zoomIllustration. Source: Flickr – under the CC BY 2.0 license; Image by: Kees Torn Singapore-based marine and offshore solutions provider AVIC International Maritime Holdings Limited (AVIC Maritime) has decided to dispose of its entire stake in AVIC Zhenjiang Shipyard Marine (AZM). On May 15, 2019, the company entered into a conditional sale and purchase agreement (SPA) with investment holding company High Beyond Corporation Limited for the disposal of AZM.As informed, the proposed transaction includes 60% shareholding in AZM or 3 million issued and paid-up ordinary shares in the capital of the shipyard.The stake would be sold for USD 2.2 million, according to AVIC Maritime.AZM is a joint venture company incorporated in Singapore with its core business being investing in vessels by taking up equity stakes in vessels for investment purposes.AVIC Maritime controls 60% in AZM, while the remaining 40% is owned by Jiangsu Zhengjiang Shipyard.As explained, the move comes following a strategic review of the financial position, operational needs and long-term strategy of AVIC Maritime as well as business prospects of AZM.According to AVIC Maritime, AZM “has been facing and continues to face challenging market conditions due to, among other things, reduced demand for offshore support vessels following the oversupply of such vessels in the global market.”Based in Hong Kong, High Beyond Corporation is a subsidiary of AVIC International Holdings Limited (AIHL). AIHL is also a controlling shareholder of AVIC Maritime.The completion of the transaction is subject to a number of relevant conditions.Also on May 15, AVIC Maritime published its financial results for the first quarter of this year which show that the company’s profit decreased to RMB 12.4 million (USD 1.8 million) from RMB 17.1 million seen in Q1 2018.Revenue also dropped by 5% year-on-year to RMB 133.9 million in Q1 2019 from RMB 140.8 million posted in Q1 2018. The decrease was attributed to the absence of shipbuilding construction revenue, while shipbuilding project financing and management, and ship design service generated higher revenue compared to a year ago.AVIC Maritime’s related shipyards, AVIC Dingheng and AVIC Weihai, continued to build up their orderbooks for niche products, which include small-medium size, dual-fuel chemical tankers and RoPax vessels.Deltamarin, another subsidiary of AVIC Maritime, grew its orderbook in Q1 2019 and extended its track record in the design of high-tech, green vessels.