 益 以 及 對 持 有 至 到 期 金 融 資 產 所 作 的 減 值 準 備 計 提 ， 與 2011年 第 四 季 度 的

1.074

期 金 融 資 產 減 值 準 備

元 人 民 幣 。

As at 31/12/2011, impairmrnt provisions was RMB 554.2 million. (pls refer to Notes 16 of the 2011 Annual Report)

億 元 虧 損 相 比 ， 2012年 第 四 季 度 ， 其 他 利 益 凈 虧 損 人 民 幣 2130萬 元 。 虧 損 主 要 源 於 增 加 對 持 有 至 到 9920萬 元 人 民 幣 ， 截 止 2012年 12月 31日 ， 持 有 至 到 期 金 融 資 產 減 值 準 備 共 計 6.533億