Yangzijiang Financial clarifies role with maritime entry

The company assured it will have a different role from its sister company.

Yangzijiang Financial Holding Ltd (YZJFH) clarified that there will be no conflict of interest with its sister company Yangzijiang Shipbuilding (Holdings) Ltd (YSL) as the former seeks approval to diversify its core business.

This was one of the queries raised by shareholders which was addressed by YZJFH in bourse filing ahead of the extraordinary general meeting on 31 May. 

YZJFH said it seeks to function as a financial investor, while YSL is involved in maritime only in its capacity as an operating owner. 

The company said YSL’s main operating model remains in shipbuilding, which covers the construction of commercial vessels such as containerships, oil tankers, bulk carriers, LNG vessels and other gas carriers. 

“Whilst it does operate a supplementary shipping business, this is relatively small compared to its shipbuilding operations,” the company said. 

YZJFH emphasised it has no intention of venturing into the shipbuilding segment, and will focus mainly on providing maritime services such as finance leasing, ship agency, ship broking, as well as providing secured loan services to maritime players. 

“It will also be owning vessels with long charter coverage, with a view of forming joint ventures and/or partnerships with third parties to run the operations,” the company added.

According to YZJFH, its sister company has ceased entering into new transactions within the maritime services and loan services sectors after the spin-off,

Furthermore, the company said YSL is engaged in the import and export business related directly to its own shipyards, whilst YZJFH offers these services to non-YSL clients. 

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“Despite having the same controlling shareholders, YSL and YZJFH are separate entities with their own boards and management teams, ensuring independent decision-making. Nevertheless, YZJFH does not rule out entering into any deals with YSL if it is in the best interests of YZJFH,” the company said.