Announcement • Feb 11

Davis Commodities Deploys AI-Driven Logistics to Improve Margins, Strengthen Cash Flow and Support Scalable Growth

Davis Commodities Limited is enhancing its profitability and capital efficiency through the strategic deployment of artificial intelligence ("AI") across its logistics and supply chain operations. This initiative is designed to improve gross margins, shorten cash conversion cycles and support scalable growth as the Company expands its presence in Asia, Africa and the Middle East. Operating across multiple geographies, product categories and counterparties, logistics efficiency is a key driver of Davis Commodities' operating margin and service reliability. By integrating AI-driven tools into its logistics framework, the Company aims to optimise shipment routing and scheduling to reduce freight andrage costs, improve demand forecasting and inventory planning to lower working capital needs, reduce operational bottlenecks and manual processing errors, and enhance visibility and real-time decision making across the end-to-end supply chain. These capabilities are expected to reduce operational friction, improve turnaround times and optimise cost structures, while maintaining the reliability and consistency expected by customers and partners. Over time, the Company believes this will translate into improved margin resilience and more predictable cash flows. Enabling Scalable and Sustainable Growth: AI-driven optimisation is a key enabler of scalability as Davis Commodities expands into new markets and higher value-added product segments, including value-added sweeteners and fast-moving consumer goods ("FMCG") initiatives. By leveraging intelligent systems, the Company expects to handle higher trade volumes and more complex routing requirements without a proportional increase in headcount or overhead. This technology-driven approach strengthens margin resilience, improves capital efficiency and supports more efficient use of logistics and warehousing capacity. It also reinforces Davis Commodities' ability to support downstream expansion and regional growth initiatives across Asia and beyond. In an industry where reliability, execution and risk management are critical, AI-enhanced logistics provides Davis Commodities with a differentiated operating platform. Improved forecasting accuracy and operational responsiveness enable the Company to better serve customers, mitigate supply chain and counterparty risks, and maintain high service standards even during periods of market volatility. The initiative aligns with the Company's broader strategy of integrating technology into core operations to reinforce its position as a modern, data-informed commodities and consumer-focused enterprise. The deployment of AI across logistics and supply chain processes is a strategic investment that supports Davis Commodities' long-term objectives of improving efficiency, enhancing competitiveness and driving disciplined, profitable growth. By embedding technology into its operational foundation, the Company aims to strengthen its margin profile through cost optimisation, shorten order-to-cash cycles, improve cash flow generation and build a more scalable platform for downstream expansion and regional growth initiatives. Attracting and Developing Future-Ready Talent: The adoption of AI also reflects Davis Commodities' commitment to building future-ready teams. As the Company continues to digitalise its operations, it is creating opportunities for professionals in logistics, data analytics, operations and technology to contribute to high-impact, real-world applications. This transformation supports a culture of innovation, continuous improvement and cross-functional collaboration, positioning Davis Commodities as an attractive platform for talent seeking growth within a global trading and supply chain environment. Looking ahead: Davis Commodities' investment in AI-driven logistics optimisation underscores its focus on operational excellence as a foundation for long-term growth. By combining industry expertise with advanced technology, the Company aims to scale efficiently, capture new opportunities and deliver sustainable value to shareholders, partners and employees.

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