BANL

Good morning, everyone, and welcome to CBL International Limited's Interim Results Presentation for the period ended June 30, 2025. Today's meeting will be conducted in English with simultaneous translation into Mandarin. 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 our expectations. Thank you for joining us today. I'm Venus Zhao, Investor Relations and Public Relations Director of CBL International Limited. Presenting alongside with me are Dr. Teck Lim Chia, Chairman and Chief Executive Officer; and Mr. Nicholas Fung, Assistant Chief Financial Officer. We are excited to share our performance and achievements in first half 2025 and provide an outlook for fiscal year 2025. Let's begin with today's agenda. Our presentation will cover the following: first, company introduction; second, market trends and geopolitical impact; third, financial review; fourth, operational review; fifth, strategic initiatives and market outlook; and sixth, Q&A. Let me start with a brief introduction to CBL International. CBL International Limited, NASDAQ ticker, BANL, is the listing vehicle of Banle Group, a reputable marine fuel logistics company based in the Asia Pacific region that was established in 2015. We are a global marine fuel logistics provider operating under an asset-light business model. Our key services include bunkering services across strategic global ports, supplying both fossil fuels and sustainable fuels and serving container liners, bulk carriers and tankers. We are recognized as professional and trustworthy by our business counterparties, delivering flexible and integrated vessel refueling solutions. Our competitive advantages include: first, global ports network. We operate in over 65 ports across Asia Pacific, Europe, Africa and Central America; second, supplier relationships. We maintain strong relationships enable us to offer competitive fuel pricing, superior service and operational efficiency. Third, customer relationship. With our extensive service, we can provide one-stop refueling solutions for customers, ensuring seamless service and operational efficiency. Fourth, growth strategy. We are focused on expanding our service network, increasing sales volumes and integrating sustainable fuel solutions to meet evolving market needs. This short corporate video will give you a comprehensive overview of our company's operation. I hope this video provides insight into who we are and the exciting opportunities that lie ahead. Please enjoy. [Presentation]

Okay. Let's come back to our presentation. We've maintained 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 consistently deliver high-quality services to our clients worldwide. This ensures access to efficient, reliable and competitively priced bunker fuel solutions, meeting the diverse needs of the global maritime industry. Now we move on to market trends and geopolitical impact. Let's continue. Seaborne trade and container volume have demonstrated steady growth as shown in this review of maritime transport by United Nation. According to UNCTAD, total seaborne trade grew by 2.5% in 2025, while containerized trade grew by 2.9%. Both are forecasted to maintain moderate annual growth rate through 2029. Ship supply increased by 6.1% in 2025, with demand grown by 3.5% to 4.5%. These numbers reflect a consistent recovery and expansion of global trade. CBL's bunkering operation network aligned strongly with this trend, with a presence in 13 out of the top 15 global container ports, including 9 of the top 10 ports such as Shanghai, Singapore and Ningbo-Zhoushan. On the customer front, CBL serves 9 out of the top 12 global container liners, which represent a combined around 60% market share in global container liners. Let's move on to the slides, which highlights geopolitical tensions and market impacts. Global maritime trade faced significant disruptions in first half of 2025 due to geopolitical tensions. First, let's review the whole global economic landscape. The broader economic environment remains uncertain. The recent decline in oil prices that were a source of market uncertainty directly eased our working capital. Seaborne trade showed moderate resilience, expanding by 1.5% in the first quarter and accelerating to a projected 2% in the second quarter. One of the notable disruptions in global shipping was the ongoing instability in the Red Sea, where vessels were rerouted via the Cape of Good Hope. This diversion extended Euro-Asia voyages by 10 to 14 days, resulting in an increased fuel consumption due to longer travel distances. Constantly, demand for bunkering services surged at alternative ports along this rerouted shipping lanes. The situation in Ukraine and the accompanying sanctions contributed to the instability in energy markets, prompting the European Union to see alternatives to Russian fuel supplies. The shift added volatility to global oil prices creating challenges in fuel supply and demand. U.S. trade policy, particularly the tariffs implemented in April 2025, significantly impacted global trade flows, leading to a shift in shipping volumes. These tariffs directed cargo from traditional routes, especially between China and the U.S. to alternative regions such as intra-Asia and Euro-Asia. This adjustment in this demand for bunkering services along these alternative corridors, particularly in the Asia Pacific and the Euro-Asia regions. Despite these challenges, the CBL team responded swiftly and strategically. We targeted the increased demand from rerouted vessels ensuring that our strategic supply chain could meet this demand effectively responded by capturing this increased demand resulting in a notable rise in sales volumes across Asia Pacific and Europe. Refraining from supplying vessels subject to the sanctions that were outlined in Lloyd's List containing United Nations Securities Council Consolidated List, maintained operational efficiency positioning CBL to navigate both the economic uncertainties. Let's move on to our financial highlights. Here are the first half 2025 financial highlights, showcasing CBL's strong performance. Total sales volume grew by 9.8% while revenue decreased by 4.4% to USD 255.2 million. Gross profit margin increased by 4 basis points to 1.02% and net loss narrowed by 38.8%. Our current ratio of 1.54 demonstrates healthy liquidity, while capital days at negative 4.44 highlights excellent cash cycle management. In the first half of 2025, CBL's revenue distribution and growth by geographic location, highlight key market trends. China accounted for 67.5% of total revenue, followed by Hong Kong at 27.8% and Malaysia at 2.1% with smaller contributions from Singapore, South Korea and others. Compared to the first half of 2024, revenue growth was seen 26% growth in China and 131% in others. CBL's strategic focus on establishing network to capture regional demands as they shifted supported by macro seaborne trade volume in China and Europe. Diving deeper into our financial results, revenue, CBL's total revenue decreased by 4.4%, reaching USD 265 million down from USD 277 million in the first half of 2024. The decrease was mainly attributable to the decrease in the marine fuel price, which was partially offset by the increase in the sales volume. Gross profit. Gross profit remained at a similar level, while gross profit margin slightly improved. We managed to maintain our gross profit with an increase in sales volume to cope with the challenging competition in the market. Operating expenses. Operating expenses decreased to 17% from USD 4.12 million to USD 3.42 million. The decrease was due to harvesting the results of our investment in the past year on enlarging port network, expanding our customer base and developing our biofuel operations and initiatives undertaken in the first half of 2025 to streamline operations. Net income. Net income narrowed from a loss of USD 1.62 million in the first half of 2024 to a loss of USD 0.99 million in the first half of 2025. This 38.8% improvement was mainly driven by the reduction of operating expenses through the costs savings and control initiatives in the group's operations during the period. CBL's high liquidity and financial flexibility have enabled sustainable growth in the first half of 2025. Working capital management, high liquidity strengthens the cash cycle and supports business operations. Bank facility, ample bank facilities. Our total facilities USD 50 million to fund future business expansion. Debt and leverage, focused on maintaining low debt levels provides flexibility for future growth. Just-in-time inventory management, optimize cash flow minimizes storage risk and enhances efficiency, minimal fixed assets maintaining a lean asset base ensures operational agility. Let's move on to operational review. Global development is part of CBL's 4-step strategy, and we have continued to see successful expansion since our IPO in 2023. As of June 30, 2025, CBL's global service network has expanded to 65 ports, an increase of 81%, marking a significant milestone in our growth strategy. The Asia Pacific region remained CBL's primary revenue driver, with key contributions from China, Hong Kong, Malaysia, Singapore and South Korea. Volume attributable to deliveries in Asia Pacific surged 9.1% year-on-year. Given several ports in Asia Pacific are major global shipping hubs, 13 of the world's top 15 container ports in 2024 according to the world's least bunkering operations in these regions account for a significant portion of deliveries. The expansion is especially evident in Europe, where our strategic focus on the ARA region has enhanced our market presence. We continue to develop our presence through our service network and maintain relationships with suppliers and customers. While current volumes in these regions remain steady, we are well positioned to scale operations in response to rising customer demand, ensuring we can meet market needs as they arise. In the first half of 2025, CBL achieved a 9.8% increase in sales volume despite a challenging macroeconomic environment marked by fluctuating oil prices and geopolitical instability. This growth was fueled by expansion of our service network. The successful acquisition of new customers and a strategic shift towards non-container liner segments. As of June 30, 2025, CBL serves 9 of the world's top 12 container shipping lines, which contributed to nearly 60% of global container fleet capacity. The company's expanding customer base and broader service portfolio have reinforced its market position. Customer diversification. Revenue share from top 12 liners increased to 60.1% versus 45.7% in the first half of 2024. Non-container sales, Bulk and Tanker accounted for 36.9%. Top 5 customer sales concentration declined to 60.4% in the first half of 2025 versus 66.7% in the first half of 2022. New customers from 2024 and the first half of 2025 contributed to 11.9% in the first half of 2025 sales. In the biofuel sector, CBL achieved a significant growth in sales and volume in the first half of 2025 and Biofuel sales saw an impressive increase of 154.7% year-on-year in the first half of 2025, with volume growth reaching 189.5%. This growth can be attributed to CBL's continued leadership in the sustainable fuel market driven by the increasing adoption of biofuels among our customers. CBL has remained at the forefront of biofuel adoption with increased sales volume in Singapore Malaysia, Hong Kong and various ports in China. Globally, CBL facilitated the first B24 supplies across several markets. Besides the launch of biofuel helped reduce the GHG emissions by 20% compared to traditional fuels. CBL has obtained ISCC EU and ISCC Plus certifications in early 2023. We supplied biofuel in Singapore since March 2025 and proactively support customers to meet IMO GHG targets with sustainable and cost-effective alternatives. Looking ahead, CBL plans to further diversify biofuel offerings and strengthen our market position in green marine fields. In addition, the company will explore more greenfield options such as LNG and methanol to meet the evolving sustainability regulations and industry demand. In the capital markets, CBL also made a remarkable progress with the following highlights. In January 2025 the company filed a shelf registration statement, which became effective on January 24, 2025, allowing for the offering of securities with an aggregate initial offering price of up to USD 50 million. Following this, on January (sic) [ February ] 28, 2025, the company initiated an at-the-market, ATM, offering with a total offering price of up to $2,604,166. The net proceeds from the ATM offering will be used for general corporate purposes, including acquisitions, business opportunities and debt repayment with management retaining discretion over the allocation. Additionally, on June 30, 2025, the company launched a share repurchase program approved by the Board of Directors authorizing repurchases of up to the lesser of USD 5 million or 5 million ordinary shares set to expire on April 15, 2028. Repurchases will be made in the open market with amounts and timing, depending on the market conditions and corporate needs. The company highly values the relationships with our investors. In the first half of 2025, we have participated in several investor events and conferences such as Lytham Partners Investor Conference, Noble Capital Market Virtual Equity Conference, 8th China IR Whitepaper Summit, SZSE 2025 Global Investor Conference. Besides, we also held media and analyst luncheon and Investor Happy Hour to further exchange insights with investors and media in person. CBL continues to actively communicate with different sites through various platforms, including AGM, newsletter, website and social media. Our efforts have received a market recognition. We have won the Most Creative Corporate Communication Award at the 2024 Valuable Capital Community Annual Selection, and the Best Digital Investor Relations Award and Best Investor Relations Director at the 8th China Excellence IR Awards. As an industry pioneer, CBL is committed to sustainability development and has initiated multiple steps with fruitful outcomes in ESG. In the first half of 2025 built a corporate model for sustainability development, focusing on a reliable and responsible marine fuel supply, customers' growth supports and life quality enhancement. Engaged a consultancy with the aim of enhancing our ESG practices in a comprehensive 4-stage approach. Conducted a materiality analysis on sustainability issues among internal and external stakeholders. Organized various maritime-related volunteering programs and initiatives to support ESG practices in community. Following the corporate responsibility road map, we will mainly focus on 3 parts: ESG goal setting, ESG rating platform and ESG disclosure. Looking forward, CBL will continue to take actions in ESG to achieve a sustainable development. More specifically, CBL's 2025 ESG plan and long-term commitment underscores the importance of adopting ESG practices to enhance transparency, implement sustainable initiatives, manage risk 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% UCOME to reduce scope 3 supply chain emissions. The company also supports customers in achieving sustainability goals while ensuring its biofuel production, avoids deforestation, land use changes and competition with food production. 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 holding various training and programs, such as International Coastal Cleanup for World Oceans Day. On governance, CBL's practice is in alignment with IMO decarbonization targets and FuelEU maritime regulation. The company ensures fresh perspectives and independent oversight through annual director elections and rotation. The company also established strong reporting channels for misconduct, fraud, or violations of company policy ensuring swift management response and whistleblower protection. The plan is structured across 4 phases: Q1 to Q2 2025, establishing a sustainability strategy, governance framework and action plan; Q1 to Q3 2025, improving sustainability management and implementing the sustainable development plan; Q2 to Q3 2025, implementing our sustainable development plan; Q3 to Q4 2025, enhancing disclosure practices and strengthening investor relations. Now let's move on to strategic initiatives and outlook. Looking ahead to fiscal year 2025, our key initiatives include strengthen our service network, focusing on Asia Pacific and European markets, strengthening our presence in emerging markets, continue expanding ports coverage. Grow sales volume; continue to target new customers and new segments while maintaining strong relationships with current customers. enhance market position, stronger and more in-depth supplier relationships. Export sustainable fuels; Biofuel adoption as a core of CBL's sustainability strategy, focus on compliance with the latest carbon emissions regulations with further exploration of biofuel products and other sustainable fuels. The International Maritime Organization, IMO, agreed on its global greenhouse gas, GHG, framework in April with full implementation set for 2028. This decision further emphasized the urgency of reducing emissions, promoting biofuel adoption and encouraging future investment in ships capable of running on zero carbon fuels. In the first half of 2025, CBL has the following achievements, improving its performance across 3 key areas. First, to improve gross profit and narrow down net losses. The company plans to increase sales volume through network expansion and new customer acquisition while leveraging its network to mitigate supply chain disruptions. 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. CBL's gross profit margin increased by 4 basis points and net loss has narrowed by 38.8% in the first half of 2025. Second, to maintain sufficient cash flow and manage working capital. CBL will prioritize a strong cash position, strengthen liquidity and closely monitor accounts receivable and payable. Accessing the capital market at the right time and increasing trade financing will further enhance financial flexibility to support growth initiatives. In the first half of 2025 CBL's current ratio improved from 1.51 to 1.54, while capital days improved by 1.8 days to minus 4.44 days. Finally, to enhance efficiency, CBL will utilize office automation and IT systems to streamline operations and explore advanced technologies for continuous improvement, cost saving, upgrading back-end systems and implementing real-time order tracking, data analytics. CBL's operational expenses has decreased by 17%. These efforts will improve customer service and operational efficiency, enhancing sustained progress and long-term growth. Thank you for your attention. We are now happy to take your questions. Please feel to share your queries, and I will facilitate the discussion along with Dr. Chia and Mr. Fung.

[Operator Instructions] I can see the first question on the screen. The first question is, among growth areas, what was the most significant achievement achieved by CBL? How did the company produced results in this area? And what were the challenges? And how does CBL overcome them. This question is from [indiscernible] from Southwest Securities. I would like to direct this question to William.

Sure. Good morning. Thank you very much for joining our webcast this morning. Thank you, Mr. [ Wu ], for the questions, and thank you, Venus, to the presentations. Well, I think we all know, ocean is never short of challenges. Right now, we are actually facing geopolitical conflicts, Red Sea crisis, tariff war, switching to biofuel and other renewable energies. We have been seeing all these challenges one by one all coming together, but we have managed to keep and maintaining our growth. We have achieved a sales volume growth of almost 10% for the first half of 2025. And we have achieved continuous growth in the sales volume over the past few years. And amid all these challenges, we managed to keep down our expenses and reduce our loss. We will continue to strive to make more improvements. And CBL's significant achievements, we have made rapid and strategic expansions on our global service network, growing form 36 ports at the time of our NASDAQ IPO in the year 2023 to 65 ports by the first half of 2025. This expansion underscores our successful execution of a scalable, asset-light growth, our asset-light growth model and solidifies CBL's presence across key maritime regions, including the Asia Pacific, Europe, Central Americas and Africa. And our growth was actually driven by targeting entity into high-demand ports and strengthens our partnerships with major suppliers and customers. We focus on customer-driven diversifications, especially in bulk carriers and tankers, which is actually beyond our core container liner space. This move has actually allowed us to capture volume growth despite a very challenging market and a declining bunker price environment. And CBL has navigated through significant headwinds, including geopolitical disruptions, oil price fluctuations and intensified competition in key markets where we operate. By leveraging our agile and capital-light structure, we minimize the fixed cost while we're securing scalable supply partnerships as well as our early investment into biofuel capabilities such as the successful rollout of the ISCC certifications in China, in Hong Kong, Malaysia and Singapore, we're supplying these ports enable us to align with the tightening emissions regulations and customer demand for sustainable options. The strategic and operational agilities allow CBL to expand meaningfully without compromising our financial stabilities. We are turning challenges into differentiators and reinforcing our value propositions as a resilient and a future ready bunkering partner.

Okay. [Operator Instructions] and will be allowed for management to address. Okay. I see the second question on screen. CBL reduced its net loss by 38.8% year-on-year in the first half of 2025 despite challenges in the macroeconomic environment and oil price volatility. What were the key drivers behind this improvement? And how sustainable are the measures for the second half of the year? This question is from [ Ryan Chen ] from [indiscernible] Financial. I would like to direct this question to Nick.

Thank you very much and thank you for everyone joining this event this morning. Well, in our first half of 2025, the improvement in bottom line of 38.8% was a result of efforts and resources invested to enhance our port network, expand our customer base and develop our biofuel operations over the past years. We now have to sustain our such investment. As a result, we increased our sales volume by double digits. In full year of 2024 as well as first half of 2025. We brought in new customers and lower our reliance on top 5 customers. Our biofuel sales have continued to demonstrate significant growth in the past 12 months. In addition, in the first half of 2025 by streamlining our operations, thus enhancing operational efficiency, we reduced our OpEx by 17%. Going forward, we continue to look for investment windows to further expand our network and especially for the sustainable fuel segments. In fact, we have taken more strategic approach to optimize our profitability. Thank you.

Thank you, Nick. And then we will come to the third question. The third question on screen is, given the ongoing geopolitical tensions and disruptions in shipping routes, how is CBL positioned to capture demand from rerouted trade flows especially in the Euro-Asia and intra Asia corridors? This question is from Marcus Wong from Hang Seng Bank. I want to direct this question to William.

Thank you very much, Marcus, for raising these questions. And the ongoing instabilities in the Red Sea, which has led vessels to reroute via the Cape of Good Hope extending the Euro-Asia voyages by probably about 10 to 14 days. And as a result of that, increasing the fuel consumptions. These 3 directions has caused a surge in demand for bunkering services at alternative ports along these new routes. And CBL has actually targeted ourselves to meet these demands and to capitalize on the opportunities. While on the U.S. trade policy changes in April this year, has also redirected cargoes to different regions, the shift in the trade flows has increased the demand for bunkering services in Euro-Asias's and Intra-Asia's corridors. And luckily enough with our CBL's extensive supply network in these regions, we are seeing additional requirements for our services. Therefore, despite all these disruptions, we have responded effectively resulting in increased sales volumes in the Asia Pacific and other emerging markets. And CBL's bought supply network has also positioned ourselves to adapt to changing trade flows while we maintain efficient bunkering operations and also able to seize the opportunities in this new and alternate routes.

Thank you, Mr. Lim Chia. Okay, please, all the investors, please type in your questions on the question for us, and I will read it now for management to address. So I can see the fourth question on the screen. Gross profit margins increased slightly to 1.02% in the first half of 2025. How does CBL plan to maintain or further improve margins as you continue expanding your supply network and customer base? This question is from [ Pauline Lau ] from Citibank. I would like to direct this question to Nick.

Okay. Thank you. Thank you, Pauline of Citibank for these questions. Well, in the first half of 2025, we managed to maintain our gross profit at the same level as compared to 2024. Our sales volume increased while our gross margin improved from 0.98% to 1.02%. We continue to improve our gross profit by increasing sales volume riding on the foundation we laid down in our expanded network, improved customer base and growth in non-container liner and biofuel segments. Furthermore, we keep on exploring new sustainable fuels such as methanol and LNG for higher margins and to achieve economies of scale to reduce unit cost. We believe our profitability will improve through those measures and actions. Amid market volatility, conflict and geopolitical tension, we still achieved steady growth of sales models. As we adopt our cost-plus model in our pricing, our gross margin increased when the sale -- with oil price come down in 2025 first half. Looking forward, if world trades recover to normal when tariff wars stabilize, we expect there may be further improvement in our gross margins.

Thank you, Nick. I see more questions coming on the screen. And the next question will be non-container liner sales now account for 36.9% of revenue, reflecting successful diversification efforts. How does CBL plan to further grow this segment while maintaining strong relationships with container liners customers. This question is from [ Alvin Cheung ] from Prudential Brokerage Limited. I would like to direct this question to William.

Thank you, Alvin. Well, thanks to our network expansions in the last few years, we are able to provide reliable and flexible supply arrangement for our non-container liner customers like those bulk carriers and tankers. And also thanks to our network expansions in the last few years, we can effectively and efficiently serving the non-container liner customers where [ yard ] vessels has less predictable scheduling as compared to the container liners. But meanwhile, we continue to service 9 out of the top -- the world's top 12 container shipping liners, which represent nearly 60% of the global container fleet capacities. And CBL has been actively targeting new customers, including mid-tier shipowners, bulkers, tankers and others. Now our customer diversification has actually reached a significant milestone. and non-container liner sales has become an important segment for us, accounting for about 36.9% of our revenue. And our sales concentrations for the top 5 customers has also reduced to 60.4% from the previous 66.7% in the same period.

Thank you, Mr. Chia. Okay. [Operator Instructions] So the next question will be operating expenses decreased by 17% in the first half of 2025. What were the primary cost efficiencies achieved? And how do this reflect the company's long-term strategy for expense management? This question is from [ Alan Wu ] from Phillip Securities. And I would like to divert this question to Nick.

Thank you, Alan, for raising these questions. Well, it has been our strategy to develop new ports, improve our customer base and diversify profit mix for the past 3 years, including 2024. Therefore, we deploy efforts and resources in this respect. In 2025, it actually is our harvest year rather than planting as compared to previous years in this regard. As some of these spendings are nonrecurring in nature, such as port operation preparation for new ports, market intelligence regarding new customers and new products such as biofuel and methanol. We keep the operating expenses down. This enabled us to achieve promising results. In the first half of 2025, we implement initiatives to streamline our operations and rationalizing our resources as a result we have savings in OpEx. To continue enhancing our operational efficiency, we utilize office automation and IT system to streamline operations, allocate resources to explore advanced technologies for continuous improvement. Cost saving and upgrade back-end system, implementing real-time order processing and data analysis, we'll keep investing for the future when good investment opportunities arrived.

Thank you, Nick. Okay. We come to the next question. This question is, any expansion plan in the second half of 2025? And looking longer term, what does the 5-year plan look like for the business? And how do you expect its business model to evolve by 2030? This question is from Nelson Lee from ICBCI. And I would like to direct this question to William.

Thank you very much, Nelson, for these interesting questions. Well, I would say, despite the challenges posed by uncertain global economic conditions, geopolitical volatilities and regional crisis, our gross profit remained stable. And in the first half of this year, we had successfully reduced net losses, successfully diversified our customer base and successfully improved on our operational efficiency and cost management. These strategies and measures we implemented have proven effective in navigating us through these turbulent times. And our strategy will be continuing to strengthen service network, grow our sales volume and further explore the sustainable fuels. We will continue to focus on our extensive supply network in Asia Pacific and at the same time, looking at strengthening our presence in the emerging markets. We will also continue to target new customers and new segments while deepening our strong relationships with the current customers. We will continue to promote stronger and more in-depth suppliers' relationship as well. We will continue to ensure that we have the adequate financial resources for our expanded business. And as we can see, in the past 12 months, we have successfully secured more banking facilities to support our growth. And on the sustainable fuel side, biofuel adoptions is actually one of our core sustainability strategies. We shall focus on compliance with the latest carbon emissions regulations and to further explorations of biofuel products. At the same time, we will be also looking at other sustainable fuels as well. We are also regularly exploring different vertical and horizontal integration opportunities in order to strategically position ourselves to capitalize on the growth opportunities and as well as the support our customers in meeting the decarbonization goals. We are growing Banle to be a full-fledged bunkering service facilitators. We strive for customer segment diversification from customers, from containers to non-container customers, from fossil fuels to biofuel and renewable fuels from Asia to the world. We are proud to build Banle into a well-rounded bunkering service facilitators for the future.

Thank you, Lim Chia. [Operator Instructions] Now we come to the next question. As the CEO of an international bunker service facilitator, what industry-specific observations and forecast do you see taking place on a global scale? And how are you preparing your company to capitalize on this development? This question is from [ Alan Lau ] from Jefferies, and I would like to direct this question to William.

Thank you very much, Alan, for the questions. Well, probably we can share a few industry observations and forecast that we see for your reference. First, we do see that there is resilience in the container shipping and the fleet expansions. Global fleet -- container fleet has actually increased by more than 10% in the year 2025 as compared to last year. This is actually driven by new vessel deliveries and -- as well as the demand for diverted growth. For example, the Red Sea disruptions that you require longer voyages, and therefore, you need more ships. However, this growth is actually tempered by trip policy volatilities, which might temporarily dampen volumes. But at the same time, we also see that it will spur regional trade realignment towards Intra-Asias's as well as the Euro-Asia's corridors. And second, probably on the geopolitical and the trade dynamics. Red Sea disruptions extended wages by 10 to 40 days, increased bunker demand at alternative routes as well as the U.S. tariff has redirected the trade flows, boosting Intra-Asia as well as the Euro-Asia's bunkering demand, but also creating some near-term volatilities. And third is what we see is the carbon emissions recovery as well as the regulatory accelerations. Carbon emissions in ocean shipping is actually improving post 2024 peaks aided by growth normalization as well as the adoptions for lower carbon fuels. And you can see that IMO in their 2023 GHG strategies in EU ETS and few EU marine times are actually exacerbating biofuel adoptions. The green marine fuel market is actually projected to grow at 50.4% CAGR from the year 2023 to the year 2030. So we see that there is a great demand in the market for green marines. And fourth on the biofuel and other sustainable fuel adoptions, the biofuel demand for CBL has actually surged 155% year-on-year in this first half of 2025. This is actually driven by the regulatory compliances as well as our customers' decarbonization goals. And also, on the other hand, is we see the Mediterranean ECA implementations in May this year requiring a 0.1% sulfur fuel. Therefore, it's boosting the ultra low sulfur fossil fuel as well as the bio-blended bunker demand. And coming to the CBL strategic preparations. First of all, we will continue on our network expansions and diversifications. We have currently scaled to 65 ports supply network globally, focusing on high-growth hubs in the Asia Pacific as well as the ARA regions in order for us to capture growth and demand. And to tailor with the traffic-driven trade shifts. This will also reduce our customer concentrations, expanding to other segments like the bulk carriers, the tankers and also other mid-tier shipowners. And second, we will also be pioneered in biofuels to ensure compliance readiness. And the company is actually expanding our partnerships and collaborations with biofuel suppliers, producers of UCOME as well as UCOME particularly in the Asia Pacific, where we have a very strong existing supply network, where we will maintain our ISCC EU as well as the ISCC Plus certifications to ensure the compliance with increasing stringent requirements in Europe and globally. We will also be sharing and assisting our customers onboarding and supporting them in easing the transitions for them to go into biofuels. This shall include the possible technical systems on handling and sharing the information on the combustion characteristics of the biofuel plants. Meantime, the company is also exploring any opportunities in suitable energy supply chain. And coming to financial resilience and flexibilities. We are always preparing ourselves for future developments of the company. We had secured ample banking facilities to fund our working capital and growth initiatives. And our market is challenging and competitive. However, we strongly believe our current business model has proven to be prudent and is able to navigate through all these oil prices volatilities. Coming to technologies and risk mitigations, we have been proactively leveraging with IT tools for our credit and risk management. We also implement real-time order tracking advanced monitoring systems to enhance operational efficiency. The company utilized market intelligence tools in order for us to avoid any [ sanctioned ] vessels, ensuring that we are in strict compliances and at the same time, minimizing the geopolitical risk. Well, as the CEO of the company, I see obvious trend that the maritime industry is navigating through the historical transitions towards a new frontier calling for sustainabilities and trade realignment. CBL is in position to capitalize through our agile network, biofuel expertise and disciplined financial management. CBL is regularly exploring different verticals and horizontal integration opportunities. The company is also firmly believing in the future demand for sustainable fuels and regional trade shifts. We are well prepared, well positioned to receive these transformations.

Thank you, Lim Chia, for the very comprehensive explanation. And then due to limited time, we come to the last question. And this question is considering the U.S. new reciprocal tariffs update and effective on 7 August, what is the impact on CBL and the bunkering industry? This question is from Tony Fei from BOCI, and I would like to direct this question to William.

Thank you, Tony. Well, as CBL currently, we do not have operations in the U.S. ports. Our direct impact from the U.S. tariff changes is minimum. However, we do see that tariffs has redirected cargoes from traditional roads not apply between China and U.S. to alternative regions like Intra-Asias and Europe. This shift has increased demand for bunkering services along the alternative corridors as the areas that we have mentioned, Asia Pacific as well as the Euro Asia. We can see from [ Dana Liner's ] report saying that 7.8% increase in the export to the far east and a 2.3% rise in imports from the Far East to other regions. This is covering the period from January to May this year. We see these strict pattern changes has actually affected global shipping, particularly impacting the container sector due to their requirements for reroutings. And as for our company, the overall impact has been limited. We have managed to leverage these changes by our extensive network and able to meet the demand generated from these new trade flows. Therefore, monitoring the evolving global trading landscape remains a priority for us in the second half of the year. Thank you.

Thank you, Mr. Chia. Okay. Thank you all the questions from investors, and this concludes our investor presentation for today, and thank you for your participation and support of CBL. If you would like to have further discussion with our management, please feel free to contact us any time for arrangement. Once again, thank you for your time today, and you may now disconnect. Thank you.

Thank you very much.

Thank you.

Good morning, everyone, and welcome to CBL International Limited's Annual Results Presentation for the year ended December 31st, 2024. Today's meeting will be conducted in English with simultaneous translation into Mandarin. 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. I'm Venus Zhao, Investor Relations and Public Relations Director of CBL International Limited. Presenting alongside me are Dr. Teck Lim 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; fourth, operational review; fifth, strategic initiatives and market outlook. sixth, Q&A. Let me start with a brief introduction to CBL International. CBL International Limited, NASDAQ ticker BANL, is the listing vehicle of Banle Group, a reputable marine fuel logistics company based in the Asian Pacific region that was established in 2015. Our key services include bunkering services across strategic global ports supplying both fossil fuels and sustainable fuels and serving container liners, 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 counterparties, delivering flexible and integrated vessel refueling solutions. Our competitive advantages include: first, global ports network. We operate in over 60 ports across Asia Pacific, Europe, Africa and Central America. Second, supplier relationships. We maintain strong relationships enable us to offer competitive fuel pricing, favorable credit terms and operational reliability. Third, customer relationships. With our extensive service, we can provide one-stop refueling solutions for customers, ensuring seamless service and operational efficiency. 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 short corporate video will give you a comprehensive overview of our company's operation. Please enjoy. [Audio/Video Presentation] I hope this video provides insights 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 deliver high-quality services to our clients worldwide. This ensures access to efficient, reliable and competitively priced bunker fuel solutions, meeting the diverse needs of the global maritime industry. Now we move on to the market trends and geopolitical impact. Let's continue. Seaborne trade and container volume has demonstrated steady growth as shown in this review of 2024. According to UNCTAD and Clarksons Research, total seaborne trade grew by 2.5% in 2024, while containerized trade grew by 2.9%. Both are forecasted to maintain that moderate annual growth rates through 2029. Container volume for all trades increased by 5% in 2024, with head haul 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 13 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 liners. 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 Bab El-Mandeb 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 triggered a surge in freight rates and heightened bunkering demand, particularly in regions like Asia Pacific, Mauritius and Cape Town. Middle East tensions further exacerbated the situation, increasing insurance premiums and raising operational costs for shipping companies. The ongoing Ukraine conflict continue to destabilize the energy markets, 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. Despite a projected slowdown in global GDP growth to 2.6% in 2024, maritime trade demonstrated resilience with total volumes increasing by 2% Containerized trade outperformed the broader market, expanding by 3.5%, as supply chains continue to normalize post pandemic. Despite these challenges, the CBL team responded swiftly and strategically. We adjusted our service network by providing service in new ports, including Mauritius, India and Panama, key locations along the routed shipping lanes. We implemented strategic pricing measures to manage cost volatility and maintain competitive pricing for our customers. Finally, our networks adapted to the evolving shipping patterns ensuring that our clients' fuel needs are met efficiently despite the disruptions. Let's move to our financial highlights. 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 USD 592.5 million, driven by higher demand and operational expansion. Cash balance rose by 8.3% to USD 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 days at minus 2.55 highlights excellent cash cycle management. Delving deeper into our financial results, revenue. CBL's total revenue rose by 35.9%, reaching USD 593 million, up from USD 436 million in 2023. This growth was primarily driven by successful expansion of our supply network and enlarged customer base and support of sufficient financial resources. Gross profit, gross profit declined by 25.5% from USD 7.21 million to USD 5.37 million. 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. Operating expenses, operating expenses increased significantly by 56.8% from USD 5.55 million to USD 8.7 million. This rise was primarily attributable to expenses for business expansion and biofuel operation and additional expenses related to enhanced ESG. Net income, net income fell from USD 1.13 million in 2023 to a loss of USD 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, a rise in interest expenses. 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. 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 a 102% increase in Singapore and 38% growth in China. This growth reflects CBL's strategic focus on expanding operations in the emerging markets and strengthening its presence in high-growth regions. CBL's high liquidity and financial flexibility have enabled sustainable growth in 2024. Working capital management, high liquidity strengthened the cash cycle and support business expansions. Strong cash position, cash accounts for 12% of current assets ensure immediate liquidity. Bank facility, sufficient facilities are in place to fund future development projects. Debt and leverage, focus on maintaining low debt levels provides flexibility for future growth. Operating cash flow, significant improvement supports reinvestments in network expansion and technology. Just-in-time inventory management, optimized cash flow, minimizes storage risk and enhances efficiency. Minimal fixed assets, maintain a lean asset base ensures operational agility. CBL's high liquidity and financial flexibility have enabled sustainable growth. 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 4 continents. Asia, China expanded biofuel supply to Guangzhou in March 2024 and Shenzhen in April 2024. Malaysia launched inaugural biofuel supply in Port Klang in June 2024. India added Mundra Port in Gujarat in July 2024. 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, opened a new office in Ireland in late 2023, enhancing sourcing capabilities. Africa, enter Mauritius, enabling key bunkering services in Africa, Central America, expanded coverage in Panama to strengthen the network. 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 segment. 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. 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 tanker businesses and reduced dependence on the top 5 customers. While average selling 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 sales in Malaysia, Hong Kong and various ports in China, as well as the first B24 biofuel supply in Singapore in March 2025. CBL also achieved ISCC EU and ISCC+ certifications ensure compliance with sustainable green fuel standards. Biofuel sales volume surged over 600% year-over-year, supported by a mid-2023 launch, strengthened supplier relationships and reliable supply chains. These efforts help customers meet IMO GHG 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, methanol and hydrogen to meet evolving sustainability regulations and industry demands. 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 3 strategic objectives form the foundation of this commitment. First, establishing robust ESG management capabilities; second, proactively fulfilling stakeholder requirements; and third, enhancing both our market competitiveness and sustainable financing assets. These efforts translate into 4 clear competitive advantages that differentiate CBL in the bunkering sector. We are gaining a first mover edge in greenfields, sustainable and systematically mitigating regulatory and transitional risks, building unparalleled trust through transparency and maintaining full accountability across our value chain. 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 Scope 3 emission reductions. The results speak for themselves. We achieved over 600% biofuel sales growth in fiscal year 2024 using 100% waste-based UCOME feedstock, ensuring 0 deforestation impact. To institutionalize these efforts, we've established an in-house ESG committee that oversees our energy transition road map, GHG reduction programs and sustainable sourcing policies. CBL's 2025 ESG plan and long-term commitment underscores the importance of adopting ESG practices to enhance transparency, implement sustainable initiatives, manage risk 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% UCOME to reduce greenhouse gas emissions. The company also supports customers in achieving sustainability goal, while ensuring its biofuel production avoids deforestation, land use changes or competition with food production. 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. These efforts underscore CBL's dedication to sustainability, corporate responsibility and long-term growth. The plan is structured across 3 phases: Q1 to Q2 2025, establishing a sustainability strategy, governance framework and action plan. Q1 to Q3 2025, improving sustainability management and implementing the sustainable development plan. Q3 to Q4 2025, enhancing disclosure practices and strengthening Investor Relations. Let's move on to strategic initiatives and market outlook. Look ahead to fiscal year 2025, our key initiatives include expanding our service network, strengthening our presence in the Asian and Europe markets, entry into emerging markets, continue expanding port coverage, maximizing sales volume, targeting new customers and segments, while maintaining strong relationships with existing clients, enhanced market position, stronger and more in-depth supplier relationships, exploring sustainable fuels, 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. To address current challenges, CBL has outlined a clear strategy to improve its performance across 3 key areas. First, to improve gross profit, the company plans to increase sales volume through network expansion and new customer acquisition, while leveraging its network to mitigate supply chain disruptions. 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 payable. Accessing the capital market at the right time and utilizing bank financing will further enhance financial flexibility to support growth initiatives. 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 analytics. These efforts will improve customer service and operational efficiency, ensuring sustained progress and long-term growth. 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, and I will facilitate the discussion alongside with Dr. Chia and Mr. Fung.

Okay. The first question is from Cathay United Bank Company Limited, [Steven Pun]. 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? And how will you address this going forward? Can you discuss the factors behind the significant increase in operational expenses in 2024 and your expectations for expense management in 2025? This question, I would like to direct to Nick to answer.

Okay. Thank you, Venus. First of all, we experienced a net loss in 2024, which basically influenced by a few factors. First is reduced gross margin, higher operating costs, ESG-related expenses, increase in interest expenses and investment in biofuel operations. In 2024, we adopted our volume-driven strategy to achieve significant 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 expanded its supply network to cover 60 ports now. We recruited bulk carriers and oil tankers in addition to our traditional container liner operators. However, the strategy of our short -- in this regard, impact our short-term profitability, resulting in a net loss for the year. This shift was driven by decline in gross profit. We offer more competitive pricing in market and contributed to narrow profit margins. In the bunkering sector, disruption in Red Sea and shift in shipping patterns led to increased price sensitivity among our customers. To support the volume growth and strengthen our market position, the company offer more competitive premiums, which reduced gross profit per ton and contributed to overall decrease in gross profit. Our consolidated gross profit reduced by almost 25%. 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 ports. The company expected to optimize unit cost and improve gross margin over time, particularly as market conditions stabilize. To address going forward, we focus on increasing sales volume through service network expansion and new customer acquisition, expanding our network coverage to navigate supply chain disruptions. In addition, we aim to develop biofuel and explore new sustainable fuels such as methanol and LNG, which offer potential for high margins. Achieving economic scale will further reduce unit cost, supporting margin recovery. To address rising operating expenses, we plan to implement automation and IT system to streamline operation to improve our operational efficiency. This upgrade will enhance resource allocation and enable continuous operation improvements. Additionally, we will prioritize customer service enhancement and cost-saving initiatives to optimize expense management in 2025. Moving forward, we focus on scaling operation, improve efficiency and leverage sustainability fuel opportunities to expect enhance profitability, as market conditions normalize. Thank you.

Thank you, Nick. Now we come to the second question is from Hang Seng Bank Limited, Marcus Wong. Can you please discuss your service network expansion, customer mix and future potential?

Thank you very much, and good morning to everyone. I think since our IPOs 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. And also in the year 2024, the company has expanded our market coverage to include Mauritius, Panama and India. So basically, we are covering 4 continents of the world right now. And thanking 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. So furthermore, the revenue of the top 12 container liners is also increased on a year-over-year basis. And going forward, we shall balance the economic of scale from our existing network with opening of more strategic locations. So we will strike the balance between a new port strategic opening of the locations versus economic of scale on our existing network. Thank you, Venus.

Thank you, William. Okay. Please feel free to type in your questions on the online box and I will read it aloud. The next question is from SDICS International, Frank [indiscernible]. The question is biofuel adoption trends, the introduction of B24 biofuel has been a strategic focus with operations in Hong Kong, China and Malaysia. How do you expect biofuels to develop in 2025? This question, I would like to develop -- I want to dive to William.

Okay. Thank you very much. The company has expanded our coverage besides Hong Kong, China and Malaysia, and we have did our first supply in Singapore earlier this year. So our network has continued to expand as well. So our biofuel sales in the year 2024 has surged over 600% comparing to those in 2023, 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 FuelEU Maritime regulations are tightening. 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.

Thank you, William. Okay. The next question will be from HSBC [indiscernible]. 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. I would 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 network. 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 customer. 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 9 out of the 12 world top global container liners is a strong proof of CBL's market reputations and effective supply network. Thank you.

Thank you, William. Okay. Now we come to next question. Please feel free to type in your question on the online box and I will read it out. The next question comes from BOCI, Tony Fei. The question is, environmental regulations are driving demand for green fuels, but also increasing compliant costs. How do you view the ESG market development? I would like to direct this question to William.

Thank you very much. Well, we can see the rising demand for green fuels and also the stricter regulations are not just challenges, but we see that as also opportunities to us. So in response to the IMO GHG strategies, FuelEU 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. This provides the flexibilities, while transforming to sustainable energy sources. So in addition, we can see that many governments are also providing policies and tax incentives to support the adoptions of alternate fuels. 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 methanol. The company also see 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. Please feel free to type in your questions. Now the next question comes from Jefferies, Alan 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? I will direct this to William.

Thank you. Well, CBL 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 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. But even though we are now servicing 9 out of the 12 largest liner in the world, majorities of our service networks are in the Asia Pacific region. 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. Okay. We have some more questions coming. The next one will be from ICBCI, Nelson Lee. The question is, considering the U.S. reciprocal tariff updates and announces 90-day pause on reciprocal tariffs with the exception of China, what is the impact on CBL and the bunkering industry? William, please?

Thank you. Well, we see under the current scenario, we expect minimal impact on our company. First of all, marine bunkering fuel is actually international flying -- for international flying vessels are generally duty-free. So regardless whether it was the previous tax structure or the current tax 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 trades routes. Yes, we do cover some transpacific routings, but our transpacific routings also cover Canada, Mexico and all other South American destinations. So the increase in tariff might reduce the volume of global trades, 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. 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, William. Now we have the next question from Hooray Securities Limited, H.C. 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? William, please?

Thank you very much. In the year 2025, we aim to increase our sales volume and recover our gross profit margins through network strengthening and expansions, developing new customers and also to increase our sustainable fuel adoptions. 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. And also simultaneously, economies of scale from expanded operations will reduce our unit cost, which further support our profitabilities. These efforts, coupled with our disciplined expense management, will position us to navigate through the uncertainties of macroeconomics, while we delivered value to our shareholders. Thank you.

Thank you, William. Okay. Due to time constraint, we will take another 2 questions. Please feel free to type in your questions on the online box. So the next question will be from Citibank, [Pauline Lau]. The question is, in August 2024, CBL filed a private placement, and on January 10, 2025, the company filed a shelf registration statement, which became effective on January 24, 2025. Subsequently, the company filed an ATM offering on February 28, 2025. What are the use of proceeds of this capital market transactions? Nick, please?

Okay. Thank you, Venus. CBL filed a shelf registration statement on January 10, 2025, which become effective on January 24, 2025. The aggregate initial offering price of the securities that we may offer and sell will not exceed in total $50 million. Subsequently, the company filed an at the market offering on February 2025, with an aggregated offering price of up to $2.6 million approximately in that amount. Well, we, CBL policy in fund management and also our working capital is very disciplinary and we're really cautious in managing our working capital. We intend to use the net proceeds from the issue of sales -- shares for general corporate purposes, which include mainly the network expansion, biofuel business development, acquisition and other business opportunities and repayment of indebtedness. Proceeds will also support working capital needs to scale operations, enhance automation and explore acquisition that's aligned with our growth opportunities -- objectives, sorry. 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 balance growth, operational efficiency and shareholders' value creation. Thank you, Venus.

Thank you, Nick. Okay. Now we see the last questions on the platform is from [indiscernible]. The question is, with cash increasing modestly to USD 8.02 million by year-end 2024, how do you plan to allocate funds or seek additional financing to sustain growth momentum? Nick, please?

Okay. We have a cash balance of $8 million at -- by the year-end, we are comfortable with -- CBL optimized its cash cycle, accounts receivable days, accounts payable days, improving liquidity and operational efficiency. In 2024, the company's factoring facilities increased compared to the previous year, alongside with a higher cash balance, reflecting strengthened liquidity and financial flexibility. In key -- in prioritizing our fund allocation, we basically first have to concentrate also in network expansion, our biofuel business development and operational automation. Capital, we directed towards geographic growth in network expansion and scaling of biofuel production and deploying advanced IT system to streamline operations. Our use of cash as working capital to expand 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 capabilities across our 60-plus ports network. In addition, CBL expanded its funding sources by accessing capital markets such as private placement, increased financial flexibility, and we will continue to explore capital market 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 biofuel offerings and deliver long-term value to our shareholders. Thank you.

Thank you. Thank you, Nick. 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 e-mail on the website. Thank you for your participation again, and hope to see you next time. Thank you.

Good morning, ladies and gentlemen. I'm Venus Zhao, Investor Relations and Public Relations Director of CBL International Limited. Thank you for joining 2024 Interim Results webcast of CBL International Limited. Before we begin, I'd like to remind you that today's presentation will include forward-looking statements made pursuant to the Safe Harbor Provision of the Private Securities Litigation Reform Act 1995. These statements are subject to the risks and uncertainties that will cause actual results to differ materially from our expectations. Today's meeting will be conducted in English with simultaneous translation into Mandarin. We'll begin with the presentation, followed by the Q&A session. You can find the presentation deck on the webcast page and in the Investor Relations section of our company website. We're excited to introduce to you the key members of our leadership team who are driving our vision forward. Let me introduce our speakers for today's session. We have Mr. Teck Lim Chia, the Group Chairman and CEO. Mr. Raymond Chiu, our Chief Financial Officer. And myself, Ms. Venus Zhao, Director of Investor Relations and Public Relations. Please allow me to give a presentation of our interim results. We'll divide it into five chapters. Company Introduction, Investment Highlights, Financial Review, Operational Review, Strategic Initiatives, and Market Outlook. The first chapter is the Company Introduction. Who we are. CBL International Limited, NASDAQ ticker, BANL, is the listing vehicle of Banle Group, a reputable marine fuel logistic company based in the Asian Pacific region that was established in 2015. We are committed to providing customers with one-stop solution for vessel refueling, which is referred to as bunkering facilitator in the bunkering industry. Our clients are international container liners, bulk carriers, and tankers. We facilitate vessel refueling mainly through local physical suppliers in 60 plus ports worldwide in Asian Pacific, Europe, and Africa. We are top two players in both the Hong Kong and China bunker facilitating markets in 2023. We are committed to sustainable fuel solutions. This short corporate video will give you a comprehensive overview of our company's operation. I hope this video provides valuable insights into who we are and the exciting opportunities that lie ahead. Please enjoy. [Audio-Visual Presentation]

Let's continue. According to UNCTAD, total seaborne trade and containerized trade are forecast to grow 2.1% to 2.2% and 2.9% to 3.2% per annum from 2024 to 2028 respectively. According to BIMCO, container volume for all trade is forecasted to grow 5% and 6% respectively in 2024 and 2025. According to Frost & Sullivan, Asia and Oceania accounted for 70% of global container port throughput in 2023. CBL's bunkering operation network presence has covered 9 out of the top 10 global container ports in 2023. The ongoing Red Sea crisis, which began in October 2023, has significantly impacted the maritime routes due to geopolitical tensions and conflicts in the region. The reduction in traffic through critical conduits such as the Suez Canal and Bab el-Mandeb Strait has forced ship owners and charters to reroute vessels, leading to increased transit times and operational costs. The voyage from Rotterdam to Shanghai increased from 25.5 days to 34 days. Free rates on affected routes have surged due to these disruptions, as shipping companies face longer voyages and higher insurance premiums. This disruption has also had a significant impact on the bunkering industry. The demand for bunker fuel in Asia-Pacific and Western Europe has risen sharply due to the rerouting of vessels around the Cape of Good Hope and other longer routes. Ports in regions such as China, Singapore, Mauritius, and Cape Town have experienced a surge in bunkering volumes, driven by the need for vessels to refuel more frequently along these extended routes. This increased demand has led to greater price volatility, with the price of low-suffer bunker fuel on routes rose immediately after the crisis began, and began to stabilize and decline somewhat. Even though they remain higher than pre-crisis level, the decrease is attributed to the market adjusting to the new demand patterns and re-opening of certain supply chains. Moving on to what makes CBL standout. Bunkering is the critical process in maritime logistics, and we excel at it. Our primary role is to bridge the gap between ship operators, oil traders, and physical distributors. We handle all the logistics required to refuel vessels, including obtaining and comparing quotations, negotiating prices, arranging physical delivery, and managing any airport occurrences that arise. The value we provide to our clients is significant. By acting as a single point of conduct, we reduce the administrative burden and time cost for ship operators, offer favorable pricing through demand aggregation, and provide flexibility to manage unexpected events. We are not just delivering fuel, we are delivering a comprehensive, reliable service that ensures our customers' vessels stay on schedule and operational. Let's draw into a balanced business model, which is built around efficiency and scalability. We operate on a cost-plus-pricing mechanism, ensuring a positive gross profit on every transaction. This model not only secures our profitability, but also allows us to offer a premium service to our clients. Our extensive serving network, now spanning over 60 ports, is key to capturing additional business opportunities. This network provides our customers with the flexibility they need to refuel at convenient locations across the globe. Achieving economy subscale allows us to lower our unit operating costs. Banle is also an asset-light company. We practice just-in-time inventory management, which minimizes our fixed asset investment and reduces financial risk. Our deep relationships with suppliers and our possession of all necessary licenses further enhance our operational capabilities. Lastly, our operational efficiency is evident in our rapid cash flow and the fact that we maintain no long-term debt on our balance sheet. We minimized interest expenses from account receivable factories. These factors contribute to our ability to remain agile and responsive to market needs, ensuring that we can continue to grow sustainably. Let's move on to our investment highlights. Now we summarize the key investment highlights of Banle International. These highlights are the pillars of our growth strategy and our value proposition to investors. First, our growth track record speaks for itself. We've achieved a revenue CAGR of 23% from fiscal year 2020 to fiscal year 2023, demonstrating our ability to expand and capture market share even in challenging environments. Second, our financial health is strong. We are in a position with access to bank facilities and positive free cash flow. This financial health not only supports our ongoing operations, but also enables us to seize new opportunities as they arise. Third, we pride ourselves on our operational efficiency with high liquidity. Fourth, we hold a leading market position in key markets, particularly in Hong Kong and China. Our strong relationships with top-tier clients and our expansive service network give us a competitive edge. Finally, our growth potential is significant. We are not just expanding our network, we are also innovating in areas like sustainable fields, which positions us for longer-term success in an evolving industry. Let's move on to the next part, financial review. Let's take a closer look at our financial performance for the first half of 2024. Our revenue grew by an impressive 44.4% year-on-year, reaching $277.2 million. This growth was largely driven by a 39.4% increase in sales volume as we expanded our global supply network and tapped into rising demand from both existing and new customers. Our current ratio stands at 1.51, reflecting our strong liquidity position. Additionally, our cash balance increased by 30.9% to $9.7 million, further strengthening our financial stability. Our capital days is minus 3.6 days, and free cash flow has increased by 131.8% to $2.3 million. The reduction in capital days indicates that we are managing our account payables and account receivables more effectively, leading to faster turnover and enhanced operational efficiency. The significant increase in free cash flow reflects our improved cash flow management, providing us with greater financial flexibility for investment and growth opportunities. Driving deeper into our financial results, our revenue of $277 million represents a significant increase of 44.4% compared to the first half of 2023. This significant growth was driven by a 39.4% year-on-year increase in sales volume, attributed to the expansion of our global supply network and higher marine fuel demand due to geopolitical factors. However, our gross profit declined by 32.2% to $2.71 million, primarily driven by the reduction in premium sold to customers and led to lower gross profit per ton, which was partially offset by an increase in volume sold. Our operating expenses rose by 64% to $4.12 million, driven by higher selling and distribution expenses related to our sales growth, strategic investment expansion into our supply network to new geographic areas and development of our biofuel operations. These expenses are necessary for our long-term growth and are expected to yield positive returns in the coming years. Our net loss of $1.62 million was driven by lower gross profit margin and higher operating costs. Despite these challenges, we are confident in our ability to navigate the current market environment and return to a path of improved profitability as we continue to scale and optimize our operations. Let's now examine our revenue breakdown by geographic location. China and Hong Kong remain our largest markets, contributing 51.3% and 34.8% of our revenue in the first half of 2024, respectively. Malaysia and Singapore also play important roles in our regional portfolio, accounting for 10.9% and 2.3% of our revenue. We have seen strong revenue growth across all these regions, with Singapore, Hong Kong, Malaysia, China and South Korea experiencing a year-on-year growth of 150%, 52%, 41%, 38% and 25%, respectively. This geographic diversity not only strengthens our market presence, but also helps mitigate risks by spreading our revenue sources across multiple key markets. Our continued focus on expanding our network and customer base in these regions is expected to drive future growth and solidify our leadership position. Finally, let's review the key highlights of our balance sheet as of June 30, 2024. We maintain a highly liquid capital structure, with cash accounting for 41% of our net assets. This solid cash reserve not only provides us with financial stability, but also enables us to seize opportunities as they arise. We operate on a debt-free basis with zero long-term borrowings. Instead, we leverage available non-recourse factoring facilities, which allows us to maintain liquidity without incurring debts. This approach minimizes financial risks and positions us favorably in the market. Our commitment to just-in-time inventory management further enhances our cash flow and avoids storage risks. This strategy not only improves our operational efficiency, but also aligns with our goal of maximizing profitability. We also maintain a lean asset base with minimum fixed assets. This strategy allows us to maintain agile and responsive to market changes, reducing overhead costs and enhancing our overall efficiency. Finally, our rapid cash conversion cycle is a testament to our efficient operations. We engage mostly in short-term activities, transactions with efficient operations. In summary, our balance sheet reflects a company that is not only financially stable, but also strategically positioned for sustainable growth in the years ahead. Now, let's review the company's operational performance. Let's talk about one of the key drivers of our recent success, our service network expansion. Since our IPO in March 2023, we have significantly expanded our global service network from 36 ports to over 60 ports across Asia, Europe, and Africa. This expansion has been instrumental in enabling us to serve a broader customer base and meet the growing demand for our services. One of the notable milestones in this expansion is the opening of our new office in Ireland in late 2023. This strategic move has bolstered our market coverage in Europe and enhanced our local sourcing capabilities, positioning us to better serve our customers in this region. Additionally, we successfully launched bunkering services through local physical suppliers in new locations, including our inaugural services in Mauritius, Africa in May 2024. This further extends our reach and demonstrates our commitment to growing our footprint in key markets around the world. Now, let's dive into our sales volumes and oil prices per metric ton on our business. In the first half of 2024, our sales volume surged by 39.4% compared to the same period in 2023. This growth was driven by the expansion of our service network and the rising demand from both existing and new customers. In the first six months of 2024, the average bunker prices per metric ton increased by 3.6% compared to the same period last year. Our ability to serve eight of the world's top 12 container shipping lines, which together account for 87.1% of global container fleet capacity, has been a major factor in this volume increase. Our increased market presence in key regions like China, Hong Kong, Malaysia, and Singapore, along with our new port coverage in Africa and India, has contributed significantly to our strong sales performance. We implemented strategies to expand the service network to beyond our traditional geographic areas in Asia-Pacific and Europe to Africa, and beyond container liners to include bulk and tanker businesses. As the global shipping industry moves towards decarbonization, Banle is at the forefront of promoting sustainable fuels. In the first half of 2024, Banle's biofuel volumes and revenue increased by 84.6% and 95.8% respectively compared to the same period of 2023. We've made significant strides in this area, having obtained ISCC-EU and ISCC-Plus certifications in early 2023. These certificates underscore our commitment to providing compliant and sustainable fuel options that meet the evolving needs of our customers and industry. In July 2023, we commenced our B24 biofuel operations in Hong Kong, followed by successful bunkering in Yantian, Shekou, and Nansha in China, as well as Port Klang in Malaysia. The B24 biofuel blend offers a 20% reduction in greenhouse gas emissions compared to conventional marine fuels, making it an attractive option for ship operators looking to reduce their carbon footprint. Looking ahead, we plan to further expand our biofuel supply capabilities and explore other sustainable fuel options. Our work in biofuel is expected to facilitate the transition from fossil fuels to sustainable fuels, creating a second growth curve for Banle and positioning ourselves as a leader in the sustainable fuel market. Finally, let's take a closer look at our global service network and the extensive reach we have achieved. We are in the top two market share positions in both Hong Kong and China. As of the first half of 2024, Banle is providing vessel refueling services in over 60 ports worldwide. This map illustrates our network, which spans key locations across Asia, Europe, Africa, and beyond. Our presence in these strategic ports ensures that we can provide timely and reliable refueling services to our customers. We are recognized by our business counterparts as a professional and trustworthy partner, known for delivering flexible and integrated vessel refueling services. As we continue to expand and strengthen our network, we remain committed to delivering high-quality services that meet the needs of our customers and drive our growth. Looking ahead, Banle is focused on helping ship operators navigate the energy transition and comply with increasingly stringent emission regulations. The IMO's EEXI, Energy Efficiency Existing Ship Index and CII Carbon Intensity Indicator regulations, along with the FuelEU Maritime Initiative, are driving the industry towards greener pathways. These regulations require significant reduction in greenhouse gas emissions with targets of 2% by 2025, 6% by 2030, and up to 80% by 2035. Ship operators that fail to comply with these regulations will face significant financial penalties. However, there is a growing demand from corporations to reduce their scope-free emissions, those generated by their supply chain and logistics operations. Banle is well-positioned to help these companies achieve their sustainability goals by providing biofuels and other sustainable fuel options. Our B24 biofuel, for example, is a transitional product that allows ship operators to reduce their carbon footprint without making substantial investments in alternative fuel fleets. This flexibility is crucial, as many operators are hesitant to invest in new technologies due to the uncertainty of the market and existing depreciation timelines of their current assets. We are pioneers in promoting sustainable fuels in the Asia-Pacific region by leading the change in biofuel adoption and other sustainable practices. Banle is not only contributing to the decarbonization of the shipping industry, but also positioning itself for long-term success in a rapidly evolving market. We are not just focused on growth. We play an important role in the value chain in the bunkering market. We have prominent local partners as our suppliers. Since the launching of our B24 biofuel operations in July 2023, we have successfully delivered these sustainable operations in Hong Kong, Shekou, Yantian, Nansha and Portland. We strongly believe that biofuel is the inevitable trend during the energy transition from fossil fuels to sustainable fuels such as LNG, Methanol, Ammonia or Hydrogen. Owing to biofuel's compatibility with traditional fuel oil engines without requiring additional hardware investment and sacrificing efficiency. In the future, we are also exploring other sustainable fuels such as LNG, methanol and ammonia, et cetera, to provide our customers, depending on market demand. Now, move on to the strategic initiatives and market outlook. As we look ahead, let me outline Banle's strategic initiatives as well as our market outlook. First, expand service network, our recent actions. Strengthening Asia-Pacific market, Banle has prioritized bolstering its presence in the Asia-Pacific region where economic resilience is driving increased demand for shipping and bunkering services. Expanding into Europe and other regions, Banle is actively expanding into Europe and other regions, capitalizing on the robust demand for sustainable fuels driven by stringent environmental regulations and decarbonization targets. Second, maximize sales volume impact. Diversify offerings and enhance the market position. Banle's efforts to diversify its fuel offerings, including biofuels and sustainable fuels, have enhanced its market position. Increasing market share. Banle's strategy is focused on increasing its market share by expanding into high-growth regions. Leveraging economics of scale. Banle's expansion allows the company to benefit from economics of scale. Third, explore sustainable fuels, future plans, compliance with IMO and EU regulations. Banle is committed to aligning with the latest environmental regulations set by the International Maritime Organization, IMO, and the European Union. Biofuel adoption. Banle is investing heavily in the adoption and expansion of biofuels. Exploring other sustainable fuel options. In addition to biofuels, Banle's exploring alternative sustainable fuels, such as LNG, methanol, and hydrogen. As we execute these strategies, we will also continue to monitor and manage risk effectively, ensuring that we remain agile and responsive to market dynamics. Let's take a closer look at the market outlook and how it aligns with our strategic initiatives. The global green marine fuel market is expected to grow to $201.35 billion by 2030, with a staggering CAGR of 50.4% from 2023 to 2030. This growth is driven by increasing regulatory pressures and a global shift towards decarbonization. Banle is well positioned to capitalize on this trend. Our expanding service network, commitment to operational efficiency, and focus on sustainable fuel solutions put us at the forefront of this market transformation. We are also well prepared to navigate the challenges associated with oil price fluctuations and geopolitical conflicts. Our cost-plus pricing mechanism ensures that our profitability is not directly impacted by oil price volatility, while our proactive risk management framework allows us to adapt to changing market conditions. We will continue to enhance operational efficiency and cost control. In terms of strategic acquisitions and partnerships, we are exploring opportunities that enhance our operational capabilities and further strengthen our market position. By investing in technology and innovation, particularly in sustainable fuels, we are positioning Banle to lead the industry into a more sustainable future. With that, we conclude our presentation today. We've covered Banle's strategic initiatives, our strong financial and operational foundation, and the exciting growth opportunities ahead, particularly in the rapidly expanding sustainable fuel market.

I'd like to open the floor to any questions you may have, whether it's about our recent performance, our future plans, or the broader market environment. Please feel free to ask your questions, and we will do our best to address them. Please type in your questions in the Q&A box, and we will read them aloud for management to address. Okay, I've seen some questions online. The question one, question one is from Shenzhen Cross-Field Asset Management, Wu Fenlan [ph]. And the question is, what is Banle's macroeconomic outlook for the remainder of 2024? This question I would like to ask Mr. William.

Thank you, Venus. Thank you very much for the questions. Well, we do see that the global economy has shown signs of moderate growth in the first half of 2024, which we believe this is actually driven primarily by the resilient activities in the emerging market, particularly in Asia. And also with the IMF and other institutions projecting a moderate growth for the same year, the trend in the first half of this year shall extend into the second half. And we believe that this is actually supported by the continued recovery efforts from various governments around the world, despite the geopolitical challenges as well as inflationary pressures. And we strongly believe that the emerging markets will continue to play a critical role for the rest of the year. Talking about something closer to us, the international seaborne trade, we see that it shows a moderate growth in the first half of this year as well. And the outlook for the second half of the year remains positive, with the demand for shipping services in the regions such as Asia-Pacific and Europe are expected to continue to drive our business. And we can see that the United Nations Conference on Trade and Development projects the international seaborne trade will continue to grow steadily in the next three to four years. And despite the ongoing geopolitical tensions in the Red Sea region, which we do see that there are a lot of re-routings of vessels around the Cape of Good Hope, have sharply increased the bunker demand for the Asia-Pacific and Western European market. With our well-established network, we are able to meet the increasing demands from our existing as well as new customers. So the Red Sea disruptions probably we will see that will continue for the rest of 2024. Therefore, we expect the bunker demand will continue to remain high from the marine logistic operators. And for the second half of this year, we expect to see further exacerbations in the demand for biofuels, as well as other decarbonization efforts driven by various regulatory bodies such as IMO and European Union. And with the tightened rules, such as a FuelEU Maritime becoming effective next year, we believe biofuel demand is going to go steadily. In summary, we maintain a cautiously optimistic outlook on the global economic landscape. While for us is that our strategy will still continue to focus on growth, on efficiency and stability, which will enable us to navigate the challenges anticipated for the remainder of the year. And this will position our company for a continued long-term success. Thank you.

Thank you, William. Please submit your questions through the Q&A box, we will read them aloud, your questions for management to address. So we see the second question online is from J.H. Debrie [ph]. The question is, what is your view on the sustainable fuel market? Will sustainable fuel will be the winner in the long run? I would like to address this to William.

Thank you very much for the questions. But we do see that the transitions from fossil fuels to sustainable alternatives in the maritime industries is actually exacerbating. And that is actually driven by both market forces and as well as the regulatory pressures, which personally I refer to as the pull and the push factors. On one hand, the shippers and also the end customers are increasing their focus on ESG principles. The demand to further reduce their Scope 3 emissions, which place a more significant pressures on the logistic providers, as well as the container liners to adopt to more sustainable marine fuel. And at the same time, we do see that the international regulatory bodies like the IMO and also the EU are enforcing stricter regulations and imposing penalties to crop carbon emissions from the marine logistic companies. So this pull and push factors are actually fostering a rapid energy transitions, compelling logistic companies to adapt to their customer demands, as well as the meeting the regulatory compliances to maintain their comparative ages. So we believe that the sustainable fuel market is positioned for rapid growth in the coming years. And from a public study, we do see that the green marine fuel market is actually expected to grow from 11.5 billion last years to about 200 billion by the year 2030. So we believe that this is actually a very promising market. And as of today, we still do not see any clear directions of who is going to be the winner in the sustainable marine fuel market. We have observed many ship operators actually experimenting with different alternatives, as many of the new ships that are under construction were built with dual fuel systems. That means that they can run on LNG combined with fossil fuels or methanol with traditional fuels, for example. This system actually offers the flexibilities and helping to ease the transitions to the future sustainable options. As no player in the market now is confident enough to be just banging on one single energy, but everybody wish to retain the abilities to power their new ships with the traditional fuels and with the options for new sustainable fuels. So from this perspective, what we can also see is that biofuel will then become a very crucial transitional options over the next decade, as we can be used in the existing traditional fuel engines. That means that there will not be any requirements to change the hardware of the vessels in order to adapt to biofuel. While using biofuels, it also has a significant reduction in carbon dioxide. That will help the operators to comply with the upcoming regulations requirements from the various regulations. In the near future, let's say that we have LNG dual engine vessels, which you can't locate the suitable LNG fuel in certain parts in the world that you are calling. Then the owners may opt to use fuel oil or you can use biofuel if they prefer to have a lower emission purpose. This will actually help the operators to increase their flexibilities. The marine fuel market is actually growing at an annual rate of about 10% to 12%. This is actually driven by, first of all, the regulatory incentives and also the push for renewable energy. So by 2030, we expect the biofuel could account for about 10% to 15% of the marine fuel market, especially if the supply change and the cost challenges can be addressed. We believe that there's still a long way to go for the sustainable marine fuel, such as methanol, LNG, ammonia or hydrogen to be it. And any one of these to become a truly so-called a dominant market force, because it actually requires a lot of investment, time and also the expertise to put that into a scalable production and supply in the world. So in terms of the potential winner in the long run, personally, we believe that the methanol probably stands out as a more favorable option. As according to the Classification Society, the order book for methanol powered vessel has increased sharply compared to the other sustainable fuels. Methanol is also projected to grow at an annual rate of 20% to 25% through 2030. And this is actually driven by the increased regulatory pressures to reduce emissions and also the relatively ease of converting existing vessels to use methanol. Thank you.

Thank you, William. Please submit your questions through the Q&A box and we will read them aloud for management to address. Okay, we see the next question is from PineBridge, Chen Yi [ph]. And the question is, how is Banle optimizing supply chain to manage the increased demand for biofuels? I'd like to direct this question to William.

Thank you. Thank you for the questions. Well, as Banle, we are proactively in establishing our comparative age in biofuel supplying to align with the international environmental regulations, which include the IMO greenhouse gas reduction strategies as also the EU's fuel, EU maritime initiatives. These regulations will actually drive the future biofuel demand. And we are actually well positioned to meet this demand. We have aligned our supply chain with the industry standards. We have obtained the ISCC EU as well as the ISCC Plus Certifications as early as in early 2023. And we are committed to sustainability and compliances with International Environmental Standards. This is to ensure that our biofuel operations can meet the highest standards of sustainability criteria. And for the company, we have launched our B24 biofuel operations in Hong Kong in mid-2023. And we have then expanded our biofuel bunkering services to locations such as Yantian, Serco, Nansha in China, as well as in Port Klang in Malaysia. This operational expansion has actually strengthened our presence in the regions with the growing biofuel demand. And in the first half of the year 2024, we actually achieved 84.6% increase in our biofuel volume. And that is also attributed to a 95.8% in the rise in our revenue compared to last year. This has actually reflects the growing demand of biofuel in the market and also our ability to cope with the evolving needs from the customers. And we have proactively established strategic partnerships with our local suppliers in the region where the biofuel markets are more developed. Through these cooperation’s, we are able to offer a comprehensive one-stop solution for the bunkering of the biofuel. This will ensure a consistent and reliable supply to our end customers. Thank you.

Thank you, William. The next question comes from Jeff Kone from the Wall Street Resource. And this question is, what drives Banle's revenue growth in the first half of 2024? And will we continue? This question I would like to ask Raymond. It's about the revenue growth in the first half of 2024.

Our revenue went up by about 44.4% to about $277 million in the first half of 2024. And this growth was mainly brought about by a close to 40% increase in our sales volume. And partly because of the 3.5% increase in the average bunkering price as compared with the same period in 2023. While the up and down movement of the bunkering price is something out of our control, the significant growth of our sales volume was mainly driven by the expansion of our supply network, from a coverage of 36 ports when we were listed in March 2023, to now more than 60 ports across Asia, Europe and Africa. During this period, we have expanded our customer base beyond the container liners to the bulk carriers like tankers. And the opening of a new office in Ireland also enabled us to capture new customers from Europe, who practically would have bunkering needs in the Asia-Pacific region as well. In respect of these environmental concerns that rises rapidly on a global basis, we have always taken a proactive approach in the development of sustainable fuels to deal with the issue. Our biofuel business, as just mentioned by our CEO, has achieved a close to 85% increase in the sales volume and also a close to 96% growth in the sales revenue in the first half of 2024. We strongly believe the adoption of a market share expansion strategy will in the long run, enable us to optimize our supply chain, leverage economies of scale and reduce unit costs. The strategy will be carried on and revenue growth is expected to continue. Thank you.

Thank you, Raymond. Okay, please submit your questions through Q&A box and we will answer your questions. So the next question we see comes from Mingyi from [indiscernible]. And the question is, why did gross profit margin decline despite revenue growth? And how is Banle addressing this? I would like to ask Raymond for this question.

Thank you. Our gross profit declined by about 32.2%. In this period, we indeed faced tough market conditions and stiff competition. While we had to, though reluctantly, lower the premium we offered to our customers to capture more business and strive for the rapid expansion of our market share. We have mitigated the GP reductions by increasing a lot our sales volume, but still the decline was substantial. And this margin squeeze is obviously the price that we have to bear in the meantime under this unstable market situation. The disruption of key shipping routes, particularly through the Suez Canal due to the Red Sea crisis, has intensified competition in the bunkering industry. The marine logistics companies facing higher operational costs have become very price sensitive towards the bunkering price. And that pushes us to offer more competitive pricing, which in actual effect is squeezing our gross profit margin. No matter how, we shall continue to focus on increasing our market share, thus allowing us to leverage economies of scale, and also optimizing our unit costs through higher order volumes and enhancing procurement power, so as to reduce operation costs and improve profitability. As the market conditions stabilize, we believe our operations will be able to support a higher gross profit. The expansion of the supply network will effectively help to capture new customers and achieve a continuous increase in our sales volume. And that will mitigate the negative impact of the margin squeeze. Thank you.

Thank you. Okay, please submit your questions on the Q&A box. We see the next question is coming from Go Investing, [indiscernible]. And the question is about, can you please provide insights into Banle's future expansion plans and how they align with the company's long-term growth strategy? I would like to direct this question to William.

Okay, thank you very much for the questions. Let's probably start with expanding our service network. We have actually prioritized to strengthen our presence in the Asia-Pacific region, as what we have done in the past. This is what we see is a high growth market with economic resilience to drive the demand for shipping, so leading to the demand for debunking services. So by expanding in this region, we are able to capitalize on the new opportunities and leveraging on our existing supply network to bring in more clients. And also, on the other hand, is that we are also moving into other regions, especially in the European market. This is a strong demand in the European market for sustainable fuels, which is driven by the stricter environmental regulations and also the decarbonization goals set by the various authorities. And expanding into this part of the world is actually to broaden our strategies to diversify our geographical footprint, as well as to solidify our positions in the global market. Next, we will probably talk about maximizing our sales volume. We have been working very hard to diversify our fuel offerings, not only focusing on the traditional fossil fuels, but also on the biofuels and also looking into the future sustainable options. This has actually boosted our market positions. Expanding these services will actually allow us to meet the growing global demand for both the conventional and the sustainable fuels. Our strategy is actually to focus on increasing market shares, especially in the high-growth regions. As we can capture new business opportunities in these areas, we are also setting up ourselves for sustained growth. And through our expansion, we are able to benefit from the economic upscale. Increasing our volume and also improving our procurement power by aggregating the volume, we are actually optimizing our cost and enhancing our operational efficiency. We believe this is actually the key to maintain our profitability as we continue to grow our customer base. And going forward, definitely we will be looking into the future sustainable fuels. We are fully committed to meet the latest environmental regulations from the various regulatory bodies. These regulations are focused on reducing carbon emissions and they do provide a great opportunity for us to lead in supplying sustainable fuels in the future. At the same time, we are making investments in biofuels, partnering with local suppliers, setting up operations in key markets. All these efforts actually position ourselves to meet the growing demand for sustainable fuels while we are supporting the global efforts to reduce carbon emissions. As well as in addition to biofuel, we are also exploring other sustainable fuels like LNG, methanol, ammonia, hydrogens and so forth. This actually aligns with our strategies to stay ahead of the curve as the maritime industry transcends from the current fossil to the cleaner energy resources. Also, besides the above strategies which is talking about our organic growth to the company, we are also looking into some strategic acquisitions and partnerships if the opportunity arises. We will look at working with our key players across the supply chain, both on the upstream and the downstream. This will actually strengthen our market presence, diversify our revenue streams and also can enhance our ability to meet the global growing demand for both conventional and sustainable fuels. In short, our future expansion plans actually closely align with our long-term growth strategy. We focus on geographical diversification, increase our market share and driving sustainability initiatives. And we are confident that the company is well positioned to success in a dynamic global market. Thank you.

Thank you. Okay, due to time constraint, we now take the last two questions. Please submit your question through the Q&A box and we will read them aloud. The next question we see is, what led to the shift from net income in 2023 to a net loss in the first half of 2024 and what steps are being taken to return to profitability? I would like to ask this question to William.

Thank you. Thank you very much. Well, for the first six months and June 30th, 2024, we have navigated a shift in the net profit, moving from a gain of approximately $1.15 million last year to a loss of about $1.62 million this year. This transition reflects the dynamic and also the comparative natures of our industries. The reasons are primarily due to the lower gross margin, which is influenced by the challenging market conditions, as well as the intensified competitions in the industries. As you know that we are trying to expand our market shares, we are actually facing more competition as well. And higher operating costs is actually due to the fact that we are investing in building our client base in order to both increase our sales and also better position ourselves once the market -- the bunker market returns to a more normal state. However, despite all these headwinds, we remain steadfast at our commitments to our strategic resilience and also we have a long-term growth. We are mainly focusing on our long-term growth besides expanding on our revenue streams, which means that we expand on our market segment, regions, as well as our customer base, we are also shifting towards the biofuel and in futures, what we call sustainable fuels. And we are also leveraging on the technologies in order to control risk. The strategic partnerships and long-term planning’s are also key in ensuring our sustainable profitability in moving forward. Thank you.

Thank you, William. So due to time constraint, we take the last questions. We see the question online is, what factors contributed to the rise in operating expenses and what is the expected impact on future costs? I would like to ask you, William, this question.

Thank you. Well, operating expenses actually rose by approximately 64% to 4.12 million, which is up from 2.51 million last years, the same period. This increase was actually attributed to the higher selling and distribution expenses related to our sales growth, strategic expansions in the company supply network to a new geographical areas and the development of biofuel operations. We do see that the expansions of our service network and also to increase our market share is actually essential. We focus on the current areas in the Asia Pacific for the last couple of years, and we have quite an extensive coverage in the Asia Pacific market. But at the same time, we do see that there are many other opportunities that is beyond the Asia Pacific, for example, in Europe. That's why we have expanded our service network. We have invested in our expansions into Europe in order for us to get more new European customers, which they might have the demand over in Asia Pacific. While at the same time is that we can service better to our existing customers who are in the Asia Pacific region into Europe. When they have the requirements in Asia, we are able to serve them. When they have the requirements in Europe, we are able to serve them as well. So you can see that our service extension network is not only on a geographical expansion. We are also providing value-added services and also increase our market shares. On the other hand, is that we do see that there is a great opportunity for us to develop and explore the sustainable fuel markets, such as biofuel. We have spent a lot of time and efforts as these are completely new logistic services. We are talking about the component of biofuel, which consists of fossil as well as UCOME, and UCOME traditionally has been considered as chemicals rather than fuel. There is actually a need for us to work out with new suppliers to assess new supply chain and also to work on the new supply network. That is the reason why we have spent a lot of time, efforts and resources in developing all these new market sustainable fuel for us. And of course, in future we will be looking into hydrogen, ammonia, LNG, methanol. All these will lead us into the next stage of the growth of the companies. We have to move forward. If we continue to stay and focus on the fossil fuel, sooner or later we will be outdated. So we will have to look forward and increase and invest in all these things. In many other industries, you can put all these your -- what you call it, the future investments, capitalize them as investments. But for us is that, we will have to expense all these expenses. So that is actually contributing to a higher sales and marketing distribution expenses for us. Of course, bearing in mind that we are now a listed company, there are a lot of fixed costs that we will have to maintain our listed status of the company. So that all these factors have contributed to the rise in, what you call, operating expenses. Thank you.

Thank you, William. Due to time constraints, this concludes our Investor Presentation for today. Thank you for your participation and support for CBL. If you would like to have further discussion with our management, please contact our IR team. Once again, thank you for your time today. You may now be disconnected. Thank you.

Thank you.