Yangzijiang

Yangzijiang: Acquired remaining equity interest in 2 subsidiaries, Rmb6m for 40% remaining in Shanghai Henggao Ships Design and Rmb112m for 20% additional Jiangsu Yangzi Xinfu Shipbuilding (bringing aggregate to 80% equity interest). Shanghai Henggao Ships Design is engaged in the detail and production design for a wide range of merchant ships. Jiangsu Yangzi Xinfu Shipbuilding is engaged in shipbuilding, ship repairing, and production and processing of large scale steel structures. Xinfu Yard currently has a shipbuilding license with a huge production area of about 166 hectares, ideal for building large vessels and the Group has plans for building very-large crude carrier (VLCC) or large containership and other larger vessel types in this yard. Mgmt's intention would be for the building of larger vessels and offshore vessels, which will be able to generate better return for shareholders. Company currently trading at 4.9x P/E, 1.3x P/B. Chinese peer Cosco Corp is trading at 17.3x P/E, 1.7x P/B.