Full Year 2024 CBL International Ltd Earnings Call
1024.
Today's meeting will be conducted in English with simultaneous translation into mentally.
Before we begin I'd like to remind you that today's presentation will include forward looking statements made pursuant to the safe Harbor provisions of the private Securities Litigation Reform Act of 1995.
These statements are subject to risks and uncertainties that could cause actual results to differ materially from your expectation.
Thank you for joining us today.
Speaker Change: Venus, Zhang Investor Relations and public relations director of CB Al International Ltd.
Speaker Change: Presenting alongside me, a doctor, particularly in China, Chairman and Chief Executive Officer.
Speaker Change: And Mr. Nick This fall assistant Chief Financial Officer.
Speaker Change: We are excited to share our performance and achievements in fiscal year 2024, and provide an overview for physical year 2025.
Speaker Change: Let's begin with todays agenda.
Speaker Change: Our presentation will cover the following.
Speaker Change: First company information.
Speaker Change: Second market trends and geopolitical impact.
Speaker Change: Third financial review.
Speaker Change: Both operational review.
Speaker Change: <unk> strategic initiatives and market outlook.
Speaker Change: Q&A.
Speaker Change: Let me start with a brief introduction to CB out international.
Speaker Change: <unk> International limited nostalgic Kirk B, a and now is the listing vehicle of finally group.
Speaker Change: A reputable marine field logistics company based in the Asia Pacific region that was established in 2015.
Speaker Change: Our key services include.
Speaker Change: Bunkering services across strategic global ports.
Speaker Change: Supplying both fossil fuels and sustainable fields.
Speaker Change: And surfing container liners bulk carriers and tankers.
Speaker Change: We are a global monthly a few losses that provider operating under an asset light business model.
Speaker Change: We are recognized as professional and trustworthy by our business Counterparties.
Speaker Change: Delivering flexible and integrated vessel Refuelling solutions.
Speaker Change: Our competitive advantages in food.
Speaker Change: First.
Speaker Change: Global ports networks.
Speaker Change: We operate in over 60 ports across Asia Pacific Europe Africa, and Central America.
Speaker Change: Seventh supplier relationships.
Speaker Change: We maintain strong relationships enable us to offer competitive fuel pricing.
Speaker Change: <unk> credit terms and operational reliability.
Speaker Change: Third customer relationships.
Speaker Change: With our extensive service, we can provide one stop referring solutions for customers and ensuring seamless service and operational efficiency.
Speaker Change: Both.
Speaker Change: Growth strategy.
Speaker Change: We are focused on expanding our service network.
Speaker Change: Increasing sales volume and integrated sustainable steel solutions to meet evolving market needs.
Speaker Change: This short corporate video, we will give you a comprehensive overview of our company's operation.
Speaker Change: Please enjoy.
Speaker Change: Okay.
Speaker Change: Starting 2015, we served mainly the worlds top 20 international container liner operators.
Speaker Change: [music], we're providing customers with options to get their vessels with fuel.
Speaker Change: And more than 16 refueling ports worldwide.
Speaker Change: [music] we are bombing.
Speaker Change: The Asia route.
Speaker Change: And Trans Pacific Route.
Speaker Change: We have established an extensive supply network to provide our customers with more options and flexibility in fulfilling their vessel refueling requirements.
Speaker Change: Our establishment to include Kuala Lumpur, Hong Kong show.
Speaker Change: So deliberate with Singapore, London, and Dublin that forms a network, which currently covers more than 60 ports worldwide.
Speaker Change: Customers can customize the best quality Bunkering services and select the most convenient port.
Speaker Change: Our business is built with a customer oriented culture and focus is on providing marine fuel.
Speaker Change: With our professional reliable bunkering services at competitive price as well as helping customers whenever they are dealing with contingencies in 2023, we mark the listing on NASDAQ.
Speaker Change: In support of International Maritime organization's de Carbonization initiatives, we have obtained both the ISC CPU and ICC plus certifications. This enables us to support the industry's collective efforts towards the net zero journey moving.
Speaker Change: Moving forward, we intend to allocate more resources to further expand our supply network targeting at the continual market share enhancement.
Speaker Change: We have positioned ourselves as one of the pioneers in providing stable biofuel supply of major ports. During this transition period simultaneously, we will continue to explore various green and sustainable marine fuel solutions for our customers, we endeavor to ensure that our customers can continue their voyages safely and with <unk>.
Operator: Today's meeting will be conducted in English with simultaneous translation into Mandarin.
Speaker Change: Confidence.
Operator: Before we begin, I'd like to remind you that today's presentation will include forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are subject to risks and uncertainties that could cause actual results to differ materially from your expectations.
Speaker Change: Okay.
Speaker Change: We are bundling.
Speaker Change: [music].
Speaker Change: I Hope this video provides insights into who we are and the exciting opportunities that lie ahead.
Operator: Thank you for joining us today.
Venus Zhao: I'm Venus Zhao, Investor Relations and Public Relations Director of CBL International Limited.
Speaker Change: We maintain long term strategic partnerships with global industry leaders and recognized in the industry as a professional and trustworthy provider of flexible and integrating vessel sealing services.
Venus Zhao: Presenting alongside me are Dr. Tik-Lin Chia, Chairman and Chief Executive Officer, and Mr. Nicholas Fung, Assistant Chief Financial Officer. We are excited to share our performance and achievements in fiscal year 2024 and provide an overview for fiscal year 2025. Let's begin with today's agenda. Our presentation will cover the following. First, company information. Second, market trends and geopolitical impact. Third, financial review.
Speaker Change: Through collaboration with reputable local partners, we are consistently deliver high quality services to our clients worldwide.
Speaker Change: This ensures access.
Speaker Change: Efficient reliable and competitively priced bunker field solutions.
Speaker Change: Meeting the diverse needs of the global Marine time industry.
Speaker Change: Now, we move onto the market trends and geopolitical impact.
Speaker Change: Let's continue.
Speaker Change: Seaborne trade and container volume has demonstrated steady growth.
Venus Zhao: 4th Operational Reveal Fifth, Strategic Initiatives and Market Outlooks. 6 Q&A Let me start with a brief introduction to CBL International.
Speaker Change: As shown in this we view of 2024.
Speaker Change: According to U S E T a D and causes research.
Speaker Change: Total seaborne trade grew by two 5% in 2024.
Venus Zhao: Cbl International Limited, NASDAQ tickered BANL, is the listing vehicle of Barnley Group, a reputable marine fuel logistic company based in the Asian-Pacific region that was established in 2015. Our key services include. Functoring services across strategic global reports. supplying both fossil fuels and sustainable fuels. and serving container miners, bulk carriers and tankers. We are a global marine fuel logistics provider operating under an asset-light business model. We are recognized as professional and trustworthy by our business counterparty. Delivering Flexible and Integrated Vessel Refilling Solutions.
Speaker Change: While containerized trade grew by two 9%.
Speaker Change: Both are forecasted to maintain that moderate annual growth rates through 2029.
Speaker Change: Container volume for all trades increased by 5% in 2024.
Speaker Change: We'll have four and regional trades achieving growth of 6%.
Speaker Change: These numbers reflect the consistent recovery and expansion of global trade.
Speaker Change: CBS Bunkering operational network align strongly with this trend.
Speaker Change: With our process in 13 out of top 15 global container ports.
Speaker Change: Including all of the top 10 sports such as Shanghai, Singapore, and Ningbo, Joe Shan.
Venus Zhao: Our competitive advantages include, first, global pork network. We operate in over 60 ports across the Asia-Pacific, Europe, Africa, and Central America. Second, supplier relationship. We maintain strong relationships, enable us to offer competitive fuel pricing, favorable credit terms, and operational reliability. Third, customer relationship. With our extensive service, we can provide one-stop refueling solutions for customers, ensuring seamless service and operational efficiency.
Speaker Change: On the customer front CVR serves nine out of top 12 global container liners.
Speaker Change: Which represents a combined around 60% market share in global container Myers.
Speaker Change: Let's move on to these light.
Speaker Change: Which highlights geopolitical resilience of CBL.
Speaker Change: Global Maritime trade safe to significant disruptions in 2024 due to geopolitical tensions.
Speaker Change: The Rasey prices, which began in October 2000, and 2003 severely impacted key marine time routes such as the Suez Canal and that meant that the street.
Venus Zhao: Fourth, growth strategy. We are focused on expanding our service network, increasing sales volume, and integrated sustainable fuel solutions to meet evolving market needs.
This led to a rerouting of vessels.
Speaker Change: Long Transit times.
Speaker Change: <unk> increased operational costs.
Speaker Change: For example, the voyage from Rotterdam to Shanghai increased from 25, five days to 44 days.
Venus Zhao: This short corporate video will give you a comprehensive overview of our company's operations. Please enjoy. Starting 2015, we served mainly the world's top 20 international container liner operators. We are providing customers with options to get their vessels refueled in more than 60 refueling ports worldwide.
Speaker Change: This disruption also triggers a surge in fragrance and heightened on greater demand.
Speaker Change: Particularly in regions like Asia Pacific.
Speaker Change: Marriages and Cape town.
Speaker Change: Middle East tensions further extra burden to the situation in.
Speaker Change: Increasing insurance premiums and reducing operational costs for shipping companies.
Venus Zhao: We are Bondly. Our services cover the majority of the ports in the fast-growing market of Asia-Pacific, which includes our customers' sailing routes along the Euro-Asia route, Intra-Asia route, and Trans-Pacific route. We have established an extensive supply network to provide our customers with more options and flexibility in fulfilling their vessel refueling requirements. Our establishments include Kuala Lumpur, Hong Kong, Shenzhen, Seoul, Labuan, Singapore, London, and Dublin, that forms a network which currently covers more than 60 ports worldwide. Customers can customize the best quality bunkering services and select the most convenient port. Our business is built with a customer-oriented culture and focuses on providing marine fuel.
Speaker Change: The ongoing Ukraine conflict.
Speaker Change: Continue to destabilize the energy markets, resulting in bunker fuel price volatility.
Speaker Change: [noise] wildfires spiked during the initial phase of the crisis. They began to stabilize later in the year as the market adjusting to new demand patterns.
Speaker Change: Despite a projected slowdown in global GDP growth to two 6% in 2010 before.
Speaker Change: Maritime chain demonstrated resilience with total volumes increasing by 2%.
Speaker Change: Containerized trade outperformed the broader market.
Expanding by three 5% as supply chains continue to normalize post pandemics.
Speaker Change: Despite these challenges the.
Venus Zhao: With our professional and reliable bunkering services at competitive price, as well as helping customers whenever they are dealing with contingencies.
Speaker Change: The CBL team responded swiftly swiftly and strategically.
Speaker Change: We adjusted our service network by providing service in Newport, including Mauritius, India and Panama.
Venus Zhao: In 2023, we marked the listing on NASDAQ. In support of International Maritime Organization's decarbonization initiatives, we have obtained both the ISCC EU and ISCC Plus certifications. This enables us to support the industry's collective efforts towards the net-zero journey.
Speaker Change: <unk> locations, along the reloaded shipping lanes.
Speaker Change: We implemented the strategic pricing measures to manage cost volatility and maintain competitive pricing for our customers.
Venus Zhao: Moving forward, we intend to allocate more resources to further expand our supply network targeting at the continual market share enhancement. We have positioned ourselves as one of the pioneers in providing stable biofuel supply at major ports during this transition period. Simultaneously, we will continue to explore various green and sustainable marine fuel solutions for our customers. We endeavor to ensure that our customers can continue their voyages safely and with confidence.
Speaker Change: Finally, our net worths adapt keytruda evolving shipping patents.
Speaker Change: Ensuring that our clients needs are met efficiently despite the disruptions.
Speaker Change: Let's move to our financial highlights.
Speaker Change: Here are the physical year 2024 financial highlights showcasing CB our strong performance.
Venus Zhao: We are BOMLEY.
Speaker Change: Total sales volume grew by 38, 1% while revenue increased by 35, 9% to 592 5 million U S dollar.
Speaker Change: Driven by higher demand and operational expansion.
Venus Zhao: I hope this video provides insight into who we are and the exciting opportunities that lie ahead. We maintain long-term strategic partnerships with global industry leaders and are recognized in the industry as a professional and trustworthy provider of flexible and integrated vessel refueling services. Through collaboration with reputable local partners, we are consistently delivering high quality services to our clients worldwide.
Speaker Change: Okay.
Speaker Change: Cash balances rose by eight 3% to 80 million U S dollar.
Speaker Change: Operational cash flow searched by 86%.
Speaker Change: Reflecting improved efficiency and cash management.
Speaker Change: Our coverage ratio of 1147 demonstrated healthy liquidity one.
Speaker Change: While capital days at minus 255 highlights excellent cash cycle management.
Speaker Change: Total deeper into our financial results.
Venus Zhao: This ensures an efficient, reliable, and competitively priced bunker fuel solution. meeting the diverse needs of the global maritime industry.
Speaker Change: The revenue.
Speaker Change: <unk> total revenue rose by 35, 9%, which.
Speaker Change: Reaching 593 million U S dollar.
Speaker Change: 436 million U S dollar in 2023.
Venus Zhao: Now we move on to the market trends and geopolitical impact. Let's continue. Seaborn trade and container volume has demonstrated steady growth, as shown in this review of 2024. According to UNCTAD and Clawson's research Total seaborn trade grew by 2.5% in 2024. while containerized trade grew by 2.9%.
Speaker Change: This growth was primarily driven by successful expansion of our supply network.
Speaker Change: And in large customer base and in support of sufficient financial resources.
Speaker Change: Gross profit.
Speaker Change: Gross profit declined by 25, 5%.
Speaker Change: From seven <unk> to 1 million U S. Dollar two five points to <unk> 7 million U S dollar.
Speaker Change: To support market expansion and new market entry the company implemented the strategic pricing adjustments.
Venus Zhao: Both are forecasted to maintain that moderate annual growth rate through 2029. Continuum volume for all trades increased by 5% in 2024. with HIFOR and regional trades achieving growth of 6%. These numbers reflect the consistent recovery and expansion of global trade. CBL's Bunkering Operational Network aligns strongly with this trend. with a presence in 30 out of top 15 global container ports. including all of the top 10 ports such as Shanghai, Singapore and Ningbo, Zhoushan. On the customer front, Cbl serves 9 out of top 12 global container liners. which represents a combined around 60% market share in global container miners.
Speaker Change: The decline in gross profit per ton Chisholm by reduced premium pricing was only partly mitigated by higher sales volume.
Speaker Change: Operating expenses.
Speaker Change: Operating expenses increased significantly by 56, 8%.
Speaker Change: $5, five 5 million to $8 7 million U S dollar.
Speaker Change: This rise was primarily attributable to expenses for business expansion and biofuel operation.
Speaker Change: And additional expenses relating to enhance ESG.
Net income.
Speaker Change: Net income fell from 113 million U S. Dollar in 2023 to a loss of three eight southern media in U S. Dollar in 2024.
Speaker Change: This decline was mainly driven by the reduction in gross profit due to the cells vulnerable dispassion strategy.
Speaker Change: Increased expenses for business expansion.
Venus Zhao: Let's move on to this slide which highlights geopolitical resilience of CBL. Global maritime trade faced significant disruptions in 2024 due to geopolitical tensions. The Red Sea Crisis, which began in October 2023, severely impacted key maritime routes, such as the Suez Canal and the Bataille-Mendez Strait. This led to rerouting of vessels, long transit times, and increased operational costs. For example, the voyage from Rotterdam to Shanghai increased from 25.5 days to 34 days. This disruption also triggers a surge in freight rates and heightened on-grid demand, particularly in regions like Asia-Pacific, Mauritius, and Cape Town. Middle East tensions further accelerated the situation, increasing insurance premiums and raising operational costs for shipping companies.
Speaker Change: I'll field operation and yes, she expenses.
Speaker Change: The rise in interest expenses.
Speaker Change: In fiscal year, 2024, CPR was revenue distributions and growth by cheer traffic location high.
Speaker Change: Highlights key market trends.
Speaker Change: China accounted for 56, 3% of total revenue.
Speaker Change: Followed by Hong Kong at 33% and Malaysia, and nine 8%.
Speaker Change: With a smaller contributions from Singapore, South Korea and others.
Speaker Change: Compared to fiscal year 2023, the largest revenue growth was seen in others include Europe, Japan.
Speaker Change: Men and time of 291%.
Speaker Change: South Korea at 187%.
Speaker Change: Followed by 102% increase in Singapore, and 38% growth in China.
Speaker Change: This growth reflects <unk> strategic focus on expanding operations in the emerging.
Speaker Change: Margins.
Venus Zhao: The ongoing Ukraine conflict continue to destabilize the energy market. resulting in bunker fuel price volatility. While prices spiked during the initial phase of the crisis, they began to stabilize later in the year as the market adjusted to new demand patterns.
Speaker Change: As strengthening its presence in high growth regions.
Speaker Change: Cbl's high liquidity and financial flexibility has enabled a sustainable growth in 2010 before.
Speaker Change: Working capital management.
Speaker Change: High liquidity strengthened the cash cycle and support business expansions.
Venus Zhao: Despite a projected slowdown in global GDP growth to 2.6% in 2024, maritime trade demonstrated resilience, with total volumes increasing by 2%. containerized the trade outperformed the border market. expanding by 3.5% as supply chains continue to normalize post pandemic.
Speaker Change: Strong cash position.
Speaker Change: Cash accounts for 12% of current assets.
Speaker Change: Ensure immediate liquidity.
Speaker Change: Bank facility.
Speaker Change: Sufficient facilities are in place to fund future development projects.
Speaker Change: Debt and leverage.
Speaker Change: Our focus on maintaining low debt levels provides flexibility for future growth.
Operating cash flow.
Venus Zhao: Despite this challenge, The CBL team responded swiftly and strategically. We adjusted our service network by providing service in Newport, including Mauritius, India, and Panama. hill locations along the remoted shipping lanes. We implemented strategic pricing measures to manage cost volatility and maintain competitive pricing for our customers. Finally, our network adapted to the evolving shipping patterns, ensuring that our clients' fuel needs are met efficiently despite the disruption.
Speaker Change: Significant improvements supports investments in network expansion and technology.
Speaker Change: Just in time inventory management.
Speaker Change: After months of cash flow minimize storage fees and enhances the efficiency.
Speaker Change: Minimal fixed assets.
Speaker Change: Maintaining a lean asset base ensures operational agility.
Speaker Change: <unk> high liquidity and financial flexibility has enabled sustained level growth.
Speaker Change: Let's move onto the operational revealed.
Speaker Change: The meeting in physical year 2020 for CBL has significantly expanded its global service network.
Venus Zhao: Let's move to our financial timeline. Here are the fiscal year 2024 financial highlights, showcasing CBL's strong performance. Total sales volume grew by 38.1%, while revenue increased by 35.9% to US$592.5 million. driven by higher demand and operational expansion. Cash balance rose by 8.3% to $8 million, and operational cash flow surged by 80.6%. reflecting improved efficiency and cash management. Our current ratio of 1.47 demonstrated healthy liquidity. while capital gains at minus 2.55 highlight excellent cash cycle management.
Speaker Change: Having over 70% growth in court coverage for 36 ports.
Speaker Change: Appeal in 2023 to more than 60 ports across 14 countries in four continents.
Speaker Change: Asia, China expanded biopsy supply to Guangzhou in March to 1024, and Shenzhen in April 2024.
Speaker Change: Malaysian.
Speaker Change: How should we not raw power fuel supply in pulp Glenn in June 2024.
Speaker Change: India.
Speaker Change: Added monitor report in good genre in July 2024.
Speaker Change: South Korea revenue surged by 187% a year on year.
Speaker Change: Singapore revenue grew by 102% year on year.
Speaker Change: Europe strong growth in the.
Speaker Change: Amsterdam, Rotterdam and drop a or a region opened a new office in Ireland in late 2023 in.
Venus Zhao: Let's dive deeper into our financial results. revenue. CBL's total revenue rose by 35.9%. reaching US$593 million. up from 436 million U.S. dollars in 2023. This growth was primarily driven by successful expansion of our supply network and enlarged customer base and support of sufficient financial resources. Those 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25.
Speaker Change: Enhancing sourcing capabilities.
Speaker Change: Africa, and the Moriches, enabling key Bunkering services in Africa.
Speaker Change: Central America expanded coverage in Panama to strengthen the network.
Speaker Change: In fiscal year, 2024, CPL achieved remarkable growth in sell smaller.
Speaker Change: Rich sourced by 38, 1% compared to fiscal year 2002 thousand and sleep.
Venus Zhao: Gross profit declined by 25.5%. from 7.21 billion U.S. dollars to 5.37 million U.S. dollars.
Speaker Change: This was driven by network expansion, new customer acquisition, and our strategic shift towards non container liners settlements.
Venus Zhao: To support market expansion and new market entry, the company implemented strategic pricing adjustments. However, the decline in gross profit per ton driven by reduced premium pricing was only partly mitigated by higher sales volume.
Speaker Change: Non container liner customers increased to 45% of customer base versus 32% in 2023.
Speaker Change: While container liner customers declined to 55% versus 68% in 2023.
Venus Zhao: Operating expenses Operating expenses increased significantly by 56.8%. from 5.55 million to 8.7 million U.S. dollars. This right was primarily attributable to expenses for business expansion and biofuel operation. and additional expenses relating to enhanced ESG.
Speaker Change: Cbl's up Tonight after worst top trough container shipping lines weapon.
Speaker Change: Representing about 60% of the global container fleet.
Speaker Change: Expanded market presence in China, Hong Kong, Malaysia, Singapore, South Korea, and new ports in Europe Africa, India and Central America.
Diversified operations into bulk and tankers businesses.
Venus Zhao: Net Income Net income fell from $1.13 million in 2023 to a loss of $3.87 million in 2024. This decline was mainly driven by the reduction in gross profit due to the sales volume expansion strategy. increased expenses for business expansion, biofuel operation, and ESG expenses.
Speaker Change: And to reduce the dependence on the top five customers.
Speaker Change: While average selling price per metric ton decreased by one 6% in 2020 for the strong sales volume growth underscores <unk> ability to adapt and thrive in changing market conditions.
Speaker Change: Over the year CBL achieved significant progress in his bio fuel supply initiative was the launch of B 20 for Biofuels.
Venus Zhao: arise in interest expense In fiscal year 2024, CBL's revenue distribution and growth by geographic location highlights key market trends. China accounted for 56.3% of total revenue. followed by Hong Kong at 30.3% and Malaysia at 9.8%. with smaller contributions from Singapore, South Korea, and others.
Speaker Change: We do think greenhouse gas emissions by 20% compared to traditional schools.
Speaker Change: This expansion included new cells in Malaysia, Hong Kong and there is a pause in China.
Speaker Change: As well as the first <unk> 'twenty for Biofuels supply in Singapore in March 2025.
Speaker Change: <unk> also achieved I S T E U and I guess, you see plus certification.
Venus Zhao: Compared to fiscal year 2023, the largest revenue growth was seen in others include Europe, Japan, Vietnam, and Thailand, 291%. South Korea at 187%. followed by 102% increase in Singapore and 38% growth in China. This group reflects CBL's strategic focus on expanding operations in an emerging market. and strengthening its presence in high growth regions.
Speaker Change: Ensure compliance with sustainable Greenfield standards.
Speaker Change: Biofuel sales volume surged over 600% year over year supported by the mid 2023 launch.
Speaker Change: Strengthen to supplier relationships and reliable supply chains.
Speaker Change: These efforts help customers meet all G H G target.
Speaker Change: While offering sustainable cost effective alternatives.
Speaker Change: Looking ahead <unk> plans to expand biofuel offerings explore new ports and further stabilized supply chain. So reinforce its leadership in green Marine fuels.
Venus Zhao: CBL's high liquidity and financial flexibility have enabled sustainable growth in 2024.
Speaker Change: Additionally, the company is evaluating our LNG mountain on and hydrogen to meet involving sustainability regulations and industry demands.
Venus Zhao: Working Capital Management High Liquidity Strengthens the Cash Cycle and Supports Business Expansion Joe Cash Physician cash accounts for 12% of current assets. Ensure immediate liquidity. Space Facility. Sufficient facilities are in place to fund future development projects.
Our ESG initiative, and Capri responsibility reflect <unk> commitment to creating long term value to environmental social and governance excellence.
Speaker Change: As CBL, we've embedded ESG principles at the core of our business strategy to future tool, our operations and create long term value.
Venus Zhao: Death and Loss Again focus on maintaining low debt levels provides flexibility for future growth. Operating cash flow significant improvements support risk investment in network expansion and technology. Just In Time Inventory Management optimized cash flow, minimizes storage risk, and enhances efficiency. minimal fixed air depth. Maintain a lean asset base ensures operational agility. CBL's high liquidity and financial flexibility have enabled sustainable growth.
Speaker Change: Our three strategic objectives for the foundation of these commitments.
Speaker Change: First establishing robust yeah, she management capabilities.
Speaker Change: Second proactively fulfill a stake holder requirements.
Speaker Change: And third enhancing both our market competitiveness and sustainable financing assets.
Speaker Change: These efforts translate into for clear competitive advantages that differentiate <unk>.
Speaker Change: <unk> in the Bunkering sector.
Speaker Change: We are getting a first mover ash in Greenfields sustainable.
Speaker Change: Sustainable and systematically mitigating regulator ring and transitional risks.
Venus Zhao: Let's move on to the operational review. In fiscal year 2024, CBL significantly expanded its global service network. Achieving over 70% growth in port coverage from 36 ports since IPO in 2023 to more than 60 ports across 14 countries in four continents. Asia, China expanded the biofuel supply to Guangzhou in March 2024 and Shenzhen in April 2024. Malaysian launched inaugural biofuel supply in Portland in June 2024. India added Mondra port in Gujarat in July 2024.
Speaker Change: Building on payable out trust through transparency and maintain a full accountability across all of that and Shane.
Speaker Change: Our vision all our visionary approach is demonstrated through industry leading initiatives.
Speaker Change: Our IFC seats are certified Biofuels program directly supports our own 2023, and EU feats for 55 targets.
Speaker Change: Specifically talking tastes don't think emission reductions.
The results speak for themselves.
Speaker Change: We achieved over 600% biofuel sales growth in physical year 2024, using 100% of waste based Youll call me feedstock.
Speaker Change: Ensuring zero deforestation impact.
Venus Zhao: South Korea. Revenue surged by 187% year-on-year. Singapore revenue grew by 102% year on year Europe. Strong growth in the Amsterdam, Rotterdam, Antwerp, ARA region.
Speaker Change: Two institutional life these efforts.
We've established an E House ESG committee that oversees our energy transition roadmap.
Speaker Change: G H G reduction programs and sustainable sourcing policies.
Venus Zhao: opened a new office in Ireland in May 2023, enhancing sourcing capabilities.
Speaker Change: C. B S 2025, yes, you plan and long term commitment underscores the importance of adopting ESG practices to enhance transparency.
Venus Zhao: Africa. enter Mauritius, enabling key bunkering services in Africa. Central America defended the coverage and Panama to strengthen the net In fiscal year 2024, CBL achieved a remarkable growth in sales volume, which surged by 38.1% compared to fiscal year 2023. This was driven by network expansion, new customer acquisition, and a strategic shift toward non-container liner sets. Non-container liner customers increased to 45% of customer base versus 32% in 2023. While container liner customers declined to 55% versus 68% in 2023. Cbl served 9 of the world's top 12 container shipping lines, representing about 60% of the global container fleet.
Incrementals sustainable initiatives manage lease and meet stakeholder expectations.
Speaker Change: On the environmental France, CBL and leads with its final selling initiatives.
Speaker Change: Slide with bi and post 2023 strategy planting marine fuel oil with 24% you called me to reduce greenhouse gas emissions.
Speaker Change: The company also supports customers in achieving sustainability goal, while ensuring its biofuel production, a voice deforestation than yours changes or competition with foot production.
Speaker Change: In terms of social responsibility.
Speaker Change: <unk> promotes equitable practices, including our adherence to pay for performance principles, fostering diversity and inclusion with strong female representation and supporting employee development through education subsidies.
Speaker Change: CBL also prioritizes employee wellbeing with regular events and encourages community engagement by offering staff came off to volunteer.
Venus Zhao: expanded market presence in China, Hong Kong, Malaysia, Singapore, South Korea, and new points in Europe, Africa, India, and Central America. diversified operations into bulk and tank of businesses. and reduced dependence on the top five customers. While average solid price per metric ton decreased by 1.6% in 2024, the strong sales volume growth underscores CBL's ability to adapt and thrive in changing market conditions. Over the year, CBL achieved significant progress in its biofuel supply initiatives with the launch of B24 biofuel. Reducing greenhouse gas emissions by 20% compared to traditional fuels. This expansion included new cells in Malaysia, Hong Kong, and various ports in China, as well as the first B24 biofuel supply in Singapore in March 2025.
Speaker Change: On galvanize CPI ensures accountability through annual director elections and rotation.
Speaker Change: Robust stock ownership guidelines as Sean Board oversight.
Speaker Change: This effort underscores cbl's dedication to sustainability corporate responsibility and long term growth.
Speaker Change: The plan is structured across three phases.
Speaker Change: Q1 to Q2 2025, establishing a sustainability strategy governance framework and action plan.
Speaker Change: Q1 to Q3, 2025, improving sustainability management and implementing the sustainable development plan.
Speaker Change: Q3 to Q4 to a 1025 enhancing disclosure practices and strengthening investor relations.
Speaker Change: Let's move on to strategic initiatives and market outlook.
Speaker Change: No I had two physical yet to 1000 intensifies our key initiatives include.
Venus Zhao: Cbl also achieved ISCC EU and ISCC Plus certification. ensure compliance with sustainable green fuel standards. Biofuels sales volume surged over 600% year-over-year, supported by the mid-2023 loss. Strengthened supplier relationships and reliable supply chain. These efforts help customers meet IMOGHG targets. while offering sustainable, cost-effective alternatives. Looking ahead, CBL plans to expand biofuel offerings, explore new ports, and further stabilize supply chains to reinforce its leadership in green marine fuels. Additionally, the company is evaluating LNG, melatonin, and hydrogen to meet evolving sustainability regulations and industry demands.
Speaker Change: Expanding our surface and network strengthening our classes in the Asian and Europe market entry.
Speaker Change: Entry into emerging markets continue expanding courthouses.
Speaker Change: Maximizing sales volume.
Speaker Change: Targeting new customers and segments, while maintaining strong relationships with existing clients.
Speaker Change: The enhanced market position stronger and more in depth supplier relationships.
Speaker Change: Flooring sustainable fuels.
Speaker Change: I'll feel adoption remains a core focus alongside of exploring other sustainable seeds.
Speaker Change: The global Green Marine fuel market is expected to grow at a cake or of 54%, creating significant opportunities for us to lead in this space.
Speaker Change: To address common challenges CBO has all light a clear strategy to improve its performance across three key areas.
Speaker Change: First to improve gross profit the company plans to increase sales volume through network expansion and new customer acquisition, while leveraging its networks to mitigate supply chain disruptions.
Venus Zhao: Our ESG initiative and corporate responsibility reflects its commitment to creating long-term value through environmental, social, and governance excellence. At CBL, we've embedded ESG principles at the core of our business strategy to future-proof our operations and create long-term value. Our three strategic objectives form the foundation of this commitment. First, establishing robust ESG management capabilities. Second, proactively fulfilling stakeholder requirements.
Speaker Change: <unk> will also focus on developing biofuels and exploring sustainable fuels, such as methanol and LNG for higher margins alongside achieving economies of scale to reduce unit costs.
Speaker Change: Second to maintain sufficient cash flow and manage working capital.
Speaker Change: CBL, we prioritize a strong cash position strengthen liquidity and closely monitor accounts receivables and payables.
Speaker Change: As they say the capital market at one time and utilizing bank financing will further enhance financial flexibility to support growth initiatives.
Venus Zhao: and third enhancing both our market competitiveness and sustainable financing as These efforts translate into four clear competitive advantages that differentiate CBL in the bunkering sector. We are getting a first move for Ash in Greenfield. sustainable and systematically mitigating regulatory and transitional risk. Building unparalleled trust through transparency and maintaining full accountability across our value chain.
Speaker Change: Finally to enhance efficiency CBL will invest in automation and systems to streamline operations and explore advanced technologies for continuous improvement.
Speaker Change: Cost saving upgraded back end systems, and implementing real time order tracking and data analysis.
Speaker Change: This out first will improve customer service and operational efficiency, ensuring sustained progress and long term growth.
Venus Zhao: Our visionary approach is demonstrated through industry-leading initiatives. our ISCC certified biofuels program directly supports IMO 2023 and EU fit for 55 targets. specifically targeting stoichiometric emission reduction. The results speak for themselves. We achieved over 600% biofuel sales growth in fiscal year 2024, using 100% waste-based eucalyptus feedstock, ensuring zero deforestation impact.
Speaker Change: Thank you for your attention we are now happy to take your questions.
Speaker Change: Please feel free to share your puris and questions.
Speaker Change: Onlive box and I will facilitate the discussion.
Speaker Change: Long side with Dr <unk> and Mr. Fong.
Speaker Change: Okay.
Speaker Change: Okay.
Stephen Gordon: Okay. The first question is from Cafe Your Magic band Company Limited Stephen Gordon.
Speaker Change: The question is.
Speaker Change: Despite impressive revenue growth in 2024, the company transitioned to a loss what drives these are shipped and what factors caused the cost of revenue increased more than revenue in 2024, and how we've addressed is going forward can you discuss the factors behind the significant increase in operational expense.
Venus Zhao: To institutionalize these efforts, we've established an in-house ESG committee that oversees our energy transition roadmap. 3HG reduction programs and sustainable sourcing policies.
Speaker Change: In 2024, and your expectations for expense management in 2085.
Venus Zhao: CBL's 2025 ESG plan and long-term commitment underscores the importance of adopting ESG practices to enhance transparency, implement sustainable initiatives, management, and meet stakeholder expectations. on the environmental front, Cbl leads with its biofuel initiative. aligned with IMO's 2023 strategy, blending marine fuel oil with 24% zirconia to reduce greenhouse gas emissions. The company also supports customers in achieving sustainability goals while ensuring its biofuel production avoids deforestation, land use changes, or competition with food production.
Nick: This question I would like to direct to Nick to answer Okay.
Speaker Change: Thank you Glynis first of all we experienced a net loss.
Nick: <unk> Creek basically influenced by <unk>.
Speaker Change: Two factors firstly reduced gross margin.
Speaker Change: Higher of rig cost.
Speaker Change: ESG related expenses increase in indirect expenses and investment in biofuel operations.
Speaker Change: In 'twenty 'twenty four we adopted.
Speaker Change: Volume driven strategy to achieve solid revenue growth.
Speaker Change: And expand our market shifts.
Speaker Change: By adding new customers.
Speaker Change: Expand our supplier network.
Speaker Change: Cover more ports.
Speaker Change: And broaden our customer base.
Venus Zhao: In terms of social responsibility, CBL promotes equitable practices, including adherence to pay for performance principles, fostering diversity and inclusion with strong female representation, and supporting employee development through education subsidies. CBL also prioritizes employee well-being with regular events and encourages community engagement by offering staff time off to volunteer. on Governance, CBL ensures accountability through annual director elections and rotation, robust stock ownership guidelines, and strong board oversight. This effort underscores CBL's dedication to sustainability, corporate responsibility, and long term growth.
Speaker Change: CBO expanded is.
Speaker Change: Slide network to cover 60 ports no.
Speaker Change: We really couldn't bulk carriers in Tengiz. In addition to our traditional costar container liner operators.
Speaker Change: However, the strategy of <unk>.
Speaker Change: Our shop.
Speaker Change: In this regard impact our short term profitability, resulting a net loss for the year.
Speaker Change: Shoot was driven by the client in gross profit.
Speaker Change: We offer more competitive pricing in market and carnival too narrow profit margins.
Speaker Change: In the Bunkering sector disruption in let's see a shift in shipping patterns.
Speaker Change: Two increased price sensitivity among our customers.
Speaker Change: To support rewarding growth and strengthen our market position the company over more combative premiums, which reduced profit.
Venus Zhao: The plan is structured across three phases. Q1 to Q2 2025, Establishing a Sustainability Strategy, Government Framework and Action Plan. Q1 to Q3 2025, Improving Sustainability Management and Implementing the Sustainable Development Plan.
Speaker Change: Gross profit per ton and contributed to overall decrease in gross profit.
Speaker Change: Our concern.
Speaker Change: Gross profit reduced by almost 10% to 5%.
Speaker Change: Despite we experience a short term impact to our profitability in 2000 and principle, we believe.
Venus Zhao: Q3 to Q4 2025, Enhancing Disclosure Practices and Strengthening Investor Relations.
Speaker Change: Driven strategy will support our long term growth.
Speaker Change: <unk> proficiency for economic scales.
Venus Zhao: Let's move on to strategic initiatives and market outlook. Look ahead to fiscal year 2025. Our key initiatives include Expanding our servicing network. Strengthening our presence in the Asian and European markets. Entry into emerging markets, continue expanding, or Maximizing sales volume. targeting new customers and segments while maintaining strong relationships with existing clients. Enhanced market position, stronger and more in-depth supply relationship.
Speaker Change: By increasing order volume and hence the procurement at key ports.
Speaker Change: The company expected to optimize unit cost.
Speaker Change: Improved gross margin over time.
Speaker Change: Our fleece.
Speaker Change: Market conditions stabilize.
Speaker Change: To address going forward, we are focused on increasing sales ordered through surface network expansion and new customer acquisition.
Speaker Change: Spending our network coverage to navigate supply chain disruptions.
Speaker Change: In addition, we aim to develop biofuel and explore new sustainable fuels, such as methanol LNG preached over potential for high margins.
Venus Zhao: Exploring Sustainable Futures. Biofuel adoption remains a core focus, alongside exploring other sustainable fuels. The global green marine fuel market is expected to grow at a CAGR of 50.4%. creating significant opportunities for us to lead in this space.
Speaker Change: Achieving economic scale refer them reduce their cost supporting margin recovery.
Speaker Change: Okay.
Speaker Change: To address.
Venus Zhao: To address current challenges, CBL has outlined a clear strategy to improve its performance across three key areas. First, to improve gross profits, the company plans to increase sales volume through network expansion and new customer acquisition while leveraging its network to mitigate supply chain disruption. CBL will also focus on developing biofuels and exploring sustainable fuels, such as methanol and LNG, for higher margins, alongside achieving economies of scale to reduce unit costs. Second, to maintain sufficient cash flow and manage working capital. Cbl will prioritize a strong cash position, strengthen liquidity, and closely monitor accounts receivables and payables.
Speaker Change: Rising operating expenses, we plan to implement automation and it.
Speaker Change: System to streamline.
Speaker Change: Operation to improve.
Speaker Change: Our operational efficiency.
Speaker Change: This upgrade will enhance resource allocation and there you go.
Speaker Change: Continuous operational improvements.
Speaker Change: Additionally, we will prioritize customer service enhancements and cost saving initiatives to optimize expense management in 2025.
Speaker Change: Moving forward, we are focused on scaling operation.
Speaker Change: Improve.
Speaker Change: Efficiency and leverage sustainability fuel operation opportunities.
To expect.
Speaker Change: And hence corporate debated as market condition normalized. Thank you. Thank you Nick.
Venus Zhao: Assessing the capital market at the right time and utilizing bank financing will further enhance financial flexibility to support those initiatives.
Speaker Change: Now we come to the second question is from handset Bank limited Mark as well.
Speaker Change: Can you. Please discuss your surface network expansion customer base and future potential. This question I would like to direct you have William Johnson.
Venus Zhao: Finally, to enhance efficiency, CBL will invest in automation and IT systems to streamline operations and explore advanced technologies for continuous improvement. Cost saving, upgraded back-end systems, and implementing real-time order tracking and data analysis. These efforts will improve customer service and operational efficiency, ensuring sustained progress and long term growth.
Speaker Change: It very much and good morning to everyone I.
Speaker Change: I think since our IPO in the year 2023.
Speaker Change: We have expanded our servicing book from 36 ports to over 60 ports.
Speaker Change: The 31 of December last year.
Speaker Change: So currently we are covering seven of the top 10 spots in the world.
Speaker Change: And also in the year 2024.
Speaker Change: Company exits trended our market coverage to include mortgages, Panama and India. So basically we are covering four continents of the world right now.
Venus Zhao: Thank you for your attention. We are now happy to take your questions. Please feel free to share your queries and questions on the online box.
Venus Zhao: And I will facilitate the discussion alongside with Dr. Cheung and Mr. Fung.
And turning to our modeling of the service network.
Speaker Change: We're able to continue our efforts in diversifying our customer base to include not only the container lines, but now to other vessel segments, including the bulk us and also to tankers.
Stephen Poon: Okay, the first question is from Cathay United Bank Company Ltd, Stephen Poon. The question is, Despite impressive revenue growth in 2024, the company transitioned to a loss. What drives this shift? And what factors caused the cost of revenue to increase more than revenue in 2024?
Speaker Change: Last year.
Speaker Change: Non container liners.
Speaker Change: Revenue contributions actually raise up to 45% as compared to 32%.
Speaker Change: The year to date any tree.
So Furthermore.
Speaker Change: The revenue off the top shelf container liners.
Nick: And how will you address this going forward?
Speaker Change: This also increased on a year over year basis.
Nick: Can you discuss the factors behind the significant increase in operational expenses in 2024 and your expectations for expense management in 2085?
Speaker Change: And going forward we.
Speaker Change: Vishal balanced economic of scale from our existing network.
Speaker Change: With opening of more strategic locations. So we will strike a balance between Newport strategic opening got the locations versus economic of Skus on our existing network. Thank you Dennis Thank you Lillian.
Nick: This question I would like to direct to Nick to answer. Okay, thank you, Linus. First of all, we experienced a net loss in 2024, which basically influenced by Few factors. First is reduced gross margin. Higher Offering Course ESG rated expenses increase in inter-expenses and investment in biofuel operations. In 2024, we adopted a volume-driven strategy to achieve systemic revenue growth. and expand our market share. by adding new customers. expand our supply network. to cover more ports. and broaden our customer base. Cbl Extended is a supply network to cover 60 ports now. We include bulk carriers and oil tankers in addition to our traditional container liner operators.
Speaker Change: Please feel free to plug in your questions on the online Bulks and I will read it aloud.
Speaker Change: The next question is from Ft ICF International Thank June the.
Speaker Change: The question is powerfully adoption trends the introduction of a beat on it for biofuel has been a strategic focus with operations in Hong Kong, China, and Malaysia, How do you expect <unk> to develop in 2025 discussion I would like to develop at what age derived around 2 billion. Okay. Thank you very much.
Speaker Change: The company has expanded our coverage besides the Hong Kong, China and Malaysia.
Speaker Change: We have our first supplied in Singapore earlier this year.
Speaker Change: So our net book has continued to expand as well.
Speaker Change: So our biofuel sales in the year of 2020 for search over 600% comparing to those in 2023, demonstrating robust demand for biofuels in the coming years.
Speaker Change: And also we can see that the regulations for iron ore JJ emissions as well as the field EU Maritime regulations are tightening.
Nick: However, the strategy of our short time In this regard, impact our short-term profitability, resulting in a net loss for the year. The shift was driven by the decline in gross profit. We offer more competitive pricing in market and contribute to narrow profit margin. In the bunkering sector, disruption in Red Sea and shift in shipping patterns led to increased price sensitivity among our customers. To support rewarding growth and strengthen market position, the company offer more competitive premiums, which reduce gross profit per ton and contribute to overall decrease in gross profit. I'll consider it. Gross profit reduced by almost 25%.
Speaker Change: So the global Greenfield market is actually projected to grow at a cargo of about 54%. So the company, you'll see that the sustainable fuel market as one of our focus point in moving forwards. Thank you. Thank you Ellen.
Speaker Change: Hey.
Speaker Change: Next question will be from HSBC sewing Joe.
Speaker Change: Question is on the Bunkering industry is highly competitive how does Cvs marketing emphasize it you'll make a value preposition. For example, one stop solution supplier networks to retain existing customers and win the market share for <unk> in 2025.
Speaker Change: Right sure ask your question sure them, Okay. Thank you very much.
Speaker Change: You can see that the CBO is comparative advantage actually lives in his extensive global supply network.
Speaker Change: We provide one stop refilling solutions and also we ensure quality of our services.
Nick: Despite we experienced a short-term impact to our profitability in 2024, we believe our volume-driven strategy will support our long-term operational efficiency, full economic scale. by increasing order volume and enhancing procurement at key points. The company expected to optimize unit cost and improve gross margin over time.
Speaker Change: We are streamlining the operations for our customers.
Speaker Change: And our global network rapidly, making up more than 60 ports robot assess two flexibilities and although operational reliability to our customers at.
Speaker Change: At the same time, we also provide comparative pricing.
Speaker Change: While our compliance Springville also ensures.
Speaker Change: The adherence to environmental standards.
Speaker Change: We are now today says that.
Nick: That's really it. Market Conditions Stabilized To address going forward, we focus on increasing sales order through service network expansion and new customer acquisition. Spending our network coverage to navigate supply chain disruption. In addition, we aim to develop biofuels and explore new sustainable fuels such as methanol and LNG, which offer potential for high margins. Achieving economic scale will further reduce the cost, supporting margin recovery. to address Rising operating expenses, we plan to implement automation and IT systems to streamline operation to improve. our operational efficiency.
Speaker Change: Nine out of the trough.
Speaker Change: <unk> top global container liners is a strong proof of Cvs market reputations and effective supply network. Thank you. Thank you William.
Speaker Change: Okay. Now now we come to next question. Please feel free to type in your question on the online box and how we're really out there.
Tony Fei: The next question comes from be OCI, Tony Fei <unk>.
Speaker Change: The question is environmental regulations are driving demand for Greenfields, but also increasing complying costs. How do you feel that ESG market development I would like to direct this question to Willem.
Tony Fei: Thank you very much.
Tony Fei: Well, we're going to see the rising demand for Greenfield and also the stricter regulations are not just challenges.
Tony Fei: But we see that is also opportunities to us.
So you're in restaurants to the <unk> strategies.
Tony Fei: <unk> marine time to reduce carbon emissions by at least 40% by the year 2030.
Nick: This upgrade will enhance resource allocation and enable Continuous Operation Improvement Additionally, we will prioritize customer service enhancement and cost-saving initiatives to optimize expense management in 2025. Moving forward, we focus on scaling operations. improve efficiency and leverage sustainability field opportunities. to expect.
Tony Fei: Many orders that's actually plays notable increase orders for dual fuel engine vessels.
Tony Fei: Which means that the vessel we can operate with tradition of you all biofuel and at the same time alternate fields, such as methanol and LNG. This provides the flexibilities, while transforming to sustainable energy sources.
Tony Fei: In addition, we can see that many governments are also providing policies and tax incentives to support the adoptions of alternate fees.
Speaker Change: CBRE is in a close alignment with these regulations and the market trends by expanding our biofuel supply network. While at the same time, we also exploring other sustainable fuels, such as LNG and methanol.
Nick: Enhanced profitability as market condition normalized. Thank you. Thank you, Nick.
Marcus Wong: Now we come to the second question. It's from Hansen Bank Limited, Marcus Wong. Can you please discuss your service network expansion, customer mix, and future potential?
Speaker Change: The company also see this as part of our ESG initiatives and long term strategy in enhancing our corporate value. Thank you. Thank you Linda.
William Johnson: This question I would like to direct to William Johnson. Thank you very much, and good morning to everyone. I think since our IPO was in the year 2023, we have expanded our servicing network from 36 ports to over 60 ports as of the 31st of December last year. So currently we are covering 7 of the top 10 ports in the world.
Let me see if more questions on our online platform. This feels easier talk in your question. So now the next question come from Jefferies and now the question is the United States plants pure impulse part talking fees on shifts related to China, but recently under consideration delayed implementation.
Speaker Change: And new fee structures designed to reduce the overall cost to visiting Chinese vessels, how does the company assess the impact of this August business, Although directive to William Thank you.
William Johnson: and also in the year 2024. Company has extended our market coverage to include Mauritius, Panama, and India. So basically we are covering four continents of the world right now. And thanks to our broadening of the service network, we are able to continue our efforts in diversifying our customer base to include not only the container lines, but now to other vessel segments, including the bulkers and also the tankers. Last year, the non-container liners revenue contributions actually raised up to 45% as compared to 32% in the year 2023.
Speaker Change: <unk> is closely monitoring the regulatory developments that may impact global shipping and the trade dynamics.
Speaker Change: Yes, the changing a lot.
Speaker Change: Every frequent basis.
Speaker Change: From what we understand there might be some changes under considerations like delayed implementations or new fee structures designed to reduce the overall cost to visiting Chinese vessels to the United States nothing has been finalized yet.
Speaker Change: But even though we are.
Speaker Change: Now so we think nine out of the trough largest liner in the war.
William Johnson: So for them all. the revenue of the top 12 container liners. is also increased on a year-over-year basis.
Speaker Change: Majority of our service networks in the Asia Pacific region. So to date, we have yet to have any operations in the ports in the United States. Therefore, the Newport docking fees policy has no impact on our current business. Thank you. Thank you William.
William Johnson: and going forward. We shall balance the economic of scale from our existing network. with opening of more strategic locations. So we will strike a balance between a new port strategic opening of the locations versus economic upskills on our existing net.
Speaker Change: Okay. We have some more questions for me. The next one will be from IC ACI Nelson Lee. The question is considering the U S with cyclical tariff updates and analysis 90 day post AWN reciprocal terrorists with the exception of China, what's the impact on <unk> and the Bunkering industry.
Venus Zhao: Thank you, Venus. Thank you, William.
Venus Zhao: Okay, please feel free to type in your questions on the online box and I will read it aloud.
William Johnson: The next question is from FDICS International, Frank June. The question is biofield adoption trends. The introduction of B24 biofuel has been a strategic focus with operations in Hong Kong, China, and Malaysia.
Speaker Change: But at least.
Speaker Change: Thank you.
Speaker Change: While we see under the current scenario, we expect minimal impact on our company.
Speaker Change: First of all Marine Bunkering fuel is actually international client for international Blind vessels.
William Johnson: How do you expect biofuels to develop in 2025? This question I would like to develop whether to derive to William. OK, thank you very much. The company has expanded our coverage besides the Hong Kong, China and Malaysia, and we have our first supply in Singapore earlier this year. So our network has continued to expand. So our biofuel sales in the year 2024 has surged over 600% comparing to those in 2023. It's demonstrating a robust demand for biofuel in the coming years. And also, we can see that the regulations for IMO for GHG emissions, as well as the fuel EU maritime regulations are tightening.
Speaker Change: Generally duty free so regardless, whether it was the previous tax structure or the current tax structure no tax regime boast order bunkers.
Speaker Change: So also as we explained before our major services network are generally located in the Asia Pacific and we are mainly focusing on intra Asia.
Speaker Change: And the Euro Asia traits approach.
Speaker Change: Yes, we do cover some transpacific routes.
Speaker Change: But our Trans Pacific <unk> also cover Canada, Mexico, and all other South American destinations.
Speaker Change: So the increase in tariffs reduced the volume of global trips. The bunker is also one of the most essential products, while the shipping industry.
William Johnson: So the global green fuel market is actually projected to grow at a CAGR of about 50.4%. So the company shall see that the sustainable fuel market as one of our focus points in moving forward. Thank you.
Speaker Change: So as long as the number of services by the liners are stable.
Speaker Change: The impact on us should not be too material.
Speaker Change: However, if in the long run the global trade has come to a standstill.
William Johnson: Thank you, William.
Speaker Change: And the world economy will likely to be in a recession and the impact I believe will be applicable to everyone.
William Johnson: Okay, the next question will be from HSBC, Sowing Zhou. The question is, the bunkering industry is highly competitive. How does CBL's marketing emphasize its unique value proposition, for example, one-stop solution, supplier network, to retain existing customers and win the market share from rivals in 2025?
Willa: Thank you Willa.
Speaker Change: Now we have the next question from <unk> Securities Limited HC. One. The question is given that 2020 falloff, while <unk> sales volume and gross profit margin targets for 2025, and how we're to focus on biofuels and economies of scale contribute to reversing the profitability decline.
William Johnson: I'd like to ask the question to William. Okay, thank you very much. Well, I think we can see that CBL's competitive advantage actually lies in its extensive global supply net. We provide one-stop refueling solutions and also we ensure quality of our services, which will streamline the operations for our customers. and our global network, presently making up of more than 60 ports, provide access to flexibilities and also operational reliabilities to our customers. At the same time, we also provide comparative pricing. while our compliance framework also ensures the adherence to environmental standards. We can now today say that nine out of the 12 world top global container liners is a strong proof of CBL's market reputation and effective supply network.
Willa: <unk> please.
Willa: It very much.
Speaker Change: In the year 2025, we aim to increase our sales volume and recover our gross profit margins through network strengthening and expansions.
Willa: New customers and also the increase.
Speaker Change: Our sustainable few adoptions.
Speaker Change: Since the beginning of 2025, our strategic efforts have viewed improve improving results.
Speaker Change: Strengthening and expanding.
Speaker Change: Our geographical coverage to maximize our sales volume and to our customer reach.
Speaker Change: Targeting new customer segments, while deepening the relationship with our existing clients.
Speaker Change: Prioritizing biofuels and other green alternative to capitalize on higher margin opportunities.
William Johnson: Thank you. Thank you, William.
Venus Zhao: Okay, now we come to the next question. Please feel free to type in your question on the online box and I will read it out.
Speaker Change: These are the things that we will be looking at and also simultaneously economical scale from expanded operations.
William Johnson: The next question comes from BOCI Tony Fei. The question is, environmental regulations are driving demand for greenfields, but also increasing complying costs. How do you view the industry market development?
Speaker Change: Reduce our unit cost, which further support our profitability.
Speaker Change: These efforts coupled with our disciplined expense management.
Speaker Change: We have positioned us to navigate to.
William Johnson: I would like to direct this question to Willem. Thank you very much. Well, we can see the rising demand for greenfields and also the stricter regulations are not just challenges. But we see that it's also opportunities to us. So in response to the IMO GHG jet strategies, fuel EU marine time to reduce carbon emissions by at least 40% by the year 2030. Many owners have actually placed notable increased orders for dual fuel engine vessels. which means that the vessel can operate with traditional fuel or biofuel and at the same time, alternate fuels such as methanol and LNG.
Speaker Change: The uncertainties of macroeconomics, while we deliver value to our shareholders. Thank you. Thank you.
Speaker Change: Due to time constraints, we will take another two questions. This physician type in your questions online box.
Speaker Change: So the next question will be from Citibank N. A polling now the question is in August 2024, CPL filed a private placement and on January 10, 2095, The company filed a shelf registration statement, which became effective on January 24, 2025 subsequently the company filed an eight.
Speaker Change: T M offering on February 28, 2025, what are the use of proceeds of these capital market transactions and Nick Please okay. Thank you.
William Johnson: This provides the flexibilities while transforming to sustainable energy resources. So, in addition, we can see that many governments are also providing policies and tax incentives to support the adoption of alternate fees. Cbl is in a close alignment with these regulations and the market trends by expanding our biofuel supply network, while at the same time, we're also exploring other sustainable fuels such as LNG and methane. The company also sees this as part of our ESG initiatives and the long-term strategy in enhancing our corporate value. Thank you. Thank you, William. We received more questions on our online platform.
Speaker Change: Bob <unk> will file a shelf registration statement on January 10, 2005, which becomes effective.
Speaker Change: I will turn the call and retail partners.
Speaker Change: The aggregate initial spring price of the securities definitely over and so we will not exceed in total.
Speaker Change: Milan.
Speaker Change: Subsequently the company.
Speaker Change: And at the markets right.
Speaker Change: February 25.
Speaker Change: Aggregated over at price of up to.
Speaker Change: $2 6 million.
Speaker Change: Approximately that amount.
Venus Zhao: Please feel free to type in your questions.
William Johnson: Now the next question comes from Jeffrey Allen Lau. The question is, the United States plans to impose port docking fees on ships related to China, but recently under consideration delayed implementation and new fee structures designed to reduce the overall cost to visiting Chinese vessels. How does the company assess the impact of this on its business?
Speaker Change: Well we.
Speaker Change: CBL.
Speaker Change: Policy.
Speaker Change: Fund management and also our working capital is.
Speaker Change: This spring the rig and there we really cautious.
Speaker Change: Cautious in managing our working capital.
Speaker Change: We intend to use the net proceeds.
Speaker Change: From it.
Speaker Change: Issue op sales.
Speaker Change: Sure.
William Johnson: I'd like to direct this to William. Thank you. Well, CBO is closely monitoring the regulatory developments that may impact global shipping and the trade dynamics. It has been changing a lot on a very frequent basis. From what we understand, there might be some changes under consideration, like delayed implementations or new fee structures designed to reduce the overall cost to visiting Chinese vessels to the United States. Nothing has been finalized. But even though we are now, so we think nine out of the 12 largest liners in the world. Majorities of our service networks are in the Asia-Pacific region.
Speaker Change: For general corporate purposes, which include mainly the network expansion <unk>.
Speaker Change: Billed business development.
Speaker Change: <unk> and <unk>.
Speaker Change: In other business opportunities and replay repayment of indebtedness.
Speaker Change: Proceeds will also support working capital needs to scale operations enhanced automation and explore acquisition.
Speaker Change: That's aligned with our growth opportunities.
Speaker Change: Objected store.
Speaker Change: In addition, we believe our stock is undervalued currently and retain flexibility to leverage this capital market transaction to optimize shareholder value.
Speaker Change: Management maintains board discretion to allocate funds in a manner that's balanced growth.
William Johnson: So to date, we have yet to have any operations in the ports in the United States. Therefore, the new port docking fees policy has no impact on our current business. Thank you. Thank you, William.
Speaker Change: Operation efficiency and shareholders' value creation.
Nick Please: Thank you Nick.
Speaker Change: Okay now we see the last questions on the platform is from <unk> Securities Lee Dan.
William Johnson: OK, we have some more questions coming. The next one will be from ICBCI Nelson Lin. The question is, considering the US reciprocal tariff updates and analysis 90-day force on reciprocal tariffs with the exception of China, what is the impact on CBL and the bunkering industry?
Lee Dan: The question is with cash increasing Mosley modestly to 8.0 to median U S. Dollar by year end 2024, how do you plan to allocate funds or seek additional financing to sustained growth momentum Nick please okay with.
William Johnson: William, please. Thank you. Well, we see under the current scenario, we expect minimum impact on our company. First of all, marine bunkering field is actually international flying for international flying vessels are generally duty free. So regardless whether it was the previous tech structure or the current tech structure, no tax will be imposed on the bunker. So also, as we explained before, our major services network are generally located in the Asia-Pacific, and we are mainly focusing on intra-Asia and the Euro-Asia trade routes. Yes, we do cover some trans-pacific proteins. But our trans-Pacific road trips also cover Canada, Mexico, and all other South American destinations.
Speaker Change: With a cash balance of eight.
Lee Dan: At.
Lee Dan: By the EMA and we are comfortable with.
Lee Dan: CVR optimize its cash cycle casually.
Lee Dan: Casually those days account payable days, improving liquidity and operation efficiency.
Lee Dan: In 2020 for the Communist factoring activities increased compared to the previous year alongside with a higher cash balance, reflecting Australia event liquidity and financial flexibility.
Lee Dan: In key.
Lee Dan: In prioritizing our fund allocation.
Lee Dan: Basically first.
Lee Dan: Have to concentrate also in network expansion.
William Johnson: So the increase in tariff might reduce the volume of global trade. But bunker is also one of the most essential products for the shipping industry. So we, as long as the number of services by the liners are stable, the impact on us should not be too material.
Lee Dan: Our biofuel business they were 11 and.
Lee Dan: Operational.
Lee Dan: Automation.
Lee Dan: Capital with directed.
Lee Dan: Towards two recorded growth in network expansion and scaling up <unk>.
Lee Dan: <unk> production.
Lee Dan: And deploy the ones Iot system to streamline operations.
William Johnson: However, if in the long run, the global trade has come to a standstill. And the world economy will likely to be in a recession, and the impact, I believe, will be applicable to everyone. Thank you. Thank you, Willem.
Lee Dan: Use of cash is working capital to expand our business support is one of our.
Lee Dan: <unk> growth strategy and also our objectives Christmas is central to our business support of customer acquisition efforts and enhanced service delivery capabilities across all.
William Johnson: Now we have the next question from Hooray Securities Ltd, HC Kwan. The question is, given the 2024 loss, what are your sales volume and gross profit margin targets for 2025? And how will the focus on biofuels and economies of scale contribute to reversing the profitability decline?
Lee Dan: Our 60 plus pulse network.
Lee Dan: In addition.
Lee Dan: <unk> expanded.
Lee Dan: Funding sources by accessing capital markets.
Lee Dan: Private placement increase.
William Johnson: William, please. Thank you very much. Well, in the year 2025, we aim to increase our sales volume and recover our gross profit margins through network strengthening and expansion. developing new customers and also to increase our sustainable fuel adoption. Since the beginning of 2025, our strategic efforts have yielded improving results. Strengthening and Expanding our geographical coverage to maximize our sales volume and to our customer reach. targeting new customer segments while deepening the relationship with our existing clients. prioritizing biofuels and other green alternatives to capitalize on higher margin opportunities. These are the things that we will be looking at.
Lee Dan: Increased financial flexibility and we will continue to explore capital market was very good growth.
Lee Dan: Including potential acquisition or partnership that allows me about sustainability and operational goals by balancing current liquidity with external funding opportunities.
Lee Dan: <unk> aims to a sustained its growth momentum once is proud to operate and deliver long term whether to outcome.
Megan: Shareholders. Thank you. Thank you. Thank you Megan.
Lee Dan: Yes.
Speaker Change: I think that concludes our physical year 2010 for webcast. If you require additional information or have additional question Keith do not hesitate to contact us on our IR email on the website.
Speaker Change: Thank you for your participation again and hope to see here in next time. Thank you.
William Johnson: And also simultaneously, economical upscale from expanded operations will reduce our unit costs, which further support our profitability. These efforts, coupled with our disciplined expense management will position us to navigate through the uncertainties of macroeconomics while we deliver value to our shareholders.
Venus Zhao: Thank you. Okay, due to time constraints, we will take another two questions. Please feel free to type in your questions on the online box.
Nick: So the next question will be from Citibank MA Pauline Lau. The question is, in August 2024, CBL filed a private placement, and on January 10th, 2025, the company filed a shelf registration statement, which became effective on January 24th, 2025. Subsequently, the company filed an ATM offering on February 28th, 2025.
Nick: What are the use of proceeds of these capital market transactions? Nick, please. Okay, thank you, Ernest. CBL filed a shelf registration statement on January 10th, 2025, which became effective on January 24th, 2025. The aggregate initial offering price of the securities that may offer and sell will not exceed, in total, $50 million. Subsequently, the company filed at the market on February 2025. with an aggregated offering price of up to $1. 2.6 million Approximately in that amount. Oh, well, we. CBL policy in fund management and also our working capital is really disciplinary, and we're really cautious in managing our working capital.
Nick: We intend to use the net proceeds. from the issue of sales, shares for general corporate purposes, which include many network expansion, file field, business development, acquisition and other business opportunities, and repayment of indebtedness. process will also support working capitals need to scale operations, enhance automation and explore acquisition. That's aligned with our growth opportunities objective. So in addition, we believe our stock is undervalued currently, and retain flexibility to leverage this capital market transaction to optimize our shareholder value. Management maintains board discretion to allocate funds in a manner that balances growth, operation efficiency, and shareholders' value creation.
Nick: Thank you.
Nick: Okay, now we see the last question on the platform. It's from Zhe Xiang Securities' Li Dan. The question is, with cash increasing modestly to 8.02 million US dollars by year-end 2024, how do you plan to allocate funds or seek additional financing to sustain growth momentum?
Nick: Nick, please. Okay, we have a cash balance of 8.00. BLM at the end we are comfortable with CBL automates its cash cycle, accounts with low days, countable days, improving liquidity and operation efficiency. Uh In 2024, the communist factoring facilities increased compared to the previous year, alongside with a higher cash balance reflecting strengthened liquidity and financial flexibility. In prioritizing our fund allocation, we basically first have to concentrate also in network expansion, our biofuel business development, and operational automation. Capital Redirected toward geographic growth in network expansion and scaling of biofuel production. and deploying one IT system to streamline operations.
Nick: Our use of cash as working capital to extend our business support is one of our group strategy and also our objectives, which is essential to our business. Support of customer acquisition efforts and enhanced service delivery capability supports our 60 plus ports network. In addition, CBL expanded its funding sources by assessing capital markets, such as private placement, increased financial flexibility, and we will continue to explore capital markets for strategic growth. including potential acquisition or partnership that aligns with our sustainability and operation goals. By balancing current liquidity with external funding opportunities, CBL aims to sustain its growth momentum, advance its value offerings, and deliver long-term value to our shareholders.
Nick: Thank you. Thank you, Nick. Thank you.
Venus Zhao: I think that concludes our fiscal year 2024 webcast. If you require additional information or have additional questions, please do not hesitate to contact us on our IR email on the website.
Venus Zhao: Thank you for your participation again and hope to see you in next term. Thank you.