Core Viewpoint - High-Trend International Group has appointed Mr. Brian B. Su as an Independent Director and Chairman of the Compensation Committee, which is expected to enhance the company's governance and strategic direction as it expands globally [1][6]. Group 1: Appointment Details - Mr. Brian B. Su brings over 30 years of experience in cross-border investment, regulatory strategy, and market expansion to the company [2]. - He is the Founder and President of Artisan Business Group, Inc., a consultancy that has advised numerous businesses on market entry strategies and international business development [2][4]. - Mr. Su has a background in the Illinois state government, where he oversaw contract compliance and regulatory enforcement in public infrastructure projects [3]. Group 2: Expertise and Contributions - Mr. Su has advised businesses in various industries, including logistics, energy, and maritime transport, and has experience in leading international delegations and facilitating investment missions [4]. - He holds a Master of Public Administration from the University of Illinois at Springfield and a Bachelor of Arts in English Language and Literature from Guizhou University in China, providing him with cross-cultural insights [5]. - The CEO of High-Trend International Group expressed confidence that Mr. Su's expertise in regulatory compliance and international trade will be critical for the company's growth and governance practices [6]. Group 3: Company Overview - High-Trend International Group is a Nasdaq-listed global shipping and logistics company focused on sustainable maritime solutions and international trade [7]. - The company is committed to driving innovation and operational excellence in ocean-based transportation and logistics, with a growing presence in key markets [7].

Core Viewpoint - High-Trend International Group has appointed Christopher Nixon Cox as Chairman and Bo Cui as Chief Legal Officer, aiming to enhance governance and drive strategic growth in innovation-driven sectors, particularly in maritime low-carbon initiatives [1][6]. Group 1: Leadership Changes - Christopher Nixon Cox has been appointed as Chairman of High-Trend International Group, effective immediately, bringing extensive expertise in global markets and sustainability [1]. - Mr. Jinyu Chang has resigned as Chairman but will remain a director of the Company [1]. - Bo Cui has been named the new Chief Legal Officer, emphasizing the Company's commitment to governance and compliance [1]. Group 2: Leadership Background - Christopher Nixon Cox has a diverse background, serving as CEO of Lightswitch Capital and Argali Carbon Corporation, and has experience in funding breakthrough therapies and advancing green infrastructure [2]. - Bo Cui has over two decades of experience in cross-border finance and mergers and acquisitions, having executed over $10 billion in strategic deals during his tenure at HNA Group [5]. Group 3: Strategic Focus - The Company aims to leverage Mr. Cox's expertise to advance maritime low-carbon initiatives and strengthen traditional shipping operations in the U.S. [6]. - Bo Cui's dual expertise in law and technology is expected to enhance the Company's legal strategy and risk management efforts as it navigates global markets [6].

Group 1 - The core announcement is that Mr. Dong Zhang, a co-founder of High-Trend International Group, has made a significant equity investment by acquiring 1,699,618 Class A ordinary shares at a total price of US$4,452,999, which equates to $2.62 per share [1][2] - This investment demonstrates Mr. Zhang's strong confidence in the company's strategic direction and operational resilience, indicating a belief in the company's future value creation potential [2][3] - The shares acquired will be subject to a 36-month lock-up period, preventing any sale or transfer during this time, and the proceeds from this investment will be used for general working capital purposes [2][3] Group 2 - The transaction was unanimously approved by the Company's Board of Directors, reflecting a collective endorsement of the investment and its implications for the company's future [2] - The CEO of High-Trend emphasized that this investment signifies a deep commitment from a key shareholder towards the company's vision and strategic initiatives, which are expected to drive value for all stakeholders [3] - High-Trend International Group is identified as an international shipping company, indicating its operational focus within the shipping industry [3]

Financial Performance - Income from operations increased to $2.3 million in fiscal 2024, recovering from a significant loss of $15.6 million in fiscal 2023 [1] - Total revenue rose to $108.2 million, marking a 13.6% year-over-year increase [8] - Gross profit increased to $8.1 million, compared to a gross loss of $11.9 million in fiscal 2023 [8] - Total costs decreased by $7.1 million (6.6%) to $100.1 million in fiscal 2024, reflecting operational excellence [8] - Cash balance increased by $4.6 million in fiscal 2024, compared to a net decrease of $19.4 million in 2023 [8] Strategic Initiatives - The company is examining the viability of entering the marine decarbonization and digital carbon asset management business [3] - Plans to collaborate with global top enterprises to develop technologies for carbon capture and permanent sequestration [3] - Management emphasizes the importance of building a complete value chain from carbon capture to carbon trading [4] - The company aims to transform ship emission reductions into lasting assets, marking an evolution of the business model [5] Industry Context - The company is positioned as a pioneer in the transformation of the shipping industry, focusing on decarbonization [4] - The restructuring of the shipping industry has provided an opportunity for the company to optimize operational strategies and leverage its customer network [1] - The company connects the decarbonization needs of the maritime industry with the carbon finance market through a technology ecosystem [6]

Revenue Performance - Total revenue for the year ended October 31, 2024, was approximately $108.2 million, an increase of $12.9 million or 13.6% compared to $95.3 million in 2023[176]. - Ocean freight revenue increased by approximately $10.9 million or 11.5%, from approximately $94.5 million in 2023 to approximately $105.4 million in 2024, driven by higher ocean freight prices[177]. - Vessel service revenue surged by approximately $2.1 million or 280.0%, from approximately $0.7 million in 2023 to approximately $2.8 million in 2024[178]. - Total revenue for the year ended October 31, 2023, was approximately $95.3 million, a decrease of approximately $90.1 million or 48.6% compared to $185.3 million in 2022[191]. - Ocean freight revenue decreased by approximately $83.6 million or 46.9%, from approximately $178.1 million in 2022 to approximately $94.5 million in 2023, primarily due to a decrease in ocean freight prices[192]. - Vessel service revenue decreased by approximately $6.5 million or 89.8%, from approximately $7.2 million in 2022 to approximately $0.7 million in 2023[193]. Cost and Profitability - Cost of revenues decreased by approximately $7.1 million or 6.6%, from approximately $107.1 million in 2023 to approximately $100.1 million in 2024, due to lower average market prices for ship leases, oil, and port charges[179]. - Gross profit for the year ended October 31, 2024, was approximately $8.1 million, compared to a gross loss of approximately $11.9 million in 2023, resulting in a gross margin of 7.5%[180]. - Gross loss amounted to approximately $11.9 million for the year ended October 31, 2023, compared to a gross profit of approximately $26.8 million in 2022, resulting in a gross margin of negative 12.5%[195]. - Cost of revenues amounted to approximately $107.1 million for the year ended October 31, 2023, representing a decrease of approximately $51.4 million or 32.4% compared to $158.5 million in 2022[194]. Operating Expenses and Losses - Operating expenses increased by approximately $2.1 million or 54.9%, from approximately $3.7 million in 2023 to approximately $5.8 million in 2024, primarily due to higher consulting and professional service fees[181]. - Operating expenses increased by approximately $0.5 million or 14.6%, from approximately $3.3 million in 2022 to approximately $3.7 million in 2023[197]. - The net loss for the year ended October 31, 2024, was approximately $21.2 million, compared to a net loss of approximately $15.8 million in 2023, reflecting an increase in losses of $5.4 million or 34.5%[186]. - Net loss amounted to approximately $15.8 million for the year ended October 31, 2023, compared to net income of approximately $23.6 million in 2022[202]. - The company had a net loss of approximately $21.2 million for the year ended October 31, 2024, primarily due to fair value losses and increased working capital needs[212]. Cash Flow and Financing - For the year ended October 31, 2024, net cash used in operating activities was approximately $3.3 million, a significant improvement from $17.8 million in 2023[212][213]. - The company reported a net cash provided by financing activities of approximately $8.0 million for the year ended October 31, 2024, compared to a net cash used of $1.6 million in 2023[216][217]. - The total cash and cash equivalents increased by $4.6 million for the year ended October 31, 2024, reversing a decrease of $19.4 million in 2023[211]. Share Issuance and Debt - The company issued 11,500,000 Class A Ordinary Shares to third-party consultants for market development and entry into the onboard carbon capture business during the year[183]. - The company fully converted the September 2024 Note into 35,480,000 Class A Ordinary Shares at a conversion price of $0.10 per share[208]. - The October 2024 Notes had an aggregate principal amount of $1,752,000 and were fully converted into 17,520,000 Ordinary Shares at the same conversion price of $0.10 per share[209]. - As of October 31, 2024, the company had an outstanding bank loan of approximately $1,496,999[220]. Tax and Other Financial Information - The provision for income taxes was $4,139 for 2024, with expectations of continued tax exemptions under the Maritime Sector Incentive-Approved International Shipping Enterprise program in Singapore[185]. - There were no off-balance sheet arrangements that could materially affect the financial condition or results of operations for the years ended October 31, 2024, 2023, and 2022[222]. - The company did not make any material capital expenditures in the three years ended October 31, 2024, 2023, and 2022[219]. Operational Metrics - The total number of voyage days for ocean freight was 3,452 days in 2023, a decrease of 5 days from 3,457 days in 2022[192]. - The average charge per day for ocean freight decreased to approximately $27,344 in 2023 from $51,526 in 2022, reflecting a significant decline in pricing[192]. - The company has entered into non-cancellable operating lease agreements for office space in Singapore, expiring on March 14, 2025[220].

Core Insights - Caravelle International Group is committed to enhancing corporate governance and transparency while pursuing strategic initiatives for business expansion [1][2][7] - The company is focusing on sustainability and digital transformation, particularly through the development of an Onboard Carbon Capture (OCC) system and partnerships with Web3-based carbon asset management platforms [4][5] Corporate Governance - Significant progress has been made in strengthening corporate governance, including changes to the board of directors and executive management team [2] - The company aims to improve information disclosure practices and regulatory compliance, with updates provided during the Annual General Meeting [2] Management Team - The new management team has a diversified background and extensive experience in collaborating with major global enterprises, which is expected to enhance the company's sustainable technology development [3] Strategic Initiatives - Caravelle is integrating resources from renowned enterprises to explore new business ventures, including the development of a global shipping OCC decarbonization system [4] - The company is actively seeking investment opportunities to leverage global resources for growth [4] Commitment to Sustainability - The focus on developing an OCC system and investing in Web3-based carbon asset management platforms reflects Caravelle's dedication to sustainability and positioning itself as a leader in the maritime industry's transition to environmentally friendly practices [5] Financial Reporting - As a foreign private issuer on Nasdaq, Caravelle reports financial results semi-annually and plans to file its Annual Report for fiscal year 2024 by February 28, 2025 [6] - The company is working towards providing key business and financial metrics in a timely manner to enhance transparency [6] Future Outlook - The recent steps taken by Caravelle signal a strong commitment to improved corporate governance, sustainability, innovation, and growth, aimed at supporting long-term revenue and profit growth [7]

Leadership Appointments - Caravelle International Group appointed Shixuan He as CEO and Xuanhua Xi as an independent director and Chairman of the Audit Committee [1] - The appointments aim to drive the company's transition towards sustainable maritime practices and enhance its management systems [1] - Mr He brings 15 years of management experience across diversified holding groups, intelligent innovation enterprises, and the new energy and low-carbon field [2] - Ms Xi has extensive experience in professional financial services, particularly in financial innovation, and has held senior management roles in several financial institutions [3] Strategic Vision and Expertise - Mr He led the development of a smart streetlight project and introduced the "one road, one network, one platform" concept for urban infrastructure IoT [2] - He collaborated with GE to build China's first large-scale smart streetlight IoT platform project with a total investment of 200 million RMB [2] - Mr He signed a global strategic cooperation agreement with GE, facilitating the global promotion of R&D achievements [2] - Ms Xi's leadership in financial innovation and global perspective is expected to enhance the company's competitiveness in capital markets [4] Company Focus and Goals - The appointments align with the company's focus on enhancing management systems and committing to ocean carbon neutrality [5] - The new leadership will guide the company in leveraging cutting-edge technology and finance integration for sustainable development [5] - Caravelle International Group is a global ocean technology company with businesses in international shipping and marine carbon neutrality [6] - The company is committed to improving shipping efficiency through innovative technologies and promoting sustainable development in the industry [6]

Company Updates - The company held its annual shareholder meeting on January 3, 2025, where key decisions were made [1] - Shareholders approved the change of the company's name from "Caravelle International Group" to "High-Trend International Group" [2] - Shareholders approved the re-designation and re-classification of 497,500,000 ordinary shares into Class A Ordinary Shares and 2,500,000 unissued ordinary shares into Class B Ordinary Shares, with an authorized share capital of US$50,000 [2] - The second amended and restated memorandum and articles of association were approved [2] - Mr Guohua Zhang was removed as a director of the company [2] Strategic Vision - The annual meeting marked an important milestone in the company's development, signifying entry into a new phase of high-quality growth [3] - The company aims to leverage its brand upgrade and optimized equity structure to better utilize High-Trend Group's market influence in the green sector and its strategic partner network [3] - The company plans to drive innovation, improve shipping efficiency, and promote the application of green and low-carbon technologies [3] Financial and Operational Overview - The company presented its financial information for the fiscal year ended October 31, 2023, to shareholders [4] - Shareholders were given the opportunity to discuss company affairs with management [4] Company Background - Caravelle International Group is a global ocean technology company with businesses in international shipping and marine carbon neutrality [5] - The company is committed to improving shipping efficiency through innovative technologies and promoting sustainable development in the industry [5]