Pauline Lau

Pauline Lau inquired about CBL International's plans to maintain or further improve its gross profit margins, which slightly increased to 1.02% in the first half of 2025, as the company continues to expand its supply network and customer base.

Answer

VP & Assistant CFO Chi Kwan Fung stated that CBL maintained gross profit while improving gross margin from 0.98% to 1.02% in H1 2025. He outlined plans to increase sales volume through network expansion, improved customer base, and growth in non-container liner and biofuel segments. He also mentioned exploring new sustainable fuels like methanol and LNG for higher margins and achieving economies of scale to reduce unit costs. He added that the cost-plus model allows gross margin to increase when oil prices decline, and anticipated further improvement if world trade stabilizes.

Pauline Lau from Citibank inquired about CBL International's strategy to maintain or improve gross profit margins, which rose to 1.02% in H1 2025, amidst continued network and customer base expansion.

Answer

Nicholas Fung, Assistant CFO, stated that CBL International plans to improve gross profit margins by increasing sales volume through its expanded network, customer base, and growth in non-container liner and biofuel segments. The company is also exploring new sustainable fuels like methanol and LNG for higher margins and economies of scale. He noted that the cost-plus model benefits from lower oil prices, and further improvements are expected if global trade stabilizes.

Pauline Lau from Citibank inquired about CBL International's strategy to maintain or improve gross profit margins, which increased slightly to 1.02% in H1 2025, amidst continued expansion of its supply network and customer base.

Answer

Mr. Nicholas Fung, Assistant CFO, stated that CBL International plans to improve gross profit by increasing sales volume, leveraging its expanded network, improved customer base, and growth in non-container liner and biofuel segments. He also mentioned exploring new sustainable fuels like methanol and LNG for higher margins and achieving economies of scale to reduce unit costs. He noted that the cost-plus pricing model allows gross margin to increase when oil prices decline, as seen in H1 2025, and anticipates further improvement if world trade stabilizes.