Low prices, high Chinese inflation and low freight rates leads to
tough decisions.

After running the Yard for many years with a notable Korean flavor
however without any profits Daeyang Group decided to sell their shares
to CSSC Dalian Shipbuilding and step down from the Management.

According to rumors the intention of CSSC is to continue operating in
the Shiprepair Market however at a later stage may shift to Navy
Projects.

Shanghai Shipyard one of the oldest running Shiprepair Yards in China
is stopping Shiprepairs and concentrating in Newbuildigns with a
possible Management takeover by Hudong Zhonghua Group.

Fishermen in Fujian are trying to get rid of Fujian Huadong Shipyard
protesting and not allowing any Vessel to exit the Yard. One Japanese
Owner has a Vessel trapped in the Yard for about one month now. The
Local Government seems too indecisive to handle the situation while at
the same time no workable solution is on the table.

Troubled waters may be over for Haizhou Shipyard since changes in the
Management and a possible Government Deal may ease the cash flow
problems which will certainly assist to smooth the workflow in the
yard

Chinese New Year is 19th February 2015 after which more changes in the
Shiprepair Market are expected.