DAVIS COMMODITIES Ltd

DAVIS COMMODITIES Ltd is engaged in the sale of commodity products, primarily sugar, rice, and oil and fat products. The company's earnings are largely dependent on the prices of these commodities, which are subject to fluctuations driven by factors such as world supply and demand, raw material supply, weather, crop yields, trade disputes, and governmental regulation. DAVIS COMMODITIES Ltd manages commodity price risks by selling sugar, rice, and oil and fat products on a cost-plus basis, or by hedging sugar product prices through futures contracts on commodity exchanges. For the fiscal year ended December 31, 2025, sugar products accounted for approximately 69.3% of the company's revenue. DAVIS COMMODITIES Ltd typically pre-orders sugar products from specific suppliers for the upcoming calendar year, based on annual forecasted demand. Rice and oil and fat products, along with other items such as creamer and FMCG products, collectively represented approximately 30.7% of the company's revenue for the fiscal year ended December 31, 2025. All rice and oil and fat products are sold to customers on a cost-plus basis.