Alan Wu

Alan Wu inquired about the primary cost efficiencies achieved that led to a 17% decrease in operating expenses (OpEx) in the first half of 2025, and how these efficiencies reflect CBL International's long-term strategy for expense management.

Answer

VP & Assistant CFO Chi Kwan Fung explained that the OpEx reduction was due to past investments in developing new ports, improving the customer base, and diversifying the profit mix, with some spendings being non-recurring. He stated that H1 2025 was a "half-assistant year" for harvesting results rather than planting. Initiatives to streamline operations and rationalize resources led to savings. He added that CBL continues to enhance efficiency through office automation, IT systems, advanced technologies, upgraded backend systems, and real-time order processing/data analysis, while still investing for future opportunities.

Alan Wu from Philip Securities inquired about the primary cost efficiencies that led to a 17% decrease in operating expenses in H1 2025 and how these align with CBL International's long-term expense management strategy.

Answer

Nicholas Fung, Assistant CFO, stated that the 17% decrease in operating expenses in H1 2025 resulted from previous investments in new ports, customer base, and profit mix diversification now yielding returns, with some non-recurring expenditures. Initiatives to streamline operations and rationalize resources also contributed to savings. The long-term strategy involves utilizing office automation, IT systems, and advanced technologies for continuous improvement and cost-saving.

Alan Wu from Philip Securities asked about the primary cost efficiencies that led to a 17% decrease in operating expenses in H1 2025 and how these reflect CBL International's long-term strategy for expense management.

Answer

Mr. Nicholas Fung, Assistant CFO, explained that the 17% OpEx decrease in H1 2025 resulted from past investments in new ports, customer base expansion, and profit mix diversification now yielding results, with some spendings being non-recurring (e.g., port operating preparation, market intelligence for new products). He also cited initiatives to streamline operations and rationalize resources in H1 2025. For long-term strategy, CBL International plans to utilize office automation and IT systems, explore advanced technologies for continuous improvement, cost-saving, upgraded backend systems, and real-time order processing/data analysis, while continuing to invest in future opportunities.