Banle Group announces 2023 full year results

HONG KONG, April 18, 2024 (GLOBE NEWSWIRE) — Banle Group (the “Group” or “Banle”) (Nasdaq: BANL), a reputable marine fuel logistic company in the Asia Pacific, today reported its audited financial results for the full year ended December 31, 2023 (“FY2023”).

Results compared with the full year ended December 31, 2022 (“FY2022”) are as follows:

    For the Year Ended December 31,  
    2023     2022 Change
Revenue US$ 435,897,718   US$ 462,906,257 -5.8 %
Cost of revenue US$ 428,686,593   US$ 453,781,238 -5.5 %
Gross profit US$ 7,211,125   US$ 9,125,019 -21.0 %
Total operating expenses US$ 5,549,298   US$ 4,364,676 +27.1 %
Income from operations US$ 1,661,827   US$ 4,760,343 -65.1 %
Total non-operating expenses, net US$ 230,572   US$ 260,875 -11.6 %
Income before income taxes US$ 1,431,255   US$ 4,499,468 -68.2 %
Provision for income taxes US$ 298,605   US$ 814,468 -63.3 %
Net income including noncontrolling interest US$ 1,132,650   US$ 3,685,000 -69.3 %
Basic and diluted earnings per ordinary share* US$ 0.045   US$ 0.171 -73.7 %

* Gives retroactive effect to reflect the reorganization in August 2022.

Mr. Teck Lim Chia, Chairman and Chief Executive Officer, commented, “FY2023 marks a significant year for Banle. In March 2023, we raised gross proceeds of US$15 million from an IPO offering. With the additional financial resources from the IPO, we not only successfully expanded our service network to Europe, but also gained new businesses with existing customers and acquired new customers. These accomplishments led to remarkable growth in our sales volume in FY2023. On the environmental protection side, we were approved for biofuel trading activities and launched the first biofuel supply after years of proactively exploring alternative fuel options.

Sales volume in FY2023 surged by 18% year-on-year, despite a tepid global economy and a slight decline in global container port throughput, as the Group efficiently utilized the additional funding from the IPO completed in March 2023 to increase sales from existing customers as well as expand customer base through an enlarged service network. Notwithstanding the 20% drop in average oil prices during FY2023, revenue only registered a drop of 5.8% year-on-year to US$435.9 million, thanks to the surge in sales volume which partially offset the negative impact from oil price movement.

Our supply network expanded substantially over the past year, from 36 ports covering the Asia Pacific as of the end of FY2022 to 55+ ports covering both the Asia Pacific and Europe as of the end of FY2023. In the near future, further expansion into the European market is our priority. We will also endeavor to maximize volume growth to balance the impact from the change in customer mix as we further expand our service network.”

With the IPO funding, the Group was able to penetrate deeper into the bunkering market by acquiring new customers and businesses in FY2023. The expansion of customer mix post-IPO means that revenue stream as well as customer margin profiles had become more diversified. The move to develop new customers and explore business opportunities inevitably affected gross profit in FY2023, which declined by 21.0% to US$7.2 million compared to FY2022, due to a lower gross profit per metric ton as a result of a more diversified customer base, again partially offset by the increased sales volume.

The Group recorded an increase in operating expenses of US$1.2 million in FY2023 which is primarily attributable to the expenses incurred from the listing, business expansion and efforts in exploring and conducting biofuel operation. The listing-related expenses, amounting to approximately US$0.6 million, were primarily required to maintain the Group’s listing status. There were no listing-related expenses in FY2022. As for the expenses related to business expansion and biofuel operation, the Group regards them as vital investments for long-term sustainable growth.

Banle generated net income of US$1.1 million in FY2023, compared with US$3.7 million in FY2022. The decrease was mainly attributable to the decline in gross profit and increase in operating expenses as explained above, partially offset by a reduction in provision for income taxes.

About CBL International Limited

Established in 2015, CBL International Limited (Nasdaq: BANL) is the listing vehicle of Banle Group, a reputable marine fuel logistic company in the Asia Pacific region. We are committed to providing customers with one stop solution for vessel refueling. Banle Group’s business activities are primarily focused in over 55 major ports covering Japan, Korea, China, Hong Kong, Taiwan, Vietnam, Malaysia, Singapore, Thailand, Turkey and Belgium. The Group actively promotes the use of alternative fuels and is awarded with the ISCC EU and ISCC Plus certifications.

Forward-Looking Information and Statements

Certain statements in this announcement are forward-looking statements, by their nature, subject to significant risks and uncertainties. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Group’s current expectations and projections about future events that the Group believes may affect its financial condition, results of operations, business strategy and financial needs. Investors can identify these forward-looking statements by words or phrases such as “may,” “could,” “will,” “should,” “would,” “expect,” “plan,” “intend,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “project” or “continue” or the negative of these terms or other comparable terminology. The Group undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Group believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Group cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Group’s registration statement and other filings with the SEC.

(Incorporated in Cayman Islands with limited liabilities)

For more information, please contact:

CBL International Limited


(Expressed in U.S. dollars, except for the number of shares)

    December 31,     December 31,  
    2023     2022  
Current Assets                
Cash   $ 7,402,890     $ 5,032,890  
Accounts receivable     25,125,851       18,446,176  
Derivative assets     28,776        
Prepayments and other current assets     19,317,189       253,779  
Tax recoverable     252,209        
Total current assets     52,126,915       23,732,845  
Property, plant and equipment, net     996,512       394,090  
Right-of-use lease assets, net     338,481       341,625  
Deferred offering costs     –        1,128,453  
Total assets   $ 53,461,908     $ 25,597,013  
Liabilities and Shareholders’ Equity:                
Current liabilities                
Accounts payable   $ 27,452,815     $ 12,652,514  
Taxes payable           244,096  
Accrued expenses and other current liabilities     343,813       125,701  
Derivative liabilities           109,346  
Short-term lease liabilities     177,761       124,095  
Total current liabilities     27,974,389       13,255,752  
Long-term lease liabilities     194,373       229,076  
Total liabilities     28,168,762       13,484,828  
Commitment and contingencies              
Shareholders’ equity:                
Ordinary shares, $0.0001 per value, 500,000,000 shares authorized, 25,000,000 and 21,250,000 shares issued and outstanding as of December 31, 2023 and 2022 respectively*     2,500       2,125  
Additional paid-in capital     12,536,087       488,198  
Retained earnings     12,761,088       11,621,862  
Total stockholders’ equity     25,299,675       12,112,185  
Noncontrolling interests in subsidiaries     (6,529 )      
Total liabilities and equity   $ 53,461,908     $ 25,597,013  

* Gives retroactive effect to reflect the reorganization in August 2022.

(Expressed in U.S. dollars, except for the number of shares)

    For the Years Ended December 31,
    2023     2022
Revenue   $ 435,897,718     $ 462,906,257
Cost of revenue     428,686,593       453,781,238
Gross profit     7,211,125       9,125,019
Operating expenses:              
Selling and distribution     1,242,157       1,212,108
General and administrative     4,307,141       3,152,568
Total operating costs and expenses     5,549,298       4,364,676
Income from operations     1,661,827       4,760,343
Other (income) expense:              
Interest expense, net     231,633       259,993
Currency exchange (gain) loss     (1,674 )     (45,767
Write off of property, plant and equipment     613       48,399
Others           (1,750
Total other expenses     230,572       260,875
Income before provision for income taxes     1,431,255       4,499,468
Provision for income taxes     298,605       814,468
Net income   $ 1,132,650     $ 3,685,000
Comprehensive income   $ 1,132,650     $ 3,685,000
Attributable to:              
Equity holders of the Company   $ 1,139,226     $ 3,685,000
Non-controlling interests     (6,576 )    
    $ 1,132,650     $ 3,685,000
Basic and diluted earnings per ordinary share*   $ 0.045     $ 0.171
Weighted average number of ordinary shares outstanding – basic and diluted*     25,000,000       21,250,000

* Gives retroactive effect to reflect the reorganization in August 2022.

(Expressed in U.S. dollars)

    For the Years Ended December 31,
    2023     2022
Cash Flows from operating activities:              
Net income   $ 1,132,650     $ 3,685,000
Adjustment to reconcile net income to net cash (used in) provided by operating activities:              
Depreciation and amortization     170,826       88,175
Depreciation of right-of-use assets     142,888       94,865
Write off of property, plant and equipment     613       48,399
Early termination of lease           (1,750
Change in fair value of derivative     (138,122 )     109,346
Changes in operating assets and liabilities              
Accounts receivable     (6,679,675 )     (402,941
Prepayments and other current assets     (19,042,364 )     3,580,806
Due from related parties           1,509,988
Accounts payable     14,779,300       (5,644,677
Accrued expenses and other liabilities     218,115       78,242
Derivatives           291,860
Lease liabilities     (120,781 )     (83,859
Taxes payable     (496,305 )     145,679
Net cash (used in)/provided by operating activities     (10,032,854 )     3,499,133
Cash flows from investing activities:              
Purchase of property, plant and equipment     (773,863 )     (373,111
Net cash used in investing activities     (773,863 )     (373,111
Cash flows from financing activities:              
Proceed from issuance of shares net of share offering costs     13,176,717      
Deferred offering costs           (1,128,453
Net cash provided by /(used in) financing activities     13,176,717       (1,128,453
Net increase in cash     2,370,000       1,997,569
Cash at the beginning of the year     5,032,890       3,035,321
Cash at the end of the year   $ 7,402,890     $ 5,032,890
Cash paid during the year for:              
Interest   $ 302,486     $ 261,703
Income taxes   $ 794,910     $ 688,790
Operating lease right-of-use asset and lease liabilities   $ 496,230     $ 370,439

Note: The accompanying notes in our 2023 Annual Report are an integral part of the above consolidated financial statements. Please refer to our Form 20-F 2023 Annual Report filed with SEC on April 18, 2024 on for details of our consolidated financial statements.

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