Petrolink: PTL : Announces Financial Results for the First Half of Fiscal Year 2024 Form 6 K

PTL Limited Announces Financial Results for the First Half of Fiscal Year 2024 PTL Limited ("PTL" or the "Company") (Nasdaq: PTLE) is a limited liability company established under the laws of the British Virgin Islands on December 29, 2023. It is a holding company with no business operation. The Company, through its wholly-owned subsidiaries, Petrolink Energy Limited ("Petrolink Hong Kong") and Petrolink Energy Pte. Ltd. ("Petrolink Singapore"), (collectively, the "Group"), is an established bunkering facilitator providing marine fuel logistics services for vessel refuelling, primarily serving the Asia Pacific market. The Group leverages on its close relationships and partnership within our established network in the marine fuel logistic industry, including the upstream suppliers and downstream customers, to provide a one-stop solution for vessel refuelling. The Group purchases marine fuel from its suppliers and arrange its suppliers to deliver marine fuel to its customers directly. As a bunker facilitator, the Group's services mainly involve (i) facilitating with its suppliers to supply fuel for the use by the customers' vessels at various ports along their voyages in the Asia Pacific region; (ii) arranging vessel refuelling activities at competitive pricing to the customers; (iii) offering trade credit to the customers for vessel refuelling; (iv) handling unforeseeable circumstances faced by the customers and providing contingency solutions to the customers in a timely manner; and (v) handling disputes, mainly in relation to quality and quantity issues on marine fuel, if any. The Company today announced its unaudited financial results for the six months ended June 30, 2024 (the "First Half of Fiscal Year 2024"). First Half of Fiscal Year 2024 Financial Results For the Six Months Ended June 30, Selected Unaudited Interim Condensed Consolidated Statements of Income Data: 2024 USD 2023 USD Change % Revenue 50,273,589 44,254,007 13.6 Cost of revenue (49,133,889 ) (42,997,119 ) 14.3 Gross profit 1,139,700 1,256,888 (9.3 ) Selling, general and administrative expenses (718,758 ) (220,296 ) 226.3 Total other (expense) income, net (2,151 ) 7,481 (128.8 ) Income before provision for income taxes 418,791 1,044,073 (59.9 ) Income tax expense (98,347 ) (150,578 ) (34.7 ) Net income 320,444 893,495 (64.1 ) Earnings per share - basic and diluted 0.028 0.079 (64.6 ) Revenue Our revenue increased by $6,019,582, or 13.6%, from $44,254,007 for the six months ended June 30, 2023 to $50,273,589 for the six months ended June 30, 2024, primarily because of the increase in our sales volume of approximately 73,633 metric tons for the six months ended June 30, 2023 to approximately 81,702 metric tons for the six months ended June 30, 2024. Cost of revenue Our cost of revenue mainly represented the marine fuel cost and other costs mainly including the agency fee, barging fee, cancellation charges and survey fee. Our cost of revenue increased by $6,136,770, or 14.3%, from $42,997,119 for the six months ended June 30, 2023 to $49,133,889 for the six months ended June 30, 2024, which was mainly due to the increase in our marine fuel costs and in line with the increase in our revenue. Gross profit Our gross profit remained relatively stable at $1,139,700 and $1,256,888 for the six months ended June 30, 2024 and 2023, respectively. Our gross profit margin remained relatively stable at 2.3% and 2.8% for the six months ended June 30, 2024 and 2023, respectively. Selling, general and administrative expenses Our selling, general and administrative expenses mainly represented the staff costs, agency commission, legal and professional fee, bank charges, utilities expenses, travelling and transportation costs and office supplies. Our selling, general and administrative expenses increased by $498,462, or 226.3%, from $220,296 for the six months ended June 30, 2023 to $718,758 for the six months ended June 30, 2024, which was mainly due to the increase in staff cost and professional fees such as audit, legal and consulting service expenses we incurred for the application of the listing of becoming a publicly traded company in the United States during the six months ended June 30, 2024, as compared to the six months ended June 30, 2023. We expect our selling, general and administrative expenses, including, but not limited to, staff costs, to increase in the foreseeable future, as our business further grows. We expect our legal and professional fees for legal, audit, and advisory services will increase as we will incur the audit fee, legal fee and advisory fee for this Offering and subsequently become a public after the IPO. Income tax expense Our company, PTL Limited, was incorporated in the British Virgin Islands. Under the current laws of the British Virgin Islands, PTL Limited is not subject to tax on income or capital gain. Additionally, upon payments of dividends to the shareholders, no British Virgin Islands withholding tax will be imposed. Petrolink Energy Limited is subject to income taxes within Hong Kong at the applicable tax rate on taxable income. Hong Kong profit tax rates are 8.25% on assessable profits up to $256,410 (HK$2,000,000), and 16.5% on any part of assessable profits over $256,410 (HK$2,000,000). For the six months ended June 30, 2024 and 2023, Petrolink Energy Limited had assessable profits arising in Hong Kong and, hence, the provision of current tax of $98,347 and $150,578, respectively, has been made in these periods. Petrolink Energy Pte. Ltd. is subject to Singapore Corporate Tax on the taxable income as reported in its statutory financial statements adjusted in accordance with relevant Singapore tax laws. The applicable tax rate is 17% in Singapore, with 75% of the first $7,463 (S$10,000) taxable income and 50% of the next $141,791 (S$190,000) taxable income exempted from income tax. For the six months ended June 30, 2024 and 2023, Petrolink Energy Pte. Ltd. had no assessable profits arising in Singapore and, hence, no provision of current tax has been made in these periods. Net income The net income decreased by $573,051, or 64.1%, from $893,495 for the six months ended June 30, 2023 to $320,444 for the six months ended June 30, 2024. Such change was the result of the combination of the changes as discussed above. Cash Flow Net cash used in operating activities amounted to $595,677 for the six months ended June 30, 2024, mainly derived from (i) a decrease in accounts payable of $1,635,755, due to more settlement to the vendors closer to the end of the six months ended June 30, 2024, as compared to that of fiscal year ended December 31, 2023; and (ii) an increase in accounts receivable of $721,961, due to more billings to the customer closer to the end of the six months ended June 30, 2024, as compared to that of fiscal year ended December 31, 2023, which was partially offset by (i) net income of $320,444 for the six months ended June 30, 2024; and (ii) a decrease in prepayments and other current assets of $1,591,357, due to the settlement of the advances to the suppliers for the purchase of marine fuel during the six months ended 30 June 2024. 2 Net cash provided by operating activities amounted to $167,091 for the six months ended June 30, 2023, mainly derived from (i) net income of $893,495 for the six months ended June 30, 2023; and (ii) a decrease in accounts receivable of $229,887, due to more settlements by the customers closer to the end of the six months ended June 30, 2023, as compared to that of the fiscal year ended December 31, 2022, which was partially offset by (i) a decrease in accounts payable of $1,135,736, due to more settlement to the vendors closer to the end of the six months ended June 30, 2023, as compared to that of fiscal year ended December 31, 2022. No net cash was provided by/(used in) investing activities for the six months ended June 30, 2024 and 2023. Net cash used in financing activities amounted to $327,517 for the six months ended June 30, 2024, which mainly included the payments of offering costs related to the initial public offering of $324,069 during the six months ended June 30, 2024. No net cash was provided by/(used in) financing activities for the six months ended June 30, 2023. Recent Events On October 17, 2024, the Company closed its IPO of 1,250,000 ordinary shares, no par value per share, which were priced at $4.00 per share, and the offering was conducted on a firm commitment basis. The ordinary shares were approved for listing on the Nasdaq Capital Market and commenced trading under the ticker symbol "PTLE" on October 16, 2024. On November 4, 2024, Dominari Securities LLC, as the representative of the underwriters of the IPO, exercised its over-allotment option to purchase an additional 187,500 ordinary shares of the Company at the public offering price of US$4.00 per share. The closing for the sale of the over-allotment shares took place on November 6, 2024. About PTL Limited Headquartered in Hong Kong, we are an established bunkering facilitator providing marine fuel logistics services for vessel refueling, primarily container ships, bulk carriers, general cargo vessels, and chemical tankers. Targeting and serving the Asia Pacific market, we leverage our close relationships and partnership within our established network in the marine fuel logistic industry, including the upstream suppliers and downstream customers, to provide a one-stop solution for vessel refueling. Forward-Looking Statements Certain statements in this announcement are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company's current expectations, including the trading of its Ordinary Shares or the closing of the Offering. Investors can find many (but not all) of these statements by the use of words such as "approximates," "believes," "hopes," "expects," "anticipates," "estimates," "projects," "intends," "plans," "wil