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]