SINGAPORE, Dec. 23, 2024 — Singapore-based Davis Commodities Limited (NASDAQ: DTCK) (“Company” or “Davis Commodities”) secured a S$10 million banking facility to boost operations and strategic growth. This funding will support the Company’s strategic expansion. Davis Commodities plans to use these funds to improve growth and operational efficiency in the competitive commodity trading and financing market.

A carefully planned strategy, tailored to the Company’s operations, industry, and risk profile, will maximize profitability. Davis Commodities has established several strategic priorities to drive growth and improve financial results.

Working Capital Optimization

The facility will optimize working capital management. Strategic inventory purchases of high-margin commodities will create value by:

• Securing bulk discounts from suppliers.
• Improving cash flow through faster inventory turnover, increasing revenue.

Expand Trade Credit

Offering trade credit to reliable customers for larger orders will boost sales and margins by:

• Providing short-term customer financing.
• Charging a small financing fee to increase profitability.

Invest in Supply Chain Efficiencies

Investing in supply chain improvements will reduce costs and enhance efficiency by:

• Streamlining logistics to lower delivery costs.
• Partnering with shipping companies for better rates and profit margins.

Hedging & Arbitrage Opportunities

Capitalizing on market price differences through hedging and arbitrage will:

• Utilize funds for hedging price volatility with futures or options.
• Exploit price differences by buying low and selling high in different markets.

Leverage Financing for Higher ROI Projects

Identifying and funding high-return projects with debt will drive returns by:

• Investing in projects with strong return potential.
• Ensuring financing costs are covered by profit margins.

Hedging and leveraging market differences will secure profit margins and optimize investment returns.

Secure Strategic Partnerships

Using the facility as collateral and forming strategic partnerships will strengthen market position and product offerings by:

• Creating joint ventures with suppliers or buyers.
• Co-investing in commodity processing to improve margins and product value.

These initiatives will allow Davis Commodities to utilize its resources and the bank facility to generate profits, sustainably scale operations, and enhance its competitive advantage in the commodity trading market.

About Davis Commodities Limited (NASDAQ: DTCK)

Davis Commodities Limited is a Singapore-based investment holding company operating in the global agricultural commodities market. The company trades and distributes staples like sugar, rice, and edible oils, primarily in Asia, Africa, and the Middle East. As a Nasdaq-listed company, Davis Commodities is committed to value creation through diversification, innovation, and sustainable practices.

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