Greater ChinaShipyards

Auditors slam Chinese yard JES

There’s unlikely to be any quick turnaround in fortunes for bust Chinese shipyard JES International Holdings.

Auditors for the Singapore-listed shipbuilder described today “material uncertainties that may cast significant doubt” on the group’s ability to continue operating.

The auditors, BDO, also hit out at the scant information provided by JES.

“We were unable to obtain sufficient audit evidence to assess and ensure that there are no further liabilities required to be recorded in the group’s consolidated financial statements arising from the ongoing disputes and lawsuits between JEHI and its creditors, bankers and customers etc,” BDO stated.

The most recent figures available for JES show a net loss of RMB290.5m for the year 2014. Since then the yard has been embroiled in a financial scandal with founder Jin Xin accused of financial irregularities, at which point the Jin family removed many financial records.

Since last August, JES International has ceased operations and only retains a “skeletal staff” to run the group.

JES’s transparency failure comes on the day the Singapore Exchange publicly demanded listed entities in the Lion Republic to disclose more information, more regularly in the wake of the demise of Swiber Holdings.

Sam Chambers

Starting out with the Informa Group in 2000 in Hong Kong, Sam Chambers became editor of Maritime Asia magazine as well as East Asia Editor for the world’s oldest newspaper, Lloyd’s List. In 2005 he pursued a freelance career and wrote for a variety of titles including taking on the role of Asia Editor at Seatrade magazine and China correspondent for Supply Chain Asia. His work has also appeared in The Economist, The New York Times, The Sunday Times and The International Herald Tribune.
Back to top button