CORRESP 1 filename1.htm

 

TMD ENERGY LIMITED

B-10-06, Block B, Plaza Mont Kiara

No. 2, Jalan Kiara, Mont Kiara

50480 Kuala Lumpur

Wilayah Persekutuan, West Malaysia

 

Via Edgar

 

February 4, 2025

 

Division of Corporation Finance

Office of Trade & Services

U.S. Securities & Exchange Commission

100 F Street, NE

Washington, D.C. 20549

 

Re: TMD Energy Limited (the “Company”)

Amendment No. 1 to Registration Statement on Form F-1

Filed January 10, 2025

File No. 333-283704

 

Dear SEC Officers:

 

We hereby provide a response to the comments issued in a letter dated January 29, 2025 (the “Staff’s Letter”) regarding the Company’s Amendment No. 1 to Registration Statement on Form F-1 (the “Amended F-1 No. 1”). Contemporaneously, we are filing the amended Registration Statement via Edgar (the “Amended F-1 No. 2”).

 

In order to facilitate the review by the Commission’s staff (the “Staff”) of the Amended F-1 No. 2, we have responded to the comments set forth in the Staff’s Letter on a point-by-point basis. The numbered paragraphs set forth below respond to the Staff’s comments and correspond to the numbered paragraph in the Staff’s Letter.

 

Amendment No. 1 to Registration Statement on Form F-1

Management, page 103

 

1. Please update your compensation disclosure to include the most recently completed fiscal year. Refer to Item 6.B of Form 20-F.

 

Response: We respectfully advise the Staff that we have revised page 109 of the Amended F-1 No. 2.

 

Cayman Islands Taxation, page 136

 

2. We note your revised disclosure in response to comment 3. Please revise your prospectus disclosure to state that the disclosure in the section “Cayman Islands Taxation” constitutes the opinion of Cayman Islands counsel, Ogier. Please also revise Exhibit 5.1 to consent to the reference to your firm in this section of the prospectus.

 

Response: We respectfully advise the Staff that we have revised pages 136 and II-4 of the Amended F-1 No. 2 (including Exhibit 5.1).

 

 
 

 

Unaudited Condensed and Consolidated Statements of Cash Flows For the Six Months Ended June 30, 2024 and 2023, page F-31

 

3. We note your response to prior comment 2 and the revised amounts in your statement of cash flows for the six month period ended June 30, 2024. Please provide us with a rollforward of the related party payables account from the beginning balance to ending balance showing borrowings, payments and the $5.3 million non-cash item. Also reconcile such activity to the $.24 million decrease in related party payables in you statement of cash flows. In addition, tell us why the effect of foreign currency translation on cash and cash equivalents changed from $.86 million to ($4.5) million. Lastly, revise your disclosure to comply with ASC 250-10-50-7.

 

Response:

 

(i) Please refer to Annex I to this response for the “Related Party Rollforward Analysis” as requested.
     
(ii) Please refer to the “Related Party Rollforward Analysis” for the reconciliation activity of the $0.24 million decrease in Related Party Payables which agrees to the statement of cash flows.
     
(iii) Upon further review, the management identified an error in the Foreign Currency Translation on the Cash and Cash Equivalents. Please refer to Note 3 in the financial statements as of June 30, 2024 and also Annex II to this response for the “Comparative schedule of the cash flow statements”.
     
  (iv) We respectfully advise the Staff that we have revised page 80, F-31 and F-40 of the Amended F-1 No. 2 relating to the financial statements including the compliance with ASC 250-10-50-7 in Note 3 of the financial statements as of June 30, 2024.

 

Please reach Lawrence Venick, the Company’s outside counsel at +852.5600.0188 if you would like additional information with respect to any of the foregoing. Thank you.

 

Sincerely,

 

/s/ Dato Sri’ Kam Choy HO  
TMD Energy Limited  
Chief Executive Officer  
Encl.  

 

 
 

 

Annex I
Related Party Rollforward Analysis

 

Rollforward Related Party Payables for the period from January 01, 2024 to June 30, 2024

 

    Related Party Payables  
Names of related parties   SMT     SML     SMM     Pan     DS     Total  
    USD     USD     USD     USD     USD     USD  
Opening balance per Balance Sheet     (154,982 )     (30,420 )     (19,865 )     (295,610 )     (21,716 )     (522,593 )
Ending Balance per Balance Sheet     (90,874 )     (40,171 )     (8,719 )     (130,241 )     (10,604 )     (280,609 )
Movement     64,108       (9,751 )     11,146       165,369       11,112       241,984  
                               
Opening balance     (154,982 )     (30,420 )     (19,865 )     (295,610 )     (21,716 )     (522,593 )
Cash movement Increase in Borrowings             (10,460 )             (1,659 )             (12,119 )
Repayment     64,191               10,682       167,241       10,604       252,718  
Reclassification     1,385                                       1,385  
      65,576       (10,460 )     10,682       165,582       10,604       241,984 #1
Non- cash movement                                              
APIC Reduction     -       -       -       -       -       -  
Total Decrease     65,576       (10,460 )     10,682       165,582       10,604       241,984  
Foreign Currency Translation Effect     (1,468 )     709       464       (213 )     508       -  
Total Movement including FX     64,108       (9,751 )     11,146       165,369       11,112       241,984  
Ending Balance     (90,874 )     (40,171 )     (8,719 )     (130,241 )     (10,604 )     (280,609 )

 

# 1 Agreed to cash flow statement’s - Decrease in related party payables

 

Abbreviation :

 

SMT Straits Management Services Sdn Bhd
SML Sinar Maju Logistik Sdn Bhd
SMM Sinar Maju Marin Sdn Bhd
Pan Pan Management Services Ltd
DS Dato’ Sri Ho Kam Choy

 

 
 

 

Rollforward Related Party Receivables for the period from January 01, 2024 to June 30, 2024

 

    Related Party Receivables  
Names of related parties   Straits     Victoria     V3     BH     SAT     SPM     SMT     En Raja     Total  
    USD     USD     USD     USD     USD     USD     USD     USD     USD  
Opening balance per Balance Sheet     1,623,241       631,778       74,066       110       1,024       93       1,385       1,469,762       3,801,459  
Ending Balance per Balance Sheet     617,290       822,060       72,165       108       1,000       91       -       1,463,668       2,976,382  
Movement     (1,005,951 )     190,282       (1,901 )     (2 )     (24 )     (2 )     (1,385 )     (6,094 )     (825,077 )
                                                                         
Opening balance     1,623,241       631,778       74,066       110       1,024       93       1,385       1,469,762       3,801,459  
Cash movement                                                                        
Advances to related parties     5,550,551       168,343                                               -       5,718,894  
Trade sales             39,402                                                       39,402  
Repayment     (1,238,635 )                                                     (31,472 )     (1,270,107 )
Reclassification                                                     (1,385 )             (1,385 )
      4,311,916       207,745       -       -       -       -       (1,385 )     (31,472 )     4,486,804 #2
Non- cash movement                                                                        
APIC Reduction     (5,311,880 )                                                             (5,311,880 )
Total Movement     (999,964 )     207,745       -       -       -       -       (1,385 )     (31,472 )     (825,076 )
                                                                         
Foreign Currency Translation Effect (FX)     (5,987 )     (17,463 )     (1,901 )     (2 )     (24 )     (2 )     -       25,378       (1 )
Total Movement including FX     (1,005,951 )     190,282       (1,901 )     (2 )     (24 )     (2 )     (1,385 )     (6,094 )     (825,077 )
Ending Balance     617,290       822,060       72,165       108       1,000       91       -       1,463,668       2,976,382  

 

# 2 Agreed to cash flow statement’s - Increase in due from related parties

 

Abbreviation :

 

Straits Straits Energy Resources Berhad
Victoria Victoria STS (Labuan) Sdn Bhd
V3 Victoria 3 Limited
BH Benua Hijau
SAT Straits Alliance Transport Sdn Bhd
SPM Straits Port Management Sdn Bhd
SMT Straits Management Services Sdn Bhd
En Raja Raja Ismail Bin Raja Mohamed

 

 
 

 

Annex II

Comparative Schedule of Cash Flow Statements

 

Comparative Schedule of Cash Flow Statements

 

Cash Flow Type Cash Flow Description   Form F-1 (Filing Dated 10 Dec 2024) (A)     Form F-1 (Filing Dated 10 Jan 2025) Amendment No. 1 (B)     (A) vs. (B) Changes     Form F-1 (Current Filing) Amendment No. 2 (C )     (B) vs (C ) Changes     (A) vs. (C ) Changes  
Operating (Increase) Decrease in due from related parties     825,076       825,076       -       (4,486,804 )     5,311,880       5,311,880  
Financing Decrease in related party payables     (5,553,864 )     (241,984 )     (5,311,880 )     (241,984 )     -       (5,311,880 )
Effect of foreign currency translation     859,151       (4,452,729 )     5,311,880       859,151       (5,311,880 )     -  
Non-cash financing and investing Reversal of additional paid-in capital via decrease in related party receivables     -       5,311,880       (5,311,880 )     5,311,880       -       (5,311,880 )