Financial Performance and Dividends - The company did not declare any dividends during FY2023 and FY2024, and future dividends depend on sufficient distributable profits [82]. - The company intends to retain future earnings for business expansion and does not expect to declare or pay dividends in the foreseeable future [106]. - The company relies on dividends and distributions from subsidiaries to meet cash and financing requirements, and limitations on these payments could adversely affect operations [85]. Internal Controls and Compliance - The company is working to remediate a material weakness in internal control over financial reporting but cannot assure significant improvement [79]. - The company acknowledges that its disclosure controls may not prevent all errors or fraud, leading to potential misstatements [104]. - The company has incurred significant legal and accounting expenses as a public company, particularly after ceasing to qualify as an "emerging growth company" [90]. Currency and Interest Rate Risks - The company is exposed to foreign currency fluctuations, particularly as transactions are substantially denominated in US dollars, which may adversely affect financial results [81]. - The company's exposure to foreign currency exchange rate risk primarily relates to cash and cash equivalents, accounts receivable, and accounts payable [467]. - Significant fluctuations of the functional currencies against U.S. dollars may materially and adversely affect the company's cash flows, revenues, earnings, and financial positions [467]. - A 1% increase or decrease in the Base Lending Rate would result in an annual interest expense change of approximately $0.8 million [466]. - The company considers its interest rate risk to be manageable and not likely to cause significant disruption to the business [464]. - The company has not used any instruments or derivatives to manage or hedge its interest rate risk exposure [466]. Operational and Market Risks - The company may face cybersecurity risks that could harm its reputation and operational capabilities [83]. - The company may experience significant volatility in the trading price of its ordinary shares, which could result in substantial losses for investors [96]. - The company is classified as a "controlled company," with 65.1% of voting power held by Straits, which may limit shareholder protections [100]. - The company is exposed to increases in operating costs due to inflation but can pass along significant increases in fuel cargo costs to customers [469]. - The company is not currently exposed materially to commodity price risk or market price risk [468]. - The company does not anticipate inflation to have a material impact on its operations and financial results [469].
TMD Energy Ltd(TMDE) - 2024 Q4 - Annual Report