SINGAPORE, March 4, 2024 /PRNewswire/ -- Caravelle International Group (Nasdaq: CACO), a trailblazing global ocean technology company, is excited to announce a significant leap forward in its operational capabilities with the full commissioning stage of its pioneering wood drying ship. This innovative venture marks a significant milestone in the company's commitment to leveraging sustainable technologies and processes.

After meticulous planning and procurement, Caravelle International Group has successfully acquired all necessary components for the assembly of state-of-the-art wood drying equipment. The company is poised to commence the assembly and commissioning process in one month, heralding a new era in shipping and wood processing.

The project, costing $2.8 million for the remodeling of the ship, is not just an investment in equipment but a testament to Caravelle International Group's dedication to innovation and sustainability. Within a three-month timeline, the wood drying system will be fully operational, allowing the ship to enter service and revolutionize how wood is processed at sea.

The wood drying ship utilizes a groundbreaking approach by harvesting free energy from the heat of the engine's exhaust. This not only makes the drying process highly efficient but also significantly reduces the environmental impact, aligning with the company's sustainability goals. The potential revenue increase from this venture is substantial, with projections of up to $16.8 million per ship per year from the wood drying operation alone, in addition to the regular freight revenue. The high margins from this process underscore its financial viability and its role in enhancing the company's profitability.

This strategic initiative is set to dramatically improve Caravelle International Group's financial outlook, providing a buffer against the cyclical nature of the shipping industry. By diversifying its revenue streams and incorporating sustainable practices, the company is not only setting a new standard in the industry but also paving the way for a more profitable and environmentally responsible future.

"We are thrilled to embark on this transformative project that stands at the intersection of innovation, sustainability, and profitability," said Dr. Guohua Zhang, Chief Executive Officer of Caravelle International Group. "This initiative is a testament to our commitment to pioneering solutions that not only benefit our bottom line but also contribute positively to the environment and the global economy. We are confident that the wood drying ship will mark a significant milestone in our journey towards a more sustainable and profitable future."

About Caravelle International Group

Caravelle is a global ocean technology company. Its business comprises of two sectors: the traditional business in international shipping, operated by the Topsheen Companies (Topsheen Shipping Group Corporation (Samoa) and its subsidiaries) and the new CO-Tech business under Singapore Garden Technology Pte. Ltd. As the traditional business, Caravelle's international shipping business has generated all revenues. The CO-Tech business is a new development building upon the existing shipping business. It enables wood desiccation during the maritime shipping process, with full utilization of the shipping time, space, and the waste heat of exhaust gas from the shipping vessels. Caravelle's CO-Tech industry has no historical operations and has not generated revenue. Caravelle is headquartered in Singapore.

Forward Looking Statements

This announcement contains "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical fact, including, without limitation, those with respect to the objectives, plans and strategies of the Company set forth herein and those preceded by or that include the words "believe," "expect," "anticipate," "future," "will," "intend," "plan," "estimate" or similar expressions, are "forward-looking statements". Such statements include, but are not limited to risks detailed in the Company's filings with the U.S. Securities and Exchange Commission, including its Annual Report on Form 20-F for the fiscal year ended October 31, 2022. These forward-looking statements involve a number of risks and uncertainties, which could cause the Company's future results to differ materially from those anticipated. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated or anticipated by such forward-looking statements. All information provided in this press release is as of the date of the publication, and the Company does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

SOURCE Caravelle International Group